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Book Bi
Kington
nab library
Digitized by the Internet Archive
in 2018 with funding from
University of Maryland College Park
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NAB REPORTS
Vol.4
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * ★ * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * JANUARY 1, 1936
CtiyrllM. 1935. Tb* HitltMl Auwlitltn »f Br*id»»rt«r»
IN THIS ISSUE
New Utah Station Recommended .
Securities Act Registrations..^ .
Changes Recommended for KGCX .
Notes to Sales Staff .
WEDC License Renewal Recommended .
Pending Radio Legislation .
New Texas Grant Recommended . ._ .
Recommends Approval On Conditions .
Change Recommended for KMED
Recommends No Change for KFRO .
New Ohio Station Recommended
Recommends Denying Puerto Rican Station
Tennessee Grant Recommended .
Recommends Commission Affirm Order .
Wyoming Station Recommendations .......
Recommends Denying New Tampa Station.
Recommends Denying New Station .
Federal Trade Commission Action
Broadcast Advertising in November .
Federal Communications Commission Action
Page
1131
1131
1131
1131
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1131
1132
1132
1132
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1132
1132
1132
1132
1133
1133
1133
1133
1136
1139
NEW UTAH STATION RECOMMENDED
The Eastern Utah Broadcasting Company applied to the Fed¬
eral Communications Commission for a construction permit for
the erection of a new station to be located at Price, Utah, to use
1420 kilocycles, 100 watts power and unlimited time on the air.
Examiner P. W. Seward in Report No. 1-172 recommended that
the application be granted. The Examiner found that a need
for additional “service in the area does not exist,” and “that the site
at which it is proposed to construct and operate the station will
be in conformity with the recommendations of the Engineering
Department.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Capps Gold Mine, Ltd., Toronto, Canada (2-1807, Form A-l)
Oklahoma-Texas Trust, Tulsa, Okla. (2-1808, Form A-l)
Marine Airlines, Inc., New York City (2-1809, Form A-l)
Tip Top Gold Mines, Inc., Denver, Colo. (2-1810, Form A-l)
American Fidelity Corp., Ltd., San Diego, Cal. (2-1811, Form
G-l)
Samuel Mundheim, et al., New York City (2-1812, Form F-l)
Distillation Engineering Corp., Kansas City, Mo. (2-1813,
Form A-l)
Scottish-Plan Associates, Greenwich, Conn. (2-1814, Form A-l)
Florida Towing Corp., Jacksonville, Florida (2-1816, Form C-l)
Bank & Insurance Shares, Inc., Philadelphia, Pa. (2-1817, Form
C-l)
Columbia Crude Corporation, Salt Lake City, Utah (2-1818,
Form A-l)
Comsec Corporation, Jersey City, N. J. (2-1896, Form A-l)
CHANGES RECOMMENDED FOR KGCX
Broadcasting station KGCX, Wolf Point, Mont., applied to the
Federal Communications Commission to change its frequency from
1310 to 1450 kilocycles and to increase its power from 100 watts
and 250 watts local sunset to 1,000 watts and from specified hours
of operation to unlimited time.
Examiner John P. Bramhall, in Report No. 1-164, has recom¬
mended that the application be granted. He found that there is
need for additional service in the area proposed to be served ; and
that it “will serve public interest, convenience and necessity.”
NOTES TO SALES STAFF
Broadcast advertising reached nearly the $79,000,-
000 mark for the first eleven months of 1935, and
promises at least an $86,000,000 total for the year
as compared to slightly less than $73,000,000 in 1934.
(See Table I, page 1136.)
Salesmen of regional networks will be pleased to
see that regional volume has continued at 50.0%
ahead of the corresponding months of 1934. (See
Table I, page 1136.)
The continued strength of live talent business in
the national non-network field and the recent impor¬
tant increases in the use of transcriptions by local
broadcast advertisers should be of interest. (See
Non-network Advertising by Type of Rendition,
page 1137.)
The increased use of regional networks and na¬
tional non-network advertising by confectionery
manufacturers should be of interest, as should be
the sevenfold rise in national non-network automo¬
tive advertising. (See Sponsor Trends in October
and Comparison with 1934, page 1138.)
WEDC LICENSE RENEWAL RECOMMENDED
Broadcasting Station WEDC, Chicago, Ill., applied to the Fed¬
eral Communications Commission for license renewal. The appli¬
cation was designated for hearing by the Commission. It operates
on 1210 kilocycles, 100 watts power and specified hours.
Examiner R. H. Hyde, in Report No. 1-169, recommended that
the station’s license be renewed. The Examiner stated that “the
programs sponsored by Dr. Schyman and “Dr. Michael” did not
serve the public interest but were in fact inimical to the interests of
the public. The applicant’s evidence affords substantial assurance
that hereafter sufficient attention will be given to the selection of
program matter to prevent the repetition of such broadcasts.”
PENDING RADIO LEGISLATION
The second session of the Seventy-Fourth Congress will convene
on January 3. Inasmuch as this is not a new Congress but simply
another session the radio bills and other bills of interest to the
broadcasters are pending legislation and go ahead from their status
at the last session.
In addition to bills dealing specifically with radio there is the
copyright bill and the pure food and drug bill, together with sev¬
eral others which affect broadcasters. Following is a list of these
bills showing the committee to which they were referred and any
action which has been taken.
Senate
S. 4 — Copeland, Vandenberg, Murphy bill “to prevent the pro¬
motion of fraud through interestate communication” — Committee
on Commerce. No hearings held and no action.
S. ? — Copeland pure food and drug bill. Passed the Senate at
the last session and now pending before the House Committee on
Interstate and Foreign Commerce.
S. 541 — Capper bill “to prohibit the transportation in inter¬
state commerce of advertisements of intoxicating liquors” — Com¬
mittee on Interstate Commerce. No hearings and no action.
S. 820 — Neely bill “relating to costs in radio proceedings before
the Federal Communications Commission” — Committee on Inter¬
state Commerce. No hearings and no action.
S. 1336 — Wheeler bill “to amend paragraph (f) of section 4 of
the Communications Act of 1934” — Committee on Interstate Corn-
Page 1131
merce. Passed by the Senate and favorably reported by the House
Committee but no action by the House.
S. 2243 — Wheeler bill “relating to the allocation of radio facili¬
ties” — Committee on Interstate Commerce. No hearings and no
action.
S. 3047 — Copyright bill. Passed Senate at last session and now
pending in House Committee on Patents.
S. 3261 — Walsh bill to have foreign government programs ap¬
proved by State Department — Committee on Interstate Com¬
merce. No hearings and no action.
House
H. R. 55— Rudd bill “to amend the Radio Act of 1927” — Com¬
mittee on Interstate and Foreign Commerce. No hearings and no
action.
H. R. 197 — Buckbee bill “to prohibit untrue, deceptive, or mis¬
leading advertising through the use of the mails or in interstate
or foreign commerce” — Committee on Interstate and Foreign
Commerce. No hearings and no action.
H. R. 3252 — Sauthoff bill “to prohibit the use of the mails, cer¬
tain periodicals, and broadcasting stations, having a range cover¬
ing more than one State, to the advertising of loans for which
interest in excess of IS per cent per annum is charged” — Commit¬
tee on Post Offices and Post Roads. Hearings held March 8. No
report.
H. R. 8404 — Culkin bill “to prohibit advertising of alcoholic
beverages in interstate commerce” — Committee on Interstate and
Foreign Commerce. No hearings; no action.
H. R. 8475- — Monaghan bill “to amend the Communications
Act of 1934 by establishing a Radio Commission” — Committee on
Interstate and Foreign Commerce. No hearings and no action.
H. R. 8852 — McKeough bill to have foreign radio programs ap¬
proved by the State Department — Committee on Interstate and
Foreign Commerce. No hearings and no action.
H. R. 9229 — Scott bill “to amend section 326 of the Communi¬
cations Act of 1934,” dealing with censorship — Committee on In¬
terstate and Foreign Commerce. No hearings and no action.
H. R. 9230 — Scott bill “to amend section 315 of the Communi¬
cations Act of 1934” laying aside time for political and other un¬
censored broadcasts — Committee on Interstate and Foreign Com¬
merce. No hearings and no action.
H. R. 9231 — Scott bill “to add section 315 (a) to the Com¬
munications Act of 1934” making it obligatory for stations to keep
certain records — Committee on Interstate and Foreign Commerce.
No hearings and no action.
H. J. Res. 220 — Sirovich resolution “providing for the establish¬
ment of an executive department to be known as the ‘Department
of Science, Art, and Literature’ ” — Committee on Patents. Ex¬
tensive hearings but no report.
H. Res. 52— Dies censorship bill — House Committee on Rules.
No hearings and no action.
H. Res. 370 — Scott resolution providing for the establishment
of a “Broadcasting Research Commission” — Committee on Inter¬
state and Foreign Commerce. No hearings and no action.
NEW TEXAS GRANT RECOMMENDED
The Bell Broadcasting Company applied to the Federal Com¬
munications Commission for a construction permit to erect a
broadcasting station at Temple, Texas, to use 1200 kilocycles, 100
watts and daytime operation.
Examiner Melvin H. Dalberg, in Report No. 1-162 recom¬
mended that the application be granted “provided that the pro¬
posed transmitter and the erection of the antenna be in accordance
with the rules and regulations of the Commission.” The Examiner
found that the applicant is qualified to own and operate the pro¬
posed station — no question of quota is involved and “there is no
possibility of interference whatsoever either from existing stations
or by reason of pending applications.”
RECOMMENDS APPROVAL ON CONDITIONS
Paul R. Heitmeyer has applied to the Federal Communications
Commission for a construction permit for the erection of a new
broadcasting station at Salt Lake City, Utah, to use 1210 kilo¬
cycles, 100 watts and unlimited time.
Examiner P. W Seward, in Report No. 1-163, has recommended
that “if the application in Docket No. 2715 be finally approved
by the Commission that this application be denied, as it has not
been shown that a need exists for two 100 watt stations in Salt
Lake City; in the event said application in Docket No. 2715 be
denied by the Commission, then it is recommended that this appli¬
cation be granted.”
Page
CHANGE RECOMMENDED FOR KMED
Broadcasting Station KMED. Medford, Ore., applied to the Fed¬
eral Communications Commission to change its frequency from
1310 to 1410 kilocycles and power from 100 watts, 250 watts local
sunset to 250 watts, and hours of operation from unlimited time
to unlimited day and specified nighttime hours.
Chief Examiner Davis G. Arnold, in Report No. 1-167, recom¬
mended that the application be granted. He found that “a sub¬
stantial need for additional radio service in the area proposed to
be served does exist,” and that “the use of the applicant of the
frequency 1410 kilocycles, specified hours, will be in the public
interest.”
RECOMMENDS NO CHANGE FOR KFRO
Broadcasting Station KFRO, Longview, Texas, has applied to
the Federal Communications Commission for the facilities of Sta¬
tion KWEA, Shreveport, La., and the Oil Capital Broadcasting
Association has also asked for the same facilities and a permit to
construct a new station at Kilgore, Texas. KWEA operates on
1210 kilocycles with 100 watts power and unlimited time. Sta¬
tion KFRO now operates on 1370 kilocycles, 100 watts power day¬
time. KWEA asked license renewal.
Examiner George H. Hill, in Report No. 1-161, has recom¬
mended that the application of Station KFRO be denied; that the
application of the Oil Capital Broadcasting Association for a con¬
struction permit be granted to use the facilities of KWEA and
that the application of KWEA “for renewal of license be denied,
provided the application of the Oil Capital Broadcasting Associa¬
tion for a construction permit be granted. Otherwise the applica¬
tion for renewal of license of Station KWEA should be granted.”
NEW OHIO STATION RECOMMENDED
Herbert Lee Blye filed an application with the Federal Com¬
munications Commission asking for a construction permit for a
new station to be located at Lima, Ohio, to use 1210 kilocycles,
100 watts power and daytime operation.
Examiner Melvin H. Dalberg, in Report No. 1-171, has recom¬
mended that the application be granted. The Examiner found
that “there is considerable need in the area sought to be served for
local broadcasting service and the program material which is pro¬
posed seems to be of a satisfactory nature for a station of the
power requested. It does not appear that any interference with
the fair and efficient service of other stations would be involved,
nor that any serious interference would result by reason of pend¬
ing applications.”
RECOMMENDS DENYING PUERTO RICAN
STATION
Ralph Perez Perry applied to the Federal Communications Com¬
mission for permission to erect a new broadcasting station at
Santurce, Puerto Rico, to use 1340 kilocycles, 250 watts power and
unlimited time on the air.
Examiner Ralph E. Walker, in Report No. 1-170, has recom¬
mended that the application be denied. He found that “the rec¬
ord fails to disclose a need for the allocation of additional broad¬
cast facilities in the San Juan area, especially in view of the fact
that the existing facilities are not fully used.” It was further
found by the Examiner that “it does not appear that the qualifi¬
cations of the applicant are such that a station operated by him
could reasonably be expected to provide an improved program
service in the area.”
TENNESSEE GRANT RECOMMENDED
W. A. Patterson, filed an application with the Federal Com¬
munications Commission asking for a construction permit for the
erection of a new broadcasting station at Chattanooga, Tenn., to
use 1420 kilocycles, 100 watts power and daytime operation.
Examiner George H. Hill, in Report No. 1-168, recommended
that the application be granted. He found that a need exists in the
proposed area for additional radio service, and he states that “the
granting of this application will serve public interest, convenience
and necessity, provided the application of Dudley J. Connolly
and Company is denied.”
RECOMMENDS COMMISSION AFFIRM FORMER
ORDER
WJJD, Inc., Chicago, Ill., seeking authority to move the trans¬
mitter of Station WJJD from Mooseheart to Des Plaines, Ill., was
1132
granted by the Commission. Thereafter it was reconsidered and
designated for hearing on protest filed by the Chicago Federation
of Labor’s station WCFL.
Examiner Ralph L. Walker, in Report No. 1-166, states that
“the matter was called for hearing on December 16, 1935, at which
time it was stated on behalf of the protestant that a continuance
had been requested and denied, that counsel for the protestant was
unable to be present and that the protest would be withdrawn. It
is accordingly recommended that the protest be dismissed and that
the Commission affirm its original action granting the application.”
WYOMING STATION RECOMMENDATIONS
Paul R. Heitmeyer applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new sta¬
tion at Cheyenne, Wyom., to use 1210 kilocycles, 100 watts power,
250 watts LS and unlimited time on the air. Also the Wyoming
Radio Educational Association applied to the Commission for a
construction permit for a new station at Cheyenne to use 630
kilocycles, 500 watts power, 1,000 watts LS and unlimited time.
Examiner P. W. Seward, in Report No. 1-173, recommended
that the application of Mr. Heitmeyer be granted but that the
application of the Educational Association be denied.
The Examiner states that “from the evidence adduced concern¬
ing the application of the Wyoming Educational Association it is
impossible to draw a definite conclusion concerning technical,
financial, and other qualifications of this applicant.” He found,
however, that “a need for the service proposed to be rendered
in the area does exist.” He also found that granting of the Edu¬
cational Association application would result in “serious and ob¬
jectionable interference with the operation of existing licensed
stations.”
RECOMMENDS DENYING NEW TAMPA STATION
The Florida West Coast Broadcasting Company, Inc., applied
to the Federal Communications Commission for a construction
permit for the erection of a new station at Tampa, Florida, to use
1370 kilocycles, 100 watts power and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-165, recommended
that the application be denied. He found that “the area proposed
to be served by applicant is already receiving ample radio service
and the evidence fails to show that the applicant would render a
service or a type of service that is not now being received in this
same area.” The Examiner found also that the interests of Sta¬
tion WMBR would be adversely affected by the grant.
RECOMMENDS DENYING NEW STATION
The Valley Broadcasting Company filed an application with the
Federal Communications Commission asking for a construction
permit for a new station to be erected at Pomona, Cal., to use
1160 kilocycles, 250 watts power and daytime operation.
Examiner R. H. Hyde, in Report 1-174, recommends that the
application be denied. It was found by the Examiner that “the
operation of the proposed new station would cause objectionable
interference to existing stations and the service area of the new
station would be restricted to a substantial degree by interference
with other stations.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be used against them.
No. 2653. Unfair competition in the sale of men’s suits is alleged
in a complaint issued against Harry Kapust, of Chicago, trading
as Roselile Manufacturing Co. and as Roselile Clothing Manu¬
facturing Co.
Kapust, according to the complaint, represented through sales¬
men that the men’s suits sold by the respondent were tailored to
purchasers’ individual measurements, when in fact not all suits
sold by the respondent were made to individual measurement and
many of the orders for suits were filled from stock and the
clothes altered when necessary to conform to customers’ measure¬
ments.
No. 2657. Alleging unfair competition in the sale in interstate
commerce of steel wool cleaning pads, a complaint has been issued
against Maurice Levine, of New York City, trading as E-Z
Kleener Manufacturing Co., Red-I Pad Co., Red-Y Pad Co.,
and as R-P Manufacturer and Distributor.
Page
Designating cartons in which his products were packed by
phrases such as “E-Z Kleener,” and “Mfd. by Red-I Pad Co., New
York,” the respondent represented himself to be the manufacturer
of the products he sold, when, according to the complaint, he did
not own or operate a factory wherein these preparations were
made, but purchased them from the manufacturers.
These representations, according to the complaint, were false and
misleading, and tended to deceive buyers into believing that in
purchasing from the respondent they were dealing with the man¬
ufacturer, thereby gaining an advantage by saving the middleman’s
profits.
No. 2658. A complaint has been issued against Meyer Brodie
and Morris White, of 15 West 20th Street, New York City, trading
as M & M Bag and Suit Case Company, charging unfair com¬
petition in the sale of their products.
The complaint alleges that the respondents designated as “War¬
ranted, Top Grain Cowhide, Leather” certain articles made of
split leather, which is of inferior quality and durability as com¬
pared with top grain leather. The complaint alleges that certain
pieces of luggage manufactured and sold by the respondents were
made from top grain leather, while other pieces were made from
split leather.
No. 2659. Advertising dry goods as “tub fast,” when in fact
they were not dyed with tub fast dye, is alleged as an unfair method
of competition in a complaint issued against H. T. Poindexter &
Sons Merchandise Co., of Kansas City, Mo.
The company is alleged to have represented certain cotton print
goods as being tub fast or as containing qualities making them
proof against fading when washed in the normal course of use.
The complaint alleges they were not tub fast as the term is gen¬
erally understood in the cotton print goods trade, and that use of
this term to describe such goods tended to divert business from
competitors.
No. 2660. Eleven companies manufacturing and selling more
than 90 per cent of the total volume of zinc and copper plates used
for engraving purposes and sold in interstate commerce in the United
States, and their trade association, the Photo Engravers Copper
& Zinc Grinders Association, have been served with a complaint
alleging that they entered into an agreement, combination or con¬
spiracy to restrict and suppress competition in the sale and dis¬
tribution of zinc and copper plates to newspapers and other photo
engraving customers.
The respondent companies are: Edes Manufacturing Co.,
Plymouth, Mass.; American Steel & Copper Plate Co., Jersey
City, N. J. ; New York Steel & Copper Plate Co., Brooklyn;
Rolled Plate Metal Co., Brooklyn; National Steel & Copper
Plate Co., Chicago; Harold M. Pitman Co., Cicero, Ill.; Pa¬
cific Steel & Copper Plate Co., San Francisco ; American Zinc
Products Co., Greencastle, Ind.; American Nickeloid Co.,
Peru, III.; C. G. Hussey & Co., Pittsburgh; and Bridgeport
Engravers Supply Co., Bridgeport, Conn.
Headquarters of the Photo Engravers Copper & Zinc Grinders
Association are at Jersey City, N. J.
The respondents are alleged to have entered into an understand¬
ing, agreement, combination or conspiracy to restrict competition
in the sale of their products by agreeing to fix and maintain uni¬
form prices, terms and discounts at which zinc and copper plates
are to be sold, and to cooperate in enforcing and maintaining
these prices, terms and discounts by exchanging information
through the association. The association is alleged to have acted
as a clearing house for such exchange of information, including re¬
ports of sales of zinc and copper plates, together with the prices,
terms and discounts.
No. 2661. In a complaint issued against the Chattanooga Auto¬
motive Jobbers Association, of Chattanooga, Tenn., and the
Tennessee Automotive Jobbers Association, of Knoxville,
Tenn., and their officers and members, are alleged to have entered
into agreements, combinations, understandings and conspiracies to
fix and maintain uniform prices to be exacted by them from pur¬
chasers of automobile parts and accessories. The members of
the respondent associations are charged with attempting to re¬
strict sales of such parts and accessories by manufacturers to and
through jobbers.
No. 2662. Sales methods involving a game of chance in the sale
of candy, are alleged in a complaint issued against Brecht Candy
Co., of Denver. The push card and punch board were among the
devices used, according to the complaint. The respondent’s prac¬
tices are alleged to constitute unfair methods of competition and to
be contrary to public policy.
No. 2663. Alleging unfair competition in the sale of incan¬
descent lamps and glass lamp globes, a complaint has been issued
1133
against Day-Lite Illuminating Corporation, of 100 West Chicago
Avenue, Chicago.
Representations of the respondents are alleged to have had a
tendency to deceive the public into believing that the respon¬
dents’ lamps of equal or less watt measurement and of equal volt
measurement, would give an average efficient light perform¬
ance equal to that of competing lamps, and at the same time fur¬
nish more light at less cost for current than competitors’ lamps.
Nos. 2664-2665-2666. Complaints have been issued charging two
companies with misrepresenting medicinal products sold in inter¬
state commerce, and a smoking pipe manufacturer with repre¬
sentations suggesting that certain of its products have been en¬
dorsed by the medical profession, when this is not the fact.
McCambridge & McCambridge Co., Inc., of 12 L Street, S. E.,
Washington, D. C., trading as Everfresh Products Co., is alleged
to have advertised its “Everfresh Aspirin” so as to disparage
competitors’ products and tend to deceive buyers into the belief
that “Everfresh Aspirin” is better and gives quicker relief than
ordinary aspirin ; that it relieves tired spells, and cures nerve ail¬
ments and other troubles ; and other similar representations. The
complaint charges that the respondent’s product does not continue
to remain fresh longer than any other aspirin but will decompose
within the usual time in which ordinary aspirin will decompose.
J. H. Casey, of Portland, Ore., trading as J. H. Casey Co., and
advertising “Casey’s Compound” as a cure, remedy and treatment
for rheumatism, arthritis and other related ailments, is alleged to
have untruthfully represented that marvelous results accrue to
persons afflicted with these ailments, who use the respondent’s
compound. The complaint alleges that the product has little if any
curative value in treating these diseases.
Engaged in manufacturing smoking pipes, S. M. Frank & Co.,
Inc., of New York City, is alleged to have branded and advertised
certain of its products as “Medico.” The complaint charges that
this practice tended to deceive buyers into believing that the pipes
had been endorsed by the medical profession and were so con¬
structed or treated as to eliminate or greatly reduce the harmful
effects of ordinary pipe smoking. In fact, according to the com¬
plaint, these pipes had not been so endorsed, and were no less
harmful or more healthful to the smoker than many pipes made
and sold by other manufacturers.
No. 2667. Unfair competition through representation of cigars
not made of Cuban tobacco, as “Garcia’s Havana Smoker,” is
alleged in a complaint issued against Havana Florida Cigar Co.,
of SOI North Madison St., Quincy, Fla.
The complaint charges that the respondent’s cigar does not con¬
tain Havana tobacco nor tobacco grown on the island of Cuba,
in any appreciable amount. The respondent’s representation, ac¬
cording to the complaint, tends to deceive buyers into believing
that the respondent’s product is composed in whole or in large part
of Havana tobacco.
No. 2668. Alleging unfair competition in the sale of incan¬
descent lamps, a complaint has been issued against Fannie Chano-
witz, of 68 Charlton St., Newark, N. J., trading as Atlas Prod¬
ucts Co.
The complaint charges that the respondent’s lamps were dem¬
onstrated and sold in a manner tending to deceive prospective pur¬
chasers into believing that they were of the same watt measure¬
ment and produced more light than competitors’ lamps being used
by such purchasers. According to the complaint, this was accom¬
plished by marking the respondent’s wattage lower than actually
was the case but corresponding to the truthfully marked wattage
of competitors’ lamps, then comparing the amount of light given
by the two, to the consequent disadvantage of competitors.
No. 2669. General Tire & Rubber Co., of Akron, Ohio, is
charged with unfair competitive methods in a complaint.
According to the complaint, this company advertised in news¬
papers and over the radio that its “New General Dual Balloon
Tire” was “Blowout-Proof,” when in fact this was not true. This
practice is said to have had a tendency to deceive the tire-purchas¬
ing public, and to promote the purchase of these tires in prefer¬
ence to products of similar types and quality offered by other
manufacturers, retail dealers and distributors, who did not mis¬
leadingly advertise their articles to be blowout-proof.
Stipulations
The Commission has announced the following cease and desist
orders:
Nos. 0992-0998. Western Broadcast Co., operator of radio
station KNX, Hollywood, Calif., has entered into stipulations to
abide by action taken in five cases before the Commission involv¬
ing companies which advertised their products over station KNX.
Page
The five companies had previously entered into stipulations with
the Commission to cease and desist from certain unfair advertising
practices. These companies are: Nourishine Manufacturing Co.,
Los Angeles; Germania Tea Co., Minneapolis; Old Mission
Tablet Co., Pasadena, Calif.; King’s Better Vision Institute,
Los Angeles; and Tablet Sixty-Six Co., Los Angeles.
In its stipulations with the Commission, the radio station ad¬
mits broadcasting advertisements of these companies, and agrees
to observe and abide by stipulations previously signed by the ad¬
vertisers and accepted and approved by the Commission.
Truth Publishing Co., Inc., operator of radio station WTRC,
Elkhart, Ind., admits broadcasting advertisements for Deuel’s, of
Centerville, Mich., distributor of an ointment, and agrees to abide
by a stipulation previously entered into by the advertiser with the
Commission.
In this group of stipulations is one between the Commission and
the Conley Co., Inc., of Rochester, Minn., selling a mechanical
device called “The Hemp Bodi-Massager.” The company agrees
to cease representing in published advertisements that use of its
device alone will cause a reduction in fat or weight; that no
other reducing or beauty building method is as effective or as
safe as the method recommended by this company, and that by the
use of this device, hips can be rolled away in twenty minutes a
day, and other representations.
Nos. 0999-01000-01002-91003. Three broadcasting stations have
entered into stipulations to abide by action taken in a case involving
advertising matter issued by K. A. Hughes Co., of Boston, dealer
in “Salicon,” a cold remedy. The broadcasting companies are:
Shepard Broadcasting Service, operating Station WNAC, Boston;
Congress Square Hotel Co., Station WCSH, Portland, Me.; and
the WGAR Broadcasting Co., Station WGAR, Cleveland.
In their stipulations with the Commission, the radio stations
admit broadcasting advertisements of this company, and agree to
observe and abide by a stipulation previously signed by the ad¬
vertiser and accepted and approved by the Commission.
The Eucathol Co., Inc., of Shawnee, Okla., dealer in a medici¬
nal preparation, has entered into a stipulation with the Commis¬
sion to cease representing its product, “Eucathol,” as a com¬
petent remedy for treating skin disorders, asthma, hay fever and
other diseases, and that it will check a cold by application to
chest, throat and head. The respondent also agrees to discon¬
tinue assertions that “Eucathol” will stop a child from coughing
in one minute; will break a cold in one night, or that it quickly
relieves prickly heat, poison ivy or most skin humors or diseases,
and other similar allegations.
No. 1548. Arista Silk Mills, Inc., of 499 Seventh Avenue,
New York City, engaged as a jobber dealing in silks, rayons and
cottons, according to the stipulation, displayed its corporate name,
“Arista Silk Mills, Inc.”, so including the word “Mills” on its
business stationery, when in fact the company did not own, con¬
trol or operate a mill wherein its products were made, but pur¬
chased these articles from others. The respondent agrees to dis¬
continue this use of the word “Mills.”
No. 1549. Morris Gottsegen and David Jacoby, of 901
Broadway, New York City, co-partners, trading as Mills Sales
Co. and Honor Research Laboratories, engaged as jobbers in
selling pharmaceutical preparations, used the trade name contain¬
ing the words “Research Laboratories,” in selling a mineral oil,
when, according to the agreement, they did not own a laboratory
or place devoted to experimental study in any branch of natural
science. In their stipulation, they agree to stop employing the
words “Research Laboratories,” as part of their trade name.
No. 1550. R. & K. Leather Goods Co., Inc., of 38 West 32nd
St., New Y ork City, and Perth Amboy, N. J., manufacturers and
distributors of ladies’ pocketbooks, sold their products labelled,
billed and represented as “Genuine Cowhide,” “Genuine D. B.
Cowhide,” and “Genuine Seal” (the letters “D. B.” meaning, in
the language of the trade, “Deep Buff”), or the first cut beneath
the top grain after the leather has been split off, according to the
agreement. The stipulation sets out that in fact these products
consisted of split leather, and not of leather made from the entire
hide of a cow or a seal, or of leather made from the top or grain
cut or outer layer of the hide, so as to be properly designated as
“leather,” but were composed of a cut or layer other than such top
or grain cut. The respondents agree to discontinue advertising
such products as being manufactured from genuine leather.
No. 1551. Forest City Manufacturing Co., of 1627 Wash¬
ington Ave., St. Louis, manufacturing cotton dresses, furnished
its retail customers with mats which were used by them in ad¬
vertising the respondents’ products, according to the agreement.
The stipulation says that in some of the mats, certain products
were represented as made of “Linon,” when in fact they were not
1134
made of the fiber of the flax plant. The respondent company agrees
to discontinue use of the word “Linon” in any way which may
tend to deceive buyers into believing that the articles described are
made of the fiber of the flax plant, when this is not true.
No. 1552. Manhattan Import Co., Inc., of 861 Broadway,
New York City, importers of various novelties, is said to have
distributed supplies of toothpicks in interstate commerce, adver¬
tising them as “Sliverless, Sanitary, Polished, Automatically
packed.” They were packed in pasteboard containers which bore
the words “Perfect Toothpicks, Sliverless, Sanitary, Polished, Auto¬
matically Packed,” when, according to the agreement, they were
not packed by machinery, or automatically packed, and certain of
the products were not properly and correctly represented as “Sani¬
tary.” The respondent agrees to cease and desist from advertising
toothpicks as sanitary, and packed by machinery or automatically
packed, when these are not the facts, and to discontinue ad¬
vertising toothpicks of foreign manufacture without indicating
clearly the country of their origin.
No. 1553. F. J. Kirk, of 116 Market St., Philadelphia,
trading as Franklin Sales Company and Franklin Labora¬
tories, and selling “Lucky Tiger Hair Tonic,” agrees to stop em¬
ploying the word “laboratories” as part of the trade name under
which he operates his business, and from using this word in any
way which may tend to confuse buyers into believing that he
owns and operates a laboratory in which his product is made or
compounded, when this is not true.
No. 1554. United States Plywood Co., Inc., of 603 West 36th
St., New York City, selling and distributing plywoods or wood
veneers, agrees to stop using the word “walnut,” either indepen¬
dently or in connection with the word “Oriental,” or with other
words so as to imply or have a tendency to deceive buyers into
believing the product to be made of wood derived from trees of
the walnut family, when the same is not true.
No. 1555. Linder Bros., Inc., of Scranton, Pa., and New
York City, manufacturers of knitted topcoats, agrees to abandon
use of the word “loomed” to describe products not woven on a
loom, and to discontinue use of this word in any way which may
tend to deceive buyers into the belief that the products so
described are woven on a loom, when this is not true.
No. 1556. Western Coaching Bureau, Inc., with headquar¬
ters in San Francisco and branches in Oakland and Los An¬
geles and Chicago, is reported in the stipulation to have displayed
on its letterheads and in its various offices the words “Western
Coaching Bureau” in connection with the words “Civil Service,”
and to have distributed an advertising catalogue entitled: “Golden
Opportunities in Government Service.” On the front and back
covers of this, and on many inside pages, appeared the words
“Civil Service,” enclosed in a circular device having in the center
the monogram “W.C.B.,” which device, according to the stipula¬
tion, resembled the official seal of the United States Civil Service
Commission. The respondent agrees to stop using the w’ords “Civil
Service” in its advertising, either independently or in connection
with other words, especially in connection with a seal simulating
that of the Civil Service Commission, in any way which may tend
to cause the public to believe that the company represents or has
an official connection with the United States Civil Service Com¬
mission, or is an agency of the Federal Government. Other similar
representations will be discontinued.
No. 1557. Hoppers Products Company, with headquarters
in Pittsburgh, and having branches in various states, manufactures,
among other things, coal-tar products and other materials used in
making built-up roofing composed of alternate layers of rag felt
and coal-tar pitch. In its stipulation, Koppers Company agrees
that in selling its pitch-and-felt roofs in interstate commerce, it
will cease using in advertisements allegations to the effect that the
so-called “smooth top” roofings sold by competitors “fail in a few
years,” or that such roofings “are usually failures,” or “fail by per¬
manent cracking,” or “become cheesy,” when, according to the
agreement, such representations are not warranted in fact.
The corporation further agrees to cease and desist from using
in its advertising matter or otherwise, any misleading or exagger¬
ated representations concerning the efficiency, durability, quality or
effectiveness of the products of competitors.
No. 1558. The Williamson Company, of Baltimore, engaged
in manufacturing wood veneers, will discontinue use of the words
“African Walnut” in its printed matter or as a trade designation
for its products so as to imply that its products are made of wood
derived from trees of African origin and of the botanical walnut
family, when this is not true.
No. 1559. Five Star Products, Inc., of 235 West 69th St.,
New York City, manufacturing a syrup product called “May-Pell,”
will abandon the use on its brands or labels of the coined word
“May-Pell,” or any other phonetic spelling of the word maple, so
as to imply or have a tendency to deceive purchasers into believ¬
ing the product to be composed of maple syrup. Provision is made
that when the preparation is made in substantial part of maple
syrup, the coined word “May-Pell,” if used to describe the maple
content, shall be immediately accompanied by other words in
equally conspicuous type to clearly indicate that the product is not
made wholly of maple syrup.
No. 1560. Lester A. Stem, of 229 West Jackson Boulevard,
Chicago, trading as Progressive Medical Co., and Peter S.
Banff, of 1261 Argyle Street, Chicago, formerly trading as
American Pantosept Co. (1561), in the sale and distribution of
antiseptic tablets for women’s use, agree to stop advertising their
products as contraceptives. Banff also agrees to cease using the
word “Manufacturers,” in advertising matter, when in fact he
does not own or control a laboratory or factory, and to discon¬
tinue misrepresenting the purposes or results of tests of feminine
hygiene products made by Prof. Dr. Baker at Oxford University.
No. 1562. Frank W. Winne & Son, Inc., of 44 North Front
Street, Philadelphia, a wholesaler of twine, cordage and yarns,
with branch offices in Maryland, Ohio and Michigan, agrees to
cease and desist from using the words “Farm Bureau” on labels
attached to its products, so as to imply that they are sold by one
or more farm bureaus such as the Ohio Farm Bureau Service
Co., of Columbus, O., the Indiana Farm Bureau Cooperative Asso¬
ciation, Inc., of Indianapolis, or Farm Bureau Services, Inc., of
Lansing, Mich., all of which are engaged in purchasing and dis¬
tributing farm supplies, including binder twine, and are members
of the Farm Bureau Milling Co., of Columbus, Ohio, which was
organized primarily to facilitate contract negotiations for seed
and other farm supplies on behalf of the individual farm bureaus.
No. 1563. Lima Business College, and the Civil Service In¬
stitute, Inc., both of Lima, Ohio, agree to cease and desist from
use of the words “Civil Service,” as part of or in connection with
a corporate or trade name under which to transact their business,
either independently or in connection with the word “Institute,”
tending to confuse purchasers into the belief that the Civil Service
Institute, Inc., is a branch of or has some official connection
with the United States Government or the Civil Service Commis¬
sion. The respondents agree to stop making exaggerated repre¬
sentations regarding the number of persons given employment an¬
nually under the Civil Service, of the salaries paid, or inaccur¬
ately representing the ages at which men and women are eligible
for Civil Service appointment, and alleging that Civil Service em¬
ployees have no lay-offs.
The stipulations also list as respondents Hugh W. Henry, presi¬
dent, and Iva B. Henry, secretary, of Lima Business College, a
defacto corporation, and Harry J. Strasburg, president, and Hugh
W. Henry as secretary and treasurer of The Civil Service In¬
stitute, Inc.
No. 1564. Moses and Jack Kranish, of 219 West 38th Street,
New York City, trading as Clinton Silk Mills, and engaged in
the business of purchasing griege silk goods which they convert
into finished products, agree to stop using the word “Mills” in
connection with their trade name, or in any way which may tend
to deceive buyers into believing that they own, control and oper¬
ate a mill, when this is not true.
No. 1565. Rainbow Trading Co., Inc., 327 East 5th Street,
New York City, engaged in the importation of merchandise and
in the sale and distribution of both imported and domestic goods,
agrees to cease selling in interstate commerce toothpicks packed in
boxes or other packages the appearance of which is contrived or
formed in size, color and type resembling boxes or other packages
in which similar merchandise is sold by a competitor. This com¬
pany is said to have sold imported toothpicks in containers
simulating containers in which similar products were sold by the
Estate of Charles Forster, of Strong, Maine, manufacturer of wood
toothpicks. The Rainbow Trading Co. also agrees to stop use on
labels or cartons or in advertisements of the word “Sanitary,” to
describe products not made under hygienic or sanitary conditions.
No, 1566. Nathan Bernstein, of 31 West 26th Street, New
York City, trading as Excel Luggage Company, selling and
distributing luggage, agrees to cease branding or labeling his prod¬
ucts as “cowhide,” and “leather,” implying that they are composed
of leather made from the top or grain cut of the hide; unless, when
they are composed of leather made from the inner or flesh cut,
the word “leather,” or “cowhide,” shall be accompanied by the
word “split,” or other suitable word in conspicuous type, to indi¬
cate clearly that the articles are not composed of leather made
from the top or grain cut of the hide.
No. 2258. The Linen Supply Association of the District of
Columbia and its officers and members have been ordered to cease
Page 1135
and desist from combining or cooperating among themselves or
with others to control the solicitation and allocation of customers,
and to fix or maintain uniform prices, discounts, and terms of
supplying and distributing their service in linen coats, aprons,
towels and table linen.
The order also bans the exchange of information among mem¬
bers or with others regarding contemplated changes in prices or
terms and conditions of supply and distribution of their service,
and regarding agreement as to adoption or distribution among two
or more members or others of lists containing schedules of uniform
prices, discounts and conditions of supply and distribution.
No. 2290. Resale price maintenance is prohibited in an order
issued against Cape Cod Shirt Co., Inc., of Fail River, Mass.
This respondent is ordered to cease and desist from entering into
contracts, agreements and understandings with customers or deal¬
ers, requiring or providing for the maintenance of specified resale
prices on products of its manufacture.
No. 2332. Misleading representations in the sale of fountain
pens and pencils are prohibited in an order to cease and desist issued
against Harry Sachnoff, of 206 Broadway, New York City,
formerly trading as Park Row Pen Co., and against Argo Pen-
Pencil Co., Inc., at the same address.
The respondents are ordered to stop representing directly or in¬
directly that they are manufacturers of fountain pens and pencils
until and unless they engage in such manufacture, or actually own
and control a factory wherein the articles they sell are made.
No. 2498. Misleading representation of products as to their
country or place of origin is prohibited in an order to cease and
desist issued against Prince Matchabelli Perfumery, Inc., of
New York City.
This respondent is directed to stop using any sign, symbol or
legend upon containers or cartons of merchandise, indicating a
particular country as the country of origin of such merchandise,
unless, in fact, the merchandise shall have originated in the country
indicated.
No. 2527. Selling in interstate commerce various brands of dog
foods, the Old Trusty Food Co., of Needham Heights, Mass.,
has been ordered to cease and desist from misleading representa¬
tions.
The company is directed to discontinue, in the sale of “Old
Trusty Bovex,” from advertising that the product is “6 2y2 per
cent government inspected beef and beef products,” or any other
representation of like purport, unless and until this food contains
62/ per cent government inspected beef and beef products.
No. 2589. The Thomasville Chair Co., of Thomasville,
N. C., has been ordered to cease and desist from advertising as
“Mahogany,” “Mah,” “Walnut” or “Oriental Walnut,” furniture
not made from wood derived from trees of the mahogany and wal¬
nut families, respectively. The respondent had waived trial of the
case and consented to issuance of the order.
No. 2590. Using a corporate name containing the word “Manu¬
facturing,” or representing by other means that the respondent is
a paper manufacturer, when such is not the fact, is prohibited in
an order to cease and desist issued against Brenner Paper Manu¬
facturing, Inc., of New York City, engaged in converting and
printing.
The order contains the provision: “Unless and until said re¬
spondent actually manufactures the paper it sells or offers for sale,
or owns or absolutely controls a mill, mills, factory or factories in
which such paper is manufactured.”
No. 2604. Lednew Corporation, of Jersey City, N. J., has
been ordered to cease and desist from misleading representations of
the qualities of incandescent lamps sold for general lighting service.
The order prohibits representation to dealers or others that the
watt measurement of lamps is other than the actual watt measure¬
ment thereof, after allowing for the tolerance recognized by in¬
dustry and coinciding with that allowed in lamps purchased for
the Federal government.
Court Fines Leavitt
No. 1166. The Federal Trade Commission has been advised by
the United States Circuit Court of Appeals for the Second Cir¬
cuit (New York City), that it has assessed a fine of $1,000 against
Louis Leavitt, paint manufacturer, of Brooklyn, N. Y., for viola¬
tion of a decree of that court affirming an order of the Federal
Trade Commission directed against the misbranding of paint
products.
A Commission cease and desist order prohibited Leavitt from
designating and describing a product sold by him in interstate
commerce “by means of brands, labels, or otherwise, by use of
the terms ‘Gold Seal Combination White Lead,’ or ‘Combination
White Lead,’ unless the product so designated and described ac¬
tually contained sulphate of lead or carbonate of lead or the two
in combination as its principal and predominant ingredient to the
extent of not less than fifty per cent by weight of the product.”
He was also forbidden from “using and employing any other desig¬
nation, brand or label, upon the containers of products” sold by
him in interstate commerce “which falsely represent the relative
quantity of genuine white lead contained in said products.”
BROADCAST ADVERTISING IN NOVEMBER
Developments of the Month
Broadcast advertising during November amounted to
$8,211,349, a decrease of 2.2% as compared to the preced¬
ing month. A decline of this proportion is the usual trend
at this season. Local broadcast advertising, however,
went counter to the usual seasonal trend and increased
8.8% as compared to October.
Gains continued to be experienced as compared with the
corresponding period of the preceding year. Total broad¬
cast advertising during the month exceeded the November
1934 level by 13.6%. National network advertising rose
3.8%, regional network advertising 20.5%, national non¬
network volume 27.0%, and local broadcast advertising
30.0%. Broadcast advertising during the first eleven
months of 1935 exceeded the preceding year’s level by
19.8%.
Total non-network advertising in November was 9.4%
greater than during the preceding month and 28.2% above
November 1934 volume. Non-network advertising over
local stations continued to show the greatest relative
gains, as did non-network volume in the Southern and
Pacific areas.
Live talent business continued to show the greatest
strength in the national non-network field, while the recent
increased use of transcriptions in local broadcast adver¬
tising also continued throughout November.
National and local non-network automotive advertising,
national non-network cosmetic, food, radio set and tobacco
volume, local clothing, housefurnishings and financial ad¬
vertising, regional network pharmaceutical and clothing
volume, and national network radio set advertising were
among the fields to show the greatest increase in volume
as compared to November 1934. The miscellaneous spon¬
sor group rose materially in the national and regional
network and national non-network fields. Broadcast ad¬
vertising by retail establishments increased 47.5% as
against November 1934.
The First Eleven Months of 1935
Broadcast advertising during the first eleven months of
1935 amounted to $78,837,579, as compared to $65,711,598
during the corresponding period of the preceding year, a
gain of 19.8%. Gains with regard to various portions of
the medium were as follows: national networks 18.1%,
regional networks 50.0%, national non-network advertis¬
ing 24.8%, and local broadcast advertising 18.6%.
Total non-network advertising during the first eleven
months of the year rose 21.7% as against the previous
year. Clear channel and high-powered regional station
non-network volume increased 23.1%, regional station
volume 17.8%, and local station advertising 31.6%.
Transcription volume rose 16.5% during the period
under consideration, live talent business 23.4%, records
80.9%, and announcements 19.8%.
Total Broadcast Advertising
Broadcast advertising over stations and networks during Novem¬
ber were as follows:
TABLE I
TOTAL BROADCAST ADVERTISING
1935 Gross Time Sales
Cumulative
Class of Business
October
November
Jan.-Nov.
National networks .
. . . $5,017,900
$4,533,774
$45,123,241
Regional networks .
132,748
128,715
983.565
National non-network . . .
... 1.504,970
1.652,680
15,356,638
Local .
. . . 1,739,280
1,896,180
17,374,135
Total .
. . . $8,394,898
$8,211,349
$78,837,579
Page 1136
Total broadcast advertising was 2.2% less than during October,
a usual seasonal decline. National network volume declined 10.0%,
and regional network advertising dropped 3.0%. National non¬
network business rose 9.8%, while local advertising increased
8.8%. Network declines were more than the usual seasonal down¬
swing. Local advertising, on the other hand, rose contrary to its
usual behavior in November.
Comparison with Previous Years
Broadcast advertising continued to show gains over the corre¬
sponding period of 1934. Total volume rose 13.6% as against the
preceding November. National network advertising increased
3.8%, regional network volume 20.5%, national non-network
volume 27.0% and local broadcast advertising 30.0%.
Compared to November 1933, national network advertising ex¬
perienced an increase of 31.6%, regional network volume 74.3%,
national non-network business 51.8% and local broadcast adver¬
tising 36.4%.
Comparison with Other Media
National magazine advertising rose 14.3% as compared to Octo¬
ber. Farm paper advertising declined 8.9%. Newspaper lineage
remained unchanged in volume, as compared with the usual
November decline.
November national magazine volume was 15.1% greater than
during the corresponding month of 1934. Farm paper advertising
showed a gain of 4.4% and newspaper advertising an increase of
12.3%.
Advertising by major media is found in Table II.
TABLE II
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1935 Gross Time Sales
Cumulative
Power of Station October November Jan.-Nov.
Over 1,000 watts . $1,290,740 $1,561,600 $14,880,655
250-1,000 watts . 1,391,650 1,423,160 13,077,305
100 watts . 561,860 564,100 4,772,813
Total . $3,244,250 $3,548,860 $32,730,773
Non-network advertising in the New England-Middle Atlantic
area increased 2.2% as compared to October. Advertising in the
South Atlantic-South Central States rose 19.8%. The Mountain
and Pacific area experienced an increase of 26.7% over the pre¬
ceding month while North Central non-network advertising re¬
mained comparatively unchanged. Non-network advertising in
various geographical districts is indicated in Table IV.
TABLE IV
NON-NETWORK ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1935 Gross Time Sales
Geographical District
October
November
Cumulative
Jan.-Nov.
New England-Middle Atlantic
Area .
$750,110
$766,520
$8,180,782
South Atlantic-South Central
Area .
611,120
730,610
5,344,828
North Central Area .
1,295,300
1,305,830
12,520,437
Pacific and Mountain Area
587,720
745,900
6,684,726
Total .
$3,244,250
$3,548,860
$32,730,773
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting .
National magazines 1 .
National farm papers1...
Newspapers 2 .
1935 Gross Time and Space Sales
October
$8,394,898
10,603,241
525,337
48,650,000
November
$8,211,349
12,118,920
481,501
48,765,000
Cumulative
Jan.-Nov.
$78,837,579
115,390,736
5,112,146
468,343,000
Total . $68,173,476 $69,576,770 $667,683,461
1 Publishers’ Information Bureau.
2 Estimated.
Non-network Advertising
General non-network advertising increased 9.4% as compared
to October and reached a level 28.2% higher than that of No¬
vember 1934. Clear channel and high-powered regional station
non-network volume increased 20.8% as compared to October.
Regional station non-network business rose 2.2% while local
station volume remained practically unchanged.
Non-network advertising over clear channel and high-powered
regional stations exceeded the previous November’s level by 28.0%.
Regional station non-network volume gained 24.2% and local
station advertising increased 44.8%.
Non-network advertising by size of station is found in Table III.
Compared to the corresponding month of 1934, non-network
advertising gained in all parts of the country except the New
England-Middle Atlantic area, where it decreased 14.4%. Rising
network volume undoubtedly has been responsible for this trend.
Gains in other portions of the country, as compared to November
1934, were as follows: South Atlantic-South Central states, 83.2%;
North Central states, 37.8%; Mountain and Pacific states, 44.4%.
Non-network Advertising by Type of Rendition
In the national non-network field, live talent volume rose most
markedly as compared to the preceding month. Non-network
advertising of this type increased 18.8%. National transcription
business rose 2.0% during the month, while announcement volume
increased 1.1%.
Compared to November 1934, national non-network transcrip¬
tion business registered an increase of 5.3%, live talent volume
45.4% and announcements 26.7%.
Transcriptions and live talent business both gained markedly in
the local broadcast advertising field as compared to October.
Transcription volume rose 13.7% and live talent business 18.0%.
Record volume increased 5.7%, while announcements declined
4.6%. The latter is a normal seasonal trend, while the other
gains represent a movement contrary to the usual seasonal de¬
cline.
Local transcription volume continued to show the marked gains
experienced during the past several months, rising 72.1% as com¬
pared to November of the previous year. Live talent volume rose
24.7%, records 113.0% and announcements 25.1%. Non-network
broadcast advertising by type of rendition during November is
found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
. 1935 Gross Time Sales
National Non-network Local Total Cumulative
Type of Rendition
October
November
October
November
October
November
Jan.-Nov.
Electrical transcriptions .
Live talent programs .
Records .
Announcements .
. $524,660
. 696,900
. 7,510
. 275,900
$534,900
828,940
9,990
278,850
$156,960
877,760
60,240
644,320
$178,680
1,040,160
63,610
613,730
$681,620
1,574,660
67,750
920,220
$713,580
1,869,100
73,600
892,580
$6,833,878
15,806,630
763,301
9,326,964
Total .
. $1,504,970
$1,652,680
$1,739,280
$1,896,180
$3,244,250
$3,548,860
$32,730,773
Page 1137
Sponsor Trends in November
National network advertising by various sponsoring industries
during November either remained at approximately the preceding
month’s level or showed slight declines with the exception of bev¬
erage advertising, which rose 12.5%, housefurnishing advertising,
which increased 6.4%, financial advertising volume, which rose
9.1% and the miscellaneous group, which gained 18.1% over the
preceding month. The principal gain in the regional network field
was in confectionery, which more than doubled its advertising.
In the national non-network field, gains were as follows: acces¬
sories and gasoline, 38.7%; confectionery, 96.8%; and tobacco,
58.8%. Gains in local broadcast advertising as compared with the
previous month included the following: drugs and pharmaceuticals,
35.8%; foodstuffs, 25.3%; confectionery, more than double.
Principal declines during the month were a 52.6% decrease in
network automotive advertising, a decline of 11.3% in network
food advertising and a general decrease in the soap and kitchen
supply field.
Comparison with 1934
Principal gains as compared to November of the preceding year,
were as follows: national non-network and local automotive
advertising, 721.0% and 122.1% respectively; local clothing adver¬
tising, 104.6%; national non-network cosmetic volume 69.1% and
food advertising 39.3%; local housefurnishing advertising 68.3%
and financial volume 56.1%; national non-network radio set
advertising, 600.0%, and tobacco volume 106.0%. Regional net¬
work tobacco volume increased sevenfold while regional confec¬
tionery volume gained approximately six and one-half times.
Candy, rather than chewing gun, was responsible for the national
non-network and regional network confectionery increases.
Details as to Sponsor Trends
Detailed data regarding radio broadcast advertising by various
industrial and service groups is found in Table VI.
TABLE VI | w
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(November, 1935)
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oils .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
( 7 ) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
Gross Time Sales
National
Networks
Regional
Networks
National
Non-networks
Local
Total
—
—
$1,485
$30,500
$31,985
$314,329
_
230,420
95,700
640,449
387,977
$19,328
103,930
92,830
604,065
38,105
6,223
42,620
315,215
402,163
515,457
12,370
334,190
91,350
953,367
867,689
1,740
101,700
32,950
1,004,079
884,536
26,412
339,735
239,475
1,490,158
293,846
4,082
59,100
97,170
454,198
119,286
13,646
30,620
11,240
174,792
32,429
5,455
55,655
184,330
277,869
243,382
5,368
42,247
9,170
300,167
36,444
796
13,980
64,440
115,660
118,496
—
23,930
30,700
173,126
—
7,023
162,670
169,693
357,454
15,672
39,475
7,100
419,701
324,344
17,623
226,570
431,340
999,877
$4,533,774
$128,715
$1,652,680
$1,896,180
$8,211,349
la. Amusements. Decline 37.1% as against October. Volume
unchanged from corresponding month of last year.
1. Automotive. National network down 52.6% compared to
October. National non-network up 12.3% and local down 7.1%.
National network business 18.1% ahead of November last year.
National non-network volume up 721.0% and local 122.1%.
2. Gasoline and accessories. National network volume un¬
changed from preceding month. Regional network business down
20.0%. National non-network business up 38.7% and local 3.0%.
Compared to November 1934, national network business up 13.5%,
regional networks 31.6%, and local 8.1%. National non-network
down 25.0%.
3. Clothing. National non-network volume unchanged from
preceding month. Regional network business up 20.1%, national
non-network 7.5%, and local 5.3% as against October. National
network advertising 11.4% ahead of November 1934, regional net¬
works 343.0%, national non-network business 30.3%, and local
104.6%.
4. Drugs and pharmaceuticals. National network volume
same as previous month. Regional network advertising up 12.1%,
national non-network business up 3.0%, and local 35.8%. National
netw'ork business 17.8% above November 1934. Regional network
business increased from $950 to $12,370. National non-network
advertising down 8.8% and local up 56.8%.
5. Toilet goods. National non-network business up 13.3%
as compared to October, and local up 75.2%. National network
business down 4.8%. Gains as follows when compared to Novem¬
ber of preceding year: National networks 1.8%, regional networks
20.0%, national non-network 69.1%, and local 3 7.5%.
6. Foodstuffs. National network business down 11.3% and
regional networks 5.0%. National non-network business up 5.0%
as compared to October. Local up 25.3%. National network ad¬
vertising 4.2% below November 1934 level. Regional network
business up 4.0%, national non-network business 39.3%, and local
17.8%.
7. Beverages. National network volume increased 12.5% com¬
pared to previous month. Local up 12.7%. Regional network
advertising down 50.0% and national non-network business down
7.8%. National network advertising 19.2% above last November.
Regional volume down 55.0%. National non-network advertising
up 25.5% and local more than double.
8. Confectionery. National network business 10.3% below
October, regional networks up 144.6%, national non-network
96.8%, and local more than double. National network business
30.0% below November 1934. Regional network volume up six
and one-half times, national non-network advertising 12.4%, and'
local broadcast advertising 24.0%.
9. Household equipment. National network advertising 6.4%
above preceding month, national non-network business up 3.7%,
and local 3.3%. Regional network advertising down 39.7%. Com¬
pared to preceding November, gains as follows: National networks
11.7%, regional networks 6.0%, national non-network advertising
13.4%, and local 68.3%.
10. Soaps and kitchen supplies. General declines as com¬
pared to the preceding month: National networks 6.8%, regional
networks 46.3%, national non-network 5.3%, and local 10.0%.
Compared to November 1934, national network advertising un¬
changed, regional network business increased from $360 to $5,368,
national non-network business down 22.2%, and local up 28.7%.
11. Insurance and financial. National network business 9.1%
Page 1138
ahead of October. National non-network volume down 17.0%, and
local up 14.6%. Compared to November of preceding year, national
network volume down 10.0% and national non-network advertising
38.9%. Local up 56.1%.
12. Radios. National network advertising down 4.1% com¬
pared to October, and national non-network down 29.1%. Local
up 14.8%. National network volume up 30.0% as compared to last
November. National non-network business up 600.0% and local
up 19.1%.
13. Department and general stores. National non-network
down 41.0% as against October. Local up 10.7%. National non¬
network business down 34.3% as compared to November of last
year. Local up 30.4%. Total volume for this group 25.9% ahead
of 1934.
14. Tobacco products. National network advertising 4.3%
under October. Regional network volume unchanged, national non¬
network business up 58.8% and local 16.7%. National network
tobacco advertising 18.7% above November 1934 level. Regional
network volume increased from $2,123 to $15,622. National non¬
network advertising up 106.0% and local 11.2%.
15. Miscellaneous. National network business 18.1% ahead of
previous month. Regional network gain 65.4%, national non¬
network 24.8%, and local 5.6%. Gains as follows, compared to
November of last year: National networks 50.7%, regional net¬
works 77.8%, and national non-network advertising 21.7%, Local
business down 14.8%.
Retail Broadcast Advertising
General retail broadcast advertising increased 5.2% as com¬
pared to the preceding month and showed a gain of 47.5% when
compared to November 1934. The increase over October was
contrary to the usual seasonal trend.
Increases over the previous month were experienced in the fol¬
lowing retail establishment fields: clothing, 10.0%; beauty par¬
lors, 54.0%; grocery and delicatessen stores, 1.6%; restaurants,
11.2%; beverage retailers, more than double; confectionery stores,
$760 in October to $3,870 in November; radio dealers, 20.0%; de¬
partment stores, 13.1%, and miscellaneous, 19.3%.
Declines during the month were as follows: automotive, 6.7%;
gasoline and accessory retailers, 12.5%; drug stores, 2.0%; house¬
furnishing establishments, 8.2%, and hardware stores, 30.0%.
Principal increases, compared to November 1934, were as fol¬
lows: automotive, 133.0%; clothing, 193.7%; drug stores, 23.8%;
beauty parlors, 62.0%; food retailers, 28.3%; beverage retailers,
25.0%; housefurnishing dealers, more than double; furniture
stores, 52.6%; and department stores, 25.9%. Principal declines
were as follows: hardware stores, 33.3%; gasoline and accessory
dealers, 52.0%.
Broadcast advertising by retail establishments during Novem¬
ber was as follows:
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1935 Gross Time Sales
Type of Sponsoring Business October November
Automobiles and accessories:
Automobile agencies and used car dealers $105,110 $97,670
Gasoline stations, garages, etc . 47,610 41,660
Clothing and apparel shops . 295,940 326,230
Drugs and toilet goods:
Drug stores . 27,720 25,550
Beauty parlors . 5,110 7,840
Food products:
Grocery stores, meat markets, etc . 60,820 62,070
Restaurants and eating places . 17,370 20,150
Beverage retailers . 2,330 5,000
Confectionery stores . 760 3,870
Household goods:
Household equipment dealers . 51,820 47,540
Furniture stores . 90,000 89,355
Hardware stores . 16,200 11,670
Radio retailers . 19,700 24,750
Department and general stores . 158,740 169,693
Tobacco shops . 120 —
Miscellaneous . 94,000 112,547
Total . $993,350 $1,045,595
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, January 6
Further Hearing and Argument Before the Commission
En Banc
In the Matter of the Petition of the American Telephone and
Telegraph Company and the New York Telephone Company in
connection with the installation of experimental coaxial cable be¬
tween New York, N. Y., and Philadelphia, Pa.
Hearing Before an Examiner
KMTR — KMTR Radio Corporation, Los Angeles, Calif. — Renewal
of license, 570 kc., 1 KW, unlimited time.
KGCU — Mandan Radio Association, Mandan, N. Dak. — Renewal
of license, 1240 kc., 250 watts, specified hours.
NEW — Pacific Acceptance Corporation, San Diego, Calif. — C. P.,
1200 kc., 100 watts, daytime.
NEW — California Sales Contract Co., San Francisco, Calif. — - C. P.,
1280 kc., 500 watts, 1 KW-LS, unlimited time.
Tuesday, January 7
NEW — Sioux Falls Broadcast Association, Inc., Sioux Falls, S. Dak.
— C. P., 1200 kc., 100 watts, unlimited time.
KOB — New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, New Mex. — Renewal of license, 1180 kc., 1
KW, simultaneous day, shares night with KEX.
Wednesday, January 8
NEW — Springfield Newspapers, Inc., Springfield, Ohio — C. P., 1120
kc., 250 watts, daytime.
KGDE — Charles L. Jaren, Fergus Falls, Minn. — Renewal of license,
1200 kc., 100 watts, 250 watts LS, unlimited time.
Thursday, January 9
WTEL — Foulkrod Radio Engineering Co., Philadelphia, Pa. — C. P.,
1230 kc., 250 watts, 500 watts LS, unlimited time. Present
assignment: 1310 kc., 100 watts, shares with WHAT and
WCAM.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. — Modi¬
fication of license, 1270 kc., 1 KW, unlimited time. Present
assignment: 1270 kc., 500 watts, unlimited time.
WOOD — Kunsky-Trendle Broadcasting Corp., Grand Rapids, Mich.
— C. P., 1270 kc., 1 KW, share with WASH. Present assign¬
ment: 1270 kc., 500 watts, shares with WASH.
WASH — Kunsky-Trendle Broadcasting Corp., Grand Rapids, Mich.
— C. P., 1270 kc., 1 KW, share with WOOD. Present assign¬
ment: 1270 kc., 500 watts, shares with WOOD.
NEW — Carl S. Taylor, Dubois, Pa. — C. P., 780 kc., 250 watts,
daytime.
NEW— A. W. Hayes, Erie, Pa.— C. P., 1270 kc., 500 watts, 1 KW
LS, unlimited time.
NEW— Watertown Broadcasting Corp., Watertown, N. Y. — C. P.,
1270 kc., 250 watts, daytime.
Friday, January 10
NEW — The Press Company, Inc., Schenectady, N. Y. — C. P., 1210
kc., 100 watts, daytime.
WEAN — The Shepard Broadcasting Service Inc., Providence, R. I.
— C. P., 780 kc., 1 KW, unlimited time.
APPLICATIONS RECEIVED
First Zone
NEW — I. L. G. W. Radio Corp., New York, N. Y. — Construction
970 permit for a new station to be operated on 970 kc., 1 KW,
unlimited time.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Con-
1400 struction permit to make changes in equipment.
Second Zone
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — License to use
560 Western Electric 6-B transmitter (transmitter licensed to
WLIT 2-P-B-1947, granted 2-3-31) as an auxiliary trans¬
mitter. ,
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Modifica-
920 tion of license to increase power from 250 watts, 500 watts
Page 1139
day to 1 KW day and night, using directional antenna at
night.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa. — Modifi-
920 cation of license to increase power from 250 watts, 500 watts
day to 1 KW day and night, using directional antenna at
night.
NEW — Hyman Altman, Detroit, Mich. — Construction permit for
1140 a new station to be operated on 1140 kc., 250 watts, day¬
time. Amended: To change frequency from 1140 kc. to
1120 kc.
WHIS — Daily Telegraph Printing Co., Bluefield, West Va. — Con-
1410 struction permit to install new equipment, increase power
from 250 watts, 500 watts day to 500 watts, 1 KW day and
move transmitter from West Virginian Hotel, Federal Street,
Bluefield, West Virginia, to near Bluefield, West Virginia.
Amended: To omit request for increase in power.
WWSW — Walker & Downing Radio Corp., Pittsburgh, Pa. — Con-
1500 struction permit to make changes in equipment and move
transmitter from Frankstown Road, R. F. D. No. 1, Wilkins-
burg, Pennsylvania, to Bounded by Miami — Burrows — Mo¬
hawk, Pittsburgh, Pennsylvania.
Third Zone
WREC — WREC, Incorporated, Memphis, Tenn. — Modification of
600 construction permit (B-P-161) for increase in power, changes
in equipment and move of transmitter, requesting extension
of completion date from 1-30-36 to 2-29-36.
NEW- — Ruth W. Adcock & S. E. Adcock, d/b as General Broad-
880 casters, Johnson City, Tenn.— Construction permit for a new
station to be operated on 600 kc., 250 watts, daytime.
Amended: To change frequency from 600 kc. to 880 kc.,
and make changes in antenna.
NEW — Ruth W. Adcock & S. E. Adcock, d/b as General Broad-
1120 casters, Rossville, Ga. — Construction permit for a new sta¬
tion to be operated on 580 kc., 250 watts, daytime.
Amended: To change frequency from 580 kc. to 1120 kc.
and make changes in antenna.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. — License
1180 to cover construction permit (B3-P-785) for equipment
changes.
NEW— Wilton Harvey Pollard, Huntsville, Ala— Construction per-
1200 mit for a new station to be operated on 1200 kc., 100
watts, unlimited time. Amended: To change transmitter
site from Twickenham Hotel, Cor. Washington & Clinton
Sts., Huntsville, Alabama, to 500 ft. due west of Highway
U. S. No. 241, outside city limits of Huntsville, Alabama,
, and make changes in antenna system. (Requests all facili¬
ties of WBHS.)
NEW— The Metropolis Co., Jacksonville, Fla.— Construction per-
1200 mit for a new station to be operated on 1200 kc., 100 watts,
unlimited time.
NEW— Ted R. Woodard, Kingsport, Tenn.— Construction permit
1210 for a new station to be operated on 1210 kc., 100 watts,
daytime. Amended: To change transmitter site from ap¬
proximately 1 mi. from town, Lee Hi-Way, Kingsport, Tenn.,
to Lee Hi-Way (not numbered), Kingsport, Tenn.
WGCM — WGCM, Incorporated, Mississippi City, Miss.- — Modifi-
1210 cation of construction permit (B3-P-421) authorizing change
in frequency, change hours of operation and increase power,
requesting extension of commencement date from 7-28-35
to 1-28-36 and completion date from 1-28-36 to 7-28-36.
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Construction
1240 permit to make changes in equipment, move transmitter
from 309 Eighth St., Augusta, Ga., to Satcher estate on the
edge of the city, North Augusta, South Carolina, change
frequency from 1500 kc. to 1240 kc., and increase power
from 100 watts to 250 watts, 1 KW day, using directional
antenna at night if necessary.
NEW — The Sherman Broadcasting Assn. (J. B. Knight, Pres.),
1310 Sherman, Tex. — Construction permit for a new station to
be operated on 1310 kc., 100 watts, daytime.
NEW — Bay County Publishers, Inc., Panama City, Fla. — Con-
1420 struction permit for a new station to be operated on 1420
kc., 100 watts, unlimited time.
NEW — WDOD Broadcasting Corp., Chattanooga, Tenn. — Con¬
struction permit for a new general experimental station to
be operated on frequencies 31600, 35600, 38600, 41000 kc.,
100 watts.
Fourth Zone
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Authority to
550 determine operating power by direct measurement of an¬
tenna power.
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — License to
550 cover construction permit (4-P-B-3285) for new equipment
and increase in power.
KWTO — Ozarks Broadcasting Co., Springfield, Mo. — Modification
560 of construction permit (B4-P-230) authorizing changes in
equipment and increase in power, requesting extension of
commencement date from 7-21-35 to 1-1-36 and completion
date from 1-21-36 to 7-21-36.
KFEQ — KFEQ, Incorporated, St. Joseph, Mo. — Construction per-
680 mit to install new equipment, increase power from 2J4 KW
day to 5 KW day, and move transmitter site to be de¬
termined. Amended: To make changes in equipment.
KFAB — KFAB Broadcasting Co., Lincoln, Nebr. — Extension of
770 special experimental authorization to operate synchronously
with WBBM, from local sunset at Lincoln, Nebraska, to mid¬
night CST, from 2-1-36 to 8-1-36.
WBBM — WBBM Broadcasting Corp., Chicago, Ill. — Extension of
770 special experimental authorization to operate synchronously
with KFAB from local sunset (KFAB) to midnight for
period from 2-1-36 to 8-1-36.
WHO— Central Broadcasting Co., Davenport, Iowa — Construction
1000 permit to install new equipment and increase power from
50 KW to 500 KW.
NEW — Harry J. Grant, Milwaukee, Wise. — Construction permit for
1010 a new station to be operated on 1010 kc., 1 KW, unlimited
time.
NEW — Albert Lea Broadcasting Corp., Albert Lea, Minn. — Con-
1200 struction permit for a new station to be operated on 1200
kc., 100 watts, unlimited time.
NEW — J. T. Bilben & N. G. Barnard, Walker, Minn. — Construc-
1310 tion permit for a new station to be operated on 1310 kc.,
100 watts, unlimited time.
WGES — Oak Leaves Broadcasting Station, Inc., Chicago, Ill. —
1360 Modification of license to change hours of operation from
share-WSBT to unlimited and reduce daytime power Sun¬
day from 1 KW to 500 watts. Contingent upon the grant¬
ing of WSBT’s application for change in frequency.
KABR — Aberdeen Broadcast Co., Inc., Aberdeen, South Dak. —
1420 License to cover construction permit (B4-P-839) for move
of transmitter locally.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Con-
1450 struction permit to make changes in equipment, install direc¬
tional antenna, change frequency from 1210 to 1450 kc.,
increase power from 100 watts, 250 watts day to 1 KW
day and night and move transmitter from 102 18th St., Rock
Island, Ill. to site to be determined.
NEW — Joliet Printing Co., Joliet, Ill. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, 250
watts day, unlimited time.
W9XAL — The First National Television Corp., Kansas City, Mo. —
Consent to assignment of license to First National Tele¬
vision, Inc.
NEW — Head of the Lakes Broadcasting Co., Superior, Wise. — Con¬
struction permit for a new general experimental station to
be operated on 31600, 35600, 41000 kc., 80 watts. Amended:
To add frequency 38600 kc.
Fifth Zone
NEW — The Tribune, Great Falls, Mont. — Construction permit for
550 a new station to be operated on 550 kc., 1 KW, 5 KW day,
unlimited time. All facilities of KFYR.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Construction permit
590 to make changes in equipment.
KIEV — Cannon System, Ltd., Los Angeles, Calif. — Modification of
850 construction permit (5-P-B-3268) for changes in equipment,
increase in power and move of transmitter, requesting ex¬
tension of commencement date from 10-30-35 to 2-1-36 and
completion date from 12-29-35 to 4-1-36.
NEW — Earle Yates, Las Cruces, New Mex. — Construction permit
930 for a new station to be operated on 930 kc., 1 KW, daytime.
NEW — Peninsula Newspapers Inc., Palo Alto, Calif. — Construction
1160 permit for a new station to be operated on 1160 kc., 250
watts, daytime. Amended: To omit name of Merced Star
Publishing Co. from name.
NEW— Struble, Strong & Fagan (Carl C. Struble, Curtis T. Strong,
1200 Jane M. Fagan), The Dalles, Ore. — Construction permit for
a new station to be operated on 1200 kc., 100 watts, un-
Page 1140
limited time. Amended: To change transmitter site from
112 West Second Ave., The Dalles, Oregon, to site to be de¬
termined, The Dalles, Oregon, and antenna system to be
determined.
NEW — Democrat News Co., Inc., Lewiston, Mont. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, 250 watts day, unlimited time. Amended: To make
changes in equipment.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Authority to de-
1270 termine operating power by direct measurement of antenna.
NEW — A. W. Mills, Gallup, New Mex.- — Construction permit for
1310 a new station to be operated on 1500 kc., 100 watts, day¬
time and limited. Amended: To change frequency from
1500 to 1310 kc., hours of operation from daytime and
limited time to unlimited and make changes in equipment.
KIDW — The Lamar Broadcasting Co., Lamar, Colo. — Voluntary
1420 assignment of license from The Lamar Broadcasting Co. to
The Southwest Broadcasting Co.
NEW — Ellwood W. Lippincott, Pendleton, Ore.— Construction per-
1500 mit for a new station to be operated on 1500 kc., 100 watts,
daytime.
NEW— Southwest Broadcasting Co., Prescott, Ariz. — Construction
1500 permit for a new station to be operated on 1500 kc., 100
watts, 250 watts day, unlimited time. Amended: Re Stock¬
holder.
NEW — W. P. Stuart, Prescott, Ariz. — Construction permit for a
1500 new station to be operated on 1500 kc., 100 watts, unlimited
time. Requests facilities of KPJM. Amended: To make
changes in equipment and giving studio and transmitter
sites as Union & Cortez Sts., Prescott, Arizona.
KRNR — Southern Oregon Publishing Co., Eugene, Ore. — License
1500 to cover construction permit (B5-P-434) as modified for
a new station.
No Zone
WPRP — Julio M. Conesa, Ponce, Puerto Rico — Modification of
1420 construction permit (l-P-B-2940) for approval of trans¬
mitter site at No. 1 Trujillo St., Ponce, Puerto Rico, move
studio from Plaza Principal, Ponce, P. R., to Trujillo St.
(about 160' from transmitter), Ponce, P. R.. and extend
completion date from 1-18-35 to 180 days after grant. Also
make changes in specified hours.
EFFECTIVE DATE EXTENDED
The Federal Communications Commission has extended the ef¬
fective date of the Broadcast Division’s Order of October 1, 1935
(Minute No. 239), in the so-called Brooklyn cases, Dockets Nos.
1780, 1936, 2039, 2641, 1882, 2013, 2014, 1967, 2643, 1883, 1968,
2642, 2259, 2411, 2343, 2463, 2462 and 2543, to January 22, 1936,
pending its consideration of the petition of Paramount Broadcast¬
ing Corporation (WVFW) for rehearing on said Order under the
provisions of Section 405 of the Communications Act of 1934. as
to its application.
Page 1141
I f.: -/
1 ■■
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS *****
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - * No. 2
JANUARY 8, 1930
IN THIS ISSUE
Page
Power Increase Recommended for KFPY . 1143
Case Dismissed Against FCC . 1143
House Passes FCC Amendment . 1143
FCC Makes First Annual Report . 1143
FCC Appropriation . 1144
Securities Act Registrations . 1144
New Station Denial Recommended . 1144
Recommends New Pennsylvania Station Denial . 1144
New California Station Recommended . 1144
New Quota Facilities . 1144
Federal Trade Commission Action . 1145
New Chairman of FTC . 1147
FTC Case Closed . 1147
Federal Communications Commission Action . 1147
POWER INCREASE RECOMMENDED FOR KFPY
Broadcasting station KFPY, Spokane, Wash., operating on a
frequency of 890 kilocycles, with unlimited time applied to the
Federal Communications Commission to increase its daytime
power from 1,000 to 5,000 watts with 1,000 watts at night as
at present.
Examiner George H. Hill in Report No. 1-176 has recom¬
mended that the application be granted. The Examiner found
that no interference will be caused by the granting of the ap¬
plication and that “there is a definite need for the service of
Station KFPY in the area not now being served by the station
nor by any other station broadcasting Columbia Broadcasting
System programs during daytime hours.”
CASE DISMISSED AGAINST FCC
On motion of the Federal Communications Commission, the
District Court of the United States for the Northern District of
Illinois has dismissed the case against it by Peter B. Schyman.
Schyman asked the court to restrain the Commission from
publishing certain information developing at a hearing before
an Examiner of the Commission. Schyman claims that he is a
doctor and that the publication of the information would hurt
his professional reputation.
HOUSE PASSES FCC AMENDMENT
The House of Representatives this week without any dis¬
cussion passed an amendment to the Communications Act of
1934 dealing with salaries of personnel of the Federal Commu¬
nications Commission. The bill has already passed the Senate
and it now remains merely to be signed by the President to be¬
come effective. The bill as passed provides: That paragraph (f)
of section 4 of the Communications Act, 1934, is hereby amended
by adding after the words “a chief engineer and not more than
three assistants,” the words “a chief accountant and not more
than three assistants,” and by adding after the words “and the
chief engineer”, the words “and the chief accountant”, and by
adding after the word “engineers” the word “accountants”, so
that paragraph (f) of section 4, as amended, will read as follows:
“(f) Without regard to the civil-service laws or the Classifica¬
tion Act. of 1923, as amended, (1) the Commission may appoint
and prescribe the duties and fix the salaries of a secretary, a
director for each division, a chief engineer and not more than
three assistants, a chief accountant and not more than three as¬
sistants, a general counsel and not more than three assistants,
and temporary counsel designated by the Commission for the
performance of special services; and (2) each commissioner may
appoint and prescribe the duties of a secretary at an annual
salary not to exceed $4,000. The general counsel and the chief
Page
engineer and the chief accountant shall each receive an annual
salary of not to exceed $9,000; the secretary shall receive an
annual salary of not to exceed $7,500; the director of each divi¬
sion shall receive an annual salary of not to exceed $7,500; and
no assistant shall receive an annual salary in excess of $7,500.
The Commission shall have authority, subject to the provisions
of the civil-service laws and the Classification Act of 1923, as
amended, to appoint such other officers, engineers, accountants,
inspectors, attorneys, examiners, and other employees as are
necessary in the execution of its functions.”
FCC MAKES FIRST ANNUAL REPORT
The Federal Communications Commission this week made its
first annual report to Congress. No recommendations were in¬
cluded. It is expected that if the Commission sees the necessity
of further changes in the law that it will later transmit its recom¬
mendations to the appropriate committees of Congress. The re¬
port covers the fiscal year ending June 30, 1935.
The report shows that on June 30 of last year there were 623
broadcasting stations and that during the fiscal year nine stations
were deleted and 39 new stations were authorized. Of this
number, 31 were authorized under the provisions of section 307
of the Communications Act and were not charged to quota. Also
during the fiscal year the Commission received 3,652 applications
from broadcasting stations and authorizations were issued for
3,434 changes.
Merging of the old Federal Radio Commission are taken up in
the report and details are given on the work of all of the depart¬
ments and divisions of the Commission.
During the fiscal year the Commission spent $1,125,599 for
salaries and expenses in addition to $13,518 for printing and
binding.
A whole section of the report under the engineering department
is devoted to broadcasting. In this section are discussed regular
broadcast, modification of the rules, the operation of 500 kilowatt
stations, experimental high fidelity broadcast, experimental relay
broadcasting, experimental visual broadcasting, very high fre¬
quency experimental broadcasting and technical developments in
regular broadcasting. Dealing with the allocation survey the
Commission’s report says: Since the allocation of 1928 no specific
or basic changes have been made in regulation of the Commis¬
sion governing the allocation of regular broadcast frequencies.
There has been much public and engineering sentiment toward
making certain basic changes rather than continuing granting of
various applications that did not comply with this basic plan as
originally adopted. While much engineering data have been
taken by the Field Section of the Commission and at the num¬
erous hearings held before the Commission, and the leading radio
engineers throughout the United States have introduced large
amounts of data, the Engineering Department was not convinced
that it had sufficient information available on which to base a
recommendation to the Commission to change the present alloca¬
tion or to fully substantiate it.
The licensees of 13 clear-channel stations petitioned the Com¬
mission that it carry forward a survey in cooperation with them
for the purpose of gaining further information. While the peti¬
tion exactly as made was not accepted, the Commission did decide
to carry forward the survey in cooperation with all broadcast
licensees. Several informal conferences with all interested parties
invited to be present were held when the extent and plan of
survey, the prorating of the work, and the setting up of an or¬
ganization to purchase equipment and management of the survey
were decided. During January the survey actually began and
the taking of data was closed on May 30, 1935.
The survey was divided into four principal parts, namely:
1. One hundred and sixteen thousand questionnaires were sent
to the fourth-class postmasters and to a list of representative
rural listeners furnished by the Agricultural Adjustment Admini-
1143
stration requesting their preferences in radio stations with respect
to satisfaction of reception.
2. The field personnel of the Commission made extended trips
and interviewed radio listeners throughout various sections of
the United States to obtain their opinions.
3. Continuous recordings were made of the signal received from
broadcast stations in 10 different locations of the United States.
The number of continuous recorders located at each of these
points was from 4 to 8. This is the greatest number of field-
intensity recordings heretofore taken and should give reliable in¬
formation on the signal to be expected at distances from stations
of various powers.
4. The radiating efficiency and primary service areas of several
representative stations were determined by means of field-inten¬
sity equipment located in the Commission’s test cars.
The data were all accumulated during the fiscal year 1934-35;
however, the analysis, summary, conclusions, and recommenda¬
tions to the Commission based on the survey were just begun
at the close of the fiscal year.
FCC APPROPRIATION
The Appropriation Committee of the House of Representatives
provided an appropriation of $1,450,000 for the coming fiscal
year for the Federal Communications Commission compared with
its present appropriation of $1,500,000 for the present year, a
saving of $50,000. An additional appropriation of $25,000 is also
made for printing and binding which is the present appropriation.
This, of course, is in addition to the $750,000 appropriation which
the Commission has for the telephone investigation. The bill is
now pending before the House for action.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
American Wringer Company, Inc., Woonsocket, R. I. (2-1819,
Form E-l)
Berkey & Gay Furniture Co., Grand Rapids, Mich. (2-1820,
Form A-l)
Coastal Minerals Development, Inc., New Orleans, La. (2-1821,
Form A-l)
Sunray Oil Corporation, New York City. (2-1822, Form A-2)
Protective Committee of Mobile Bay Bridge Co., Buffalo, N. Y.
(2-1823, Form D-l)
Fundamental Investors, Inc., Jersey City, N. J. (2-1824,
Form A-l)
Benjamin Franklin Foundation, Inc., Philadelphia, Pa. (2-1826,
Form C-l)
Allen Industries, Inc., Detroit, Mich. (2-1827, Form A-2)
Continental Steel Corporation, Kokomo, Ind. (2-1828, Form
A-2)
Continental Steel Corporation, Kokomo, Ind. (2-1829, Form
A-2)
East Belt Gold Mining Co., Reno, Nev. (2-1830, Form A-l)
Oklahoma-Southern Trust, Tulsa, Okla. (2-1831, Form A-l)
Can Industries Corporation, Chicago, Ill. (2-1832, Form A-l)
Committee of Trenton Mortgage & Title Co., Trenton, N. J.
(2-1833, Form D-l)
Vimy Gold & Metals, Ltd., Montreal, Canada. (2-1834, Form
A-l)
El Callao Mining Co., Ltd., Toronto, Canada. (2-1836, Form
A-l)
Newman Dick Mining & Developing Co., Kirkland Lake, Can¬
ada. (2-1837, Form A-l)
Navajo Gold Mines, Inc., Mancos, Canada. (2-1838, Form A-l)
Columbia Pictures Corp., New York City. (2-1840, Form A-2)
Harry Cohn et al., New York City. (2-1841, Form F-l)
Republic Investors Fund, Inc., Jersey City, N. J. (2-1842,
Form A-l)
Republic Investors, Inc., Jersey City, N. J. (2-1843, Form A-l)
Brockert Brewing Co., Inc., Worcester, Mass. (2-1844, Form
A-l)
Illinois Consolidated Telephone Co., Mattoon, Ill. (2-1845,
Form A-2)
Arrowhead Petroleum Corp., St. George, Utah. (2-1846, Form
A-l)
Twin Coach Company, Kent, Ohio. (2-1847, Form A-2)
El Crest Mining Co., Denver, Colo. (2-1848, Form A-l)
Sparta Foundry Company, Salt Lake City, Utah. (2-1849,
Form A-2)
Utah-Idaho Sugar Company, Salt Lake City, Utah. (2-1850,
Form A-2)
Campana Gold Mines, Inc., Chicago, Ill. (2-1852, Form A-l)
Wabash Telephone Co., Bloomington, Ill. (2-1853, Form A-2)
Eastern Life Insurance Co., of New York. (2-1854, Form A-l)
NEW STATION DENIAL RECOMMENDED
The Wisconsin Broadcasting Company applied to the Federal
Communications Commission for a permit for the erection of a
new broadcasting station at Oshkosh, Wis., to use 1310 kilocycles,
100 watts and 250 watts LS, and unlimited time on the air.
Examiner John P. Bramhall in Report No. 1-177 recom¬
mended that the application be denied. The Examiner found
that the applicant is “not financially qualified to construct and
operate the proposed station.” Also “the evidence fails to show
need for additional service in the area proposed to be served.”
It was found also by the Examiner that the erection of the pro¬
posed station would cause interference with certain existing sta¬
tions.
RECOMMENDS NEW PENNSYLVANIA STATION
DENIAL
E. L. Clifford applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new sta¬
tion at Pottsville, Pa., to use 580 kilocycles, 250 watts and day¬
time operation.
Examiner Melvin H. Dalberg in Report No. 1-178 recom¬
mended that the application be denied. The Examiner states
that “there is obviously an insufficient showing that the appli¬
cant himself is qualified for the management and operation of a
radio station and proof with respect to those with whom he
would be associated or that those whom he had it in mind to
employ are technically qualified by experience and background to
warrant such application is lacking.”
NEW CALIFORNIA STATION RECOMMENDED
The Golden Empire Broadcasting Company has filed an appli¬
cation with the Federal Communications Commission asking to
erect a new broadcasting station at Redding, Cal., to use 1200
kilocycles, 100 watts and unlimited time on the air.
Examiner Melvin H. Dalberg in Report No. 1-175 recom¬
mends that the application be granted. The Examiner states
that “it is apparent that there exists in the Redding, Cal., area
a genuine need for local broadcasting facilities and the program
material which is proposed seems to be of a satisfactory nature
for a station of the power requested. The equipment proposed
to be installed is satisfactory and meets all the engineering require¬
ments of the Commission.” The Examiner found that granting
of the application would not cause any interference.
NEW QUOTA FACILITIES
The Federal Communications Commission has announced the
following quota facilities due and assigned to broadcast stations
as of January 2.
First Zone — Night
Units Percent
State
Due
Assigned
Over or Under
Over or Under
Conn .
.. 2.13
1.92
— 0.21
— - 10
Del .
. . 0.32
0.20
— 0.12
— 38
D. C .
. . 0.64
0.60
— 0.04
— 6
Maine . . .
1.06
0.99
— 0.07
— 7
Md .
. . 2.16
1.98
— 0.18
— 8
Mass .
. . 5.63
5.51
— 0.12
— 2
N. H .
. . 0.62
0.43
— 0.19
— 31
N. J .
. . 5.36
4.105
— 1.255
— 23
N. Y .
. . 16.69
18.53
+ 1.84
+ 11
R. I .
. . 0.91
0.90
— 0.01
— 0
Vt .
. . 0.48
0.56
— 0.08
+ 17
Total
36.00
35.725
— 0.275
— 1
Page 1144
First Zone — Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Conn .
3.85
3.44
— 0.41
— 11
Del .
0.57
0.33
— 0.24
— 42
D. C .
1.16
0.90
— 0.26
— 22
Maine .
1.91
1.42
— 0.49
— 26
Md .
3.91
4.10
+ 0.19
+ 5
Mass .
10.17
7.35
— 2.82
— 28
N. H .
1.11
0.80
— 0.31
— 28
N. J .
9.67
5.055
— 4.615
— 48
N. Y .
30.14
21.46
— 8.68
— 29
R. I .
1.65
1.00
— 0.65
— 39
Vt .
0.86
0.86
— 0.00
— 0
Total
65.00
46.715
—18.285
— 28
Second Zone-
— Night
State
Due
Assigned
Units
Over or Under
Percent
Over or Under
Ky .
. . 3.38
3.95
+ 0.57
+ 17
Mich. . . .
. . 6.25
5.05
— 1.20
— 19
Ohio .
. . 8.58
9.83
+ 1.25
+
Pa .
. . 12.43
12.38
— 0.05
— 0
Va .
. . 3.13
4.65
+ 1.52
+ 49
W. Va. . . .
. . 2.23
2.19
— 0.04
— 2
Total
36.00
38.05
+ 2.05
+ 6
Second Zone — Day
State
Due
Assigned
Units
Over or U nder
Percent
Over or Under
Ky .
. . 6.10
4.25
— 1.85
— 30
Mich .
.. 11.28
7.09
— 4.19
— 37
Ohio .
. . 15.50
12.31
— 3.19
— 20
Pa .
. . 22.45
14.85
— 7.60
— 34
Va .
. . 5.64
6.19
+ 0.55
+ 10
W. Va. . .
. . 4.03
4.30
-j- 0.27
+ 7
Total
65.00
48.99
—16.01
— 25
Third Zone-
— Night
State
Due
Assigned
Units
Over or Under
Percent
Over or Under
Ala .
. . 3.32
2.735
— 0.585
— 18
Ark .
. . 2.32
2.67
+ 0.35
+ 15
Fla .
. . 1.84
3.65
+ 1.81
+ 98
Ga .
. . 3.64
4.26
+ 0.62
+ 17
La .
. . 2.63
5.40
+ 2.77
+ 105
Miss .
. . 2.52
1.32
— 1.20
— 48
N. Car. . .
. . 3.97
4.45
+ 0.48
+ 12
Okla .
. . 3.00
3.51
+ 0.51
+ 17
S. Car. . . .
. . 2.18
1.30
— 0.88
— 40
Tenn .
.. 3.28
6.05
+ 2.77
+ 84
Texas . . . .
. . 7.30
11.14
+ 3.84
+ S3
Total
36.00
46.485
+ 10.485
+ 29
Third Zone-
— Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ala .
. . 5.99
4.685
— 1.305
— 22
Ark .
. . 4.19
4.75
+ 0.56
+ 13
Fla .
. . 3.32
5.30
+ 1.98
+ 60
Ga .
. . 6.58
5.20
— 1.38
— 21
La .
. . 4.75
5.60
+ 0.85
-j- 1 8
Miss .
. . 4.55
2.42
— 2.13
— 47
N. Car. . .
.. 7.17
4.85
— 2.32
— 32
Okla .
. . 5.42
5.30
— 0.12
— 2
S. Car. . . .
. . 3.93
2.70
— 1.23
— 31
Tenn. . . .
. . 5.92
7.75
+ 1.83
+ 31
Texas . . . .
. 13.18
14.06
+ 0.88
+ 7
Total
65.00
62.615
— 2.385
— 4
Fourth Zone — Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ill .
. . 10.14
11.14
+ 1.00
+ 10
Ind .
. . 4.30
3.64
— 0.66
— 15
Iowa . . . .
.. 3.28
5.37
+ 2.09
+ 64
Kans .
. . 2.50
2.49
— 0.01
— 0
Minn. . . .
. . 3.41
4.18
+ 0.77
+ 23
Mo .
. . 4.82
5.24
+ 0.42
+ 9
Nebr .
1.83
2.21
+ 0.38
+ 21
N. Dak. . .
. . 0.90
0.90
+ 0.00
+ o
S. Dak. . .
. . 0.92
0.86
— 0.06
— 7
Wise .
. . 3.90
3.47
— 0.43
— 11
Total
36.00
39.50
+ 3.50
+ 10
Fourth Zone — Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ill .
. . 18.30
15.82
— 2.48
— 14
Ind .
.. 7.77
5.89
— 1.88
— 24
Iowa . . . .
. . 5.93
8.26
+ 2.33
+ 39
Kans .
. . 4.51
3.77
— 0.74
— 16
Minn. . . .
. . 6.15
5.77
— 0.38
— 6
Mo .
. . 8.70
9.64
+ 0.94
+ 11
Nebr .
. . 3.30
6.02
+ 2.72
+ 82
N. Dak. . .
.. 1.63
1.35
— 0.28
— 17
S. Dak. . .
. . 1.66
2.13
+ 0.47
+ 28
Wise .
. . 7.05
6.46
— 0.59
— 8
Total
65.00
65.11
+ 0.11
+ o
Fifth Zone—
-Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
1.32
1.37
~f“ 0.05
+ 4
Calif .
. . 17.18
19.67
+ 2.49
+ 14
Colo .
. . 3.13
4.61
+ 1.48
+ 47
Idaho . . .
1.35
1.50
+ 0.15
+ 11
Mont. . . .
1.63
2.15
+ 0.52
+ 32
Nev .
. . 0.27
0.30
+ 0.03
+ n
N. Mex. . .
. . 1.28
1.13
— 0.15
— 12
Ore .
.. 2.89
4.12
+ 1.23
+ 42
Utah . . . .
. . 1.54
3.30
+ 1.76
+ 114
Wash. . . .
. . 4.73
7.53
+ 2.80
+ 59
Wyo .
. . 0.68
0.40
— 0.28
— 41
Total
36.00
46.08
+ 10.08
+ 28
Fifth Zone-
— Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
. . 2.38
1.69
— 0.69
— 29
Calif .
. . 31.02
23.57
— 7.45
— 24
Colo .
. . 5.66
5.25
— 0.41
— 7
Idaho . . .
. . 2.43
2.05
— 0.38
— 16
Mont. . . .
. . 2.94
2.95
+ 0.01
+ 0
Nev. .
. . 0.49
0.30
— 0.19
— 39
N. Mex. . .
.. 2.31
2.95
+ 0.64
+ 28
Ore .
.. 5.21
6.19
+ 0.98
+ 19
Utah ....
. . 2.78
3.30
+ 0.52
+ 19
Wash. . . .
. . 8.54
9.39
+ 0.85
+ 10
Wyo .
.. 1.24
0.40
— 0.84
— 68
Total
65.00
58.04
— 6.96
— 11
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair methods of
competition in complaints issued against the following companies.
The respondents will be given an opportunity for hearing to show
cause why cease and desist orders should not be issued against them.
No. 2237. A cease and desist order issued against Paul F.
Beich Co., a corporation, with its principal office and place of busi¬
ness at Bloomington, Ill., has been vacated and an amended and
supplemental complaint issued against that respondent and di¬
rected the taking of testimony on such amended complaint.
Page 1145
The respondent is charged in the amended and supplemental
complaint with selling to wholesale and retail dealers packages
or assortments of candy, so packed and assembled as to involve
the use of a lottery scheme when sold and distributed to con¬
sumers.
No. 2870. Unfair competition by the representation of a dealer
as a manufacturer, is alleged in a complaint issued against M. and
A. Berger, of 82 Orchard St., New York, trading as Wearwell
Knitting Mills.
In addition to the trade name containing the word “Mills”,
the respondents, according to the complaint, advertised knitted
garments by means of the phrase “Manufacturers of High Grade
Sweaters, Bathing Suits and Knitted Novelties”, implying that
they own or control a mill or mills, when in fact they have not
manufactured these articles and have not owned or controlled a
factory in which such products are knitted.
No. 2671. Ross Knitting Mills, Inc., a corporation, trading
under that corporate name and also as Ross Sportswear Co., and
Nathan Hirsch, also trading as Ross Sportswear Co., of New
York City, are named as respondents in a complaint charging
violation of Section S of the Federal Trade Commission Act.
The respondents are engaged in selling and distributing knitted
garments and other apparel in interstate commerce. It is alleged
in the complaint that Ross Knitting Mills, Inc., and Nathan
Hirsch, in the sale of the products mentioned, falsely represent
that they are manufacturers, when in fact they have not manu¬
factured and do not manufacture the products they sell, nor do
they own or control a mill in which such products sold by them
are manufactured. It is set out in the complaint that use of
the words “Manufacturers of”, on the respondents’ letterheads,
business cards, invoices and otherwise, falsely implies that they
are manufacturers.
No. 2672. William VV. Babcock, doing business under the name
and style of National Civil Service Training Bureau, with office
and principal place of business in Los Angeles, Calif., is named
as respondent in a complaint charging violation of Section S of the
Federal Trade Commission Act.
It is alleged in the complaint that the name “National Civil
Service Training Bureau”, used by the respondent in conducting
his business, implies to persons solicited to pursue the respond¬
ent’s course of study, that the said Bureau is a part of or is
connected with, or is an agency of the United States govern¬
ment. The complaint sets out that in truth and in fact neither
the respondent, his school, nor anyone connected therewith, has
any connection whatever with the Federal government, and that
the sale of the respondent’s course of study in the manner com¬
plained about, is unfair competition within the meaning of the
Federal Trade Commission Act.
No. 2673. H. Will Elders, seller and distributor of a medicinal
preparation known as “Dr. H. Will Elders’ Filled Prescription for
Women,” with his place of business at St. Joseph, Mo., is named
as respondent in a complaint alleging violation of Section S of
the Federal Trade Commission Act. The respondent is charged
with making false and misleading representations in advertising
matter of the respondent’s medicinal preparation.
No. 2674. A complaint has been -issued charging Griffith Piano
Co., of Newark, N. J., with unfair competition through imitation
of advertisements of the Mathushek Piano Manufacturing Co., of
New York City, and through disparagement of the Mathushek
company’s product, the “Spinet Grand” piano
The “Spinet Grand”, a small, square type instrument with only
four legs, has acquired a valuable good-will, according to the
complaint, and has been advertised as occupying “only the space
of a lounge”. The complaint alleges that the respondent com¬
pany advertised its “Colonial Grand Piano” by altering a picture
of a conventional grand piano so that it appeared to be square or
rectangular, similar to the Spinet Grand, with the fifth leg elimi¬
nated. It was advertised as occupying “no more space than a
lounge or sofa.”
No. 2675. A complaint has been issued alleging unfair competi¬
tion on the part of Joseph Weidenhoff, Inc., of Chicago, said
to be the largest manufacturer of automobile testing devices in
the United States. The complaint charges the respondent with
executing an unlawful plan to control and restrain interstate com¬
merce in testing devices.
Obtaining a patent for the special use of a vacuum gauge, the
respondent is alleged to have manufactured testing devices con¬
sisting of a large number of separate and unrelated parts and
items, including the vacuum gauge, assembled into one apparatus
and sold to garage owners and others at prices ranging from $175
to $1,000 a device.
No. 2676. A complaint has been issued against Dennison Bros.,
Page
Inc., of 437 Eleventh Ave., New York City, alleging unfair com¬
petition through representation to the public that a large percentage
of its profits are for the use and benefit of a charitable institu¬
tion, the Bethlehem Orphan and Half-Orphan Home, of New
York City.
The respondent is charged with utilizing the representation about
its gifts to a charitable institution so as to increase its sales and
obtain patronage which otherwise would be unavailable.
Stipulations
The Commission has announced the following cease and desist
orders:
Nos. 1567-1568. Louis and Isadore Kaplin, of 228 Cherry
Street, Philadelphia, trading as Metropolitan Bag & Suitcase
Co., manufacturing luggage, including gladstone bags and suit cases,
and Standard Traveling Goods Co., 331 Race Street, Phila¬
delphia, manufacturing men’s and women’s hand luggage, agree to
discontinue misleading representations of their products. Louis
and Isadore Kaplin stipulate that they will cease and desist using
the word “leather” alone or in connection with the phrase “war¬
ranted genuine,” and Standard Traveling Goods Co., that it will
stop using the word “leather,” alone or in connection with the
phrase “Guaranteed Genuine,” to brand or label their products
so as to imply that they are made of leather from the top or
grain cut of the hide ; unless, when the products are composed of
leather made from the inner or flesh cut of the hide, the word
“leather,” if used to designate them, shall be accompanied by the
word “split” in conspicuous type to clearly indicate that the
products are not made of leather from the top or grain cut.
No. 1589. The Wilson-El-Bart Corporation, 70 West 40th
Street, New York City, is engaged in distilling American-made
alcoholic beverages, including gin andd whiskey, and has agreed to
abandon use in its advertising matter of representations to the
effect that Canadian, or “over-the-border” whiskies are impractical
or are not suitable for use in the blending of distilled spirits, or
that blended whiskey prepared with imported Canadian whiskey
is a Droduct inferior to a mixture made of American straight
whiskey. The respondent agrees also to stop making other repre¬
sentations of equivalent meaning when such are not the facts, and
when such allegations amount to disparagement of imported
Canadian whiskies of competitors.
No. 1570. Biiilcs Manufacturing Co., of 3105 Carroll Ave¬
nue, Chicago, manufacturer of painting and finishing equipment,
including a spray gun designated “Thor ‘Model 2,” agrees to cease
and desist from use in advertising of the representation that cer¬
tain automobile and body manufacturers have ordered or pur¬
chased a total of 11,750 or more of Binks products, when this is
not true. The stipulation shows that this company advertised
that General Motors ordered over 4.000 of its products; Chrysler
more than 3,050; Studebaker in excess of 1,500; Briggs Body in
excess of 2,000, and Fisher Body over 1,200. The stipulation
points out that this allegation in the respondent’s advertising was
greatly exaggerated, and much in excess of the actual number of
the devices ordered or purchased by these manufacturers.
No. 1571. Jennings B, Momsen, of 838 North 13th Street,
Milwaukee, trading as Temple Airway Bureau, and engaged
in the sale of alleged data and information by direct mail relating
to the United States Air Corps, agrees to cease and desist adver¬
tising his business in periodicals under the classification, “Help
Wanted,” and representing in such advertisements that men are
wanted for the United States Air Corps; that the alleged infor¬
mation concerning the corps which he sends applicants in return
for a fee has any monetary value, or that this is information
which could not readily be obtained by such applicants from
official sources without cost. He also agrees to cease alleging that
the Temple Airway Bureau1 is a flying school or that it is in a
position to assist an applicant applying for admission and train¬
ing in the air corps.
No. 1572. Adolph Hauptman, of 1123 Broadway, New
York City, importer and factory representative in the wholesaling
of a variety of products, agrees to stop selling in interstate com¬
merce, toothpicks packed in cartons or packages of a dress or ap¬
pearance approximately the same as that of cartons or packages in
which similar merchandise is sold by a competitor. Hauptman
is said to have imitated the cartons in which toothpicks were
packed and sold by the Estate of Charles Forster, of Strong, Me.
No. 1573. Morris Senderowitz and Morris H. Senderowitz,
645 Jordan St., Allentown, Pa., manufacturing men’s underwear,
agree to stop marking, branding or labeling goods with price
markings in excess of the usual and customary selling value
thereof.
1146
No. 1574. J. C. Winter & Co., Inc., Red Lion, Pa., cigar
manufacturer, agrees to discontinue use of the expressions “Hand
Made,” “Havana,” and “Sumatra,” to describe the process, filler
and the wrapper respectively of cigars not made wholly by hand,
with fillers not made from Havana tobacco or tobacco grown on
the island of Cuba, and wrappers not raised in Sumatra. The
company also agrees to cease certain misleading assertions regard¬
ing its prices.
No. 1575. Duplex Silk Mills, Inc., 1410 Broadway, New York
City, engaged in purchasing raw silk which it causes to be
“thrown” or spun, and of rayon yarn, and having the silk and
rayon yarn woven into fabrics according to its specifications,
agrees to stop using the word “mills” as part of its trade name,
or in any way which may tend to deceive buyers into believing that
it owns and controls mills wherein its products are made, when
this is not true.
No. 1576. B. R. Stone and J. W. Hogan, of 620 Kasota
Building, Minneapolis, trading as Rogers Publicity Depart¬
ment, formerly engaged in the sale of coupons and advertising mat¬
ter for use by retailers in selling their merchandise, and in the
redemption of such coupons by exchanging them for silverware.
The respondents agree to cease using the phrase “Rogers Publicity
Department” as a trade name under which to transact their busi¬
ness, or of any other words having a tendency to deceive buyers
into believing that they are a department of, or connected with
William A. Rogers, Limited, manufacturer of silver-plated ware,
when this is not true. The respondents agree to cease certain
other representations in the conduct of their business.
No. 1577. New England Woolen Mills Co., 1420 West 6th
St., Cleveland, agrees to abandon use of the word “mills” as part
of its trade name, and to stop using this word in any way which
may imply that it owns and controls the mill in which its products
are made, when this is not true.
No. 1578. M. L. and Marsell Fernandez, 2007 11th St.,
Tampa, Fla., trading as M. L. Fernandez and Brother, in the
manufacture and sale of cigars, agree to forego use on brands or
labels affixed to their products, of the words “Vuelta Abajo,” in¬
dependently or in connection with other words implying that the
products are made entirely of tobacco grown in Cuba or in the
Cuban province of Vuelta Abajo, when this is not true.
No. 1579. J. A. Begin and A. C. Herbert, copartners, trad¬
ing as J. A. Begin & Co., of Beebe Plain, Vt., engaged in the
quarrying of granite from quarries located at Beebe, Quebec,
agree to stop the use in their advertisements of the words “Near
Barre,” to designate products which are not, in truth and in fact,
made of granite produced or quarried near Barre, Vt., and within
the Barre district. The stipulation points out that the Barre dis¬
trict of Vermont produces a granite of high quality which has
developed a reputation and good-will in the use of the word
“Barre.”
No. 2465. Joseph M. Guerra, of 16 E. Tupper St., Buffalo,
N. Y., engaged as a printer of social and business stationery under
the name Benton Novograph Co., has been ordered to cease and
desist from certain misrepresentations in the sale of his product.
Guerra is directed to cease using the words “engraved,” “engrav¬
ing,” and “engravers” in advertising his business or his products
on which the lettering or designs have been printed from ink
typed faces, electrotypes, or similar devices, and given a raised
letter effect by an embossing process.
No. 2517. The General Implement Co. of America, Inc., of
Cleveland, and its subsidiary, The General Implement Manu¬
facturing Co., Inc., of Liberty, Ind., have been ordered to dis¬
continue certain unfair competitive methods in the sale under the
trade name “Soil Fitter,” of certain farm implements and tools
purchased as bankrupt stock of the former Dunham Co., of
Berea, O.
The order prohibits the respondents from advertising the “Soil
Fitter” line as the most complete line of farm implements and
tools made, and that they will furnish repair parts for use with
tools and implements listed on special price sheets, until they ac¬
tually do furnish such parts. Other representations regarding the
“Soil Fitter” line are banned under the order.
No. 2545. Philip Wong, Cambridge, Mass., dealer in “Soft
Corn Valuable,” has been ordered to discontinue advertising this
preparation as a cure or proper treatment for various named
diseases, or as harmless or non-poisonous.
Findings are that the product will not cure the diseases enum¬
erated, including corns, callouses, skin diseases, goiter, cancer, con¬
sumption, and others, and is not harmless, but, on the contrary,
is poisonous and dangerous to be taken internally.
No. 2555. Speidel Corporation, of 70 Ship Street, Providence,
Page
R. I., has been served with an order to cease and desist prohibiting
certain unfair competitive methods in the sale of jewelry.
Use of the term “gold shell” or words of similar import to
describe gold covered products manufactured by an electroplating
or electrolytic process, is banned in the Commission’s order. The
respondent is directed to stop representing that jewelry produced
by any process other than the “gold filled” or “rolled gold plate”
process, possesses a “gold shell” or contains a deposit of a substan¬
tial quantity of gold on the exterior. Provision is made that this
part of the order shall be effective unless the gold deposit is com¬
parable by weight and thickness with the amount and quality of
gold deposit contained on the exterior of articles correctly desig¬
nated “gold filled,” or “rolled gold plate.”
No. 2577. In an order issued against Frank Livingston, trading
as Berkshire Textile Co., at Brattleboro, Vt., and Greenfield,
Mass., he is required to cease and desist from certain practices held
by the Commission to be in violation of Section S of the Federal
Trade Commission Act.
Among other things, the respondent is required to cease and
desist from advertising, in the sale and distribution of dress goods,
that he gives goods free to customers who make purchases, unless
he in fact does so; from representing that the respondent is the
owner or operator of or controls a factory at which the goods he
sells are made; from representing that the respondent guarantees
satisfaction to his customers; from representing that the prices
at which the goods are offered are special bargain prices, when
this is not the fact, and from certain other practices alleged by
the Commission to be in violation of law.
NEW CHAIRMAN OF FTC
Col. Charles H. March has been designated to serve as Chair¬
man of the Federal Trade Commission for the fiscal year 1936,
effective January 1. He succeeds Commissioner Ewin L. Davis,
who has served in that capacity during the last year. Under the
Commission’s custom, the Chairmanship rotates annually.
This will be Col. March’s second term as Chairman of the
Federal Trade Commission. He was appointed to that Commis¬
sion in 1929 for a term expiring September 25, 1935, and was
reappointed by President Roosevelt last September for a full
term of seven years, expiring in 1942. Col. March served as
Chairman during 1933.
FTC CASE CLOSED
No. 2587. The Federal Trade Commission has closed its pro¬
ceeding against the Associated Lobster Dealers of Massachusetts,
Boston, and its officers and members.
Conspiracy to fix prices of lobsters obtained from Canadian
and American waters had been alleged in the Commission’s com¬
plaint.
The Commission, however, closed the case without prejudice to
its right to reopen it “should conditions hereafter arising require
such action in the public interest.”
FEDERAL COMMUNICATIONS COMMISSION
ACTION
No meeting of the Broadcast Division of the Commission was
held at the usual time this week owing to the fact that the Com¬
mission was hearing testimony in the coaxial cable application of
the American Telephone & Telegraph Company.
HEARING CALENDAR
Monday, January 13
HEARING BEFORE AN EXAMINER
(Broadcast)
KVSO — The Ardmoreite Publishing Co., Inc., Ardmore, Okla. —
C. P., 1210 kc., 100 watts, 250 watts LS, unlimited time.
Present assignment: 1210 kc., 100 watts, daytime.
NEW — J. Laurance Martin, Tucumcari, N. Mex. — C. P., 1200 kc.,
100 watts, unlimited time.
NEW— Hubert H. Hall, Erie, Pa— C. P., 1420 kc., 100 watts, un¬
limited time (requests facilities of WLEU).
WLEU — Leo J. Omelian, Erie, Pa. — Renewal of license, 1420 kc.,
100 watts, 250 watts LS, unlimited time.
Tuesday, January 14
NEW — Struble, Strong & Fagan, The Dalles, Ore.- — C. P., 1200 kc.,
100 watts, unlimited time.
NEW— James R. Doss, Jr„ Tuscaloosa, Ala.— C. P., 1200 kc„ 100
watts, daytime.
1147
Thursday, January 16
NEW — Thames Broadcasting Corp., New London, Conn. — C. P.,
1500 kc., 100 watts, daytime.
WMEX — The Northern Corp., Boston, Mass. — C. P., 1470 kc., 5
KW, unlimited time. Present assignment: 1500 kc., 100
watts, 2S0 watts LS, unlimited time.
FOR FURTHER HEARING AND ORAL ARGUMENT
BEFORE THE BROADCAST DIVISION
KFYR — Meyer Broadcasting Co., Bismarck, N. Dak. — Renewal of
license, 550 kc., 1 KW, 5 KW LS, unlimited time.
Friday, January 17
NEW — Alfred C. Matthews, Cape May, N. J. — C. P., 1420 kc., 100
watts night, 100 watts day, specified hours.
WPAR — Ohio Valley Broadcasting Corp., Parkersburg, W. Va. —
C. P., 1420 kc., 100 watts, 250 watts LS, unlimited time.
Present assignment: 1420 kc., 100 watts, unlimited time.
APPLICATIONS RECEIVED
First Zone
WHDH — Matheson Radio Co., Inc., Boston, Mass. — Construction
830 permit to make equipment changes.
WJAR — The Outlet Co., Providence, R. I. — Extension of special
890 authorization to use additional power of 250 watts night for
period from 3-1-36 to 9-1-36. (Gives 500 watts power day
and night.)
WESG — Cornell University, Elmira, N. Y. — Extension of special
1040 experimental authorization to operate on 850 kc., daylight to
sunset at New Orleans, Pa., for period from 2-1-36 to 8-1-36.
WTIC — The Travelers Broadcasting Service Corp., Hartford, Conn.
1040 . — Extension of special experimental authorization to change
frequency from 1060 kc. to 1040 kc.; time from S-WBAL
to simultaneous operation with KRLD (unlimited) for period
2-1-36 to 8-1-36.
WBAL — The WBAL Broadcasting Co., Baltimore, Md. — Extension
1060 of special experimental authorization to change time from
S-WTIC to daily simultaneous operation on 1060 kc. with
KTHS from 6 a. m. to local sunset at Hot Springs, Ark.,
from local sunset to 9 p. m., operation unlimited on 1060 kc.
from 9 p. m. on. Will synchronize with WJZ on 760 kc.,
with power of 2)4 KW, until end of license period from
2-1-36 to 8-1-36.
WNRI — -S. George Webb, Newport, R. I. — Modification of con-
1200 struction permit (l-P-B-2815) for new station requesting
extension of completion date from 2-4-36 to 6-4-36.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. — Modifi-
1310 cation of license to change hours of operation from daytime
to 7:30 p. m., using 100 watts power at night.
WBNY — Roy L. Albertson, Buffalo, N. Y. — Modification of con-
1370 struction permit (Bl-P-402) for approval of antenna, and
transmitter site at Kenmore Ave., 250 feet east of Starin Ave.,
Buffalo, N. Y„ and studio at 485 Main St., Buffalo, N. Y.
Amended to give transmitter site from Kenmore Ave., 250
feet east of Starin Ave., Buffalo, N. Y., to 154 E. Eagle St.,
Buffalo, N. Y.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Trans-
1400 fer of control of corporation from Paramount Broadcasting
Corp. to Brooklyn Council, Kings County Dept, of N. Y.
Veterans of Foreign Wars of the United States, 51 shares of
common stock.
NEW — Connecticut State College, Storrs, Conn. — License to cover
construction permit for a new general experimental station.
Second Zone
WKRC — WKRC, Inc., Cincinnati, Ohio. — Extension of special ex-
550 perimental authorization to operate with 1 KW power for
period from 3-1-36 to 9-1-36.
NEW— Berks Broadcasting Co., Pottsville, Pa. — Construction per-
640 mit to erect a new broadcast station on 640 kc., 250 watts,
daytime operation.
WQAN — E. J. Lynett (Prop., The Scranton Times), Scranton, Pa. —
880 Voluntary assignment of license from E. J. Lynett (Prop, of
The Scranton Times) to The Scranton Times (co-partner¬
ship) , E. J. Lynett, Wm. R. Lynett, Elizabeth R. Lynett, and
Edward J. Lynett, Jr.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
1370 Construction permit to install auxiliary transmitter.
NEW — Miami Valley Broadcasting Corp., Dayton, Ohio. — Con¬
struction permit for a new general experimental station for
31600, 35600, 38600, 41000 kc., 100 watts.
NEW — WBNS, Inc., Columbus, Ohio. — Construction permit for a
new general experimental station on 31600, 35600, 38600,
41000 kc., 1 KW.
Third Zone
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — Construc-
920 tion permit to install new equipment, increase power from
100 watts, 250 watts day, to 250 watts, 500 watts day; move
transmitter from Hall St., Jackson, Tenn., to 350 feet east
of Hollywood Cemetery, northwest of city limits, exact site
to be determined, Tennessee, using directional antenna.
Amended to give frequency as 920 kc.
KRLD — KRLD Radio Corp., Dallas, Tex. — Extension of special
1040 experimental authorizations to operate simultaneously with
WTIC for period from 2-1-36 to 8-1-36.
KTHS — Hot Springs Chamber of Commerce, Hot Springs National
1060 Park, Ark. — Extension of special experimental authorization
to change frequency from 1040 kc. to 1060 kc. ; time from
S-KRLD to simultaneous WBAL from 6 a. m. to local sun¬
set daily, suspend until 8 p. m., and unlimited from then
until midnight, for period to 8-1-36.
KWKH — International Broadcasting Corp., Shreveport, La. — Ex-
1100 tension of special authorization to operate on 1100 kc., un¬
limited time, with directional antenna at night, for period
2-1-36 to 8-1-36.
NEW — State Capitol Broadcasting Assn. (R. B. Anderson, Presi-
1120 dent), Austin, Tex. — Construction permit for new station on
1120 kc., 500 watts, 1 KW day, specified hours (all hours not
used by WTAW), using directional antenna.
WPAX — H. Wimpy, Thomasville, Ga. — Modification of construc-
1210 tion permit (B3-P-386) for changes in equipment and in¬
crease in power, requesting approval of transmitter site at
117 Remington Ave., Thomasville, Ga., and approval of
antenna system ; extend commencement date from 7-14-35
to 10 days after grant and completion date from 1-14-36 to
30 days after grant.
KTRH — KTRH Broadcasting Co., Houston, Tex.— License to cover
1290 construction permit (B3-P-880) for changes in equipment.
KTRH — KTRH Broadcasting Co., Houston, Tex. — Authority to
1290 determine operating power by direct measurement of antenna.
KPDN — Pampa Daily News, Inc., Pampa, Tex. — Modification of
1310 construction permit (B3-P-382) for a new station for changes
in equipment, approval of transmitter site at .8 of a mile east
of city limits on highway 33, Pampa, Tex., studio site at 212
No. Ballard, Pampa, Tex., and approval of antenna.
WSGN— R. B. Broyles, tr/as R. B. Broyles Furniture Co., Birming-
1310 ham, Ala. — Voluntary assignment of license from R. B.
Broyles, tr/as R. B. Broyles Furniture Co., to The Birming¬
ham News Co.
NEW — Albert E. Davis, Brownwood, Tex. — Construction permit
1420 for a new station on 1420 kc., 100 watts, daytime operation.
Amended: Transmitter site to be determined, Brownwood,
Tex.
W4XBT — Radio Station WSOC, Inc., Portable-Mobile. — License to
cover construction permit for new general experimental
station.
NEW — WKY Radiophone Co., Oklahoma City, Okla. — Construc¬
tion permit for a new experimental relay station for 6020,
9510, 11810, 15170, 17760, 21480 kc., 5 KW.
NEW — Tri-State Broadcasting System, Inc., Portable-Mobile.—
Construction permit for broadcast pickup station for 1606,
2020, 2102, 2760 kc., 50 watts.
NEW — Tri-State Broadcasting System, Inc., Portable-Mobile. —
License to cover the above.
Fourth Zone
WEDC — Emil Denemark, Inc., Chicago, Ill. — Modification of license
1210 to change specified hours from daily, 8:30-10:00 a. m., 3:30-
5:00 p. m., 7:00-8:00 p. m., 10:00-11:00 p. m., 1:00-3:00
a. m.; to daily, 8:30-10:00 a. m., 3:30-5:00 p. m., 7:00-8:00
p. m., 10:00 to 11:00 p. m., midnight to 6:00 a. m. (request¬
ing 1 hour used by WCRW, from midnight to 1:00 a. m.).
KLPM — John B. Cooley, Minot, N. Dak. — Modification of license
1240 to change hours of operation on Sundays from 9:00 a. m. to
11:45 a. m., 1:30 p. m. to 2 :30 p. m., 5:00 p. m. to 8:00 p. m.,
CST, to 9:00 a. m. to 11 :45 a. m., 7 :00 p. m. to 11:00 p. m.
Page 1148
WBOW— Banks of Wabash, Inc., Terre Haute, Ind.— License to
1310 cover construction permit (B4-P-377) for changes in equip¬
ment and increase in power
W9XAF — The Journal Co. (The Milwaukee Journal), Milwaukee,
Wis. — Renewal of license.
W9XID — Donald A. Burton, Portable-Mobile.- — License to cover
construction permit for general experimental station.
NEW — Racine Broadcasting Corp., Portable-Mobile. — Construc¬
tion permit for a general experimental station on 31100,
34600, 37600, 40600 kc„ 10 watts.
NEW— Racine Broadcasting Corp., Portable-Mobile.— License to
cover above.
Fifth Zone
KVOS — KVOS, Inc., Bellingham, Wash. — Consent to transfer of
1200 control of corporation from Wescoast Broadcasting Co. to
Rogan Jones, 147 shares of common stock.
KVOR — S. H. Patterson, Colorado Springs, Colo. — License to cover
1270 construction permit (B5-P-580) to move transmitter and
make equipment changes.
NEW — Donald A. Wike and H. E. Studebaker, Baker, Ore. — Con-
1370 struction permit for new station on 1370 kc., 100 watts, 250
watts day, unlimited time, requesting frequency of KUJ con¬
tingent upon KUJ being granted another frequency as ap¬
plied for. Amended to give name as Donald A. Wike and
H. E. Studebaker, d/b as Wike and Studebaker.
KABD — Don Lee Broadcasting System, Los Angeles, Calif. — License
to cover construction permit for broadcast pickup station.
W10XFZ — Don Lee Broadcasting System, Portable-Mobile. —
License to cover construction permit for general experimental
station.
W6XB — Earl A. Meilsen, Portable-Mobile. — License to cover con¬
struction permit.
Page 1149
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS *
Copyright, 1936. The National Association of Broadcasters
★
Vol. 4 - - No. 3
JANUARY 13, 1936
COPYRIGHT
Tentative Program of Activity in Behalf of the NAB
FOREWORD
On Friday, January 10, 1936, after a long day of arduous labor, the Managing Director and his Advisory Com¬
mittee discussed and agreed upon the following tentative program of activity in the field of copyright.
Late that evening they were informed, through newspaper sources and not by any communication from ASCAP,
that a wire had gone out from ASCAP to all stations saying in substance that stations have until January 15, 1936 to
accept the offer of a five-year contract contained in Mr. Buck’s telegram of December 30, 1935 and those that do
not accept are to be deemed infringers. This wire appears to be intended and to operate as a cancellation of the tem¬
porary arrangement under which most stations have been operating, based on Mr. Buck’s letter, dated December 30,
1935, given to and accepted by the Managing Director.
This is not the time or place to comment on the precipitous action thus taken by ASCAP. Until it was taken,
the Managing Director had every reason to believe that ASCAP would not exercise its right of cancellation of the
temporary arrangement without first having further negotiations with him and his Committee and without having ex¬
hausted all possibilities of reaching an amicable settlement of the issues that have arisen. That hope, it seems, was
without foundation.
At present writing it would seem that stations needing ASCAP music have no alternative but to accept the five-
year contract by January 15, 1936. To this extent, the course of events has outrun a part of the tentative program
which appears below. These events, of course, place increased obstacles in the way of future negotiations with ASCAP
but the Managing Director and his Advisory Committee refuse to regard these obstacles as insuperable. Even if
they are insuperable, that is all the more reason for bending every effort to carry out the rest of the program.
This report is to advise the members of the National Association
of Broadcasters of a tentative program of activity in the field of
copyright, agreed on by the Managing Director and his Advisory
Committee1 (selected pursuant to a resolution adopted by a
majority of the Board of Directors, December 17, 1935). It is of
the utmost importance that every broadcaster immediately acquaint
himself with this program. For convenience, the activities pro¬
posed will be considered under the following four headings:
A. License arrangements between broadcasters and organizations
controlling performing rights on copyrighted music.
B. Compiling and distribution of information to broadcasters
and the taking of any proper steps to assist them in protect¬
ing themselves against exorbitant or unreasonable demands.
C. The copyright bill now pending in Congress, known as the
Duffy Copyright Bill.
D. The suit now pending in the Federal Court, instituted by the
government against ASCAP.
The problems referred to, and intended to be covered by the
foregoing are, for the most part, such as to call for immediate
decision and determination of a course of action to be pursued
promptly and effectively.
A. LICENSE ARRANGEMENTS BETWEEN BROADCAST¬
ERS AND ORGANIZATIONS CONTROLLING PER¬
FORMING RIGHTS ON COPYRIGHTED MUSIC.
From the point of view of number of copyrighted compositions
controlled and their value to the average American broadcaster,
the principal organizations controlling performing rights are:
1. American Society of Composers, Authors and Publishers
(ASCAP).
^The members of the Advisory Committee who participated in and approved
this report are Messrs. Allen, Caldwell, Carpenter, Clark, Craig, Damm, and
Loucks.
2. Music Publishers Holding Corporation (MPHC), being the
Warner Brothers group of music publishers.
3. Associated Music Publishers, Incorporated (AMP).
4. European Society of Stage Authors and Composers (SESAC) .
5. Ricordi of Milan.
There are, of course, other important organizations, especially
in the foreign field, and an unknown number of small independent
music publishers and music copyright owners in this country.
For the sake of simplicity, however, they will be disregarded in
this discussion although they cannot and should not be ignored
in fact or in practice.
It is unnecessary to state that the forms and terms of the license
agreements of these several organizations, and the bases for cal¬
culating compensation to be paid by Licensees, conform to no
standard. They are bewildering in their variations, not only as
between the several organizations but also as between outstanding
contracts and classes of contracts of the same organization. With
reference to the bases for compensation, the principal classifica¬
tions are:
1. A fixed amount (usually called a sustaining fee) calculated
arbitrarily, plus a percentage of the Licensee’s total net re¬
ceipts.
e. g., the ASCAP contract held by the great majority of
broadcasters.
2. A fixed amount calculated arbitrarily, plus a percentage of
the Licensee’s gross actual receipts from programs con¬
taining music.
e. g., the ASCAP contract held by WCAU.
3. A minimum guarantee calculated arbitrarily, plus a percentage
of the Licensee’s net receipts from programs containing
Licensor’s music.
e. g., the ASCAP contract held by about 48 newspaper
stations.
Page 1151
4. A fixed amount calculated arbitrarily, plus a percentage of
the Licensee’s net receipts excluding a portion of the network
receipts on network programs.
e. g., the ASCAP contract held by the network owned or
controlled stations.
5. A fixed amount calculated arbitrarily.
e. g., the ASCAP contracts held by certain nonprofit sta¬
tions; also the SESAC contracts.
6. A fixed amount calculated according to some standard.
e. g., the MPHC contract based on a monthly payment
of X times the station’s highest quarter hour rate; the
AMP contract based on a monthly payment of one times
the station’s highest day-time quarter hour rate ; and the
Ricordi contract based on gross receipts of stations.
7. A fixed amount, whether calculated according to some stand¬
ard or not, covering not only the Licensee’s station or stations
but also other stations (network affiliates) to whom Licensee
furnishes programs, with respect to such programs.
e. g., the SESAC and AMP contracts with the two na¬
tional network companies; the MPHC contract con¬
templated with MPHC and said companies.
8. Compensation calculated on a per-piece or per-use basis, with
or without a guarantee minimum.
e. g., the future MPHC contracts as contemplated in the
present three months contracts.
There are undoubtedly other varieties than the foregoing, and many
subvarieties of the foregoing.
In view oi the complexities raised by the fact that with respect
to two of the organizations (ASCAP and MPHC) there is a press¬
ing and immediate need for negotiations, and by the further fact
that such negotiations will necessarily be closely related with present
and future negotiations with the other organizations, it seems
advisable to subdivide this discussion into appropriate sub-headings.
1. The ideal objectives sought to be accomplished.
(a) No discrimination. At the earliest possible date all dis¬
criminations by any such organization as between Licensees must
be completely and finally eliminated. The terms and the com¬
pensations must be based upon some reasonable standard, applicable
to all alike, and the contracts must contain clauses binding the
Licensor to give the benefit of any more favorable contract of
one Licensee to all Licensees. This, of course, does not mean that
more favorable contracts may not be accorded to small stations
as a class, or to bona fide non-profit stations as a class, provided
that the line drawn is reasonable and all within the class are
similarly treated.
Any contract between a broadcaster and a copyright owner by
which the broadcaster gets the exclusive right for any period to
broadcast one or more compositions is to be considered a form of
discrimination and is not to be tolerated, and any license agree¬
ments should be drawn so as to eliminate, so far as possible, any
such form of discrimination.
( b ) Basis for calculating compensation. This Managing Director
and his Advisory Committee have little discretion in this matter..
The membership of the NAB at three successive annual conventions
have endorsed the per-piece or measured service basis for com¬
pensation and have left no discretion except as to the detailed
method of giving it effect. As noted below, there are several
possible varieties of per-piece plans, and some present practical
difficulties and burdens far greater than do others. Subject to
this qualification only, the Managing Director and his Advisory
Committee unqualifiedly endorse the per-piece basis as the only
just and equitable basis for compensation, and will insist upon it
as an immediate or eventual indispensable term of any contract.
In view of the fact that there is a substantial minority in the
NAB which, while conceding the theoretical desirability of the
per-piece basis, believes the practical difficulties are too great to
put it into effect immediately, and in view of the further fact that
a certain number of the smaller stations are not equipped or staffed
to do so immediately, and in view of the further fact that certain
outstanding contracts (particularly ASCAP) may prove to be a
temporary insurmountable obstacle, it is recognized —
(a) that the putting of such a plan into effect may have to be
gradual, but in no event should it await five years or any
substantial portion thereof,
( b ) that it may have to be accompanied by temporary alterna¬
tive forms of contracts, available to all stations on equal
terms, and
(c) that a permanent alternative may have to be offered to
the smaller stations,
e. g., a fiat license fee.
Page
No temporary or permanent alternative should be accepted, how¬
ever, which is in anyway discriminatory or which is not based on
some reasonable and easily intelligible standard. In particular,
compensation should in no event be based on a percentage of
Licensee’s revenue.
(c) Nature of licensing organization. If the benefits of price
competition between copyright owners (or groups thereof) could
be secured and preserved, the ideal licensing medium for a per-
piece system would be a single organization, conducted in a fashion
analogous to certain well known patent licensing pools. The
organization would act simply as the repository and trustee of
performing rights, with power to issue licenses. It would have
no power to fix, or to participate in the fixing of any price per-
piece; this would be done by the copyright owner who registers
his compositions, and the compensation he expects, with the
organization. It would, however, have to be bound by certain
agreed classifications with respect to stations, and, with respect
to compositions. The organization would be responsible for col¬
lecting the compensation from Licensees and for distributing the
proceeds (less expenses) to the copyright owners on a per-piece
basis. , It would be open to any and all copyright owners without
discrimination.
As a practical matter, this ideal does not seem likely of realiza¬
tion, at least in the immediate future, and perhaps never without
compelling legislation or judicial decree. The possibilities and
the desirability of such legislation have not been canvassed by the
Managing Director or his Advisory Committee, and, in any event,
the legislative process is too slow to meet the immediate problem.
On the other hand, such possibility should not be ignored in any
long range plan on the subject.
Several years ago ASCAP might be said to have come close to
meeting one of the essential features of such an organization but
to have been completely lacking in another essential feature. On
most of the important musical compositions, it held or claimed to
hold, the performing rights, and, while it is said that the proceeds
were inequitably distributed by it among its members and that
the conditions of admission to membership were such as to be
unfair to outsiders, it did seem to furnish most of the convenience
of a single licensing organization. The bad features which counter¬
balanced this convenience was that, being virtually a monopoly,
it had power to exercise, and did exercise, an unrestrained power
to fix prices. There was no price competition between the copy¬
right owners, nor was there any other form of competition be¬
tween them.
Since then, separate licensing organizations have made their
appearance, notably AMP, SESAC, and, most recently, MPHC.
It cannot yet be said that there is any evidence of price competi¬
tion between them. Probably there will be no such competition
until the broadcaster is on a basis of bargaining equality. In this
connection the subject matter of parts B, C, and D becomes of
prime importance.
The present existence of several licensing organizations has poten¬
tial advantages for the broadcaster, so long as those organizations
have price-fixing power, for the sake of securing some measure
of the competition to which buyers are entitled. The Managing
Director and his Advisory Committee conclude, therefore, that,
pending the advent of an ideal such as previously described, it
should be their aim to prevent by any proper means within their
power the elimination of any potential competition by the merger
of the more important licensing organizations.
(d) Clearance of copyright at the source. It is indispensable
that performing rights be cleared at the source. By “source” is
meant the originating station, or the originating station or network
studio, in the United States. The terms is not intended to cover
remote control orchestras and the like (although certain exceptions
should be made in such situations where the broadcaster has no
voice in what is performed), since it cannot be expected that the
Licensor will accept such a responsibility.
Reference is had primarily to network programs. The net¬
work company should be exclusively responsible for obtaining
licenses from, and paying compensation to, the licensing organiza¬
tion, and the affiliate station should not bear any portion of this
responsibility. The network company may, of course, pass on a
share of the cost to the affiliate; this will depend on contract
arrangements between network and affiliate.
In no other way can responsibility be laid where it belongs.
The originator of the program is in a position to commit or to
avoid infringements; the affiliate is not. The originator collects
the revenue from the advertiser out of which, directly or indirectly,
the performing fees must ultimately be paid. Finally, if the prac¬
tice becomes prevalent of passing on the cost to the advertiser,
1152
the originator is the person having contact with and collecting
revenue from the advertiser.
The same principles apply to electrical transcriptions, and should
be insisted on.
(e) Compulsory furnishing of lists of compositions. Hence¬
forth, no licensing agreements should be entered into which do not
obligates the Licensor to furnish to Licensee a complete list of
the compositions covered by the license, and to maintain such
lists up-to-date by additions furnished at stated intervals. In
large measure this was accomplished for the first time in the cur¬
rent temporary MPHC contract.
The importance of such lists is obvious. They are a necessary
prerequisite to any per-piece system of compensation. Without
them, an indemnity agreement is so easily evaded as to be almost
worthless. Eventually such lists will put an end to the confusion
of overlapping and conflicting claims of the principal licensing
organizations.
It cannot be emphasized too strongly that the copyright notice
printed on musical compositions gives no trustworthy indication
as to who controls the performing rights with respect to that
composition. This information can be obtained in no other way
than by lists furnished by the licensing organizations.
(/) An adequate guarantee of indemnity. Henceforth, every
license agreement should contain an adequate guarantee of indem¬
nity, protecting the Licensee against infringement claims by all
third parties based on performance of compositions covered by
the license agreement. Such a guarantee is not adequate if it is
limited in amount (as in the current temporary MPHC contract),
or if it is not referable to a definite and easily accessible list of
compositions, or if accompanied by any other qualification de¬
tracting from the protection to which the Licensee is entitled.
(g) The reasonableness of requirements as to records and peri¬
odical reports. It must be conceded at the outset, that if either a
per-piece plan or any form of measured service plan is to be
adopted, fairness to the Licensor demands reasonable obligations
on the part of the Licensee to keep adequate records and to make
periodical reports to the Licensor. Once this is conceded, it makes
little difference whether such reports are made on a weekly or
a monthly basis.
Requirements as to records and reports should, however, be con¬
fined to what is reasonably necessary to accomplish the purpose,
and should not extend merely to prying into the Licensors busi¬
ness. No reason is perceived, for example, for requiring the
Licensee to report performances of compositions not covered by
the license agreements; the Licensor will be adequately protected
by a right to audit Licensee’s lists and by any other means of
checking Licensor may have. The reporting of all compositions
is an undue burden, and will be all the worse if it must be done
to each Licensor.
Only limited records and reports can be expected or required
with respect to phonograph records, electrical transcriptions, and
network programs (so far as affiliates are concerned), because
of the impossibility of giving the complete information.
In all cases where only a flat fee (e. g., a fee based on card rates)
is required, the burden of records and reports should not be as
great.
(A) Miscellaneous. The foregoing are intended to cover only
the principal features of license agreements, and are not intended
to exclude consideration of other features which are or may be
objectionable. For example, license agreements should not be
required to be personal to the Licensee, and their benefits and
objections should go with the sale or transfer of control of the
station. Furthermore, license agreements should be drawn so as
to leave no doubt as to the right of the broadcaster to make any
arrangement or adaptation of a musical composition reasonably
incidental to the broadcasting of such composition.
(z) Uniformity. Uniformity of arrangement and phraseology
of license agreements is an end worthy of consideration in itself.
It helps to avoid conflicting and confusing interpretations. To this
end, study of the forms and agreements now in use by the several
licensing organizations should be made and their differences and
objectionable features should be noted. There is no reason, for
example, why a model guarantee clause can not be drafted, agreed
upon, and used in all contracts.
It is to be noted that to date little or no attention has been
paid by broadcasters to the forms used by AMP, SESAC, and
many other licensing organizations.
2. Means and methods for establishing a per-piece system of
compensation.
As already stated, the NAB is committed to securing the adop¬
tion of a per-piece or measured service system of compensation.
Page
The subject cannot, however, be intelligently approached without
giving due weight to practical difficulties since they have a
definite bearing on which of several plans should be sought, as
well as on the steps which must be taken by broadcasters to prepare
themselves for the carrying out of any such plans.
The furnishing to each Licensee of authentic lists by the licensing
organization is an indispensable prerequisite to any acceptable
plan. At the present date no such list is available, and the only
lists promised for the future are the MPHC lists to be furnished
not later than February 1, 1936, and those informally assured by
AMP. It is obvious that considerable expense is involved in
making such lists available to broadcasters. Nevertheless, in the
opinion of the Managing Director and his Advisory Committee,
it is only logical and just that the Licensor furnish such a list at its
own expense, since otherwise, as already pointed out, any indem¬
nity agreement is virtually worthless (whether or not a per-piece
plan is adopted) and every Licensee is in the ridiculous position
of not knowing what he has bought or how to protect himself
against infringement.
A second very substantial difficulty is the fact that some broad¬
cast stations are neither equipped nor staffed to put a per-piece
plan (or even a measured service plan such as the ASCAP news¬
paper form of contract) into effect immediately. If it were offered
tomorrow, such stations are unprepared to accept it. Consequently,
it is clear that for some, and perhaps for all, stations, a transition
period is necessary, and that for the smaller stations a per-piece
plan may prove impracticable. These are not to be construed as
arguments against its adoption; they are simply realities which
cannot be ignored. The discussion which follows must be under¬
stood as being subject to a working out of these realities in a
practical way.
There are several methods or standards for establishing a per-
piece plan, among which a choice must be made:
(a) The Licensor might set opposite each composition the price
per performance. Manifestly the price cannot be the same for a
50 kilowatt full-time clear channel station as it is for a 100-watt
local daytime station. Such a system requires that stations be
somehow classified, and that a ratio of each class to the figure
specified be worked out. Such a ratio cannot scientifically be
based on net or gross receipts, or on the character of the station’s
assignment with respect to frequency and power, or on the
population within its service area. The practical difficulties and
the possibilities of error and injustice are too great. The only ac¬
ceptable basis for classification of stations would seem to be
some unit taken from the station’s card rates.
Even then, however, the total number of musical compositions
furnishes an obstacle in itself. If they are all to be separately
priced, then the burden of the necessary records and reports might
prove to be disproportionately great for the average Licensee.
(b) The Licensor might divide all compositions into classes,
and set a price per performance for any composition of each class.
This method would still require a ratio such as already described,
based on card rates.
Much would depend on the number of classes found necessary,
and the ease with which the several classes might be distinguished
one from the other (and this, in turn, would depend largely on
how the lists furnished to the Licensee are classified, arranged and
indexed) . It is said that 20 classifications are recognized in Great
Britain. It has also been said that as many as 40 might be necessary
for the purpose of equitable operation of a per-piece plan, from
the point of view of the copyright owners.
If a simple and practicable classification can fie worked out,
without an undue burden on the Licensee, the Managing Director
and his Advisory Committee are disposed to regard this method
as feasible.
(c) The Licensor might agree to charge a uniform price for
each composition, expressed not in dollars and cents but on a
percentage of the station’s card rate for a given time unit , This
method has the advantage of simplicity and of least burden to
the Licensee. It has the disadvantage, however, of eliminating
competition between musical compositions controlled by the same
licensing organization.
A variation of this method would consist in providing that the
price thus calculated serve as a maximum, leaving Licensor free
from time to time to establish lower prices (similarly calculated)
on particular compositions or classes of compositions. The more
this is done, obviously, the greater become certain of the burdens
already referred to, but possibilities along this line cannot b£
overlooked.
1153
3. Negotiations with Licensing Organizations.
What has been stated under earlier sub-headings sufficiently
covers the objectives to be achieved, if possible, in future negotia¬
tions with any licensing organization. It is necessary, however, to
take note of particular problems raised in connection with certain
of them, so that the objectives may be interpreted with regard to
the practical situation.
ASCAP. As matters now stand, the overwhelming majority of
broadcasters are dependent on the bare authority of an arrangement
effective after December 31, 1935, subject to cancellation by
ASCAP on two days’ notice. This arrangement is based on a
letter from Mr. Buck, President of ASCAP, to the Managing Di¬
rector, dated December 30, 193S, and accepted by the Managing
Director on that date. Network affiliates have the similar pro¬
tection of an analogous assurance with respect to network pro¬
grams., These arrangements are, of course, subject to a qualifica¬
tion not contained in the previous contracts; they cover the
repertoire of ASCAP only as of January 1, 1936.
Under Mr. Buck’s telegram of December 30^ 1935, any ASCAP
Licensee is privileged, of course, to obtain a five-year extension
subject to this qualification as to repertoire. The Managing
Director and his Advisory Committee trust, however, that the
members of NAB that have not already accepted five-year re¬
newals will content themselves with the temporary arrangement
accorded by Mr. Buck’s letter. This will leave them perfectly free
to avail themselves of any advantages that may be secured as the
result of further negotiations. It is believed that Mr. Buck and
the other direct officials of ASCAP are, and will remain, fair,
and will not take advantage of the two day cancellation clause
to the detriment of any independently owned station.
It must be frankly recognized that the principal obstacle to
satisfactory negotiations with ASCAP proceeds from its outstanding
contracts with the two network companies and certain individual
broadcasters. Early in June, 1935, as already stated, unconditional
five-year renewals were obtained by about fifty-five stations in¬
cluding the network-owned or controlled units. Between June,
1935, and December, 1935, some 70 additional stations sought and
obtained five-year renewals, with the condition (already men¬
tioned) as to diminution of ASCAP’s repertoire. During the
closing days of 1935, some additional stations (the exact number
of which is not known) availed themselves of five-year renewals
conditioned on ASCAP’s repertoire as of January 1, 1936.
It cannot be denied that the fact that such contracts are out¬
standing presents a serious problem in any future negotiations,
particularly since some of the contracts (e. g., those of the two
networks) contain material advantages which will not lightly be
surrendered. The Managing Director and the Advisory Com¬
mittee believe, however, that the early elimination of these dis¬
criminatory advantages is an indispensable condition precedent to
a stable solution of the copyright problem.
The Temporary MPHC Contracts. In the light of what has
already been stated under earlier sub-headings, little need be said
as to what should be sought in any future MPHC contracts. For
the first time the temporary contracts now outstanding offer sub¬
stantial hope of the accomplishment of certain of the broadcasters’
prime objectives, such as the furnishing of complete lists, the
clearing of copyright at the source, and the relation of compensa¬
tion to card rates rather than to receipts.
There remains, of course, the working out of a satisfactory per-
piece plan of compensation. Even here, however, broadcasters have
for the first time the written assurance of what is believed to be a
bona fide intention on the part of a licensing organization to
cooperate in working out such a plan.
This is hardly the place in which to note minor defects in con¬
tracts. Mention should be made, however, of the necessity of
changes in the MPHC contract in at least two important respects
(in addition to working out a per-piece plan) as follows:
(a) The guaranty of indemnity should not be limited in amount.
( b ) The burden of records and reports is still unduly and un¬
necessarily burdensome.
Miscellaneous Contracts. Space does not permit separate con¬
sideration of the various other contracts now in force between
licensing organizations and broadcasters, such as the AMP, the
SESAC, and the Ricordi contracts. All of these require imme¬
diate study, and demand that every effort be made to bring them
into harmony with the principles already set forth.
B. THE COMPILING AND DISTRIBUTION OF INFOR¬
MATION TO BROADCASTERS AND THE TAKING OF
ANY PROPER STEPS TO ASSIST THEM IN PROTECT¬
ING THEMSELVES AGAINST EXORBITANT OR UN¬
REASONABLE DEMANDS.
Broadcasters are virtually as far as ever from achieving one
result which would be of infinite value in protecting themselves
against the power of monopoly in copyrighted music, i. e., the mar¬
shalling and the making available of music in the public domain.
The Radio Program Foundation, founded for this purpose as
the result of the NAB Convention of 1932 at St. Louis, Missouri,
failed because of lack of cooperation. For the immediate present,
however, available music in the public domain cannot be relied
upon as an effective weapon by itself with which to combat
exorbitant or unreasonable demands, although encouraging pos¬
sibilities are now in sight and are under consideration.
The fact is that, with the exception of comparatively few sta¬
tions, broadcasters are not equipped to take advantage of their
unquestionable legal rights in the controversies with which they
are faced. The first and indispensable condition to becoming so
equipped is the establishing of adequate records in their music
libraries, preferably by card index, showing with reference to each
active musical composition used by them, the name of the com¬
position, the composer, the author, the publisher, the date of
publication, and the performing rights of the licensing organiza¬
tion. It cannot be too strongly urged that during the immediate
future all broadcasters become thus equipped, so as to be prepared
to avoid infringements of the rights of any licensing organization
from whom they have no real need of a license, or whose demands
they may regard as unjustified.
The Managing Director and his Advisory Committee agree that
one of their first duties is to do all in their power to provide mem¬
bers of the NAB with detailed directions for the establishment
by them of records which will thus enable them to protect them¬
selves.
C. THE COPYRIGHT BILL.
At its last annual meeting, the NAB endorsed the copyright bill
now pending in Congress, known as the Duffy Copyright Bill.
Its principal features have been summarized in the NAB Bul¬
letins and need not be discussed in detail here. Among other
things, the bill, if enacted, would eliminate the unjust threat of a
minimum penalty of $250 for every infringement, whether guilty
or innocent. It is not free from defects but is so great an im¬
provement over the statute noysr in force (the Copyright Act of
1909) as to demand support.
The Managing Director and his Advisory Committee agree that
every effort should be devoted to securing enactment of this legis¬
lation.
Closely related to the Duffy Copyright Bill is the impending
international conference on the copyright treaty, known as the
Berne Convention, and the proposed adherence of the United
States thereto. The conference was to have been held at Rome
in the recent past but, because of international complications, has
been indefinitely postponed. Sooner or later this conference will
be held and, since the Duffy Copyright Bill contemplates that the
United States shall become a party to this Convention, it is impor¬
tant that these developments be closely observed and that, if
necessary, the NAB take a part in them. Among other things,
it is being vigorously urged that the new Convention recognize
a copyright in the manufacturer of phonograph records as such so
that, in addition to payment of royalties to the person controlling
copyright in the composition, the broadcasters would be obligated
to pay royalties to the manufacturers to a far greater extent than
they would be under the Duffy Copyright Bill.
D. THE GOVERNMENT SUIT AGAINST ASCAP.
This suit, instituted by the Government against ASCAP on the
charge that it is an illegal combination in restraint of trade, is
still pending in the Federal Court. In the opinion of the Managing
Director and his Advisory Committee this suit is as important
now as it has been at any time in the past and its prosecution
should be pursued with vigor.
It would be of questionable propriety in this statement to com¬
ment on the issues or the merits of the Government’s case. The
Managing Director and his Advisory Committee confine themselves
to stating that they regard it as their duty to keep the Depart¬
ment of Justice fully informed of their every activity and of
every development in the pending controversies.
CONCLUSION
Lengthy as is the foregoing statement the Managing Director
and his Advisory Committee have felt that there is due to the
membership of the NAB as complete an account as is possible from
time to time of their activities, actual and proposed.
Page 1154
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, M anaging Director
NAB REPORTS
Copyright, 1936. Tho National Atioeiation of Broadcasters
Vol. 4
No. 4
JANUARY 16, 1936
IN THIS ISSUE
Page
Increased Power Recommended for WSPD . 1155
Pensacola Complaint Against A. T. & T . 1155
Where Is J. J. Moore? . 1155
Securities Act Registrations . 1155
Connery Asks Radio Investigation . 1155
License Renewal Recommended for WFEA . 1156
Brooklyn Petition Denied by FCC . 1156
Federal Trade Commission Action . 1156
Federal Communications Commission Action . 1158
INCREASED POWER RECOMMENDED FOR WSPD
Station WSPD, Toledo, Ohio, applied to the Federal Com¬
munications Commission to increase its power from 1,000 watts
night and 2,500 watts to local sunset to 1,000 watts night and
5,000 watts local sunset. The station operates unlimited time
on 1340 kilocycles.
Examiner P. W. Seward, in Report No. 1-179, recommends
that the application be granted. The Examiner states that there
is a need for additional daytime service in the area and “that
the interests of existing radio stations will not be adversely
affected by reason of interference by the granting of this appli¬
cation.”
PENSACOLA COMPLAINT AGAINST A. T. & T.
_ The Telephone Division of the Federal Communications Com¬
mission has directed that the American Telephone and Telegraph
Company be served with the complaint of the Pensacola Broad¬
casting Company, filed by its attorney, former Senator Dill, on
December 18, 1935, with reference to overcharges over cir¬
cuits from Mobile via Flomaton to Pensacola, and that the
American Telephone and Telegraph Company be given 30 days
from receipt of notice within which to satisfy the complaint.
If the complaint is not satisfied, the case will be set for hearing
before the Telephone Division at the earliest practicable date,
the date to be fixed by the Docket Clerk and the Law Depart¬
ment.
WHERE IS J. J. MOORE?
A member is very anxious to get in touch with J. J. Moore.
Anyone knowing his correct address will please communicate with
the Managing Director.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements
with the Securities & Exchange Commission under the Securities
Act:
Joliet Heating Corporation, Joliet, Ill. (2-1856, Form A-l)
16 Court Street, Inc., New York City (2-1857, Form E-l)
Delacroix Corporation, New Orleans, La. (2-1859, Form A-l)
Wilbert L. Smith et al., New York City (2-1860, Form F-l)
CONNERY ASKS RADIO INVESTIGATION
Representative Connery of Massachusetts on Wednesday in¬
troduced a resolution in the House “to appoint a select com¬
mittee to investigate the charges of irregularities in the granting
and renewals of radio licenses; the broadcasting of alleged ob¬
scene and indecent utterances by radio stations; the charges of
alleged monopolies and to investigate and report on charges
made or which may be made as to charges of alleged misconduct
and alleged corruption on the part of certain persons officially
connected with said Commission and investigate the acts and ac¬
tivities of said Commission.” The resolution is as follows:
Whereas, on April 5, 1935, sixteen Members of the House of
Representatives, whose attention having been directed to a
broadcast over the N. B. C. network which broadcast contained
alleged obscene and indecent utterances, and which program was
in the interest of and paid for by a foreign government, filed
with the Federal Communications Commission a protest against
such programs and, in addition, petitioned said Federal Com¬
munications Commission for an immediate investigation of the
charges contained in said protest and, further, requested a public
hearing on the results of such investigation, and
Whereas, the Federal Communications Commission, in reply
to said petition, stated that an investigation was being made, and
Whereas, the Federal Communications Commission later replied
to the petitioners setting forth that said program was not ob¬
scene within the rule laid down in a court decision cited by said
Commission, which citation quoted language which is not to be
found in the specific decision cited, and,
Whereas, the Congressional Record of July 31, 1935, contains
a full and factual history of this failure on the part of the Fed¬
eral Communications Commission to properly enforce the Com¬
munications Act of 1934, and, in addition, contains excerpts from
affidavits which alleged that competent officials of the said N. B.
C. admitted that the program complained of contained obscene
and indecent utterances, and
Whereas, the Chairman of the said Federal Communications
Commission, in testifying before the House Appropriations Com¬
mittee, admitted that the property of the Government, namely,
radio broadcasting licenses or franchises, were the subject of
profiteering on the part of individuals and others, and
Whereas, charges have been made that certain vested interests
are alleged to be receiving large sums of money due to the leasing
to others of licenses or franchises issued by said Federal Com¬
munications Commission, and
Whereas, it is well known that a monopoly exists wherein a few
control all of the valuable franchises or licenses issued by said
Commission, while educational, labor, religious and other non¬
profit making organizations are denied opportunities of securing
favorable consideration for radio broadcasting facilities from said
Federal Communications Commission, and
Whereas, the said Commission, as a result of charges appar¬
ently placed before it by the chairman of said Commission, has
now created a committee of five of its seven members to investi¬
gate charges of alleged misconduct and alleged corruption on the
part of certain persons officially connected with the said Com¬
mission, and
Whereas, it is in the public interest that a thorough and ex¬
haustive investigation be made of these and other alleged irreg¬
ularities,
Therefore, be it
Resolved, that a committee of five members of the House
of Representatives shall be appointed by the Speaker, which
committee is hereby authorized and directed to inquire into and
investigate the allegations and charges that have been or may
be made relative to irregularities in the granting and renewal
of licenses and other matters coming within the jurisdiction of
the Federal Communications Commission or pertaining in whole
or in part to the functions of the said Federal Communications
Commission ; be it further
Resolved, that the said committee shall make a thorough
and exhaustive investigation of all allegations and charges that
have been or may be made in connection with any and all mat¬
ters pertaining to the Federal Communications Commission and
shall report in whole or in part at any time to the House of
Representatives together with such recommendations as it deems
advisable ; and be it further
Resolved, that for the purpose of this resolution the said
committee is authorized to hold such hearings, to sit and act
during the sessions and the recesses of the present Congress at
1155
such time and places, either in the District of Columbia or else¬
where, and to employ such expert, clerical and stenographic serv¬
ices as may be found necessary and to require by subpoena or
otherwise the attendance of witnesses; to administer oaths; to
compel the production of books, papers and documents by gov¬
ernment or private agencies and to take and record such testi¬
mony as the committee may deem advisable or necessary to the
proper conduct of the investigation directed by this resolution.
LICENSE RENEWAL RECOMMENDED FOR WFEA
Broadcasting Station WFEA, Manchester, N. H., applied to
the Federal Communications Commission for a license renewal.
The station operates on a frequency of 1340 kilocycles, 500 watts
and 1,000 watts LS unlimited time.
Examiner P. W. Seward, in Report No. 1-180, recommends
that “this application be granted on condition that the appli¬
cant will complete and place in operation the new antenna and
ground system now being constructed and that they make field
intensity measurements not less than five consecutive nights un¬
der ordinary conditions in the Toledo area, to determine the
strength of the signal of the applicant at that point, and report
such findings to the Commission. If the tests in the Toledo area
show the applicant to be laying down a signal less than 50
microvolts per meter, then it is recommended that this applica¬
tion be granted unconditionally.”
BROOKLYN PETITION DENIED BY FCC
At a session of the full membership of the Federal Communi¬
cations Commission the petition and supplemental petition was
denied of the Paramount Broadcasting Corporation, Station
WVFW, Brooklyn, N. Y., for a rehearing in the matter of its
applications for modification of license and license renewal. A
dissenting opinion was filed by Commissioner Stewart.
The Commission in its decision in this case will take off the air
as of January 22 Stations WARD, WLTH and WVFW, all of
Brooklyn. Station WBBC will get half time and the Brooklyn
(N. Y.) Daily Eagle will get the other half time to be used fol¬
lowing the erection of a new station.
Commissioner Stewart in his dissent in this case said:
I regret that I am not able to support in its entirety the
decision of the Broadcast Division in these cases. I believe, how¬
ever, that the record is incomplete in some respects and that
the matter should be reopened for the further consideration of
certain points mentioned hereafter. It is possible that further
information on those points would lead me to the same conclu¬
sions reached by the Division, but I shall be more nearly con¬
vinced of the soundness of those conclusions when the points
mentioned have been more thoroughly covered.
1. As respects the denial of the applications of WARD, WLTH,
and WVFW, I believe the decision is sound. That they were not
operating in the public interest, convenience and necessity seems
beyond reasonable doubt. The denial of the application of
WEVD and the granting of the applications of WHAZ, WFAB
and WBBR were likewise sound.
2. The denial of the application of Arde Bulova and Norman
K. Winston is sound on the record, on the assumption that the
Division considered the fact that Mr. Bulova already owned
one-half interest in a station serving Brooklyn. That fact is men¬
tioned in the decision although not specifically stated as a
ground for the decision.
3. Station WBBC appears from the record to have been slightly
better than the three stations deleted. Judging from its past
operations, it might have suffered the fate prescribed for them
without any material loss to the public. Because of its slightly
better performance, however, the Division may be correct in
sparing the stations at this time — although I am at a loss to
understand what there is in the history of the station to have
led to the doubling of its time on the air. With the increased
time and consequently with a possibly increased efficiency, the
station may be able to justify itself.
4. I am unable to agree that the record shows any need for a
new station on this frequency in Brooklyn. Certainly Brooklyn
is not without broadcast service. Commission records show that
some or all of the borough is at all times within the good service
area of at least eleven stations, exclusive of those involved in the
present cases. This figure is higher than for the remainder of the
first zone and far higher than for most of the country. There is
no justification for placing a new station in Brooklyn unless it
is to serve a need peculiar to that borough which is not served
by some other station within whose service area it lies.
5. The decision of the Division grants half time to the Brook¬
lyn Daily Eagle Broadcasting Company, Inc., which hereto¬
fore has not been engaged in broadcasting. Mr. Prestin Good-
fellow, President of the Brooklyn Daily Eagle, which is to be
the principal stockholder in the Brooklyn Daily Eagle Broadcast¬
ing Company, Inc., testified:
“My idea of a broadcasting station would be to cater to
the type of reader that the New York Times and the Brook¬
lyn Daily Eagle and the Sun and papers of that calibre
have.” (Transcript, Dec. 6, 1934, p. 587.)
Mr. Goodfellow further testified that the Daily Eagle “is
known as a class newspaper in that it does not attempt to reach
the masses. It is a paper that is outstanding in its advertising
volume.” (Ibid. p. 515.) His testimony does not give us any rea¬
son to believe that he contemplates any important service not
already rendered by one or more of the stations serving Brook¬
lyn. It may be noted in passing that the Daily Eagle did not
carry for the information of its readers the programs of the four
Brooklyn stations whose facilities it is seeking, although it did
carry the programs of other stations serving the Brooklyn area.
In the absence of a showing that the proposed station will be
used to meet needs peculiar to Brooklyn, I am unwilling to ap¬
prove another station in the overquota New York metropolitan
area when there is a serious need for the facilities in other parts
of the country less well served with broadcast facilities.
6. It is not clear from the opinion that consideration was given
to the matter of the public interest involved in the granting of a
broadcast station license to an applicant controlled by a news¬
paper. Broadcast stations and newspapers are the two principal
sources of current public information and enlightenment; in a
more mundane field they are the two principal media of local ad¬
vertising and two of the principal media of national advertising
in any community. Combining the two under the same control
inevitably presents a problem of major moment which should be
squarely faced by the Commission in its determination of “pub¬
lic interest, convenience and necessity.” I do not believe that it
was sufficiently considered by the Broadcast Division in the
present instance.
7. The decision gives half time each to two stations in the same
community. On its face such an arrangement is most uneconom¬
ical. To have two transmitters, two sets of studios, two staffs
and a duplication of everything which goes into a broadcast sta¬
tion of the first class involves a duplication of expense which must
inevitably be reflected in programs and service sooner or later.
Such a duplication, incident to half-time operation, should be
required only where positive advantages of a substantial nature
will flow from the arrangement. Where both stations are de¬
signed to serve the same community, the duplication seems un¬
warranted in the absence of a record showing weighty reasons
in support of such an anomalous arrangement. The opinion shows
no such reasons. In connection with its decision on WBBC, the
Broadcast Division traces the difficulty of that station to its
quarter-time operation. The uneconomic nature of quarter-time
operation is thus recognized. The uneconomic nature of half¬
time operation should at least merit consideration, especially in a
decision which by authorizing a new station creates, rather than
merely continues, part-time operation.
8. In my opinion the matter should be reopened for further
testimony on the points covered in paragraphs numbered 3, 4, 5,
6 and 7.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be used against them.
No. 2677. A complaint has been issued charging the Fall River
Wholesale Grocers’ Association and its members, of Fall River,
Mass., with concerted action and conspiracy tending unduly to
suppress competition in the food and grocery trade in the Fall
River area, which also includes part of Rhode Island.
According to the complaint, the respondents’ plan prevented
sales by manufacturers direct to retailers in the Fall River area
and out of pool car shipments to wholesalers who were not asso¬
ciation members. This is alleged to have been accomplished by
methods such as personal intimidation, threats of boycott, and
actual boycott.
No. 2678. Alleging unfair competition in the use of the word
“distillery” in its corporate name, a complaint has been issued
1156
against “Old Colonel Distillery, Inc.,” also “Old Colonel Dis¬
tributing Co.,” and Joseph Schiff, of Louisville, Ky., owner and
operator of the two companies. According to the complaint, the
respondents are rectifiers and wholesalers of liquors, and are
not distillers.
No. 2679. A complaint has been issued against Sleeker-Foster,
Inc., 253 East 4th St., St. Paul, Minn., engaged in the manufacture
and sale of food-flavoring products, charging the use of false
and misleading advertising, in violation of Section 5 of the Fed¬
eral Trade Commission Act.
Through the medium of such advertising, the complaint alleges,
the respondent has been able to divert a substantial amount of
business from its competitors, who do not resort to unfair trade
practices. As typical of the methods in which the respondent al¬
legedly lures salesmen and agents, the complaint cites the follow¬
ing advertisement:
“I want 500 more men — to earn up to $25.00 a day! Be a
branch manager for George F. Foster.
“C. Angel, of Milwaukee, secured 25,000 G. F. Foster cus¬
tomers in six months.
“Mr. Angel had been hard hit by the depression; savings
gone, debts piling up, reduced to a humble, poorly-paid
job, he was down but not out. In six months the G. F.
Foster fast -selling products and plan put Angel out of debt
and established him in a business so big, so profitable, that
it was almost unbelievable.
“Thousands of other G. F. Foster agents, distributors and
branch managers can tell similar stories of amazing earnings
and success.”
Salesmen of the respondent company can not make the earn¬
ings advertised, the complaint alleges, and competitors are in¬
jured and deprived of the benefits of free competition in inter¬
state commerce because their own agents and salesmen are at¬
tracted from them by such advertisements.
No. 2680. Unfair methods of competition in commerce, in viola¬
tion of Section 5 of the Federal Trade Commission Act, are alleged
in a complaint issued against the Consolidated Trading Corpora¬
tion, New York City, engaged in the sale and distribution of a
variety of merchandise.
According to the complaint, the respondent solicits business
and sells its products in foreign countries, using the trade name
“Modex Mills” on its letterheads, bill heads and in advertising
matter, implying that it is a manufacturer, whereas it neither
owns nor operates the mills in which its merchandise is manu¬
factured. Use of the word “Mills” gives the respondent unfair
advantage over those competing exporters who do not falsely
represent themselves as manufacturers, as well as over those who
actually do manufacture and sell their own products, the com¬
plaint sets forth.
No. 2681. Charging unfair representations in the sale of a
beverage, a complaint has been issued against John J. Kane, of
2777 Frankford Avenue, Philadelphia, trading as La Pep Health
Beverage Co.
Advertising in periodicals and over the radio, the respondent
is alleged to have represented his product, a mixture of fruit
juices, herbs and lactic acid, as a competent remedy for skin
eruptions, sluggish blood, constipation and heart troubles, and
that it would guide a person to health and act as a body dis¬
infectant. These assertions are not true, according to the com¬
plaint, and their use constitutes unfair competition with bever¬
age manufacturers who truthfully represent the ingredients and
healing value of their products.
No. 2682. Alleging unfair competition in the sale of clocks in
interstate commerce, a complaint has been issued against the Ses¬
sions Clock Co., of Forestville, Conn., charging that its clock
cases made of woods other than mahogany are represented as
being mahogany cases.
This practice is alleged to have caused diversion of trade to the
respondent from competitors who truthfully advertise their
clocks.
No. 2683. A complaint has been issued against Dr. S. B.
Heininger, of 440 Huron St., Chicago, charging unfair competi¬
tion in the sale of dental plates by mail order, in violation of the
Federal Trade Commission Act.
Heininger’s advertising is alleged to have had a tendency to
mislead purchasers into believing they could make correct im¬
pressions of their own teeth and gums, and from such impressions
the respondent could make satisfactory artificial teeth.
Stipulations
The Commission has announced the following cease and desist
orders:
No. 01001. Evans Publishing Corporation, 400 Madison Ave¬
nue, New York City, published in its magazine, The Family Circle,
advertisements for “Malt-O-Meal,” sold by the Campbell Cereal
Co., of Northfield, Minn. The publisher agreed to abide by the
terms of a stipulation signed by the Campbell Cereal Co., to
discontinue the use of false and misleading advertising.
No. 01004. B. T. Babbitt, Inc., of 886 Fourth Ave., New York,
dealer in a cleanser for pots, basins and bathtubs, called “Bab-O,”
agrees to stop asserting that “Bab-O” banishes dull film, water-
lines or the most stubborn dirt “instantly” ; that its use ends all
scouring and scrubbing; that it will not harm nail polish, and
will soften hands; and that “Bab-O” was discovered by sci¬
entists, or that it is a new discovery.
Nos. 01005-01006-01007. Three publishing companies printing
the advertisements for “Holford’s Famous Inhaler” have entered
into stipulations agreeing to abide by provisions of the stipulation
entered into by William J. Fink, the advertiser. These companies
are: S. Rosenthal & Co., Inc., of Cincinnati, publisher of Inde¬
pendent Salesman Magazine; How to Sell, Inc., of Mt. Morris,
Ill., publisher of How to Sell Magazine; and Opportunity Pub¬
lishing Co., Chicago, publisher of Opportunity Magazine.
No. 01008. William J. Fink, operating as The Holford Com¬
pany, agrees to cease representing that “Holford’s Famous Inhaler”
is a proven winner or a competent remedy in treating colds,
catarrh, headaches and other ailments; that at one deep breath a
wave of soothing, healing warmth penetrates every part of the
head and lungs; that this treatment retains its strength from six
months to two years, or that it is a health protection, and other
Similar representations. The respondent also agrees not to make
unmodified representations of salesmen’s earnings.
Nos. 01009-01010-01011-01012. Operating as the Flying In¬
telligence Bureau, E. M. Welch, 401 Judson Jay Rives Building,
Los Angeles, Calif., has entered into a stipulation to discontinue
false and misleading advertising of his booklet, which purported
to give complete information on entrance requirements and a
course of training for the United States Air Service.
According to the stipulation, the booklet, sold by the respondent
at $1 a copy, contained inaccurate and inadequate information
concerning the air service training.
The respondent agrees to stop use of the terms “Bureau,” “In¬
telligence Bureau,” and “United States Air Corps,” implying that
his business had some connection with the United States Gov¬
ernment.
The respondent inserted advertisements in Topnotch Magazine,
Complete Stories, and Best Detective Magazine, all published
by the Street and Smith Publishing Corporation, 79 7th Avenue,
New York City. That publishing company, in separate stipula¬
tions, agrees to abide by the terms of the stipulation signed by
Welch.
No. 01013. Western Broadcast Co., Hollywood, Calif.,
operator of radio station KNX, admitted broadcasting adver¬
tisements for Sterling Royal Remedies, sold by John D. Myers,
trading as John Sterling Remedy Co., Kansas City, Mo. The
broadcasting company agreed to abide by the terms of a stipula¬
tion previously signed by the John Sterling Remedy Co., to dis¬
continue misleading advertising.
No. 01014. Specialty Salesman Magazine, Inc., 307 North
Michigan Ave., Chicago, published advertisements for the Holford
Co., 14 North 6th Street, Minneapolis, Minn., dealer in a treat¬
ment for colds and catarrh, which had previously entered into a
stipulation to discontinue misleading advertising. The publisher
agrees to abide by the terms of this stipulation.
No. 01015. Journal Printing Co., Minneapolis, Minn., pub¬
lisher of the Minneapolis Sunday Journal, also carried advertise¬
ments for “Malt-O-Meal” ; and entered into a similar stipulation.
Nos. 1580-1581. In two related cases, involving the branding of
shoes with the label “Doctor,” three companies have entered into
stipulations to stop unfair trade practice in the manufacture and
sale of their products.
The Bridgewater Workers Co-Operative Association, Inc.,
Bridgewater, Mass., and the International Shoe Company,
1509 Washington Ave., St. Louis, Mo., manufactured and sold in
interstate commerce shoes, branded with the words, “Dr. Moses
Arch Form Shoes,” to the Family Shoe Corporation, New York
City, which retailed and wholesaled the products.
The three respondents agreed to desist from cooperating di¬
rectly or through subsidiaries in the production and sale of shoes
stamped with the word “Doctor” or the abbreviation “Dr.”
1157
when the shoe is not manufactured in accordance with the design
or under the supervision of a doctor and does not contain ortho¬
pedic features which are the result of medical advice or services.
No. 1582. Bay Ridge Specialty Co., Inc., Trenton, N. J.,
and T. J. Holmes Co., Inc., of Chartley, Mass., have entered into
stipulations to cease and desist from unfair trade practices in
interstate commerce.
Engaged in the manufacture of vitreous, high fired china bath¬
room fixtures, the Trenton company agrees to stop the use of
advertising having the effect of disparaging the products of com¬
petitors manufacturing decorated china fixtures. Specifically, the
Bay Ridge company agrees to cease representing that extremes
of temperature in firing cause the glaze on decorative fixtures to
craze or crack when climatic conditions change. According to
the stipulation, these representations had a tendency to deceive
buyers into believing that such fixtures were unstable and would
not hold up under climatic changes, when this was not true.
No. 1583. T. J. Holmes Co., Inc., manufacturer of atomizers,
agrees to discontinue advertising that its product “is the only
atomizer on the market which will successfully handle silver
preparations,” when this is not true. The company will cease
other representations implying that its atomizer is the only one
on the market capable of use successfully or with safety in the
spraying of silver preparations.
Nos. 1584-1585-1586. Two companies manufacturing burial
caskets and a third firm selling wood for manufacture of such prod¬
ucts, have entered into stipulations to discontinue misrepresenting
the wood content of their products. The respondents are: R. J.
Evans and AI Thornton, of Kansas City, Mo., trading as Rex
Art Casket Co.; Owen and W. J. McCarty, George Chinnery
and W. A. Hufnagle, of Kansas City, Mo., trading as Midland
Valley Casket Co., and Hammond Lumber Co., Inc., of Samoa,
Calif., and Chicago.
Each company agree to cease and desist from representing in
guarantees furnished to purchasers that redwood is unsurpassed
by any other wood from the standpoint of durability or re¬
sistance to decay, and that it is immune to the destructive work
of white ants, when in fact, according to the agreement, redwood
is equalled by the bald cypress, the cedar and the poplar, and is
surpassed by the eastern red cedar, locust, mulberry, and Osage
orange, and is not immune to the ravages of the white ant.
No. 2261. Unfair competition through misleading use of a well-
known trade name is prohibited in an order to cease and desist issued
against Real Products Corporation, of 10-25 46th Avenue., Long
Island City, N. Y., and Realflex Products Corporation, Brook¬
lyn, manufacturers and dealers in automotive and metal specialties,
including spark plug cable sets.
The order directs the respondents to discontinue representing
that their products, including spark plug cable sets, are made by
the Champion Spark Plug Co., of Toledo, O., and to stop using
the word “Champion,” either alone or in connection with any
other word, to advertise their products, thus implying that they
are made by the Champion company.
No. 2647. An order has been issued against the Shapiro Felt
Rug Co., of Newark, N. J., directing it to cease and desist from
selling baseball caps made from second-hand and discarded felt
hats, unless and until they are marked to indicate that they were
not made from new and unused felts.
Other respondents are William, Morris and Sarah Shapiro, in¬
dividuals, trading as Esta Hat Co. They did not contest the
Commission proceeding, and consented to issuance of the order
to cease and desist.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, January 20
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Clyde E. Britton, Lima, Ohio. — C. P., 950 kc., 250 watts,
daytime.
Tuesday, January 21
KFEQ — KFEQ, Inc., St. Joseph, Mo. — C. P., 680 kc., 5 KW, day¬
time. Present assignment: 680 kc., iy2 KW, daytime.
Thursday, January 23
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-108:
NEW — Robert K. Herbst, Moorhead, Minn. — C. P., 1310 kc., 100
watts, unlimited time.
Examiner’s Report No. 1-104:
KGGC — The Golden Gate Broadcasting Co., San Francisco, Calif. —
Modification of license, 1420 kc., 100 watts, unlimited time.
Present assignment: 1420 kc., 100 watts, specified hours.
Examiner’s Report No. 1-102:
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — C. P.,
1210 kc., 100 watts, 250 watts LS, share with KFXM. Pres¬
ent assignment: 1210 kc., 50 watts, share with KFXM.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Modifica¬
tion of license, 1210 kc., 100 watts, share KFXM. Present
assignment: 1210 kc., 50 watts, share with KFXM.
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Mason City Broadcast Co., Emmons L. Abeles, Secy., Mason
City, Iowa. — C. P., 1420 kc., 100 watts, unlimited time.
NEW — Northern Iowa Broadcasting Co., Inc., Mason City, Iowa. —
C. P., 1420 kc., 100 watts, unlimited time.
NEW — Mason City Globe Gazette Co., Mason City, Iowa. — C. P.,
1210 kc., 100 watts, unlimited time.
APPLICATIONS GRANTED
WWJ — The Evening News Assn., Inc., Detroit, Mich. — Granted
modification of C. P. approving transmitter site at inter¬
section of Meyers and 8th mile road, Oak Park, Mich.
WHBB — Dr. Wm. J. Reynolds and Wm. J. Reynolds, Jr., Selma,
Ala. — Granted modification of C. P. to change type of equip¬
ment and approving antenna system.
WMBD — Peoria Broadcasting Co., Peoria, Ill. — Granted modifica¬
tion of C. P. approving antenna and transmitter site; make
changes in equipment ; extend commencement date to 30 days
after grant and completion date to 180 days thereafter.
WJR — WJR, The Goodwill Station, Detroit, Mich. — Granted license
to use old 10-KW transmitter as auxiliary at same location as
main transmitter. ,
KPOF — Pillar of Fire (a corp.), Belleview College, near Denver,
Colo. — Granted license to cover C. P. authorizing installa¬
tion of new transmitter and changes in equipment ; 880 kc.,
500 watts, shares KFKA. ,
WHBB — Dr. Wm. J. Reynolds and Wm. J. Reynolds, Jr., Selma,
Ala. — Granted license to cover C. P., 1500 kc., 100 watts,
daytime.
WCAE — WCAE, Inc., Pittsburgh, Pa. — Granted license to cover
C. P. authorizing new equipment and increase in power to
1 KW night, 5 KW day; 1220 kc., unlimited time.
WCAE — WCAE, Inc., Pittsburgh, Pa. — Granted license for auxiliary
transmitter equipment; 1220 kc., 1 KW night and day, un¬
limited. Also granted authority to determine operating
power by direct measurement of antenna input in compliance
with Rule 137.
WMPC — The First Methodist Protestant Church of Lapeer, Mich.
— Granted license to cover C. P. authorizing equipment
changes; 1200 kc., 100 watts night, 250 watts day, S.H.
WJAX — City of Jacksonville, Fla. — Granted license to cover C. P.
authorizing changes in equipment; increase in day power to
5 KW, with transmitter site to be determined.
KABC — Alamo Broadcasting Co., Inc., San Antonio, Tex. — Granted
license to cover C. P. authorizing changes in equipment and
increase in day power ; 1420 kc., 100 watts night, 250 watts
day, unlimited.
KIUP — C. Guy Shepard, Durango, Colo. — Granted license to cover
C. P. authorizing erection of new station, 1370 kc., 100 watts,
unlimited time.
WMT — Waterloo Broadcasting Co., Cedar Rapids, Iowa. — Granted
consent to voluntary assignment of license to Iowa Broad¬
casting Co.
KSO — Cedar Rapids Broadcast Co., Des Moines, Iowa. — Granted
consent to voluntary assignment of license to Iowa Broad¬
casting Co.
WMT — Waterloo Broadcasting Co., Cedar Rapids, Iowa. — Granted
modification of special experimental authorization to make
changes in equipment and to operate with 1 KW night with
directional antenna, 2J4 KW day with non-directional.
1158
WOW — Woodmen of the World Life Ins. Asso., Omaha, Nebr. —
Granted authority to determine operating power by direct
measurement of antenna input.
KQV — KQV Broadcasting Co., Pittsburgh, Pa.— Granted authority
to determine operating power by direct measurement of
antenna input.
WSAI— The Crosley Radio Corp., Cincinnati, Ohio.— Granted C. P.
to make changes in equipment and move transmitter from
Mason to Cincinnati, Ohio.
National Broadcasting Co., Inc., New York City.— Granted author¬
ity to transmit selected recorded programs to four Canadian
broadcast stations — CJOR, CFAC, CJOC, CJCA.
NEW — The Evening News Asso., Portable-Mobile. — Granted C. P.
(gen. exp. miscl.), frequencies 31600, 35600, 38600, 41000
kc., 100 watts.
NEW — WCBS, Inc., Portable-Mobile, Springfield, Ill.— Granted
C P (gen. exp. broadcast pickup station), frequencies 31100,
34600, 37600, and 40600 kc., 2 watts.
NEW — The Attala Broadcasting Corp., Kosiusko, Miss. — Granted C.
P., frequencies 31600, 35600, 38600 and 41000 kc., 100 watts.
NEW— Memphis Commercial Appeal, Inc., Memphis, Term.—
Granted C. P. (gen. exp. miscl.), frequencies 31600, 35600,
38600 and 41000 kc., 50 watts.
WMBC — Michigan Broadcasting Co., Detroit, Mich. — Granted
C. P. to make changes in equipment.
WNYC — City of New York, Dept, of Plant and Structures, New
York City. — Granted C. P. to erect auxiliary transmitter at
29 Ft. Green Place, Brooklyn, to be used principally while
moving main transmitter from New York City to foot of
Greenpoint Ave. and East River, Brooklyn.
KWTO— Ozarks Broadcasting Co., Springfield, Mo.— Granted
modification of C. P. to extend commencement date to 1-1-36
and completion date to 7-21-36.
WCCM — WCCM, Inc., Mississippi City, Miss. — Granted modifica¬
tion of C. P. to extend commencement date to 1-28-36 and
completion date to 7-28-36.
KLZ — The Reynolds Radio Co., Inc., Denver, Colo. — Granted
modification of C. P. approving transmitter site near Denver,
approving antenna, extending commencement date to 60 days
after grant and completion date to 180 days thereafter.
KRNR — Southern Oregon Pub. Co., Roseburg, Ore. — Granted
license to cover C. P. authorizing erection of new station,
1500 kc., 100 watts, daytime.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted license
to use auxiliary transmitter which was licensed to WLIT, at
same location as main transmitter of WFIL.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. —
Granted license to cover C. P. authorizing installation of new
equipment.
WIND — Johnson -Kennedy Radio Corp., Gary, Ind. — Granted
license to cover C. P. authorizing changes in equipment and
increase in day power to 5 KW ; 560 kc., 1 KW night, un¬
limited.
WABI — Community Broadcasting Service, Bangor, Maine. —
Granted consent to transfer of control of the Community
Broadcasting Service, Inc., licensee of WABI, from the First
Universalist Society of Bangor, to an individual, Frederick B.
Simpson. Present assignment: 1200 kc., 100 watts, S.H.
KSD — The Pulitzer Publishing Co., St. Louis, Mo.— Granted license
to cover C. P. authorizing increase in night power to 1 KW,
day power to 5 KW, and special authority to operate 1 KW
night with directional antenna; 550 kc., S-KFUO.
KFNF — KFNF, Inc., Shenandoah, Iowa. — Granted authority to
transfer control of KFNF, Inc. (licensee of station KFNF),
from Henry Field Co. to Henry Field (890 kc., 500 watts
night, 1 KW day, S-WILL and KUSD).
WCAE — WCAE, Inc., Pittsburgh, Pa. — Granted transfer of control
of WCAE, Inc. (licensee of station WCAE), to Pitt Publish¬
ing Co., a Pennsylvania corporation (1220 kc., 1 KW, un¬
limited).
KFPL — C. C. Baxter, Dublin, Tex. — Granted extension of C. P.,
heretofore issued to C. C. Baxter, upon a temporary basis
only, specifically subject to whatever action may be taken
by the Commission upon the application for renewal of license
and for modification of permit, as well as the application for
modification of permit, which were designated for hearing,
in any event not to extend beyond June 16, 1936.
NEW — WDOD Broadcasting Corp., Chattanooga, Tenn. — Granted
C. P. (exp. gen. exp.), frequencies 31600, 35600, 38600,
41000 kc., 100 watts.
NEW — Head of the Lakes Broadcasting Co., Superior, Wis.—
Granted C. P. (exp. gen. exp.), frequencies 31600, 35600,
38600, 41000 kc., 80 watts.
WIEF — Miami Broadcasting Co., Portable-Mobile (Miami, Fla.) . —
Granted C. P. (temporary broadcast pickup) to make changes
in equipment, increase power from 15 to 50 watts.
W8XH — WBEN, Inc., Buffalo, N. Y. — Granted license to cover
C. P. (exp. gen. exp.), frequencies 31600, 35600, 38600,
41000 kc., 100 watts.
W10XAP — National Broadcasting Co., Inc., Portable-Mobile (New
York City). — Granted C. P. and license (exp. gen. exp.)
to increase power from 7.5 watts to 25 watts and for addi¬
tional power amplifier.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KDKA, and alternate, Pittsburgh, Pa.; KEX, Portland, Ore.;
KFEQ, St. Joseph, Mo.; KFI, Los Angeles, and auxiliary; KFVD,
Los Angeles; KGDM, Stockton, Calif.; KGO and auxiliary, San
Francisco; KIEV, Glendale, Calif.; KJBS, San Francisco; KJR,
Seattle, Wash.; KOA, Denver; KPO and auxiliary, San Francisco,
Calif.; KRLD, Dallas, Tex.; KSL, Salt Lake City; KSOO, Sioux
Falls, S. Dak.; KVOO, Tulsa, Okla.; KYW, Philadelphia; WABC-
WBOQ, New York City ; WAPI, Birmingham, Ala. ; WATR, Water -
bury, Conn; WBAL, Baltimore, Md.; WBT, Charlotte, N. C.;
WBZ, Boston; WBZA, Boston; WDGY, Minneapolis, Minn.;
WEAF and auxiliary, New York City; WENR and auxiliary, Chi¬
cago; WEW, St. Louis, Mo.; WGN, Chicago; WGY, Schenectady,
N. Y., and auxiliary; WHAM and auxiliary, Rochester, N. Y. ;
WHEB, Portsmouth, N. H. ; WJJD, Chicago, Ill.; WJZ and aux¬
iliary, New York City; WKAR, E. Lansing, Mich.; WLW, Cin¬
cinnati, Ohio; WMAQ, Chicago, Ill.; WMAZ, Macon, Ga.; WMBI,
Chicago, Ill.; WOR and auxiliary, Newark, N. J.; WOWO, Fort
Wayne, Ind.; WPTF, Raleigh, N. C.; WRUF, Gainesville, Fla.;
WRVA, Richmond, Va.; WSB and auxiliary, Atlanta, Ga.; WSM
and auxiliary, Nashville, Tenn.; WTAM, Cleveland, Ohio; WTBO,
Cumberland, Md.; WTIC, Hartford, Conn.; WPTF auxiliary,
Raleigh, N. C.
SET FOR HEARING
NEW — Wolverine Broadcasting Co. (John E. Fetzer), Ann Arbor,
Mich. — Application for C. P. for new station, 800 kc., 1 KW,
day, daytime operation only. Site to be determined.
NEW — Star-Chronicle Publishing Co., St. Louis, Mo. — Application
for C. P. for new station, 1250 kc., 1 KW, unlimited.
NEW — The Times Dispatch Pub. Co., Inc., Richmond, Va. — Appli¬
cation for C. P. for new station, 1500 kc., 100 watts, un¬
limited. Exact transmitter site and type of antenna to be
determined with Commission’s approval.
NEW — W. T. Knight, Jr., Savannah, Ga. — Application for C. P.
for new station, 1310 kc., 100 watts, unlimited. ,
NEW — Douglas G. Doozer and Jack Richards, Brunswick Radio
Broadcast Station, Brunswick, Ga. — Application for C. P. for
new station, 1420 kc., 100 watts, daytime.
NEW — Gomer Thomas, Bellingham, Wash. — Application for C. P.
for new station, 1420 kc., 100 watts, unlimited. Transmitter
site to be determined with the Commission’s approval.
NEW — B. A. Thompson, Santa Cruz, Calif. — Application for C. P.
for new station, 1310 kc., 100 watts night, 250 watts day,
unlimited.
NEW — Springfield Newspapers, Inc., Springfield, Mo. — C. P.
amended so as to request 790 kc., 1 KW, daytime operation
only. Exact transmitter site to be determined with Com¬
mission’s approval.
NEW — Hunt Broadcasting Assn., Fred Horton, Pres., Greenville,
Tex. — C. P. amended so as to request 1200 kc., 100 watts,
daytime only.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami Beach,
Fla. — Application for C. P. to make changes in equipment
and move transmitter from approximately 3 miles from Col¬
lins Island, Miami Beach, to 600 Biscayne Blvd, Miami, Fla.
WCOL — WCOL, Inc., Columbus, Ohio. — Application for C. P. to
make changes in equipment and increase day power from
100 watts to 250 watts (contingent upon the granting of ap¬
plication to WALR for move to Toledo, Ohio).
WLBL — State of Wisconsin, Department of Agriculture and Mar¬
kets, near Ellis, Wis. — Application for C. P. to make changes
in equipment and increase power from 2^ to 5 KW day.
WSBT — The South Bend Tribune, South Bend, Ind. — Application
for C. P. to make changes in equipment, install directional
antenna; change frequency from 1360 kc. to 1010 kc.; in¬
crease power from 500 watts to 1 KW ; and move transmitter
to site to be determined at South Bend; change hours of
operation from S-WGES to unlimited.
1159
WELI — Patrick J. Goode, New Haven, Conn. — Application for
modification of license to change frequency from 900 kc. to
930 kc., hours of operation from 500 watts daytime only to
250 watts night, 500 watts day; hours of operation from day¬
time to unlimited.
WEHS — WEHS, Inc., Cicero, Ill. — Application for modification of
license to increase day power to 250 watts and change an¬
tenna contingent upon granting C. P. of station WHFC.
WKBI — WKBI, Inc., Cicero, Ill. — Application for modification of
license to increase day power from 100 watts to 250 watts
and change antenna contingent upon granting C. P. of station
WHFC.
WHFC — WHFC, Inc., Cicero, Ill. — C. P. amended so as to request
authority to install new equipment and a vertical radiator,
and increase day power from 100 to 250 watts.
NEW — Continental Radio Co., Columbus, Ohio. — C. P., already in
hearing docket, amended to make changes in equipment;
1310 kc., 100 watts, unlimited time. Site to be determined.
NEW — John E. Fetzer, Saginaw, Mich. — C. P., already in hearing
docket, amended to read: 630 kc., 1 KW, daytime. Site to be
determined.
KFPM — Voice of Greenville, Greenville, Tex. — Application for C. P.
to make changes in equipment ; increase power from 15 to 100
watts, and hours of operation from specified to daytime only.
NEW — Ralph E. Smith, San Diego, Calif. — -C. P., already in hearing
docket, amended to read: 1200 kc., 100 watts, daytime.
KFOX — Nicholas & Warinner, Inc., Long Beach, Calif. — Applica¬
tion for voluntary assignment of license from Nichols &
Warinner, Inc., to Hal Nichols, Inc.
KFDY — South Dakota State College, Brookings, S. Dak. — Applica¬
tion for modification of license to make changes in specified
hours of operation.
NEW — Burlington Broadcasting Co., Burlington, Iowa. — C. P.,
already in hearing docket, amended to read: 1310 kc., 100
watts, unlimited time.
NEW — The Herald Publishing Co., Denison, Tex. — C. P., already in
hearing docket, amended to read: 1200 kc., 100 watts, un¬
limited time. Site to be determined.
The Ogdensburg Advance Co., Inc., Ogdensburg, N. Y.— Application
for authority to maintain a studio in Ogdensburg, N. Y., for
production of programs to be transmitted by land wires of
the N. Y. Tel. Co. and of the Bell Tel. Co. of Canada, to
Station CFLC, at Prescott, Ontario, Canada.
APPLICATIONS DENIED
WSVA — Shenandoah Valley Broadcasting Corp., Harrisonburg,
Va. — Denied request for special temporary authority to op¬
erate from LS to 9 p. m., EST, December 24, 1935, with
power of 250 watts, in order to broadcast special Christmas
programs.
KFIO — Spokane Broadcasting Corp., Spokane, Wash. — Denied
request for special authority to operate from local sunset
to 5:30 P. M. EST, on Tuesdays and Thursdays during
months of January and February, 1936, in order to broad¬
cast local high school basketball games.
WLBL — State of Wisconsin Department of Argriculture and
Markets, Stevens Point, Wis. — Denied authority to operate
from 7:45 to 9:45 p. m., CST, on January 11, 13 and 20;
February 10, 24 and 29, 1936, with reduced power of
1 KW in order to broadcast the University of Wisconsin
basketball games.
WHA — -University of Wisconsin, Madison, Wis. — Denied author¬
ity to operate from 7 to 9:30 p. m., CST, with reduced
power on January 11, 13, 20, February 8, 10, 24 and 29, 1936,
in order to broadcast University of Wisconsin basketball
games.
WPHR — WLBG, Inc., Petersburg, Va. — Denied authority to op¬
erate from LS to 10 p. m., EST, on January 11, 18 and
25, February 1, 8, 15, 22, 28 and 29, and March 27 and 28,
1936. with reduced power of 250 watts in order to broad¬
cast Olympic Elimination Boxing Bouts from University of
Virginia.
WKAR — Michigan State College, E. Lansing, Mich. — Denied au¬
thority to operate on 850 kc. from 7:20 to 9 p. m., CST, Jan¬
uary 17, 18, and 29, in order to broadcast basketball games.
WCHV — Community Broadcasting Corp., Charlottesville, Va. —
Denied authority to operate simultaneously with station
WEED from 8 to 9:30 p. m., EST, on Jan. 18 and 25;
February 1, 8, 15, 22, 28, 29 and March 27 and 28, 1936,
in order to broadcast collegiate and Olympic tryout boxing
matches.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. —
Denied authority to operate with power of 100 watts from
LS to 7:30 p. m., EST, but for period not to exceed 30
days in order to broadcast programs of special local in¬
terest and to determine what interference would be caused
by such operation.
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. 1-126: Utah Radio Educational Society, Salt
Lake City — Granted oral argument to be held February 13,
1936, ^ before the Broadcast Division.
NEW — Louis H. Callister, Provo, Utah — Granted oral argument
to be held February 13, 1936, before the Broadcast Divi¬
sion.
NEW — Paul Q. Callister, Salt Lake City, Utah — Granted oral
argument to be held February 13, 1936, before the Broad¬
cast Division.
NEW — Great Western Broadcasting Association, Inc., Logan,
Utah.— Granted oral argument to be held February 13,
1936, before the Broadcast Division.
NEW — Great Western Broadcasting Association, Inc., Provo,
Utah. — Granted oral argument to be held February 13, 1936,
before the Broadcast Division.
NEW — Munn Q. Cannon, Logan, Utah. — Granted oral argument to
be held February 13, 1936, before the Broadcast Division.
NEW — Utah Broadcasting Co., Salt Lake City. — Granted oral
argument to be held February 13, 1936, before the Broad¬
cast Division.
NEW — Cache Valley Broadcasting Service Co., Logan, Utah. —
Granted oral argument to be held February 13, 1936, be¬
fore the Broadcast Division.
KMA — Ex. Rep. 1-136: May Seed & Nursery Co., Shenandoah,
Iowa. — Granted oral arugment to be held February 20,
1936, before the Broadcast Division.
KGBZ — KGBZ Broadcasting Co., York, Neb. — Granted oral
argument to be held February 20, 1936, before the Broad¬
cast Division.
NEW — Ex. Rep. No. 1-138: Big Springs Herald Broadcasting
Co., Big Springs, Tex.— Granted oral argument to be held
February 27, 1936, before the Broadcast Division.
NEW — Vernon Taylor Anderson, Big Springs, Tex. — Granted
oral argument to be held February 27, 1936, before the
Broadcast Division.
NEW — Plainview Broadcasting Co., Plainview, Tex. — Granted
oral argument to be held February 27, 1936, before the
Broadcast Division.
NEW — North Texas Broadcasting Co., Paris, Tex. — Granted oral
argument to be held February 27, 1936, before the Broadcast
Division.
KID — Ex. Rep. 1-143: Kid Broadcasting Co., Inc., Idaho Falls,
Idaho. — Granted oral argument to be held March 5, 1936.
NEW — Ex. Rep. 1-147: Arthur Westlund & Jules Cohn, Santa
Rosa, Cal. — Granted oral argument to be held March 5,
1936.
KDFN — Ex. Rep. No. 1-139: Donald Lewis Hathaway, Casper,
Wyo. — Graned oral argument to be held February 27,
1936, before the Broadcast Division.
KGHL — Northwestern Auto Supply Co., Inc., Billings, Mont. —
Granted oral argument to be held February 27, 1936, be¬
fore Broadcast Divison.
XSOO — Sioux Falls Broadcast Association, Inc., Sioux Falls,
S. Dak. — Granted oral argument to be held February 27,
1936, before the Broadcast Division.
KXL — KXL Broadcasters, Portland, Ore.— Granted oral argument
to be held February 27, 1936, before the Broadcast Divi¬
sion.
KEHE — Evening Herald Publishing Co., Los Angeles, Cal. —
Granted oral argument to be held February 27, 1936, be¬
fore Broadcast Division.
NEW — Ex. Rep. 1-141: Joplin Broadcasting Co., Pittsburg,
Kans. — Granted oral argument to be held March 5, 1936,
before the Broadcast Division.
NEW — Pittsburg Publishing Co., Pittsburg, Kans. — Granted oral
argument to be held March 5, 1936, before the Broadcast
Division.
NEW — Wichita Broadcasting Co., Wichita, Kans. — Granted oral
argument to be held March 5, 1936, before the Broadcast
Division.
NEW — Ex. Rep. 1-142: Black Hills Broadcast Co., Rapid City,
S. Dak. — Granted oral argument to be held March 5, 1936,
before the Broadcast Division.
1160
NEW — Ex. Rep. 1-146: William S. Thellman, New Castle, Pa. —
Granted oral argument to be held March 5, 1936, before
the Broadcast Division.
NEW — Ex. Rep. 1-149: Reporter Broadcasting Co., Abilene, Tex.
and Wm. 0. Anoley, Jr., d/b as Guilford Broadcasting
Co., Abilene, Tex. — Granted oral argument to be held
March 12, 1936.
NEW — Ex. Rep. 1-153: Roberts-MacNab Co., Jamestown, N.
Dak. — Granted oral argument to be held March 12, 1936.
NEW — Ex. Rep. 1-158: Chicago Broadcasting Association, Chicago,
Ill. — Granted oral argument to be held March 12, 1936.
NEW — Ex. Rep. 1-159: Robert E. Cole, d/b as Washington
Broadcasting Co., Washington, Pa. — Granted oral argu¬
ment to be held March 19, 1936.
WADC — Ex. Rep. 1-160: Allen T. Simmons, Tallmadge, Ohio. —
Granted oral argument to be held March 19, 1936.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 1-64: Eugene DeBogory, tr/as Paris Broad¬
casting Co., Paris, Tex. — Denied C. P. for new station to
operate on 1500 kc., 100 watts, daytime. Examiner Walker
reversed.
NEW — Centennial Broadcasting Corp., Dallas, Tex. — Denied C. P.
for new station to operate on 1200 kc., 100 watts, unlimited
time. Examiner Walker sustained.
NEW — Ex. Rep. No. 1-72: Eugene DeBogory, tr/as Brownsville
Broadcasting Co., Brownsville, Tex. — Denied C. P. for new
station to operate on 1370 kc., 100 watts, unlimited time.
Examiner R. L. Walker sustained. Order effective February
18, 1936.
NEW — Denton Broadcasting Co., Eugene DeBogory, Owner, Den¬
ton, Tex. — Denied C. P. for new station to operate on 1420
kc., 100 watts, daytime. Examiner Walker sustained.
WQDM — Ex. Rep. No. 1-85: E. J. Regan and F. Arthur Bostwick,
d/b as Regan & Bostwick, St. Albans, Vt. — Remanded case
heard by Examiner Dalberg to the hearing docket.
NEW — Ex. Rep. No. 1-86: Wm. A. Schall, Omaha, Nebr. — Denied
C. P. for new station to operate on 1500 kc., 100 watts, un¬
limited time. Examiner R. H. Hyde sustained. Order effec¬
tive February 25, 1936.
NEW — Ex. Rep. No. 1-87: W. R. Cramer and G. A. Anderson, d/b
as Omaha Broadcasting Co., Omaha, Nebr. — Denied C. P.
for new station to operate on 1500 kc., 100 watts, unlimited
time. Examiner R. H. Hyde sustained. Order effective Feb¬
ruary 25, 1936.
NEW — Ex. Rep. No. 1-129: F. N. Pierce, Taylor, Tex., and Tem-
Bel Broadcasting Co., Temple, Tex. — Remanded to the docket
for further hearing.
NEW — Ex. Rep. No. 1-131: Mountain States Broadcasting Corp.,
Salt Lake City, Utah. — Dismissed with prejudice application
for C. P. for new station to operate on 550 kc., 500 watts,
unlimited time. Examiner P. W. Seward reversed.
WGST — Ex. Rep. No. 1-145: Georgia School of Technology, At¬
lanta, Ga. — Granted modification of license to increase night
power from 500 watts to 1 KW ; 1 KW day, 890 kc., un¬
limited time. Examiner P. W. Seward sustained. Order
effective March 3, 1936.
KGKB — Ex. Rep. No. 1-64: East Texas Broadcasting Co., Tyler,
Tex. — Granted modification of license to change hours of
operation from specified to unlimited day, specified hours
night from LS to 8 p. m.; 1500 kc., 100 watts. Examiner
R. L. Walker sustained. Order effective February 18, 1936.
NEW — Eugene DeBogory and Mildred English, d/b as Dallas
Broadcasting Co., Dallas, Tex. — Denied C. P. for new station
to operate on 1500 kc., 100 watts, daytime and specified hours
night — 6 p. m. to 7 p. m., 8 p. m. to 12 midnight. Examiner
Walker reversed.
WROK — Ex. Rep. No. 1-148: Rockford Broadcasters, Inc., Rock¬
ford, Ill. — Granted modification of license to change hours of
operation from sharing with WHBL to unlimited ; 1410 kc.,
500 watts. Examiner P. W. Seward sustained. Order effec¬
tive March 10, 1936.
NEW — Ex. Rep. No. 1-151: Pat Whitaker, tr/as Tampa Broad¬
casting Co., Tampa, Fla. — Dismissed with prejudice applica¬
tion for C. P. for new station to operate on 1370 kc., 100
watts, unlimited time. Examiner J. P. Bramhall sustained.
NEW — Ex. Rep. No. 1-152: D. B. Sutton, Miami, Fla. — Dismissed
with prejudice application for C. P. for new station to operate
on 1210 kc., 100 watts, unlimited time. Examiner Bramhall
sustained.
WJJD — Ex. Rep. No. 1-166: WJJD, Inc., Chicago, Ill. — Reaffirmed
grant of C. P. to move transmitter from Mooseheart to Des
Plaines, Ill. Examiner R. L. Walker sustained.
ACTION ON CASE HEARD BY COMMISSIONER
BROWN
KFBI — Docket 2777: The Farmers & Bankers Life Ins. Co., Abilene,
Kans. — Granted renewal of license, 1050 kc., 5 KW, limited
time. Commissioner Brown’s recommendations reversed.
MISCELLANEOUS
WDRC — WDRC, Inc., Hartford, Conn. — Approved grant of modi¬
fication of license to increase day power to 5 KW inasmuch
as applicant has now complied with Rule 131.
WHIS — Daily Teleg. Printing Co., Bluefield, W. Va. — Reconsidered
and granted application for C. P. as amended to move locally
and install new equipment and new radiating equipment.
Application for increased power withdrawn.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Denied petition asking
Commission to reconsider and grant application for modifica¬
tion of license so as to change equipment and increase day
power from 2J4 KW to 5 KW. Application designated for
hearing October 29, 1935.
NEW — Ex. Rep. No. 1-125: National Television Corp., New York
City. — Remanded to the docket for early hearing.
KVI — Puget Sound Broadcasting Co., Inc., Tacoma, Wash. —
Granted authority to take depositions in support of applica¬
tion for C. P. (Docket 3283).
KGKO — Wichita Falls Broadcasting Co., Wichita Falls, Tex. — Pro¬
test to grant of application to move transmitter to Fort
Worth, originally filed and withdrawn by Chamber of Com¬
merce, Temple, Okla., was reinstated and that body was
permitted to participate in hearing scheduled for January 27,
1936.
KIT — Carl E. Haymond, Yakima, Wash. — Denied petition asking
Commission to reconsider its former action of October 16,
1935, in designating for hearing application for voluntary
assignment of license to Valley Broadcasters, Inc., a newly
formed Washington corporation.
WHDL — Olean Broadcasting Co., Olean, N. Y. — Denied petition
asking Commission to reconsider and grant application for
transfer of control of station to the Olean Times-Herald
Corp. Application designated for hearing on December 3,
1935.
W6XKG — Ben S. McGlashan, Los Angeles, Calif. — Granted license
to cover C. P. (exp. gen. exp.), 31600, 35600, 38600, 41000
kc., 100 watts.
APPLICATIONS DISMISSED
NEW — Broadcasters of Pennsylvania, Inc., Erie, Pa. — Dismissed at
request of applicant application, heretofore set for hearing,
for C. P., 1420 kc., 100 watts, 250 watts LS, unlimited.
NEW — Springfield Newspapers, Inc., Springfield, Ohio.- — Dismissed
at request of applicant application, heretofore set for hearing,
for C. P. for 1120 kc., 250 watts, daytime.
WPTF — WPTF Radio Co., Raleigh, N. C. — Dismissed at request of
applicant application, heretofore set for hearing, for special
experimental authority, 680 kc., 5 KW, 6 to 7 a. m., EST.
NEW — John E. Fetzer, Kalamazoo, Mich. — Dismissed at request of
applicant application, heretofore set for hearing, for C. P.
for 1010 kc., 500 watts, 1 KW LS, unlimited.
The following applications, heretofore set for hearing, were dis¬
missed for failure of applicants to answer the form letter, adopted
by the Broadcast Division, requiring applicants to signify their desire
to be heard within 10 days after receipt of said form letter:
WMFD — Richard Austin Dunlea, Wilmington, N. C. — Application
for modification of license, 1370 kc., 100 watts, specified
hours (6 a. m. to 9 p. m., EST).
WCBS — WCBS, Inc., Springfield, Ill. — Application for modification
of license, 1420 kc., 100 watts, unlimited time.
NEW — Henry William Turkel, Los Angeles, Calif. — Application for
C. P., 6040 kc., 1 KW, Emission A-3, unlimited time.
APPLICATIONS DENIED
NEW — Hubert H. Hall, Erie, Pa. — Denied as in cases of default
for failure to file appearance, application for C. P., 1420 kc.,
100 watts, unlimited time.
NEW — A. O. Jenkins, Jacksonville, Fla. — Denied as in cases of
default for failure to file appearance, application for 1200 kc.,
100 watts, unlimited time.
1161
APPLICATIONS RECEIVED
First Zone
NEW — Power City Broadcasting Corp., Niagara Falls, N. Y. — Con-
630 struction permit for a new broadcast station to be operated
on 630 kc., 250 watts, daytime.
WJAR — The Outlet Co., Providence, R. I. — Modification of con-
890 struction permit (Bl-P-333) for changes in equipment and
move transmitter, requesting extension of completion date
from 2-4-36 to 6-4-36.
WFMD — The Monocacy Broadcasting Co., Frederick, Md. — License
900 to cover construction permit (Bl-P-427) for a new station.
WOL — American Broadcasting Co., Washington, D. C. — Construc-
1230 tion permit to make changes in equipment, change frequency
from 1310 kc. to 1230 kc., increase power from 100 watts
to 1 KW, move transmitter from 1111 H St., N. W., Wash¬
ington, D. C., to about mile east Riggs and lager Roads,
Maryland, and studio site from 1111 H St., N. W., Washing¬
ton, D. C., to site to be determined, Washington, D. C.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. — Modi-
1270 fication of construction permit (Bl-P-847) for changes in
equipment and increase in power of auxiliary equipment, re¬
questing further changes in auxiliary equipment, increase
maximum rate carrier power from 500 watts to 1 KW of
auxiliary equipment.
NEW — The Brockway Co., Watertown, N. Y. — Construction per-
1270 mit to erect a new broadcast station to be operated on 1270
kc., 250 watts power, daytime. Consideration under Rule
6 (g).
WOKO — WOKO, Inc., Albany, N. Y. — Authority to determine op-
1430 erating power by direct measurement of antenna power.
W2XF — National Broadcasting Company, Inc., New York, N. Y. —
Construction permit for increase in power from 5 to 12 KW
and change in transmitter for visual broadcast station.
W2XK — National Broadcasting Company, Inc., New York, N. Y. — -
Construction permit for an increase in power from 2.5 KW
to 15 KW.
NEW — -National Broadcasting Company, Inc., New York, N. Y. —
Construction permit for a new special experimental station
for 177000 kc., 15 watts.
NEW — National Broadcasting Company, Inc., Portable-Mobile.—
License for general experimental station for 25700, 26000,
27100, 31600, 35600, 38600, 41000, 86000-400000, 401000
kc., and above, 25 watts (to use equipment also licensed as
General Experimental Broadcast Pickup Station W10XCG).
NEW — National Broadcasting Company, Inc., Portable-Mobile. —
License for general experimental station for 25700, 26000,
27100, 31600, 35600, 38600, 41000, 86000-400000, 401000
kc., and above, 25 watts (to use equipment also licensed as
General Experimental Broadcast Pickup Station W10XCH).
NEW — National Broadcasting Company, Inc., Portable-Mobile. —
License for general experimental station for 25700, 26000,
27100, 31600, 35600, 38600, 41000, 86000-400000, 401000
kc., and above, 25 watts (to use equipment also licensed as
General Experimental Broadcast Pickup Station W10XED).
NEW — National Broadcasting Company, Inc., Portable-Mobile. —
License for general experimental station for 25700, 280000,
27100, 31600, 35600, 38600, 41000, 86000-400000, 401000
kc. and above, 25 watts (to use equipment also licensed as
General Experimental Broadcast Pickup Station W10XV).
W2XJH — General Electric Company, Portable-Mobile. — License to
cover construction permit for general experimental station.
W10XCG — National Broadcasting Company, Inc., Portable-Mobile.
— Modification of license to delete all but broadcast pickup
frequencies 31100, 34600, 37600, 40600 kc. and increase
power to 25 watts.
WlOXCH — National Broadcasting Company, Inc., Portable-Mobile.
— Modification of license to delete all but broadcast pickup
frequencies 31100, 34600, 37600, 40600 kc. and increase
power to 25 watts.
W10XED — National Broadcasting Company, Inc., Portable-Mobile.
— Modification of license to delete all but broadcast pickup
frequencies 31100, 34600, 37600, 40600 kc. and increase
power to 25 watts.
WlOXV — National Broadcasting Company, Inc., Portable-Mobile.
— Modification of license to delete all but broadcast pickup
frequencies 31100, 34600, 37600, 40600 kc. and increase
power to 25 watts.
Second Zone
NEW — Saginaw Broadcasting Co., Saginaw, Mich. — Construction
1200 permit for a new broadcast station to be operated on 1200
kc., 100 watts, 250 watts day, specified hours operation.
Amended: To omit previous amendment requesting equip¬
ment changes and decrease in power.
NEW — Harry C. Lowe and Clara A. Lowe, DuBois, Pa. — Con-
12101 struction permit for a new broadcast station to be operated
on 850 kc., 250 watts, daytime operation. Amended: Change
frequency from 850 kc. to 1210 kc., power from 250 watts
to 100 watts, move transmitter from 126 W. Long Ave.,
DuBois, Pa., to DuBois, Pa., and studio site from site to be
determined to 2 S. Brady St., DuBois, Pa.
NEW — Harold F. Gross, Edmund C. Shields, Saginaw, Mich. —
1210 Construction permit for a new station to be operated on
1210 kc., 100 watts night, 250 watts day, unlimited time.
Requests facilities of WJIM, if WJIM’s application for 1010
kc. is granted.
WTEL — Foulkrod Radio Engineering Co., Philadelphia, Pa. — Con-
1230 struction permit to make changes in equipment, directional
antenna; change frequency from 1310 kc. to 1230 kc.; in¬
crease power from 100 watts to 250 watts night, 500 watts
day ; and change hours of operation from share-WHAT to
unlimited time. Amended: To change transmitter site from
H Street and Wyoming Avenue, Philadelphia, Pa., to Bustle-
ton Avenue, north of Cottman Street, Castor Highlands, Pa.
NEW — Radio Air Service Corp., Portable-Mobile. — Construction
permit for general experimental station on 31100, 34600,
37600, 40600 kc., 10 watts.
Third Zone
KPRC — Houston Printing Co., Houston, Tex. — License to cover
920 construction permit (B3-P-765) to make equipment changes,
increase power, move transmitter.
NEW — The Metropolis Co., Jacksonville, Fla. — -Construction per-
1200 mit for new broadcast station to be operated on 1200 kc.,
100 watts, unlimited time. Amended: Change frequency from
1200 to 1310 kc.
WMFR — Hart & Nelson (J. A. Hart and Wayne M. Nelson), High
1200 Point, N. C. — License to cover construction permit (B3-P-
165) as modified for a new station on 1200 kc., 100 watts
power, daytime operation.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — License
1200 to cover construction permit (B3-P-695) to make equipment
changes.
KIUN — Jack W. Hawkins and Barney H. Hubbs, Pecos, Tex. —
1310 Modification of license to change frequency from 1420 kc.
to 1310 kc.
WPFB — Forrest Broadcasting Co., Inc., Hattiesburg, Miss.— License
1370 to cover construction permit (B3-P-732) for changes in equip¬
ment, hours of operation and move of transmitter.
Fourth Zone
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — License to
1200 cover construction permit (B4-P-869) for changes in equip¬
ment.
KGFW — -Central Nebraska Broadcasting Corp., Kearney, Nebr. —
1310 Construction permit to install new equipment and increase
power from 100 watts to 100 watts, 250 watts day. Amended:
Change equipment (antenna), and move transmitter and
studio from 919 W. 27th St. to 13th and Railroad, Kearney,
Nebr.
NEW — Charles E. Wilkinson, Mason City, Iowa. — Construction
1370 permit for a new broadcast station to be operated on 1370 kc.,
100 watts, unlimited time. Amended: Change name from
C. E. Wilkinson to Charles E. Wilkinson, and change trans¬
mitter site from center of business district, Mason City, Iowa,
to site to be determined, Mason City, Iowa.
Fifth Zone
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Construction permit
590 to increase power from 1 KW, 2 KW day, to 5 KW, and move
transmitter from Sprague Ave. and Post St., Spokane, Wash.,
to site to be determined. Amended to make equipment
changes.
NEW — Christina M. Jacobson, d/b as The Valley Electric Co., San
1200 Luis Obispo, Calif. — Construction permit for a new broad¬
cast station to be operated on 1090 kc., 250 watts, daytime.
Amended: Change frequency from 1090 kc. to 1200 kc.
NEW — Ben S. McGlashan, San Diego, Calif. — Construction permit
1210 for a new station to be operated on 1210 kc., 100 watts,
daytime.
NEW — Howard G. DeLong and Maurice E. Kennedy, Los Angeles,
Calif. — Construction permit for a new general experimental
station on 31600, 35600, 38600, 41000 kc., 100 watts.
1162
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * ★ * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 5
JANUARY 23, 1936
IN THIS ISSUE
Page
ASCAP Restrictions cn Warner Music . 1163
Securities Act Registrations . 1163
Radio Committee to Meet . 1163
Talmadge Application to FCC . 1163
FCC Appropriation Passes House . 1163
Power Increase Recommended for Two Stations 1163
Recommends Additional Time for KADA . 1163
Power Increase Recommended for WJBC . 1163
FCC Denies Oral Argument . 1163
Good Engineering Practice . 1164
Court Decision in Uproar Company Appeal . 1163
Federal Trade Commission Action . 1166
Federal Communications Commission Action . 1169
ASCAP RESTRICTIONS ON WARNER MUSIC
Several stations have raised the question whether a restricted
number on the ASCAP list which happens to be published by one
of the Warner Brothers publishers is restricted to the licensee of
MPHC.
The MPHC in a telegram dated January 20th advises as fol¬
lows:
“All stations licensed by us may perform all numbers pub¬
lished by us appearing on ASCAP restricted list except num¬
bers from Shubert plays My Maryland, Student Prince, and
Land of Smiles and Kern plays Cat and the Fiddle, Music in
the Air, and Roberta which we are withdrawing from our
repertory pending determination legal questions.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Thompson Products, Inc., Cleveland, Ohio. (2-1863, Form A-2)
Imperial China Company, Inc., Steubenville, Ohio (2-1864, Form
A-l)
Corporate Leaders Securities Company, Wilmington, Del. (2-
1865, Form A-l )
The New York Woman, Inc., New York City (2-1866, Form
A-l)
Arthur J. Moss et ah, New York City (2-1867, Form F-l)
London Deep Mines Co., Leadville, Colorado (2-1868, Form
A-l)
Belle of Anderson County Distilling Co., Lexington, Ky. (2-1869,
Form A-l)
RADIO COMMITTEE TO MEET
The regular annual meeting of the American Section, Interna¬
tional Committee on Radio, will be held at the University Club,
this city, on January 28. Senator Wallace H. White, Jr., of Maine,
is president of the organization.
TALMADGE APPLICATION TO FCC
Regular application has been made to the Federal Communica¬
tions Commission by Morris A. Bealle, of Plain Talk, a magazine
published in this city, on behalf of Governor Talmadge.
The application asks for permission to send bv telephone wire
from Macon, Ga., to Station XEAW, the Dr. John R. Brinkley
station, at Reynosa, State of Tamaulipas, Mexico, for transmis¬
sion, proceedings of the political convention to be held on Jan¬
uary 29. The station operates on 960 kilocycles with 100.000
watts power.
FCC APPROPRIATION PASSES HOUSE
The House of Representatives has passed the appropriation bill
carrying money for use of the Federal Communications Commis¬
sion for the next fiscal year beginning July 1.
The total appropriation is $1,474,000 of which $24,000 is for
printing and binding and the remainder for other expenses in¬
cluding salaries. Provision is made in the bill that not more
than $1,030,000 shall be spent in the District of Columbia.
POWER INCREASE RECOMMENDED FOR TWO
STATIONS
Broadcasting Station WFBM, Indianapolis, Ind., applied to the
Federal Communications Commission to increase its daytime
power from 1,000 to 5,000 watts and Station WHBU, Anderson,
Ind., asked for a daytime power increase from 100 to 250 watts.
Examiner Ralph L. Walker, in Report No. 1-183, recommended
that both of the applications be granted. The Examiner states
that “it appears that a need for increased daytime service exists
in the area involved ; that the granting of the application will not
cause objectionable interference to stations other than the appli¬
cants; that objectionable interference between the applicant sta¬
tions now exists; and that while the objectionable interference
area of Station WHBU will be increased, the net result will be to
increase the satisfactory service area of each station, including
therein a substantially greater population.”
RECOMMENDS ADDITIONAL TIME FOR KADA
Application was filed with the Federal Communications Com¬
mission by broadcasting station KADA, Ada, Okla., asking for un¬
limited time on the air. The station, which operates on a fre¬
quency of 1200 kilocycles, has 100 watts power and now uses day¬
time hours only.
Examiner P. W. Seward, in Report No. 1-182, recommends that
the additional time be granted. The Examiner states that a need
does exist for additional nighttime service in the area proposed to
be served and that “the interests of other licensed stations will not
be adversely affected by reason of interference with the possible
exception of Station WBBZ and this can only be definitely deter¬
mined by experiments proposed by taking of field tests.”
POWER INCREASE RECOMMENDED FOR WJBC
Broadcasting Station WJBC, Bloomington, Ill., applied to the
Federal Communications Commission to increase its daytime
power from 100 to 250 watts. The station operates on a fre¬
quency of 1200 kilocycles, sharing time with WJBL.
Examiner John P. Bramhall, in Report No. 1-181, recommended
that the application be granted. He found that there is need for
additional daytime service in the area to be served and that “the
interests of no other station will be adversely affected by reason of
interference.” The Examiner also states that the applicant will
erect and maintain an antenna in compliance with the engineering
standards of the Commission.”
FCC DENIES ORAL ARGUMENT
At a general session the Federal Communications Commission
overruled the motion of Voice of Brooklyn, Inc. (WLTH), and
United States Broadcasting Corporation (WARD) in the mat¬
ter of their applications for renewal of licenses (Dockets Nos.
1967 and 2039) which the Broadcast Division denied effective
January 22, 1936, requesting (1) that an order be entered per¬
mitting them to appear by counsel before the Commission en banc
1163
to present oral argument in support of their several petitions
which they state will be filed shortly for rehearing of these cases
under Section 405 of the Communications Act of 1934, and (2)
that, pending final decision of the Commission on such several
petitions, the effective date of the order of the Broadcast Division
in the premises be postponed from time to time sufficiently to
permit full consideration by the Commission of the matters in¬
volved prior to the operation of such order.
Commissioner Stewart, presented the following statement in con¬
nection therewith:
“I adhere to the views expressed in my opinion of January
8, 1936, which was issued in connection with another appli¬
cant in these so-called ‘Brooklyn cases.’ ”
GOOD ENGINEERING PRACTICE
The Federal Communications Commission has issued the fol¬
lowing interpretations of “good engineering practice” as used in
the Commission’s rule 132 to broadcast licensees. Rule 132 is
quoted herewith for ready reference:
“(a) The transmitter proper and associated transmitting equip¬
ment of each broadcast station shall be designed, constructed and
operated in accordance with good engineering practice in all phases
not otherwise specifically included in these regulations.
“(b) The transmitter shall be wired and shielded in accordance
with good engineering practice and shall be provided with safety
features in accordance with the specifications of Article 37 of the
current National Electrical Code as approved by the American
Standards Association.
“(c) The station equipment shall be so operated, tuned, and ad¬
justed that emissions are not radiated outside the authorized band
which cause or are capable of causing interference to the commu¬
nications of other stations. The spurious emissions, including radio
frequency harmonics and audio frequency harmonics, shall be
maintained at as low a level as required by good engineering
practice. The program distortion, audio frequency range, carrier
hum, noise level, and other essential phases of the operation which
control the external effects shall at all times conform to the re¬
quirements of good engineering practice.
“(d) Whenever, in this rule, the term ‘good engineering prac¬
tice’ is used, the specifications deemed necessary to meet the re¬
quirements of good engineering practice will be published from
time to time.
“(e) This rule shall be effective upon its adoption provided,
however, that existing broadcast stations shall be allowed one year
in which to meet the requirements herein.”
The pertinent sections of Article 37 of the National Electrical
Code read as follows:
j. The transmitter shall be enclosed in a metal frame or grill
or separated from the operating space by a barrier or other equiva¬
lent means, all metallic parts of which are effectually connected
to ground.
k. All external metallic handles and controls accessible to the
operating personnel shall be effectually grounded. No circuit in
excess of 150 volts should have any parts exposed to direct con¬
tact. A complete dead front type of switchboard is preferred.
l. All access doors shall be provided with interlocks which will
disconnect all voltages in excess of 750 volts when any access
door is opened.
Referring to paragraph (a) of the above rule, at present good
engineering practice shall be interpreted as follows:
In general the transmitter must be constructed either on racks
and panels or in totally enclosed frames protected as required by
the sections of Article 37 of the National Electrical Code as
quoted above. The final stages of high power transmitters may be
assembled in open frames providing the equipment is enclosed by
a protective fence. Means must be provided for making all tuning
adjustments, requiring voltages in excess of 750 volts to be applied
to the circuit, from the front panels with all access doors closed.
Proper bleeder resistors should be installed across all condenser
banks to remove any charge which may remain after the high
voltage circuit is opened. All meters which have more than 1000
volts potential to ground on the movement shall be protected by
a cage or cover in addition to regular case even if bakelite.
All plate supply and other high voltage equipment, including
transformers, filters, rectifiers, and motor generators, must be pro¬
tected so as to prevent injury to operating personnel. This protec-
tin should include commutator guards on all high voltage rotating
machinery.
The transmitter panels or units shall be wired in accordance
with standard switchboard practice, either with insulated leads
properly cabled and supported or with rigid bus bar properly in¬
sulated and protected. Wiring between units of the transmitter
with the exception of circuits carrying R. F. energy shall be in¬
stalled in conduits or approved fibre or metal raceways to protect
them from mechanical injury. Circuits carrying low-level R. F.
between units shall be of either concentric tube, two-wire balanced
lines or properly shielded to prevent the pickup of modulated R. F.
energy from the output circuits.
Each stage (including the oscillator) preceding the modulated
stage shall be properly shielded and filtered to prevent feedback
from any circuit following the modulated stage. An exception to
this requirement will be made in the case of high-level modulated
transmitters of approved manufacture which have been properly
engineered to prevent reaction.
The crystal chamber, together with the conductor to the oscil¬
lator circuit, must be totally shielded. The crystal chamber must
be so constructed, insulated and temperature-controlled that the
maximum temperature variation at the crystal shall not be greater
than 0.1 degrees Centigrade. An exception would be made in the
case of transmitters employing so-called “AT” or zero coefficient
crystals wherein the maximum allowable temperature variation at
the crystal is 1.0 degree Centigrade. A thermometer must be in¬
stalled in such a manner that the temperature at the crystal can
be accurately measured and the temperature logged each half hour
in accordance with Rule 142. It is preferable that the tank cir¬
cuit of the oscillator tube be installed in the temperature-con¬
trolled chamber. In case an excessive shift in frequency is found
during warmup periods the crystal oscillator must be operated con¬
tinuously. The Commission will take special precautions to as¬
certain that composite crystal chambers and oscillator units meet
the requirements of “good engineering practice” before the station
is considered as having satisfactorily complied with Rule 132.
The radio frequency energy operating the monitor must be ob¬
tained from some stage in the transmitter prior to the modulated
stage and the monitor circuits must be such that the monitor can
be operated continuously without heterodyning the carrier. In
addition, the monitor and the radio frequency line from the trans¬
mitter must be thoroughly shielded to prevent regeneration in the
transmitter.
The transmitter power supply shall be so constructed that the
maximum plate voltage regulation between no modulation and
100% modulation shall not exceed 5%. Adequate provision shall
also be made for varying the transmitter power output between
sufficient limits to compensate for excessive variations in line volt¬
age, or other factors which may affect the power output.
A complete set of spare tubes for the transmitter and frequency
monitor should be on hand at all times, the spares to include
thyratron tubes, when used.
No requests for new broadcasting facilities will be granted un¬
less the equipment proposed to be installed conforms with the
definitions of “good engineering practice” as outlined herein.
It is the obligation of the licensee of each existing station to take
the necessary steps to assure that the transmitting equipment com¬
plies with Rule 132 and these definitions of “good engineering
practice.” Any changes in the transmitter for which a construc¬
tion permit is necessary by other rules, application therefor must
be made in the regular manner.
There is sufficient time before November 12, 1936, for all li¬
censees to file the necessary applications and install the required
equipment.
Each station will be visited in the near future by an inspector
of the Field Section of the Commission’s Engineering Department
and a detailed inspection will be made. Any points not clear or
on which a ruling is desired should be discussed with him. How¬
ever, this does not relieve the licensee’s responsibility to proceed
to comply with the requirements of this rule.
The inspector will again visit the station on or prior to Novem¬
ber 12, 1936, to determine if the equipment complies in all details.
The purpose of this rule is to improve broadcast reception and
to protect the lives of the station operators. Many frequency de¬
viations are caused by poor equipment. The mutual interference
caused by such deviations will thus be reduced as the deviations
are reduced. The continuity of service and fidelity of transmission
will be improved. This rule is for the good of the licensees as well
as the listeners and the cooperation of all licensees is requested in
assisting the Commission in the administration thereof.
The Commission will, from time to time, further define “good
engineering practice” as the state of the art progresses and as the
needs for the improvement in technical broadcasting demand.
1164
COURT DECISION IN UPROAR COMPANY
APPEAL
The United States Circuit Court of Appeals for the First Circuit
rendered a decision in the case of the Uproar Company against the
National Broadcasting Company.
This case was an appeal from the District Court of the United
States for the District of Massachusetts. Judges Morton and Morris
wrote the majority decision, while a dissenting decision was rendered
by Judge McLellan. The full decision is as follows:
UNITED STATES CIRCUIT COURT OF APPEALS
FOR THE FIRST CIRCUIT.
October Term, 1935.
No. 3050.
UPROAR COMPANY,
Plaintiff, Appellant,
v.
NATIONAL BROADCASTING COMPANY ET AL.,
Defendants, Appellees.
APPEAL FROM THE DISTRICT COURT OF THE UNITED STATES FOR THE
DISTRICT OF MASSACHUSETTS
Before Morton, Morris and McLellan, JJ.
Opinion of the Court.
January 7, 1936.
Morton, J. This is an action at law to recover damages for an
alleged conspiracy between the defendants, (1) to interfere malic¬
iously with contracts made by the plaintiff with certain broad¬
casting concerns to advertise its pamphlets and books, (2) to pre¬
vent the printing and distribution of such pamphlets and books,
and (3) to prevent the advertising of them over the radio. The
alleged purpose of the conspiracy was to prevent the plaintiff from
carrying out arrangements made between it, Ed Wynn and Keenan
Products, Inc., a corporation owning certain rights transferred to
it by Wynn, for the advertising and selling of certain literary pro¬
ductions of Wynn. There is a second count alleging a conspiracy
under the Federal anti trust laws to interfere with interstate com¬
munications.
The defendants pleaded equitable defenses. That of the Texas
Co. alleged in substance that the plaintiff had no such property
rights in the productions of Wynn incorporated in the pamphlets
and books as enabled it to maintain the action, and that its
attempted advertising and sale of them was in violation of the
defendants’ rights. The prayer was for an injunction against any
attempt on the part of the plaintiff to publish, advertise, or sell
the literary productions in question. The answer of the National
Broadcasting Co. further alleged that the pamphlets and books
published by the plaintiff made use of the name “Graham Mc-
Namee” in which the Broadcasting Company had exclusive rights.
It prayed that such use might be enjoined. In the court below the
equitable defenses were sustained and the plaintiff has appealed.
Th first question is whether any ground of equitable defense
is pleaded, i. e., whether the defenses stated ought not to have
been made in the action at law. Inasmuch as the plaintiff’s con¬
duct is alleged in the answers to have been illegal and tortious
and an interference with the defendants’ property rights, and as
it is of such character as, by the settled practice in equity, will if
illegal be enjoined, and as injunctions were prayed for, i. e., an
affirmative relief not obtainable in the action at law, we think
that the equitable defenses were properly pleaded and were prop¬
erly heard in advance of the trial of the action at law. There
is no question but what they related to the subject matter of the
plaintiff’s action; indeed they go to the root of it. It is the
practice in cases in which equitable defenses are properly pleaded
in an action at law for the trial court first to determine the equi¬
table issues and “Once having assumed jurisdiction, it (the equity
court) will determine all rights, legal or equitable, which are neces¬
sary to settle the equitable issues.” Wilson, J., People of Porto Rico
v. Livingston, 47 Fed. (2d) 712 at 721 (C. C. A. 1). See too 28
U. S. C. A. Sec. 398 ; Equity Rule 23 ; and Liberty Oil Co. v. Condon
National Bank, 260 U. S. 235.
We come therefore to the merits of the controversy between
the parties. The basic facts are not in dispute. The Texas Co.
is a large dealer in gasoline and related products. It made con¬
tracts with Ed Wynn a well-known actor and comedian to give a
series of radio broadcasts in advertisement of its goods. The
broadcasts were to be given weekly, and under the first contract
Wynn was to be paid $5,000 for each one if he furnished the pro¬
gram for it, $3,500 if he did not. By other contracts the Texas
Co. arranged with the National Broadcasting Co. for the use of its
system for these broadcasts and for the services of Graham Mc¬
Namee, a well-known speaker over the radio who was under con¬
tract with the Broadcasting Company whereby it was solely entitled
to his services in broadcasting and to all public uses of his name.
The arrangements between the various parties involved many de¬
tails which were covered by the agreements, but which it is un¬
necessary to go into. The original contract between Wynn and
the Texas Co. was for thirteen performances; but by additional
contracts and options which were exercised, over fifty additional
performances were arranged for on substantially the same terms,
except that the later contracts did not contain the provision for
reduction in compensation if Wynn did not furnish the programs.
For the entire series Wynn received if he furnished the programs
over $350,000. The script which Wynn prepared required a second
speaker. McNamee took this role. The total expense to the Texas
Co. for each performance appears to have been about $13,000.
The performances were highly successful; Wynn’s jokes and
witticisms made a great hit with the public. He or his associates
apparently conceived the idea that it would be profitable to realize
on this good will by publishing his programs in pamphlet form
immediately after they had been delivered over the radio. The
plaintiff corporation under arrangements with Wynn, and with
Keenan Products, Inc., and one Leavitt who were interested in
the copyrights or other phases of the matter, undertook to do this
by a weekly pamphlet entitled “Uproar” which was sold for 10 cents
per copy. The Uproar Co. attempted to advertise this pamphlet
over the radio shortly after the conclusion of the performance for
the Texas Co., which was contained in the pamphlet, had been
given.
The Texas Co. objected to this on the ground that it owned the
subject matter of Wynn’s broadcast for it and on the further
ground that the publication of the pamphlets would injure the
advertising value of the broadcasts. The National Broadcasting
Co. objected on the ground that the pamphlets used Graham
McNamee’s name, under the abbreviation “Graham,” in violation
of its rights. There is no doubt that the word “Graham” was
used in the pamphlets, nor that it was there intended to refer to
Graham McNamee and was so understood by the public. As has
been said, McNamee took part in the broadcasts.
The first question on the merits is whether the Texas Co.
acquired exclusive rights in the personal script prepared by Wynn
for use in the broadcasts or whether that right remained in him.
The District Judge was of opinion that these rights belonged to
the Texas Co. As was said in a somewhat similar case, “It is a
question of fact to be derived from all the circumstances of the
case what is the nature of the contract entered into between the
parties.” Halsbury, L. C., in Lawrence & Bullen v. Aflalo, L. R.
1904 App. Case 17, at 20.
The contracts, which are all in writing, make no explicit provision
on this point. Under them the Texas Co. “hereby agrees to and
hereby does employ the party of the second part (Wynn) as the
principal featured star of a radio broadcast to be given for
consecutive weeks once a week for one-half hour beginning (date
named) at a salary of ($5,000) per week for each and every week,”
etc. Wynn’s obligation was “to render service as an artist,” and to
supply the necessary personal scripts for broadcasting over the
radio, etc. . . . “He agrees to render such service to the best of
his ability,” — and in the later contracts, — “in the manner as here¬
tofore rendered.” The first contract further provided, “6. It shall
be the right of election of the party of the second part (Wynn)
however to determine whether or not he will perform in full the
services of supplying the program and arranging the same, sub¬
ject to the supervision and approval of the party of the first part,
which is a part of the duties the party of second part (Wynn)
agrees to perform during the first thirteen weeks for same.” . . .
“If he shall elect not to perform such services of supplying the
program as herein recited, because of the fact that he shall be
actively engaged in playing upon the speaking stage, then he
shall receive the sum of $3,500 per week for each and every week
that he shall broadcast in the optional period of said fifty-two
1165
weeks herein mentioned, but in that event he shall be known
as the star and high-spot of the said broadcast,” etc.
The District Judge, applying the contracts to the circumstances
surrounding them, held that they in effect made Wynn an employee
of the Texaco Co. for advertising purposes and that the literary
programs or script which he prepared for that purpose became
its property. He regarded the situation as analogous to one in
which an author had been employed to prepare manuscripts for
publication; or to one in which an inventor had been employed
under salary to make a specified invention. See Lawrence v. Aflalo,
supra; Dielman v. White, 102 Fed. 892; Standard Parts Co. v.
Peck, 264 U. S. 52. It does not seem to us, however, that Wynn’s
services were of that character. Wynn was not employed to pre¬
pare material, but to give a show. The proposed show involved
two elements, Wynn’s personality, skill and reputation as an actor
and comedian, and the material which he used. It was to be
entirely a spoken affair. The essential thing about it was that it
should attract people to listen in, so that they would hear the
Texas Company’s advertising which was given in connection with
it. The script was prepared for that purpose. There is nothing
in the contracts to indicate that the Texas Co. regarded the scripts
as of value to it after the performance was over or desired to
obtain the literary property in them. That property originally
belonged to Wynn, and he did not lose it unless the contract
carried an implied assignment of it to the Texas Co.* We do not
think that any such assignment is implied from the language of
the contracts or the relations of the parties. The literary property
in the scripts prepared by Wynn remained in him. We do not
overlook the fact that Wynn was paid $1,500 more if he furnished
the scripts. The Texas Co. apparently assumed that script obtained
elsewhere would cost about that amount. The inferences from
this fact seem to us too speculative to be controlling. It is impos¬
sible to say who would have furnished the script if Wynn did not,
nor on what terms and conditions with respect to the title to it.
As the literary property in the scripts belonged to Wynn he
had the general right to publish them. But this right was not
unrestricted. As the scripts were prepared under contracts with
the Texas Company for that company’s advertising and Wynn
had been paid for that use of them, plainly he was not at liberty
to make any other use of them which would in any way weaken
or interfere with that for which they had, so to speak, been sold.
The principle is well established, “that in every contract there
is an implied covenant that neither party shall do anything which
will have the effect of destroying or injuring the right of the other
party to receive the fruits of the contract, which means that in
every contract there exists an implied covenant of good faith and
fair dealing.” Hubbs, J., Kirke LaShelle Co. v. Paul Armstrong,
263 N. Y. 79. See too Manners v. Moroco, 252 U. S. 317.
The final question is whether the publication and sale of the
plaintiff’s pamphlets “Uproar” did in fact have that effect. The
District Judge found, “The plaintiff can have no greater right
than Wynn or McNamee. Both defendants complain that the
plaintiff, in publishing ‘Uproars’, has appropriated and will appro¬
priate the good will which the defendants have, at large expense,
succeeded in creating and to which the plaintiff has contributed
nothing. In other words, that the plaintiff, for its own profit, is
seeking to take an unfair advantage of the popularity of widely
advertised programs, the proprietary interests in which belong
exclusively to the defendants under their respective contracts with
Wynn and McNamee.
“This misappropriation and use by the plaintiff tends to impair
the value of the exclusive rights which the defendants have ac¬
quired by cheapening the whole advertising program. There was
evidence tending to show that those who were in the radio audi¬
ence when the program was on were led to believe that the plain¬
tiff’s publication was put out by the defendants, or one of them.
“The defendants say, with justice as I see the matter, that
such a use would ‘detract from the unique quality and artistically
complete effect of the defendant’s advertising. It would tend to
cause confusion in the minds of the public with respect to the
relationship between the plaintiff and the defendant, and to create
some degree of impression that the defendant was responsible for
what the plaintiff might do.’ The cogency of the argument lies
in the fact that the defendants have no control by way of censor¬
ship, or otherwise, of the matter that may appear in ‘Uproars’.
I have no hesitation in finding and ruling that the plaintiff is mak¬
* In England by statute the presumption is the other way in
certain cases, i. e., that the property passes unless expressly reserved.
See Lawrence & Bullen v. Aflalo, supra; Sweet v. Benning, 16
C. B. 459.
ing a commercial use, wholly unauthorized, of the script and of
the name ‘Graham’.”
It will be observed that the District Judge’s findings dealt not
only with what he regarded as an unpermitted misappropriation
of the scripts but also with the effect of the plaintiff’s use of them
on the Texas Company’s advertising. While the evidence on this
point is not very full, and perhaps not very satisfactory, we think
it supports the District Judge’s findings. From an inspection of
the “Uproar” pamphlets, which were shown to us, we think it
might well be found that they were cheap and flashy, and if attrib¬
uted to the Texas Co., — as apparently they were to some extent
at least, — were calculated to injure the effect of its advertising.
It is clear that the plaintiff had no right to use Graham Mc-
Namee’s name in its publication, either in full or under the abbrevia¬
tion “Graham.”
It follows that the plaintiff cannot maintain the present action
and that the first clause in the decree enjoining it from doing so
was right. The second clause in the decree enjoining the plain¬
tiff from publishing, etc., should be modified by adding at the end
thereof the following: “in any way which injures or interferes
with the benefits which the Texas Co. might derive from its
advertising under its contracts with Wynn.” In all other respects
the decree is affirmed, with costs to the appellees.
The decree of the District Court, as modified by this opinion, is
affirmed with costs to the appellees.
McLellan, J. (dissenting) : I am in accord with the majority
view that notwithstanding his contract with the Texas Company,
the literary property in the scripts belonged to Wynn, that he had
the right to publish them, and that this right was not unrestricted.
While recognizing the principle that a contractor impliedly prom¬
ises that he will not use retained property in such a way as to
defeat the purposes of the contract, I doubt whether in any event
we should go as far as the majority opinion suggests in the
proposed injunction. Be this as it may, we all agree in substance
that the plaintiff, by virtue of mesne assignments from Wynn, has
a restricted right to publish the scripts, and I cannot see why, on
this record, the plaintiff should be enjoined from prosecuting its
action for an alleged unlawful interference with that right. I
should suppose that if the defendants made out a complete defense
they would be entitled to a judgment, — not an injunction. But
they are entitled to neither. The majority concedes such owner¬
ship in the plaintiff, that I think it cannot be ruled as a matter of
law at this stage of the proceedings that the plaintiff has no cause
of action for interference with its ownership and restricted right to
publish the Wynn productions. And this entirely apart from the
jurisdictional question as to which I am not in accord with the
majority of the court.
The non-ownership of the plaintiff alleged in the equitable
answer is for reasons already stated out of the case. The restricted
ownership set up in what the defendants call an equitable defense
is a matter which would have been in issue in the law action if no
such thing as an equitable defense ever had been provided. May
a defendant, by raising a legal issue, by calling it equitable, and
by asking for an injunction of the type described in the majority
opinion, deprive the plaintiff of a trial at law ? In spite of judicial
utterances to the effect that the test of the right to a trial in
equity on a plea to an action at law is whether the averments of
the plea are such as to constitute a proper basis for a bill in equity,
I think this question should be answered in the negative. For this
additional reason there should be no injunction against the prosecu¬
tion of the action at law.
I doubt also whether the appearance of the name Graham as
a participant in the dialogue constituting the script should be
regarded, under the circumstances here presented, as preventing
the plaintiff from publishing the Wynn compositions. At any rate,
the plaintiff had the right to publish and sell the script by deleting
the name in which the National Broadcasting Company had certain
rights by contract with Graham McNamee.
In conclusion, I think the court was without jurisdiction in
equity to hear the case over the plaintiff’s protest, and that no
injunction in any form should issue.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
1166
No. 2684. Misrepresentation in advertising K-W Motor Graph¬
ite is alleged in a complaint issued against the K-W Graphite
Corporation, Kansas City, Mo., engaged in the compounding of
a lubricating oil containing a mixture of colloidal graphite, which
it sells and distributes in interstate commerce.
The respondent company, the complaint charges, advertises that
use of its product increases motor life and efficiency 40 per cent;
reduces friction as much as 2 S to 40 per cent; reduces consump¬
tion of gasoline 8 to 12 per cent, and that only one oil change in
3000 miles is necessary when K-W Motor Graphite is used.
No. 2685. Unfair competition in the sale of “Korgena,” a tablet
represented as a remedy for obesity and overweight, is alleged in a
complaint issued against Korgena Medicine Co., 103-7 West
Church St., Elmira, N. Y., and Jerome Gladke, doing business
as Korgena Medicine Co.
The respondents allegedly advertise in newspapers, by radio and
in other ways, that Korgena is a cure for body fat or excess
weight, that it has the approval of the medical profession in gen¬
eral, and that it reduces weight from 7 to 10 pounds in two
weeks, whereas, according to the complaint, such statements are
untrue, and tend to deceive and mislead the purchasing public, to
the injury of competitors who do not adopt such practices.
No. 2686. Use of sales methods involving a game of chance are
alleged in a complaint issued against M. H. Sobel, Inc., Chicago
candy manufacturer. The respondent is charged with selling
candy by a method which offers purchasers a chance of procuring
larger pieces of candy or other articles of merchandise at prizes.
Such practices have long been deemed contrary to public policy,
according to the complaint, and their use by the respondent has a
tendency to injure competition.
Stipulations
The Commission has announced the following cease and desist
orders:
No. 01016. False and misleading advertising of a correspondence
course in music will be discontinued by H. H. Slingerland, of
Chicago, trading as Chicago School of Music, under a stipulation.
Advertising a correspondence course of 24 lessons at a purported
reduced rate of $8.50, the respondent is said to have offered to
teach prospective students how to play the instrument of their
choice, offering an instrument free. He also advertised that Pro¬
fessor Albert H. MacConnell, head of the school of music faculty,
would give his personal guidance and advice to those enrolled for
the course, when this was not the fact.
Nos. 01017-01018. In separate stipulations, two newspapers,
the Des Moines Register and Tribune, of Des Moines, la., and the
Chicago Evening American, Chicago, which published the “Malt-
O-Meal” advertising, agree to observe the provisions of the stipula¬
tion signed by the Campbell Cereal Company.
No. 01022. In a stipulation entered into by the Guide Publish¬
ing Co., Inc., 719 E. Olney Road, Norfolk, Va., publisher of the
Norfolk Journal and Guide, agrees to abide by the terms of a
stipulation to discontinue certain misleading advertisements signed
by Alden H. Weed, Jr., operating as Professor Abdullah and
Swami Abdullah, New York City. The Guide Publishing Com¬
pany had accepted Weed’s advertisements.
Nos. 01023-01024. Similar stipulations were signed by the
Pittsburgh Courier Publishing Co., Inc., Center Avenue at
Francis Street, Pittsburgh, publisher of the Pittsburgh Courier,
and the Afro-American Company, 628 North Eutaw Street,
Baltimore, publisher of the Afro-American, which also had pub¬
lished advertisements for Weed.
No. 01025. Popular Publications, Inc., 205 East 42nd St.,
New York City, publisher of Adventure Magazine, agrees to abide
by the terms of a stipulation previously signed by Flying Intelli¬
gence Bureau, Los Angeles, Calif., in which stipulation Flying
Intelligence Bureau agreed to discontinue false and misleading ad-
certising.
No. 01028. The Bulletin Company, City Hall Square, Phila¬
delphia, publisher of the Philadelphia Evening Bulletin, published
advertisements for Vikonite Crushed Herbs and Nu-Vitolyn, sold
by Vikonite Tonic Corporation, of Brooklyn, N. Y. The Bulletin
Company entered into a stipulation with the Federal Trade Com¬
mission to abide by the provisions of a stipulation signed by the
Vikonite Tonic Corporation, which agreed to cease the use of false
and misleading advertising.
No. 01034. The Campbell Cereal Co., of Northfield, Minn.,
has entered into a stipulation to cease and desist from the use of
false and misleading advertising in connection with the sale of
“Malt-O-Meal,” a cereal.
The respondent agrees to discontinue representations such as
that among athletes in leading high schools and colleges, “Malt-
O-Meal” is the favorite hot cereal. It further agrees not to ad¬
vertise that the cereal possesses special qualities for giving energy
or health, or that it will build and renew muscles, unless the ad¬
vertising matter specifically states that the cereal aids as a health
and muscle builder.
No. 01035. The Lone Wolf Manufacturing Co., Inc., of
Dallas, Tex., engaged in selling Lone Wolf Hair Tonic, has entered
into a stipulation to discontinue unfair trade practices in inter¬
state commerce.
Specifically, the respondent agrees to cease representing in its
advertsing that its product is a competent remedy for scalp in¬
fections, or that it will eradicate dandruff or stop falling hair,
when such is not the fact. Such assertions, according to the stip¬
ulation, have a tendency to mislead prospective purchasers, to the
injury of competitors.
No. 01036. Plough, Inc., Memphis, Tenn., selling Penetro
Nose and Throat Drops and Penetro Topical Dressing, agrees to
cease representing that either of its products is an effective remedy
for colds or will prevent colds ; that Penetro Nose and Throat
Drops are a competent treatment for hay fever, unless confined
to the relief of the symptoms of hay fever ; or, directly or by rea¬
sonable inference, that Penetro Topical Dressing will prevent in¬
fluenza or pneumonia.
No. 01037. I. Dabney Smith, Huntington, W. Va., engaged in
selling personal advice by mail, purportedly based upon astrology
and numerology, agrees to desist from use of advertising matter,
which, according to the stipulation, the Commission has reason to
believe is exaggerated and incorrect. Under the stipulation, the
respondent is required to discontinue representing that his advice
is helpful in the solution of one’s social, domestic and business
affairs, or that he is a numerologist or a psychoanalyst.
No. 01038. Vikonite Tonic Corporation, Brooklyn, N. Y.,
engaged in the sale of Vikonite Crushed Herbs, offered as a treat¬
ment for indigestion, and Nu-Vitolyn, an alleged concentrated
food, agrees to cease attributing to these products certain proper¬
ties which, according to medical opinion furnished the Commis¬
sion, they do not possess. The respondent stipulates it will not
represent that Vikonite Crushed Herbs are helpful to the entire
digestive tract, or that Nu-Vitolyn is a great European discovery
which will wipe out aggravating cases of neurasthenia or nervous
breakdown. The respondent, under terms of the stipulation, will
cease and desist from use of the word “Vitolyn,” independently or
as part of a trade name, unless its product contains vitamins in
quantities sufficient to afford therapeutic value.
No. 01039. National Toilet Co., Paris, Tenn., selling Nadinola
Face Powder and Nadinola Bleaching Cream, agrees to cease rep¬
resenting that its face powder is wind-proof or moisture-proof,
that it will keep the skin young longer and prevent wrinkles, and
that it is compounded from ingredients found only in the finest
French powders. Statements that the bleaching cream will per¬
manently remove blemishes from the face, and that the directions
for its use are based on a famous doctor’s advice, also will be dis¬
continued according to the stipulation.
No. 01040. Joseph N. Cirone, Brooklyn, N. Y., operating as
Rajah Abdullah, engaged in the sale of “The Books of Forbidden
Knowledge,” secret Hindu art, charms and luck pieces, agrees to
desist from advertising that use of his product will enable one
to win at anything, to obtain all desired things, or to discern all
secrets and invisible things. The respondent further stipulates
he will not represent that his products are guaranteed or that
purchase money is refunded to dissatisfied customers.
No. 01041. Alden H. Weed, Jr., New York City, operating
as Professor Abdullah and Swami Abdullah, and engaged in the
sale of an Astronumerology Chart and Dream Dope, agrees to
cease representations that use of his chart enables one to pick lucky
numbers and to get on the winning side of life, and that his
“Dream Dope” enables one to interpret dreams. It is further
stipulated that the respondent will not represent that he has delved
into ancient mystic lore and located a system very much in favor
thousands of years ago.
No. 01042. Noxacid Laboratories, Inc., Newark, N. J., sell¬
ing Noxacid, agrees to discontinue advertising that its product is
a competent treatment or an effective remedy for any stomach
trouble, unless confined to the relief of ailments due to gastric
hyperacidity ; that the product is a new scientific discovery, or
that it is effective in the treatment of any condition where sur¬
gery ordinarily is required.
No. 01043. Samuel A. Sandberg and Max L. Kaufman,
Chicago, doing business under the firm name Derma Laboratory
Co., and engaged in selling Skurolin, a medicated salve, have entered
1167
NAB LIBRARY
into a stipulation to cease and desist from representing that their
product is used by physicians to relieve skin troubles, or that it is
the best known remedy for all skin eruptions. The respondents
further agree to abandon use of the term “Laboratory” in their firm
name unless and until they actually operate a laboratory in con¬
nection with the manufacture of their products.
Nos. 01045-01046-01047-01048-01049-01050-01065-01036-01067-
01071. Ten broadcasting companies have entered into stipulations
with the Federal Trade Commission to abide by Commission ac¬
tion in cases against advertisers whose advertising matter they
had broadcast. In each instance the advertiser has signed a stip¬
ulation with the Commission to cease and desist from the char¬
acter of advertising to which objection was made.
Broadcasting companies and the firms for which they broadcast
advertisements are as follows: National Battery Broadcasting Co.,
St. Paul, operating Station KSTP, advertisements of Clark
Brothers Chewing Gum Co., Pittsburgh ; Orlando Broadcasting
Co., Inc., Orlando, Fla., operating Station WDBO, advertisements
of the Brossier Twin’s Laboratories, Orlando; Oak Leaves Broad¬
casting Station Inc., Chicago, operating Station WGES, adver¬
tisements of L. W. Paluszek, 1670 West Division St., Chicago,
trading as The Vervena Co.; WGAR Broadcasting Co., Cleve¬
land, Station WGAR, advertisements of G. B. McGlenn and C. A.
Revell, Cleveland, trading as Cleveland Regol Co. ; Matheson
Radio Co., Station WHDH, Boston, advertisements of Freedol
Remedy Co., 338-A Warren St., Boston; Western Broadcast Co.,
Hollywood, Calif., Station KNX, advertisements of Wain’s Lab¬
oratory, Inc., Los Angeles; The Milwaukee Journal, operating
Station WTMJ, Milwaukee, advertisements of Smith Bros., Inc.,
Poughkeepsie, N. Y.; Greenville News-Piedmont Co., Greenville,
S. C., operating Station WFBC, advertisements of M. L. Clein &
Co., Atlanta; Carter Publications, Inc., Ft. Worth, Tex., operator
of Station WBAP, advertisements of Hyral Distributing Co., Ft.
Worth; and the Oregonian Publishing Co., Station KEX, Portland,
Ore., advertisements of Esbencott Laboratories, 2014 N. E. Sandy
Boulevard, Portland.
Nos. 01053-01054-01055-01056-01069. Five radio companies
broadcasting advertisements for “Katro-Lek,” sold by Katro-Lek
Laboratories, Inc., Boston, have signed stipulations to abide by an
agreement to cease and desist from misleading advertising entered
into by Katro-Lek Laboratories, Inc.
The broadcasting companies are: Bay State Broadcasting Cor¬
poration, Station WAAB, Boston; Fifth Avenue Broadcasting Cor¬
poration, Station WFAB, New York City; Howell Broadcasting
Co., Inc., Station WEBR, Buffalo; Matheson Radio Co., Inc., Sta¬
tion WHDH, Boston, and WDRC, Incorporated, Station WDRC,
Hartford, Conn.
No. 1587. Frank Herschel McCullough, Frances McCul¬
lough and Harry T. Weaver, doing business as the Herschel
Novelty Works, 202 East 12th Street, New York City, in the sale
and distribution of their “Carbonite” scissors sharpener, have agreed
to discontinue the use of a container simulating in color, design and
lettering the package used by John Clark Brown, 525 Lexington
Avenue, New York City, in the sale of his “Kenberry” scissors
sharpener. Brown sells his product in a rectangular paper con¬
tainer having a red background, upon which is a picture of the
device, with a pair of scissors and certain words. According to
the stipulation, the respondent company distributed its product in
a container identical in size, shape, color of letters, and reading
matter, except that the word “Carbonite” appeared in place of the
word “Kenberry.”
No. 1588. Lee Knitting Mills Corporation, selling and dis¬
tributing bathing suits, slacks, jerseys and other woolen garments,
agrees to stop using as part of its corporate name the words “Knit¬
ting Mills,” and “Knitting,” or “Mills,” in a manner tending to
deceive buyers into believing that the company actually owns and
operates a mill or factory wherein any or all of its products are
made, when this is not the fact.
No. 1589. Use of the name of a famous French wine will be
discontinued by the Almaden Vineyards Corporation, of Los
Gatos, Calif., in connection with the sale of a California-produced
wine, under a stipulation entered into.
The respondent company, according to the stipulation, labeled
bottles containing certain of its wines with the brand name
“Chateau Yquem,” and caused the same name to appear in ad¬
vertising matter, including placards and window cards.
No. 1590. Under a stipulation entered into, The Goodman
Produets Corporation, 68 Jay Street, Brooklyn, N. Y„ will no
longer use the words “manufacturers of” or “manufactured by”
on labels or in advertising its products sold in interstate com¬
merce.
The respondent, operating under the trade names Paradise
Packing Company and Easyway Products Corporation, is en¬
gaged in the repacking of steel wool and steel wool cleaning pads
obtained from primary steel wool manufacturers. The respondent
labeled the cartons with the words “Manufactured by Paradise
Packing Company,” or “Manufactured by Easyway Products Cor¬
poration,” according to the stipulation, and its invoices carried the
legend, “Manufacturers of Easyway Steel Wool Pads and Soap,”
when, in fact, it does not manufacture these products.
No. 1591. In a stipulation in which misrepresentation was al¬
leged, J. M. Rurka, 864 West North Avenue, Chicago, doing busi¬
ness as the Secure Lock Company, agrees to cease and desist
from stamping on his product, designated as a “Secure Adjustable
Door Guard,” the abbreviation, “Pat. Pend.,” or the words,
“Patent Pending.” The stipulation avers that the respondent has
not filed application for a United States patent on his door guard,
and any marking thereon to indicate that he has done so tends to
confuse, mislead and deceive purchasers.
No. 1592. Agreement to cease selling watches with fictitious
price markings is made in a stipulation entered into by Jacob J. and
Bernard Schmukler, wholesale watch dealers, trading as J. J.
Schmulker & Son, 133-37 Canal Street, New York City. The
respondents purchase the watch movements from one company,
the cases from others, and in selling the assembled product to the
retail trade, in a substantial number of instances, affixed tags to the
watches on which were marked the suggested resale retail prices.
The stipulation sets out that prices marked on the tags were ex¬
aggerated and fictitious, and much in excess of the prices at which
the watches were intended to sell in the ordinary course of busi¬
ness.
No. 1593. Real Silk Hosiery Mills, Inc., manufacturing silk
hosiery and other wearing apparel, stipulates that it will not use
the phrase “custom made” in advertising products not made to
order or to the customer’s measure, and will cease the use in ad¬
vertisements of any other representations having a tendency to
deceive buyers into believing that its ladies’ hosiery is made to
order or to the customer’s measure, when this is not the fact. The
company is said to have advertised in periodicals having a wide
circulation, also in radio broadcasts.
No. 1594. Goodwear Knitting Mills, dealing in knitted outer¬
wear for men and boys, agree to abandon use of the phrase “Knit¬
ting Mills” in connection with their trade name, and to cease using
the words “Knitting,” “Mills,” and “Manufacturers” on invoices,
letterheads or other printed matter, implying or tending to deceive
buyers into believing that they knit or manufacture the products
sold by them, or that they actually own and operate a factory in
which the articles are knit or manufactured, when this is not true.
No. 1595. An agreement to discontinue false and misleading
advertising was signed by the American Foto Products Co., 216
West Jackson Boulevard, Chicago, engaged in the manufacture of
novelty rings. The respondent, in advertising for salesmen, rep¬
resented that they could earn from $20 to $40 a day by selling
rings, but, according to the stipulation, such representations were
exaggerated and not probable of accomplishment.
No. 1596. In a similar stipulation, A. Hirsch Company, 35
East Wacker Drive, Chicago, wholesale dealer in watches, agrees
to cease and desist from fictitious price marking.
No. 1597. J. Harold Booth, trading as United Mushroom Co.,
3848 Lincoln Avenue, Chicago, and engaged in the sale of mushroom
spawn and instructions for growing mushrooms, has entered into
a stipulation to cease and desist from the use of false and mis¬
leading advertising having a tendency to mislead purchasers, in
violation of the Trade Commission Act.
The respondent agrees to discontinue representing that his so-
called “Super-Spawn” is produced by his company or that it can
be grown to produce profitable crops under conditions unfavorable
to mushroom growth or in beds about a grower’s premises.
No. 1598. In a stipulation entered into, Lawrence C. (Max)
Kraft and Rose Kraft, co-partners, trading under the names of
Kraft Bird Co. and Kraft Pet Shops, 579 Fulton St., Brooklyn,
N. Y., agree to discontinue false and misleading advertising in pro¬
moting the sale of canaries.
In the course of their business the respondents advertised that
they have been breeders of canaries for sixteen years, that their
shipments averaged 1,000 birds per day over a period of several
years, and that they handled as many as 300,000 canaries in a
single year, all of which assertions, according to the stipulation,
are untrue. The respondents also advertised themselves as the
largest breeders and distributors of canaries in America, when, ac¬
cording to the stipulation, this was not the fact.
1168
No. 1599. In stipulating to cease and desist from the use of false
and misleading advertising, E. M. Viquesney, of Spencer, Ind.,
trading as World War Memorial Association, and American
Doughboy Studios, agrees to cease using the word “Association”
in a trade name under which to conduct his business of selling
statuary and metal art objects, or to use the word “Association”
in any way which may tend to lead purchasers into the belief that
they are dealing with an association officially connected with the
American Legion or a World War veterans’ organization. The
respondent is also to cease representing that he has the endorse¬
ment of the American Legion, that material used in the base of
his monuments is composed of “Indiana Carrarra Marble,” when,
in fact, there is no such product, and that he has studios in New
York, Chicago, and Carrarra, Italy. The respondent is said to
have advertised a statue, “Spirit of the American Doughboy,” as
made of cast metal bronze, and weighing 700 pounds, when in
fact it was made of other materials thinly coated with bronze, and
did not weight that much.
No. 2393. An order has been issued against Jacob Stein, 276
Ten Eyck Street, Brooklyn, N. Y., trading as Climax Rubber Co.,
directing him to cease and desist from unfair methods of com¬
petition in selling sanitary and water-proof specialties, including
infants’ apparel.
The respondent is ordered to discontinue advertising that his
products have antiseptic and anti-acid properties and powers
which actually kill bacteria and neutralize perspiration and other
body wastes, completely deodorizing all odors, when such is not
the fact.
No. 2367. Charles E. Morris, 330 Seventh Avenue, New York
City, engaged in the sale of fur garments, is directed to discontinue
misrepresenting himself as a wholesale manufacturing furrier, and
that he has a factory show room, according to an order to cease
and desist issued against him.
The respondent, trading under his name and as the Charles E.
Morris Show Room, is required to cease advertising that the
prices for his products are “strictly wholesale” or “practically
wholesale,” or that purchases can be made from him at one-third
to one-half less than on garments of the same grade and value sold
at retail establishments. The order also directs the respondent to
cease making the representation that he sells to stores from coast
to coast, when such is not the fact.
No. 2543. In an order to cease and desist issued against C. E.
Sissell and L. L. Sissell, 4322 East Third St., Los Angeles, trading
as Sissell Brothers, the respondents are directed to discontinue
certain unfair trade practices in selling metal burial vaults. They
are ordered to cease representing that their vaults resist rust or
corrosion, that they are made of rust-resisting material, that they
are water or vermin-proof at the time of interment, or that they
will endure as such for a period of SO years, or for any fixed period
of time.
No. 2643. An order has been issued to cease and desist against
C. R. Acfield, Inc., of 36 West 34th St., New York City, dealer
in treatments for foot ailments, directing discontinuance of cer¬
tain unfair methods of competition.
In selling its product, the respondent is ordered to stop rep¬
resenting that its so-called “Perfection Toe Spring” is a cure for
bunions, or will remove the actual cause of bunions or enlarged
joints, or that it “Bentoe Splint” is a correction for or will
straighten hammer -toe.
FTC COMPLAINT DISMISSED
No. 2254. The Federal Trade Commission has dismissed a com¬
plaint which charged the Maiden-Form Brassiere Co., Inc., of New
York City, with unfair methods of competition in the sale of its
product through use of the terms “fashion” and “full-fashion.”
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, January 27
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Christina M. Jacobson, d/b as The Valley Electric Co., San
Luis Obispo, Calif. — C. P., 1090 kc., 2S0 watts, daytime.
NEW — E. E. Long Piano Co., San Luis Obispo, Calif. — C. P., 1200
kc., 100 watts, unlimited time.
TO BE HELD AT WICHITA FALLS, TEXAS, AND
FORT WORTH, TEXAS
KGKO — Wichita Falls Broadcasting Co., Wichita Falls, Tex. — C. P.
to move to Fort Worth, Tex.; 570 kc., 250 watts, 1 KW LS,
unlimited time.
Wednesday, January 29
WMBG — Havens & Martin, Inc., Richmond, Va. — C. P., 1350 kc.,
500 watts, unlimited time.
NEW — Wilbur M. Havens, Chas. H. Woodward, etc., d/b as Peters¬
burg Broadcasting Co., Petersburg, Va. — C. P., 880 kc., 500
watts, daytime (request facilities of WPHR).
WPHR — WLBG, Inc., Petersburg, Va. — Renewal of license, 880 kc.,
500 watts, daytime.
WPHR — WLBG, Inc., Petersburg, Va. — C. P., 880 kc., 500 watts,
daytime (request to move to Richmond, Va.).
NEW — Century Broadcasting Co., Inc., Richmond, Va. — C. P., 1370
kc., 100 watts, daytime.
WCMI — Ashland Broadcasting Co., Ashland, Ky. — C. P., 1350 kc.,
1 KW, unlimited time. Present assignment: 1310 kc., 100
watts, unlimited time.
Thursday, January 30
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
WILL — University of Illinois, Urbana, Ill. — Modification of license,
580 kc., 1 KW, daytime. Present assignment: 890 kc., 250
watts, 1 KW LS, shares with KUSD and KFNF.
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — J. Laurance Martin, Tucumcari, N. Mex. — C. P., 1200 kc.,
100 watts, unlimited time.
APPLICATIONS GRANTED
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Granted C. P. to
makes changes in equipment.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
Granted C. P. to install auxiliary transmitter for emergency
purposes only, at same location as main transmitter.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted
C. P. to move studio and transmitter locally in Seattle, and
make changes in equipment.
WNRI — S. George Webb, Newport, R. I. — Granted modification
of C. P. to extend completion date from 2-4-36 to 6-4-36.
WREC — WREC, Inc., Memphis, Tenn. — Granted modification of
C. P. to extend completion date from 1-30-36 to 2-29-36.
WAAF — Drovers Journal Pub. Co., Chicago, Ill. — Granted modifi¬
cation of C. P. approving proposed antenna system and
transmitter site.
WBNY — Roy L. Albertson, Buffalo, N. Y. — Granted modifica¬
tion of C. P. approving antenna and studio sites, and moving
transmitter in Buffalo.
WPRP — Julio M. Conesa, Ponce, Puerto Rico — Granted modifica¬
tion of C. P. approving transmitter site at No. 1 Trujillo St.,
Ponce, Puerto Rico, change location of studio to Trujillo St.,
Ponce, Puerto Rico, and make changes in specified hours;
also to extend completion date to 180 days after grant.
WWSW — Walker & Downing Radio Corp., Pittsburgh, Pa. —
Granted C. P. to make changes in equipment; move trans¬
mitter from Frankstown Road, to Pittsburgh.
WLW — The Crosley Radio Corp., Cincinnati, O. — Granted exten¬
sion of special experimental authority to operate with 500
KW, employing directional antenna system at night, using
transmitter of W8XO.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. — Granted
modification of C. P. to make changes in equipment, and
increase maximum rated carrier power, the same as regular
equipment.
KABR — Aberdeen Broadcast Co., Inc., Aberdeen, S. Dak. — Granted
license to cover C. P. authorizing move of transmitter site
locally and installation of new antenna to comply with Rule
131; 1420 kc., 100 watts, unlimited.
KTRH — KTRH Broadcasting Co., Houston, Tex. — Granted license
to cover C. P. authorizing changes in equipment; 1290 kc.,
1 KW night, 5 KW day, unlimited.
1169
KVOR — S. H. Patterson, Colorado Springs, Colo. — Granted license
to cover C. P. authorizing move of transmitter site locally
and changes in antenna, to comply with Rule 131 ; 1270 kc.,
1 KW, unlimited time.
WFMD — The Monocacy Broadcasting Co., Frederick, Md. —
Granted license to cover C. P. authorizing erection of new
station; 900 kc., 500 watts, daytime.
KTRH — KTRH Broadcasting Co., Houston, Tex. — Granted au¬
thority to determine operating power by direct measurement
of antenna input in compliance with Rule 137.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Granted authority
to determine operating power by direct measurement of an¬
tenna input.
KQV — KQV Broadcasting Co., Pittsburgh, Pa. — Granted authority
to install automatic frequency control.
KCRJ — Chas. C. Robinson, Jerome, Ariz. — Granted renewal of
license ; 1310 kc., 100 watts, daytime-specified.
NEW — Westinghouse Elec, and Mfg. Co., Portable (Chicopee Falls,
Mass.). — Granted C. P. and license (exp. spec, exp.), fre¬
quencies 31600, 35600, 38600, 41000, 55500, 60500, 86000-
400000 kc., S00 watts.
W9XAA — Chicago Federation of Labor, Chicago, Ill. — Granted C. P.
to move transmitter locally from Navy Pier, Chicago, to near
Warwick and 39th St., York Township, DuPage County, Ill.
NEW — Connecticut State College, Storrs, Conn. — Granted license
to cover C. P. (exp. gen. exp.), 86000-400000, 401000 kc.
and above; S00 watts, unlimited.
W6XB — Earl A. Nielson, Portable-Mobile (Phoenix, Ariz.). —
Granted license to cover C. P. (exp. gen. exp.), frequencies
31100, 34600, 37600, 40600 kc., IS watts.
W9XID — Donald A. Burton, Portable-Mobile (Muncie, Ind.). —
Granted license to cover C. P. (exp. gen. exp.), frequencies
31100, 34600, 37600, 40600 kc., 2 watts.
NEW — Tri-State Broadcasting System, Inc., Portable-Mobile,
Shreveport, La. — Granted C. P. (temp, broadcast pickup),
frequencies 1606, 2020, 2102, 2760 kc., SO watts. Also
granted license covering same.
W10XFZ — Don Lee Broadcasting System, Portable-Mobile (Los
Angeles). — Granted license to cover C. P. (exp. gen. exp.),
frequencies 31100, 34600, 40600 kc., 100 watts.
KABD — Don Lee Broadcasting System, Portable-Mobile (Los An¬
geles). — Granted license to cover C. P. (temp, broadcast
pickup), frequencies 1646, 2090, 2190, 2830 kc., 100 watts.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KIRO, Seattle, Wash.; KMOX, St. Louis, Mo.; KTHS, Hot
Springs National Park, Ark.; KTRB, Modesto, Calif.; WAIU,
Columbus, Ohio ; WCAZ, Carthage, Ill. ; WDZ, Tuscola, Ill. ; WHAS,
Louisville, Ky.; WLWL, New York City; KCMC, Texarkana, Ark.;
KERN, Bakersfield, Calif.; KFIZ, Fond du Lac, Wis. ; WOPI, Bris¬
tol, Tenn.; WPFB, Hattiesburg, Miss.; WRAK, Williamsport, Pa.
W3XDD — Bell Tel. Labs. Inc., Whippany, N. J. — Granted renewal
of special experimental station license for period Jan. 29
to April 29, 1936, in exact conformity with existing license.
W1XKA-W3XKA-W8XKA — Westinghouse E and M Co., Portable-
Mobile— Granted renewal of special experimental station
license for period Jan. 30 to April 30, 1936, in exact con¬
formity with existing license.
W9XAF — The Journal Co. (Milwaukee Journal), Milwaukee, Wis.
— Granted renewal of special experimental station license
for period Feb. 1 to May 1, 1936, in exact conformity with
existing license.
W2XBH — Radio Pictures, Inc., Long Island City, N. Y. — Granted
renewal of special experimental station license for period
Feb. 1 to May 1, 1936, in exact conformity with existing
license.
SET FOR HEARING
NEW — M. M. Oppegard, Grand Forks, N. D. — Application for
C. P. for new station; 1310 kc., 100 watts night, 250 watts
day, unlimited.
NEW — Ted R. Woodard, Kingsport, Tenn. — Application for C. P.
for new station; 1210 kc., 100 watts, daytime.
NEW — Marysville-Yuba City Publishers, Inc., Marysville, Cal. —
Application for C. P. for new station; 1140 kc., 250 watts,
daytime. Site to be determined.
NEW — Memphis Commercial Appeal, Inc., Mobile, Ala. — Applica¬
tion for C. P. for new station; 630 kc., 1 KW night, using
directional antenna, 5 KW day, unlimited. Site to be de¬
termined.
NEW — Wilton Harvey Pollard, Huntsville, Ala. — Application for
C. P. for new station ; 1200 kc., 100 watts, unlimited.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. — Modi¬
fication of license to change hours of operation from day¬
time only to include 100 watts night until 7:30 p. m. daily.
WROK — Rockford Broadcasters, Inc., Rockford, Ill. — Consent to
transfer of control of Rockford Broadcasters, Inc. (licensee
of station WROK) from Lloyd C. Thomas, as trustee for
individual stockholders, to Rockford Consolidated News¬
papers, Inc. (1410 kc., 500 watts, S-WHBL).
KMPC — Beverly Hills Broadcasting Corp., Beverly Hills, Cal. —
Renewal of license to operate on 710 kc., 500 watts, limited
time, and granted temporary license pending hearing.
KFEQ — KFEQ, Inc., St. Joseph, Mo. — C. P. already in hearing
docket, amended to read: approval of transmitter site to lo¬
cation to be determined; type of antenna to be determined;
make changes in equipment; increase power from 2}4 to 5
KW, daytime.
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. No. 1-150. — Clark Standiford, Visalia, Cal. —
Oral argument granted to be held March 19, 1936.
KFRO — Ex. Rep. No. 1-161. — Voice of Longview, Longview, Tex.
— Oral argument granted to be held March 26, 1936; and
NEW — Oil Capital Broadcasting Assn., Kilgore, Tex.—Oral
argument granted to be held March 26, 1936; and KWEA —
International Broadcasting Corp., Shreveport, La. — Oral ar¬
gument granted to be held March 26, 1936.
NEW — Ex. Rep. No. 1-165. — Florida West Coast Broadcasting Co.,
Inc., Tampa, Fla. — Oral argument granted to be held March
26, 1936.
NEW — Ex. Rep. No. 1-168. — W. A. Patterson, Chattanooga, Tenn.
— Granted oral argument to be held February 20, 1936.
NEW — Ex. Rep. No. 1-171. — Herbert Lee Blye, Lima, O. — Granted
oral argument to be held March 26, 1936.
MISCELLANEOUS
WDAY — WDAY, Inc., Fargo, N. Dak. — Granted petition request¬
ing postponement of oral argument, scheduled for Jan. 23,
1936, for a period of approximately 30 days, on application
of Robert K. Herbst for radio facilities at Moorhead, Minn.
Edwin A. Kraft, Fairbanks, Alaska — Granted order to take depo¬
sitions in re application for radio facilities at Fairbanks,
Alaska.
Leo J. Omelian, Erie, Pa. — Removed from hearing docket applica¬
tion for renewal of license and granted regular license for
period expiring July 1, 1936. Applications for facilities of
this station dismissed.
ACTION ON EXAMINERS’ REPORTS
WBNX — Ex. Rep. 1-134: Standard Cahill Co., Inc., New York
City — Denied C. P. for new equipment; move transmitter
and increase power from 250 watts to 1 KW. Examiner
Bramhall reversed.
WEED — Wiliam Avera Wynne, Rocky Mount, N. C. — Denied C. P.
to change equipment; change frequency from 1420 to 1350
kc.; increase power from 100 watts to 250 watts; change
hours of operation from unlimited, day, sharing with WEHC
night, to unlimited. Examiner Bramhall sustained. Order
effective March 24, 1936.
NEW — Ex. Rep. 1-154: St. Petersburg Chamber of Commerce, St.
Petersburg, Fla. — Denied C. P. for new station to operate on
1310 kc.; 100 watts; unlimited time. Examiner Bramhall
sustained. Order effective March 24, 1936.
KARK — Ex. Rep. 1-157: Ark. Radio & Equipment Co., Little
Rock, Ark. — Granted C. P. to make changes in equipment;
change location of transmitter, and increase power from 250
watts night, 500 watts day, to 500 watts night, 1 KW day;
890 kc., unlimited time. Examiner P. W. Seward sustained.
Order effective March 24, 1936.
APPLICATIONS RECEIVED
First Zone
WBEN — WBEN, Inc., Buffalo, N. Y.- — Modification of construction!
900 permit (Bl-P-567) to make equipment changes, increase
day power from 1 to 5 KW, move transmitter, further re-
1170
questing approval of transmitter site at R. F. D. No. 2,
Shawnee Road, near Martinsville, N. Y.
NEW — United States Broadcasting Co., Washington, D. C. — Con-
1310 struction permit for a new radio station to be operated on
1310 kc., 100 watts, unlimited time, contingent upon granting
of WOL’s application for move of station, change of fre¬
quency and power.
WHDL— Olean Broadcasting Co., Inc., Olean, N. Y. — Construction
1420 permit to install new equipment, change frequency from 1420
kc. to 1260 kc., power from 100 to 2^0 watts, move trans¬
mitter from Exchange National Bank Bldg., corner Union
and Laurens Sts., Olean, N. Y., to town of Allegany, N. Y.
Amended to make equipment changes, change frequency from
1260 kc. to 1400 kc.
Second Zone
NEW — Harold F. Gross, Lansing, Mich. — Construction permit for
a new general experimental station to be operated on 31600,
35600, 38600, 41000 kc., 100 watts.
Third Zone
WREC — WREC, Inc., Memphis, Tenn. — Extension of special ex-
600 perimental authorization to operate with power of 1 KW
night, 2 / KW day, for period from 3-1-36 to 9-1-36.
WIS — Station WIS, Inc., Columbia, S. C. — Modification of construc-
1010 tion permit (B3-P-3258) authorizing move of transmitter,
change of frequency, installation of new equipment, and in¬
crease in power, requesting extension of completion date from
2-10-36 to 5-10-36.
NEW — Jonas Weiland, Kinston, N. C. — Construction permit for a
1210 new station to be operated on 1210 kc., 100 watts night, 250
watts day, unlimited time.
KVOL — Geo. H. Thomas, Robert M. Dean, Louis M. Sepaugh, T. B.
1310 Lanford, a partnership d/b as Evangeline Broadcasting Co.,
Lafayette, La. — Voluntary assignment of license from Geo. H.
Thomas, Robert M. Dean, Louis M. Sepaugh, T. B. Lanford,
a partnership, d/b as Evangeline Broadcasting Co., to Evan¬
geline Broadcasting Co., Inc.
NEW — Lookout Broadcasting Corp., Chattanooga, Tenn/ — Con-
1420 struction permit for a new station to be operated on 1420 kc.,
100 watts, daytime.
NEW — Dorrance D. Roderick, El Paso, Tex. — Construction permit
1500 for a new station to be operated on 1500 kc., 100 watts, un¬
limited time.
Fourth Zone
WMT — Iowa Broadcasting Co., Des Moines, Iowa — License to
600 cover special experimental authorization to operate perma¬
nently on 1 KW night, 2^ KW day. (Filed under new name.)
NEW — Wise Broadcasting Co., St. Paul, Minn. — Construction per-
630 mit for a new station to be operated on 630 kc., 250 watts,
unlimited time. Facilities of KGDE. Amended: To change
name from Emmons L. Abeles & Robert J. Dean co-partner¬
ship, d/b as Wise Broadcasting Co., to Wise Broadcasting
Co.
NEW — R. C. Goshorn & Lester E. Cox, d/b as Capitol Broad-
920 casting Co., Jefferson City, Mo. — Construction permit for a
new station to be operated on 920 kc., 500 watts daytime.
Consideration under rule 6 (g).
WHBL — Press Publishing Co., Sheboygan, Wis. — Construction per-
1410 mit to install new transmitter, erect a new vertical antenna
and move transmitter from 636 Center Avenue, Sheboygan,
Wisconsin, to site to be determined, near Sheboygan, Wis¬
consin.
NEW — W. E. Day, Creston, Iowa — Construction permit for a new
1500 station to be operated on 1500 kc., 100 watts, unlimited.
Fifth Zone
KGVO — Mosby’s Incorporated, Missoula, Mont. — License to cover
1200 construction permit (B5-P-232) as modified for new equip¬
ment, change in frequency, increase in power and move of
transmitter.
KDYL — Intermountain Broadcasting Corp., Salt Lake City, Utah —
1290 Construction permit to increase power from 1 KW to 5
KW, and install new equipment. Also move transmitter from
Township No. 1 South, Range 1 West, 33rd South, Cor. 9th
West, Salt Lake City, Utah, to site to be determined, near
Salt Lake City, Utah. Amended: To omit request for in¬
crease in night power from 1 KW to 5 KW.
KFBK — James McClatchy Co., Sacramento, Calif. — Authority to
1310 determine operating power by direct measurement of an¬
tenna power.
KFBK — James McClatchy Co., Sacramento, Calif. — License to
1310 cover construction permit (5-P-B-3144) as modified to move
transmitter, make changes in equipment, change frequency
and increase power.
W7XBD — Oregonian Publishing Co., Portland, Ore. — Modification
of construction permit for extension of commencement date
to 4-15-36 and completion date to 8-15-36. (Wrong equip¬
ment installed.)
1171
■
,
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS
Copyright, 1936. The National Assoelation of Broadcasters
Vol. 4
No. 6
JANUARY 30, 1936
IN THIS ISSUE
Page
New Rule on Mechanical Reproductions . 1173
Notes to Sales Staff . 1173
Music Users Protective Association, Inc . 1173
Recommends New Hollywood Station . 1173
George Ellis . 1173
High Power Denial Recommended . 1173
Securities Act Registrations . 1174
Recommends Further Hearing for KWKC . 1174
Radio Committee Elects . 1174
Federal Trade Commission Action . 1174
Broadcast Advertising in December . 1176
Federal Communications Commission Action . 1178
NEW RULE ON MECHANICAL REPRODUCTIONS
The Federal Communications Commission has amended Rule 176,
effective January 28, regarding announcements of mechanical re¬
productions to read as follows:
“176. Each broadcast program consisting of a mechanical repro¬
duction, or a series of mechanical reproductions, shall be announced
in the manner and to the extent set out below:
1. A mechanical reproduction, or a series thereof, of longer dura¬
tion than fifteen minutes, shall be identified by appropriate
announcement at the beginning of the program, at each fifteen-
minute interval, and at the conclusion of the program; pro¬
vided, however, that the identifying announcement at each
fifteen-minute interval is waived in case of a mechanical repro¬
duction consisting of a single, continuous, uninterrupted speech,
play, symphony concert or operatic production of longer dura¬
tion than fifteen minutes;
2. A mechanical reproduction, or a series thereof, of a longer
duration than five minutes and not in excess of fifteen minutes,
shall be identified by an appropriate announcement at the
beginning and end of the program;
3. A single mechanical reproduction of a duration not in excess
of five minutes, shall be identified by appropriate announce¬
ment immediately preceding the use thereof ;
4. In case a mechanical reproduction is used for background music,
sound effects, station identification, program identification
(theme music of short duration), or identification of the spon¬
sorship of the program proper, no announcement of the me¬
chanical reproduction is required.
5. The exact form of the identifying announcement is not pre¬
scribed but the language shall be clear and in terms commonly
used and understood by the listening public. The use of the
applicable identifying words such as ‘a record’, ‘a recording’,
‘a recorded program’, ‘a mechanical reproduction’, ‘a transcrip¬
tion’, ‘an electrical transcription’, will be considered sufficient
to meet the requirements hereof. The identifying words shall
accurately describe the type of mechanical reproduction used,
i.e., where a transcription is used it shall be announced as a
‘transcription’ or an ‘electrical transcription’ and where a
phonograph record is used it shall be announced as a ‘record’
or a ‘recording’.”
NOTES TO SALES STAFF
Radio broadcasting has just completed a banner
year with a volume of over $87,000,000. (See The
Year in Broadcast Advertising, page 1176.) Noth¬
ing succeeds like success.
Radio’s gain was the greatest of any medium. (See
Comparison with Other Media, page 1176, and see
the report for 1935 to be issued within a few days.)
The slight increase in local advertising during
December, as contrasted to the usual seasonal down¬
swing, together with the strong showing of local
sponsorship during recent months, should be par¬
ticularly encouraging. (See Total Broadcast Adver¬
tising, page 1176.)
The continued rise in local transcription volume
and in national live talent business should provide
sales arguments and opportunities to many stations.
(See Non-network Volume by Type of Rendition,
page 1177.)
The general gains in all fields of sponsorship dur¬
ing the month should be especially encouraging.
Attention is called to the rise in national non-net¬
work and regional network confectionery advertis¬
ing, beverage advertising in the local and national
non-network fields, and national non-network and
regional network tobacco advertising. These sug¬
gest wider opportunities to stations and regional
units.
wood, Calif., to use 1300 kilocycles, 1,000 watts, and to share time
with KFAC. Also, KFAC, Los Angeles, Calif., applied for license
renewal. This station now uses 1300 kilocycles, 1,000 watts power,
and unlimited time on the air.
Examiner George H. Hill, in Report No. 1-183, recommended:
“That the application of W. H. Kindig for a construction permit
be granted on condition that the applicant install an antenna which
complies with the recommendations of the Engineering Department
of the Commission.
“That the application of the Los Angeles Broadcasting Company,
Inc., for renewal of license be granted in part and that this applicant
be authorized to operate Station KFAC one-half time, sharing hours
of operation equally with W. H. Kindig, applicant for a new station
to operate on the 1300-kilocycle frequency, with power of 1 kilo¬
watt.”
GEORGE ELLIS
George Ellis, who calls himself a continuity writer and claims to
be the author of “The Trial of Vivian Ware,” it is understood, is
looking for a job with some radio station or agency.
Members are advised to communicate with NAB Headquarters
before offering Mr. Ellis employment.
MUSIC USERS PROTECTIVE ASSOCIATION, INC.
The Managing Director is making inquiry concerning the Music
Users Protective Association, Inc., Chimes Building, Syracuse, New
York. It is suggested that members delay any action on the offer
made by this Association pending further information.
RECOMMENDS NEW HOLLYWOOD STATION
W. H. Kindig applied to the Federal Communications Commission
for a construction permit for the erection of a new station at Holly -
HIGH POWER DENIAL RECOMMENDED
Station WCAO, Baltimore, Md.; WICC, Bridgeport, Conn.; and
WIP, Philadelphia, Pa., the first two operating on 600 kilocycles and
the latter on 610 kilocycles, all applied to the Federal Communica¬
tions Commission to increase their daytime power from 500 to 1,000
watts.
Examiner Melvin H. Dalberg, in Report No. 1-187, recommends
that all of the applications be denied. The Examiner states that:
“The granting of these applications would undoubtedly limit the
service area of one or more Canadian stations. Therefore, it is con-
1173
sidered that, under the arrangement between the United States of
America and the Dominion of Canada effected by an exchange of
notes entered into on May 5, 1932, and designated as Executive
Series No. 34, the granting of all the instant applications would
constitute a hostile act to the station or stations affected. It is also
obvious that the granting of the application of WIP and the denial
of the other two would adversely affect the latter.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
General Lumber Company, Seattle, Wash. (2-1870, Form A-l)
Pacific Oil & Meal Company, Los Angeles, Calif. (2-1871, Form
A-l)
Beverages Incorporated, Boston, Mass. (2-1872, Form A-l)
Oil Payment Purchase Corp., Jersey Citv, N. J. (2-1873, Form
A-l)
American Fidelity Corp., Ltd., San Diego, Calif. (2-1874, Form
G-l)
National Grange Fire Insurance Co., Keene, N. H. (2-187S, Form
A-l)
Medical Building of Houston, Dallas, Tex. (2-1876, Form E-l)
RECOMMENDS FURTHER HEARING FOR KWKC
The Mid-Central Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the erec¬
tion of a new station at Kansas City, Mo., to use 1370 kilocycles,
100 watts power, unlimited time, requesting the facilities of Station
KWKC, also at Kansas City, Mo. KWKC asked for license
renewal.
Examiner R. H. Hyde, in Report No. 1-185, recommended that
the application of the Mid-Central Broadcasting Company be
denied and “that the application of Station KWKC for renewal
license be set down for a further hearing to determine whether
the licensee has attempted or is attempting to transfer his license
or the rights thereunder to another party or parties without the
consent of the Commission.” The Examiner says further in this
connection that:
“The evidence relating to the application of the Wilson Duncan
Broadcasting Company (KWKC) for renewal of station license
raises a serious question as to whether or not this station has been
operated in accordance with the terms of recent licenses, and also
a question as to whether the station would be operated by the
applicant if a renewal license were issued to him; but since there
was no notice to the applicant on this question, no finding is made.”
RADIO COMMITTEE ELECTS
Senator Wallace H. White, Jr., of Maine, was elected president
of the American Section, International Committee on Radio, at a
meeting held at the University Club, this city, on Tuesday night.
Other officers elected for the coming year include: Louis G.
Caldwell, vice president; Howard S. LeRoy, treasurer; and Paul
M. Segal, secretary. Members of the executive council: William R.
Vallance, chairman; A. L. Ashby, Thad H. Brown, T. A. M.
Craven, J. H. Dellinger and F. P. Guthrie.
Representative Sam Rayburn of Texas, J. H. Dellinger, T. A. M.
Craven and E. M. Webster made short addresses on various phases
of radio at the meeting.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following companies. The respond¬
ents will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued against them.
No. 2687. Because it represents that its cosmetic products are
accepted by the American Medical Association, unfair competition
is charged against C. W. Beggs Sons & Co., 1741 North Western
Avenue, Chicago, in a complaint.
The respondent, engaged in the manufacture of cosmetics which
it sells in interstate commerce under the trade name “Marcelle,”
advertises that these products are submitted to and accepted by the
American Medical Association, and that they must pass the rigor¬
ous requirements of the association before being sold, whereas such
assertions are untrue, according to the complaint.
No. 2688. George Close Co., 243 Broadway, Cambridge Mass.,
engaged in the manufacture and sale of candy, is named respond¬
ent in a complaint. It is alleged that the respondent company so
packs and assembles its product as to involve the use of a lottery
scheme when the candy is sold and distributed to consumers.
The complaint describes the lottery as a method under which
the purchasers, by buying small pieces of candy for one cent, may
win a larger piece. Use by the respondent of this scheme, the
complaint avers, is contrary to public policy and has a tendency to
restrict competition in that it tends to injure competitors who do
not use such methods, by diverting trade from them.
No. 2689. A complaint has been issued against Jung & Schade
Laboratories, 1418 Somer St., Milwaukee, charging unfair repre¬
sentations in the sale of its product, “Vi-Vo.”
In its advertising matter, the respondent allegedly represents
“Vi-Vo” as a “sober-up” remedy which “counteracts alcohol,”
“clears the mind,” “settles the stomach,” “prevents bad after
effects,” and “completely eliminates alcoholic effects in a short
time,” whereas, according to the complaint, these and similar asser¬
tions are false and misleading, and the product does not possess
the therapeutic properties claimed for it.
Stipulations
The Commission has issued the following cease and desist orders:
Nos. 01029-01051-01052-01058-01068-01070-01072-01087. Stipu¬
lations have been entered into by two publishing companies and
four broadcasting companies, to abide by agreements arrived at by
the Commission with certain advertisers. The advertisers have
agreed to cease and desist from the use of false and misleading
advertising in the sale of their products.
The publishing companies and the firms for which they published
advertisements are: Pathfinder Publishing Co., Inc., 2414 Douglas
St., Washington, D. C., publisher of The Pathfinder; advertise¬
ments for Dr. W. B. Mayo’s Tablets, sold by Dr. W. B. Mayo
Laboratories, Los Angeles; Bruce Publishing Co., 2642 University
Ave., St. Paul, Minn., publisher of The Northwestern Druggist;
advertisements for “Liquid 02X”, sold by J. George and Walter U.
Hauser and James J. Poole, doing business under the firm name of
Hauser Laboratory, Minneapolis, Minn.
The broadcasting companies and the firms for which they broad¬
cast advertisements are: Western Broadcast Co., operator of radio
station KNX, Hollywood, Calif., advertisements for medicinal
products sold by Dr. Louis L. Sherman, operating as “Clinic of
the Air,” Oakland, Calif.; Western Broadcast Co., operator of
radio station KNX, Hollywood, Calif., advertisements for “Smad”
sold by Dr. A. W. Daggett, S. M. Sweeney and E. C. Groves,
operating as the Smad Co., Pasadena, Calif.; Clearwater Chamber
of Commerce and St. Petersburg Chamber of Commerce, Clear¬
water, Fla., operators of radio station WFLA, advertisements for
“A. F.-3,” sold by Litmo Laboratories, Inc., trading as The Bros-
sier Twins Laboratories, 302 Fidelity Bldg., Orlando, Fla.; Radio
Air Service Corporation, Cleveland, Ohio, operator of radio sta¬
tion WHK, advertisements for “Regol,” sold by G. B. McGlenn
and C. A. Revell, trading as Cleveland Regol Co.; Radio Station
KGW, operated by the Oregonian Publishing Co., Portland, Ore.,
advertisements for “Santi-septic Lotion,” sold by E. J. and Minnie
E. Schefter, doing business as Esbenscott Laboratories, 2014 N. E.
Sandy Blvd., Portland, Ore.
In another stipulation, John Kaslikowski, trading as Alpenol
Herb Co., Springfield, Mass., engaged in selling Alpenol Herb
Tea, entered into a stipulation to cease and desist from false and
misleading advertising in the sale of his product. The respondent
agrees to discontinue representing that the tea is an effective rem¬
edy or a competent treatment for liver, kidney or stomach trouble,
when such assertions are not the fact.
No. 01044. Boyer Chemical Laboratory Co., 2700 Wabash
Ave., Chicago, selling cosmetic products, agrees to discontinue
representing that its “Muscle Oil Tissue Cream” will nourish the
skin, remove wrinkles or build up the contours and tissues of the
face; that “Boyer Face Powder” is perspiration-proof and will
not clog the pores, and that “Boyer Powder Base Astringent”
gives assurance against enlarged pores and wrinkles, when such
assertions are not true, according to the stipulation. The respond¬
ent also will cease representing that it employs a Madame Louise
Delorme to give women personal advice on skin care and make-up,
until such person is employed to render the service indicated. It
is further agreed that the respondent will not use the words
“muscle” and “tissue” as part of the name for its so-called
“Muscle Oil Tissue Cream.”
Nos. 01059-61050-01061-01062. Three publishers printing ad¬
vertisements of Plough, Inc., of Memphis, Tenn., dealer in
medicinal products, have signed stipulations to abide by the terms
of an agreement entered into by Plough, Inc., to cease and desist
1174
from misleading advertising. The publishers printed the advertise¬
ments to which objection was made.
The publishers are as follows: American Osteopathic Associa¬
tion, 430 North Michigan Ave., Chicago, publisher of the Journal
of the American Osteopathic Association and of the Osteopathic
Magazine; Crowell Publishing Co., 250 Park Ave., New York
City, publisher of Country Home; and Parent’s Publishing Asso¬
ciation, Inc., 9 East 40th St., New York City, publisher of Parent’s
Magazine.
Plough, Inc., advertised certain treatments for colds, hay fever
and related ailments.
No. 01064. J. Petrie, 6023 Harper Ave., Chicago, trading
as Purity Products Co., and engaged in selling “Minex” and
“Hygeen,” agrees to discontinue advertising that these products
will correct any feminine hygiene condition, or that they are recom¬
mended by physicians and surgeons unless such representation is
limited to the ingredients of which the products are composed. The
stipulation requires the respondent to desist from representing di¬
rectly or by reasonable implication that “Minex” is an abortifa-
cient, or that “Hygeen” tablets are a contraceptive.
Nos. 01073-01074-01075-01076-01077-01078-01079-01080-01081.
Seven publishers printing advertisements of Dr. W. B. Mayo Lab¬
oratories, Los Angeles, have signed stipulations to abide by an
agreement entered into with the Commission by Dr. W. B. Mayo
Laboratories to cease and desist from misleading representations
of its treatment for stomach trouble, known as Dr. W. B. Mayo’s
Tablets. The publishers have printed the advertisements to which
objection was made.
The publishers are as follows: Eugene Lorton, publisher of the
Tulsa World, Tulsa, Okla.; Buffalo Courier-Express, Inc.,
Buffalo, N. Y.; Memphis Commercial-Appeal, Inc., Memphis,
Tenn. ; A. O. Anderson, publisher of the Dallas Dispatch, Dal¬
las, Tex. ; Enterprise Co., publisher of the Beaumont Enter¬
prise and the Beaumont Journal, Beaumont, Tex.; Post
Intelligencer Co., publisher of the Seattle Post-Intelligencer,
Seattle, Wash.; and C. B. Blethen, publisher of the Seattle
Times.
Dr. W. B. Mayo Laboratories, of Los Angeles, agrees to cease
advertising that one bottle, or any quantity, of Mayo’s Tablets,
will enable a person to gain 10 pounds ; that half a $5 treatment,
or any quantity of these tablets, causes all pain to leave and en¬
ables one to eat the things desired without discomfort; that Mayo’s
Tablets are scientific and a competent treatment or effective rem¬
edy for acid stomach, indigestion, sleepless nights, and related ail¬
ments.
The respondent agrees to stop using the words “Laboratory’ or
“Laboratories” in its trade name or advertising until such time as
it actually owns, maintains or operates a laboratory or labora¬
tories.
Nos. 01082-01083. William E. Miller Furniture Co., Inc.,
Eighth Street and Pennsylvania Ave., S. E., Washington, D. C.,
has entered into a stipulation to discontinue misleading advertising,
and American Newspapers, Inc., publisher of The Washington
Herald, which carried advertisements for the Miller store, has
signed a stipulation to abide by the Miller company’s agreement.
This furniture company stipulates that it will cease representing
that its furniture is sold at a saving of any amount, unless this
assertion is qualified to show that the represented saving is based
on a comparison of the fair retail value of the used furniture and
the amount at which it is offered for sale.
No. 01084. United States Rubber Products, Inc., 1790
Broadway, New York City, agrees that in the sale of its “U. S.
Royal Tires” it will cease and desist from representing in adver¬
tising that the majority of automobile manufacturers equip all of
their cars with tires sold by the respondent, or that the tires are
guaranteed for a definite period of time, unless the representation
is qualified to indicate that the guarantee applies only to tires used
on passenger cars, and unless the terms of the guarantee afford the
purchaser redress in event the tire fails to last the length of time
advertised.
No. 01085. The Bromwell Wire Goods Co., Third and Wal¬
nut Sts., Cincinnati, Ohio, operating as the Cincinnati Patent
Engineering Co., is engaged in selling Bromwell's “Raio-O-Trap”
aerial-eliminator, also designated as “Aero-Trap.” In the stipula¬
tion the respondent agrees to discontinue representing that the de¬
vice produces amazing new power, volume and clarity, eliminates
the danger of lightning, brings in distant stations as clearly as local,
eliminates the outside aerial, but produces the same results as a
75-foot aerial, and that it will last a lifetime, and work on any
and all types of radios. These representations, according to the
agreement, are incorrect and exaggerated and mislead prospective
purchasers, to the injury of competitors who truthfully advertise
their products.
No. 01086. J. Palazzolo, 436 E. Fourteenth St., New York
City, engaged in selling “Mexican Laxative Tea” and “Otello
Water,” has signed a stipulation to desist from misrepresenting
those products. As to “Mexican Laxative Tea,” the respondent
agrees to discontinue advertising the product as an effective remedy
for constipation, and for numerous other ailments. He also will
eliminate the word “Mexican” as part of the name of the product
until it or the ingredients composing it are imported from Mexico,
according to the stipulation.
The respondent also agrees to cease representing that “Otello
Water,” offered as a remedy for restoring gray hair to its natural
color, is not a dye or a tincture, that it restores gray hair to its
natural color and that it ends dandruff and baldness. Under the
stipulation, the use of the word “water” in the name of the prod¬
uct will be discontinued.
No. 2311. An order to cease and desist has been issued against
William Bros. Tailoring Corporation, with its principal business
office in New York City, and its manufacturing plant at 384 Con¬
gress St., Troy, N. Y., directing discontinuance of certain unfair
practices in the sale of men’s clothes in interstate commerce.
Representations of the respondent company that clothes sold by
it are made to order according to individual measurements of the
purchasers, that is, custom tailored, are to be discontinued under
the order, and are not to be resumed until it has become the estab¬
lished practice of the respondent that all clothes represented as
custom tailored have -been so made after receipt of orders from
purchasers.
No. 2318. In an order to cease and desist, James McCreery &
Co., owner and operator of a department store at 5th Avenue and
34th St., New York City, is directed to discontinue unfair methods
of competition in the sale of its Toyo hats.
The respondent is required to cease representing or advertising
that Toyo hats are “Panama” hats, when such is not the fact,
and to stop use of the word “Panama” in the sale or manufac¬
ture of any other hats when they are not genuine Panamas, woven
by hand in a saturated condition and made from the leaf of the
paja toquilla or the jipajapa plant.
No. 2349. Under an order to cease and desist, David, Lewis and
Benjamin Levine, trading as Colombo Extract Co., 380 Throop
Ave., Brooklyn, N. Y., are directed to discontinue advertising and
otherwise representing that they import or export the flavoring ex¬
tracts which they manufacture and sell in interstate commerce.
The order requires the respondents to cease representing by any
method that their extracts or the ingredients composing them are
manufactured in foreign countries, or that the respondents are the
sole representatives in America for their commodity, when such
assertions are untrue.
No. 2570. Under an order to cease and desist issued against
W. J. Thompson, Inc., publisher of The Gentlewoman magazine,
154 West 14th St., New York City, is required to discontinue false
representation of circulation budding contests in connection with
the sale of any publications.
The respondent, under the order, is required to cease representing
that a person solving a puzzle presented in an advertisement, and
sending the solution to the respondent, will receive a prize without
doing any other thing, or that the mere mailing of a correct solution
is sufficient to win any prize, when such assertions are untrue.
No. 2377. LeGay, Inc., 58 East Washington St., Chicago, has
been ordered to cease and desist from advertising or representing in
any manner that “LeGay Hair Remover,” which it sells in inter¬
state commerce, is an effective and harmless depilatory, that it wfll
permanently remove hair from the human body, or that it will ban¬
ish facial shadows or remove hair without roughening the skin,
when such assertions are not the fact.
No. 2591. Use of the word “manufacturers” in advertisements
is to be discontinued by the Arco Shirt Corporation, 486 Broad¬
way, New York City, under an order to cease and desist.
The Commission found that the respondent company, in its
advertising matter, business stationery and other trade literature,
represents that it manufactures the shirts it sells in interstate com¬
merce, when in fact it does not control or own any factory in
which its products are made.
No. 2605. An order has been issued requiring Acme Cotton
Products Co., Inc., 245 Fifth Ave., New York City, to cease and
desist from the use of certain words in the sale in interstate com¬
merce of surgical supplies and absorbent cotton products.
The respondent, in describing the grade of cotton used in the
manufacture of the products it sells, is required to discontinue use
of the words “Very Highest Grade Procurable,” when such desig-
1175
nation is not a fact. Use of the words “Sterilized,” “Aseptic,” or
“Purified,” to describe the absorbent cotton and surgical supplies,
also is prohibited under the order unless these products are actually
bacteria-free when sold by the respondent.
BROADCAST ADVERTISING IN DECEMBER
Developments of the Month
Broadcast advertising during December rose 5.8% as
compared to the preceding month. Gross time sales of
the medium amounted to $8,686,359, a gain of 20.8% over
the corresponding month of 1934. Regional network and
national non-network volume continued to show the
greatest gains.
Local broadcast advertising failed to show the usual
seasonal decline and remained slightly above the Novem¬
ber level. Broadcast advertising of this type was 33.4%
greater than during December of last year.
Non-network advertising as a whole rose 1.8% in De¬
cember as against the previous month and showed an in¬
crease of 33.4% over the same month of last year. Local
station volume experienced the usual seasonal decline,
while the clear-channel and high-powered regional group
accounted for most of the month’s non-network gains.
Heaviest gains over last year were in the regional and
local station classes. The situation with regard to non¬
network advertising in various sections of the country was
practically unchanged from that of the preceding month.
In the national non-network field, live talent programs
showed the greatest increase over the previous December,
while transcriptions and records led in local broadcast
advertising.
Compared to November, national network automotive
and financial advertising, national non-network drug, con¬
fectionery and retail volume, and local beverage, and
financial broadcasting showed the most pronounced gains.
Regional network advertising experienced marked in¬
creases in the clothing, cosmetic, confectionery, and
beverage fields.
In the national network field, accessory, beverage, and
radio set advertising experienced the greatest increases as
compared to December 1934. Gains were general in the
non-network field, with automotive, beverage, confec¬
tionery, radio set, and tobacco advertising leading. Local
broadcast advertising was spotty, important increases
taking place in automotive, clothing, beverage, and house¬
furnishing advertising. Advertising by retail establish¬
ments rose 41.2% as against the preceding December.
The Year in Broadcast Advertising
Total sales of time during 1935 by the broadcasting
industry amounted to $87,523,848, an increase of 20.0%
over the previous year’s volume. National network adver¬
tising showed a gain of 13.0% over 1934, while regional
network volume rose 54.7%. National non-network busi¬
ness increased 26.0% as compared to the preceding year.
Local broadcast advertising experienced a rise of 20.6%.
The year of 1935 was the most prosperous, from the view¬
point of gross revenue, thus far experienced by the in¬
dustry.
Total Broadcast Advertising
Total broadcast advertising over stations and networks during
the month under review is set forth in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
1935 Gross Time Sales
Cumulative
Class of Business November December Jan.-Dee.
National networks . $4,533,774 $4,944,445 $50,067,686
Regional networks . 128,715 127,174 1,110,739
National non-network . 1,652,680 1,707,140 17,063,688
Local . 1.896,180 1,907,600 19,281,735
Total . $8,211,349 $8,686,359 $87,523,848
Broadcast advertising rose 5.8% during the month. National
network advertising exceeded the previous month’s level by 9.0%.
Regional network and local broadcast advertising remained prac¬
tically unchanged from the preceding month, while national non¬
network volume rose 3.3%.
Compared to December 1934, national network volume rose
11.0%, regional network advertising 99.8%, national non-network
business 39.6% and local broadcast advertising 33.4%. Total reve¬
nues of the medium showed a gain of 20.8% over the corresponding
period of 1934.
Comparison with Other Media
National magazine volume declined 20.3% during the month,
partly due to normal seasonal influences. National farm papers ex¬
perienced a decrease of 5.8%. Newspaper advertising remained at
approximately the same level as in November, rather than showing
the usual seasonal decline.
Gains over December 1934 amounted to 6.3% in the case of
national magazines. National farm paper advertising rose 30.0%
and newspaper advertising 12.3%. Automotive advertising in
newspapers rose 3.5% and department store volume 9.9%.
Advertising volume placed in major media during December is
found in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting .
National magazines 1 ...
National farm papers x. . .
Newspapers 2 .
Total .
1935 Gross Time and Space Sales
Cumulative
November December Jan.-Dee.
$8,211,349
12,118,920
481,501
48,765,000
$69,576,770
$8,686,359
9,681,025
452,976
49,170,000
$67,990,360
$87,523,848
123,093,289
5,565,059
517,513,000
$733,695,196
1 Publishers Information Bureau.
2 Estimated.
Non-network Advertising
General non-network advertising increased 1.8% as against No¬
vember and registered a gain of 35.3% over the December 1934
level. The greatest increase over the preceding month was experi¬
enced by clear channel and high powered regional stations, whose
non-network volume rose 7.6%. Regional station advertising of
this type increased 1.6% while local station volume declined 13.5%.
Compared to December of the previous year, clear channel non¬
network advertising rose 29.7%, regional station advertising 43.5%
and local station business 38.8%. Broadcast advertising by power
of station is found in Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1935 Gross Time Sales
Cumulative
Power of Station November December Jan.-Dee.
Over 1,000 watts . $1,561,600 $1,683,850 $16,564,505
250-1,000 watts . 1,423,160 1,446,490 14,523,795
100 watts . 564,100 484,400 5,257,213
Total . $3,548,860 $3,614,740 $36,345,513
Except for an increase of 8.8% in non-network advertising in
the North Central area, there was little change over the preceding
month. Non-network advertising in the New England and Mid¬
dle Atlantic States remained at approximately the same level as in
December of 1934. Broadcast advertising of this type showed an
increase of 70.0% in the South Atlantic and South Central States.
The gain in the North Central area was 56.6%, and in the Moun¬
tain and Pacific district, 27.3%. Non-network advertising by geo¬
graphical areas is set forth in Table IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1935 Gross Time Sales
Geographical District
November
December
Cumulative
Jan.-Dee.
New England-Middle Atlantic
Area .
$766,520
$765,000
$8,945,782
South Atlantic-South Central
Area .
730,610
715,530
6,060,358
North Central Area .
1,305,830
1,420,650
13,941,087
7,398,286
Pacific and Mountain Area. . .
745,900
713,560
Total .
$3,548,860
$3,614,740
$36,345,513
1176
Non-network Volume by Type of Rendition
In the national non-network field, transcription volume and live
talent business rose 5.5% and 5.7% respectively. Announcement
business declined 8.5% as compared to November. In the local
broadcast advertising field, transcription business increased 15.0%
as compared to November, while records rose 16.2%. Live talent
volume dropped 4.5%, and announcements decreased 1.2%. The
transcription and record increases were contrary to the usual sea¬
sonal trend.
Compared to December of the previous year, national non-net¬
work five talent business increased 43.8%. Transcription volume
rose 34.2%, while gross revenues from announcements gained
32.4%. The most marked gains in the local broadcast advertising
field over the corresponding month of the preceding year occurred
in the transcription and record fields. In the former, a gain of
82.3% was experienced. Record volume rose 114.0%.
National non-network and local broadcast advertising volume by
type of rendition employed is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
1935 Gross Time Sales
National Non-network Local Total Cumulative
T ype of Rendition
November
December
November
December
November
December
Jan.-Dee.
Electrical transcriptions .
Live talent programs .
Records .
Announcements .
. $534,900
. 828,940
. 9,990
. 278,850
$574,550
877,520
10.130
244,940
$178,680
1,040,160
63,610
613,730
$206,080
995,380
75,640
630,500
$713,580
1,869,100
73,600
892,580
$780,630
1,872,900
85,770
875,440
$7,614,508
17,679,530
849,071
10,202,404
Total .
. $1,652,680
$1,707,140
$1,896,180
$1,907,600
$3,548,860
$3,614,740
$36,345,513
Sponsor Trends in December
Few gains of importance were experienced in the national net¬
work field as compared to the preceding month, though slight in¬
creases in advertising volume occurred in the majority of sponsor
groups. The most significant increases were a rise of 21.3% in
automotive advertising and a gain of 26.3% in financial volume.
There were no decreases.
Regional network advertising showed general increases with
clothing, cosmetic, confectionery, beverage and tobacco advertising
showing the greatest gains. Clothing volume tripled ; cosmetic ad¬
vertising, a comparative newcomer in the regional field, rose ten¬
fold; confectionery advertising, mostly candy manufacturers, dou¬
bled, while tobacco volume continued its increases of recent months
and gained 32.0%. Accessory volume declined 33.7% and soap and
kitchen supply advertising dropped 15.7%.
Principal gains during the month in the national non-network
field were as follows: drugs, 35.1% ; confectionery, 43.1% ; and
radio sets, 156.0%. Decreases of importance were as follows: auto¬
motive, 32.1%; housefurnishings, 23.4% ; and financial, 25.7%.
Main gains in local broadcast advertising as against November
were as follows: beverages, 23.0%; soaps and kitchen supplies,
28.6%, and financial volume 18.9%. Trends as a whole were spotty
with accessory volume declining 20.0%, drug advertising dropping
40.3% and foodstuffs 12.5%.
Comparison with December 1934
Gains in the national network field were fairly general compared
to the corresponding month of 1934. Accessory advertising showed
an increase of 35.1%, housefurnishing volume doubled, and radio
set advertising rose 31.2%. Beverage advertising rose 90.0%.
Drug volume dropped 25.0%, while confectionery declined 26.4%.
Regional network volume also experienced material increases in
a number of fields. Accessory advertising rose from $530 in
December 1934 to $13,127 during the month under review. The
gain in cosmetic field during the same period was from $1,060 to
$11,139. Confectionery volume rose from $2,200 to $21,546 dur¬
ing that period. Tobacco advertising, a newcomer for December,
amounted to $10,546 as compared to nothing during the correspond¬
ing period of the preceding year.
Gains were even more general in the national non-network field.
Principal increases were as follows, when comparison is made with
December 1934: automotive, 210.0%; cosmetics, 66.3%; foodstuffs,
46.8%; beverages, 256.0%; confectionery, 175.0%; radio sets, ten¬
fold; and tobacco, threefold. Accessory advertising continued the
decline of recent months, dropping 25.7% as against December of
last year. Housefurnishing volume declined 17.4%.
Local broadcast advertising showed spotty tendencies. Impor¬
tant gains were as follows: automotive, 50.0%; accessory, 45.7%;
clothing, 65.7%; beverages, 162.2%; housefurnishings, 70.8%, and
financial 40.0%. Significant declines were as follows: drugs,
33.0%; confectionery, 13.0%.
Broadcast advertising during December by major product and
service groups is found in Table VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oils .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
(7) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
(December, 1935)
Gross Time Sales
National
Networks
Regional
Networks
National
Non-networks
Local
Total
—
—
$2,200
$28,700
$30,900
$380,666
—
156,400
75,080
612,146
421,442
$13,127
106,080
73,750
614,399
38,246
2,173
41,940
325,500
407,859
528,394
3,190
450,480
55,110
1,037,174
971,145
11,139
86,300
34,700
1,103,284
959,271
33,857
368,000
209,645
1,570,773
321,077
6,015
56,760
119,550
503,402
121,750
21,546
43,820
8,940
196,056
34,305
5,594
42,580
184.220
266,699
246,189
4,520
40,570
11,800
303,079
45.945
1,244
10,420
76,620
134,229
126,992
—
26,250
28,000
181,242
177,554
5,429
—
17,800
154,325
376,345
10,540
39,440
8.800
435,125
367,249
14,229
218,100
512,860
1,112,438
$4,944,445
$127,174
$1,707,140
$1,907,600
$8,686,359
1177
Details as to Sponsor Trends
Details as to trends in broadcast advertising volume in various
sponsoring groups are as follows:
la. Amusements. Total volume 3S.S% above November. Na¬
tional gain 27.7%, local 41.7%. National volume triple last De¬
cember. Local down 8.2%. Total down 7.0%.
1. Automotive. National network volume 21.3% above No¬
vember. National non-network down 32.1% and local 11.1%.
National network advertising 14.6% above December 1934. Na¬
tional non-network up 210.0% and local 50.0%.
2. Accessories and gasoline. National network volume
11.5% over November. Regional network volume down 33.7%
and local 20.0%. National non-network gain 1.8%. National
network advertising 35.1% above last December. Regional gain
$530 to $13,127. Local up 45.7%. National non-network down
25.7%.
3. Clothing. No change in national network volume during
month. Regional business triple. National non-network business
up 1.06% and local 3.2%. National network advertising 7.0%
above corresponding month of preceding year. National non-net-
work business up 47.6%, and local 65.7%. Regional unchanged.
4. Drugs and pharmaceuticals. National network gain as
compared to previous month 2.4%. National non-network gain
35.1%. Regional business unchanged. Local down 40.3%. Na¬
tional network decline from same month of last year 25.0%. Re¬
gional decline 38.0% and local 33.0%. National non-network un¬
changed.
5. Toilet goods. Gains over November as follows: National
networks, 11.8%; regional networks, tenfold; and local 5.1%.
National non-network down 15.1%. Gains compared to corre¬
sponding period of previous year as follows: National networks,
19.5%; regional networks, $1,060 to $11,139; national non-net¬
work, 66.3%, and local, 54.6%.
6. Foodstuffs. Increases over month were: National networks,
8.2%; regional networks, 28.4%; national non-network, 8.2%.
Local volume down 12.5%. National network advertising 6.3%
below last December, and local down 1.0%. Regional volume up
33.2%, and local 46.8%.
7. Beverages. National network volume 9.1% above Novem¬
ber. Regional volume up 50.0% and local 23.0%. National non¬
network down 3.3%. Gains over corresponding month of 1934
as follows: National networks, 90.0%; regional networks, tripled;
national non-network, 256.0%; local, 162.2%.
8. Confectionery. National network volume unchanged dur¬
ing the month. Regional advertising doubled, national non-net¬
work up 43.1% and local down 18.1%. National network adver¬
tising 26.4% below December 1934. Local down 13.0%. National
non-network up 175.0%. Regional network up from $2,200 to
$21,456.
9. Household equipment. Regional network and local volume
unchanged during the month. National network business up 9.0%.
National non-network down 23.4%. National network volume
double last December. Regional volume up 11.0% and local 70.8%.
National non-network down 17.4%.
10. Soaps and kitchen supplies. National network adver¬
tising unchanged from preceding month. Regional networks down
15.7% and national non-network business 4.0%. Local up 28.6%.
Compared to corresponding month of 1934, national network vol¬
ume down 3.4%, national non-network business comparatively un¬
changed, and local more than doubled.
11. Financial and insurance. National network business
26.3% above preceding month, and local 18.9%. National non¬
network down 25.7%. Compared to December of previous year,
national network volume unchanged, national non-network up
27.6% and local 40.0%.
12. Radios. National network volume 5.4% ahead of Novem¬
ber. National non-network up 10.0%. Local down 6.6%. Gains
compared to last December as follows: National networks,
31.2%; national non-network, tenfold; local, 38.5%.
13. Department and general stores. National network vol¬
ume under this classification comprises mail order business, new this
month. Some volume of this type broadcast last spring. National
non-network business 156.0% above November. Local down 5.6%,
due to usual seasonal trend.
14. Tobacco products. National network advertising 5.8%
above November. Regional network business up 32.0%. National
non-network volume unchanged. Local up 24.2%. Compared
to same month of preceding year, gains as follows: National net¬
works, 11.3%; national non-network, threefold; local up 54.1%.
15. Miscellaneous. National network business up 10.5% and
local 19.0% as against November. Regional volume down 18.0%
and local 4.1%. National network volume double corresponding
month of 1934. Regional business up 77.5%. National non-net¬
work gain 55.0% and local 45.4.%.
Retail Broadcast Advertising
Broadcast advertising sponsored by retail establishments of
various kinds increased 9.3% as compared to November, contrary
to the usual seasonal trend, which is downward. Retail broadcast
advertising gained 41.2% as compared to the corresponding month
of 1934.
Principal gains as compared to November were as follows: Cloth¬
ing; 4.2%; drugs, 12.0%; beauty parlors, 55.0%; grocery stores and
delicatessens, 24.8%; restaurants, 12.7%; furniture retailers,
20.3%. Principal declines during the month were automotive,
19.6%; gasoline and accessories, 9.8%; and radio retailers, 7.0%.
Compared to December 1934, gains were as follows: automotive,
53.6%; clothing, 77.3%; beauty parlors, 82.1%; confectionery
stores, 156.0%; household equipment retailers, 30.0%; furniture
stores, 55.0%. The principal decline was in the gasoline and ac¬
cessory field, where retail volume dropped 35.1%. Retail broad¬
cast advertising during the month is found in Table VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1935 Gross Time Sales
Type of Sponsoring Business November December
Automobiles and accessories:
Automobile agencies and used car dealers $97,670 $78,510
Gasoline stations, garages, etc . 41,660 37,450
Clothing and apparel shops . 326,230 340,000
Drugs and toilet goods:
Drug stores . 25,550 28,050
Beauty parlors . 7,840 12,200
Food products:
Grocery stores, meat markets, etc . 62,070 77,530
Restaurants and eating places . 20,150 22,800
Beverage retailers . 5,000 5,840
Confectionery stores . 3,870 7,140
Household goods:
Household equipment dealers . 47,540 46,745
Furniture stores . 89,355 107,668
Hardware stores . 11,670 11,330
Radio retailers . 24,750 22,885
Department and general stores . 169,693 172,125
Tobacco shops . — 1,370
Miscellaneous . 112,547 171,430
Total . $1,045,595 $1,143,073
FEDERAL COMMUNICATIONS COMMISSION
ACTION
Hearing Calendar
Monday, February 3
HEARING BEFORE AN EXAMINER
WRVA — Larus & Brothers Co., Inc., Richmond, Va. — C. P., 1110
kc., 50 KW, unlimited time. Present assignment: 1110 kc.,
5 KW, unlimited time.
NEW — The Monocacy Broadcasting Co., Rockville, Md. — C. P.,
1140 kc., 250 watts, daytime.
Wednesday, February 5
HEARING BEFORE AN EXAMINER
NEW — C. G. Hill, Geo. D. Walker, Susan H. Walker, Winston-
Salem, N. C. — C. P., 1250 kc., 250 watts, daytime.
Thursday, February 6
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-55:
NEW — J. C. & E. W. Lee (Riverside Broadcasting Co.), Riverside,
Calif. — C. P., 820 kc., 250 watts, daytime.
1178
Examiner’s Report No. 1-114:
NEW — Metro Broadcasting Co., Los Angeles, Calif. — C. P., 820 kc.,
250 watts, limited with WHAS.
Examiner’s Report No. 1-117:
NEW — Wayne Broadcasting Co., Hamtramck, Mich. — C. P., 1370
kc., 100 watts, daytime.
Examiner’s Report No. 1-111:
WILL — University of Illinois, Urbana, Ill. — Modification of license,
580 kc., 1 KW, daytime. Present assignment: 890 kc., 250
watts, 1 KW LS, shares with KUSD and KFNF.
APPLICATIONS GRANTED
WOW — Woodmen of the World Life Ins. Assn., Omaha, Nebr. —
Granted license to cover C. P. authorizing changes in equip¬
ment, installation of new antenna, and transmitter site; 590
kc., 1 KW night, 5 KW day, unlimited.
WJAR — The Outlet Co., Providence, R. I. — Granted modification
of C. P. extending completion date from 2-4-36 to 6-4-36.
WBOW — Banks of Wabash, Inc., Terre Haute, Ind. — Granted license
to cover C. P. authorizing changes in equipment and increase
in day power to 250 watts; 1310 kc., 100 watts night, un¬
limited.
WBBM — WBBM Broadcasting Corp., Chicago, Ill. — Granted ex¬
tension of experimental authority to continue to operate syn¬
chronously with station KFAB from LS to midnight for
period 2-1-36 to 8-1-36.
KFAB — KFAB Broadcasting Co., Lincoln, Nebr. — Granted exten¬
sion of special experimental authority to continue to operate
synchronously with station WBBM from LS to midnight for
period 2-1-36 to 8-1-36.
WBAL — The WBAL Broadcasting Co., Baltimore, Md. — Granted
extension of special experimental authority to operate on
1060 kc., with power of 10 KW, simultaneously with station
KTHS from 6 a. m. to sunset at Hot Springs, and alone from
sunset at KTHS to 9 p. m., EST ; to operate synchronously
with station WJZ on 760 kc., with power of 2^ KW from
9 p. m., EST, to midnight, employing directional antenna,
for period 2-1-36 to 8-1-36.
WESG — Cornell University, Elmira, N. Y. — Granted extension of
special experimental authority to operate daytime to sunset
at New Orleans on 850 kc. with power of 1 KW.
WTIC — The Travelers Broadcasting Service Corp,, Hartford, Conn.
— Granted extension of special experimental authority to
operate unlimited time simultaneously with station KRLD on
1040 kc., with power of 50 KW, for period 2-1-36 to 8-1-36.
KRLD — KRLD Radio Corp., Dallas, Tex. — Granted extension of
special experimental authority to operate simultaneously with
station WTIC for period 2-1-36 to 8-1-36.
KTHS — Hot Springs Chamber of Commerce, Hot Springs National
Park, Ark. — Granted extension of special experimental au¬
thority to operate on frequency 1060 kc., with power of 10
KW, simultaneously with station WBAL from 6 a. m. to LS
from 2-1-36 to 8-1-36, sharing after sunset (KTHS operates
unlimited 8 p. m. to midnight. Normally licensed 1040 kc.,
10 KW, S-KRLD).
WCAZ — Superior Broadcasting Service, Inc., Carthage, III. —
Granted modification of license to increase hours of operation
from S.H. daytime to unlimited daytime.
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Granted au¬
thority to determine operating power by direct measurement
of antenna input in compliance with the terms of Rule 137.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
Granted consent to the transfer of control of Oklahoma
Broadcasting Co., Inc., from R. S. James, Elizabeth E. Hib-
bert and Marcia A. Shaffer to Hale V. Davis.
WCAU — WCAU Broadcasting Co., Philadelphia, Pa. — Granted re¬
newal of license, 1170 kc., 50 KW, unlimited time. Also
granted renewal for auxiliary, 1170 kc., 1 KW.
WLS — Agricultural Broadcasting Co., Chicago, Ill. — Granted ex¬
tension of present license for period of 90 days.
WLS — Agricultural Broadcasting Co., Chicago, Ill. — Same for aux¬
iliary purposes.
WCFL — Chicago Federation of Labor, Chicago, Ill. — Granted ex¬
tension of present license for period of 30 days.
WCFL — Chicago Federation of Labor, Chicago, Ill. — Same for
auxiliary.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Granted extension of present license for period of 90 days.
Also granted same for auxiliary.
KMMJ — The M. M. Johnson Co., Clay Center, Nebr. — Granted
extension of present license for period of 90 days.
KLPM — John B. Cooley, Minot, N. Dak. — Granted renewal of
license for the regular period; 1240 kc., 250 watts, S.H.
WHO — Central Broadcasting Co., Des Moines, Iowa. — Granted ex¬
tension of present license for period of 90 days.
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — Granted re¬
newal of license for the regular period; 1200 kc., 100 watts
night, 250 watts day, unlimited.
WJBW — Charles C. Carlson, New Orleans, La. — Granted extension
of present license for period of 30 days.
WJR — WJR, The Goodwill Station, Detroit, Mich. — Granted ex¬
tension of present license for period of 90 days.
WPTF — WPTF Radio Co., Raleigh, N. C. — Granted extension of
special experimental authority to operate from local sunset
to 8 p. m., PST, with 1 KW power, period 2-1-36 to 8-1-36.
Also granted extension of special experimental authority for
auxiliary to operate from LS to 8 p. m., PST, with power of
1 KW, for period 2-1-36 to 8-1-36.
WBRE — Louis G. Baltimore, Wilkes-Barre, Pa.— Granted renewal
of license for the regular period.
WHB — WHB Broadcasting Co., Kansas City, Mo. — Granted re¬
newal of license for the regular period.
WABY — Adirondack Broadcasting Co., Inc., Albany, N. Y. —
Granted renewal of license for the regular period.
WATL — J. W. Woodruff and S. A. Cisler, Jr., d/b as Atlanta Broad¬
casting Co., Atlanta, Ga. — Granted extension of present
license for period of 60 days.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted ex¬
tension of special experimental authority to operate on 710
kc., with 500 watts, unlimited time.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses on a tem¬
porary basis subject to whatever action Commission may take on
pending applications:
KNX, Los Angeles; KOB, Albuquerque, N. Mex.; KWJJ, Port¬
land, Ore.; KWKH, Shreveport, La.; KXA, Seattle, Wash.; WBAP,
Fort Worth, Tex.; WCCO, Minneapolis, Minn.; WESG, Elmira,
N. Y.; WFAA, Dallas, Tex.; WHDH, Boston, Mass.; WJAG, Nor¬
folk, Nebr.; WNYC, New York City; WOI, Ames, Iowa; WOV,
New York City.
WPG — City of Atlantic City, Atlantic City, N. J. — Granted re¬
newal of license on a temporary basis subject to whatever
action may be taken by the Commission upon their pending
application for renewal.
WWL — Loyola University, New Orleans, La. — Granted renewal of
license on a temporary basis, subject to whatever action may
be taken by the Commission upon their pending application
for renewal.
KFBI — The Farmers & Bankers Life Ins. Co., Abilene, Kans. —
Granted renewal of license on a temporary basis only to con¬
form to the Commission’s action of January 10, 1936, with
reference to this station’s application for renewal of license.
WMSD— Muscle Shoals Broadcasting Corp., Sheffield, Ala. —
Granted renewal of license for the period ending July 1, 1936.
WIBG — Seaboard Radio Broadcasting Corp., Glenside, Pa. — Present
license extended on a temporary basis only from February 1
to March 1, pending receipt and action on renewal applica¬
tion.
WJR — WJR, The Goodwill Station, Inc., Detroit, Mich, (auxiliary).
— Present license extended on a temporary basis only, from
February 1 to March 1, pending receipt and action on re¬
newal application.
KFAB — KFAB Broadcasting Co., Lincoln, Nebr. — Present license
extended on a temporary basis only, to March 1, 1936, pend¬
ing further action on renewal application.
WCBD — WCBD, Inc., Waukegan, Ill. — Present license extended on
a temporary basis only, to March 1, 1936, pending further
action on renewal application.
KGMB — Honolulu Broadcasting Co., Ltd., Honolulu, T. H. — Pres¬
ent license further extended upon a temporary basis only, to
March 1, 1936, pending further action on renewal application.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Present
license further extended upon a temporary basis only, to
March 1, 1936, pending further action on renewal application.
WINS — Hearst Radio, Inc., New York City. — Present license fur¬
ther extended upon a temporary basis only, to March 1, 1936,
pending further action on renewal application.
1179
The following stations were granted renewal of licenses for the
regular period:
KGU, Honolulu, T. H.; WBBM and auxiliary, Chicago, Ill.;
WEEU, Reading, Pa.; WOAI and auxiliary, San Antonio, Tex.;
WSAZ, Huntington, W. Va.
K.ILU — Arkansas Radio & Equipment Co., Portable. — Present license
extended for a period of 1 month from February 1, 1936, to
March 1, 1936, on a temporary basis, subject to such action
as may be taken upon application for renewal of license
pending before it.
WLEZ— ' The Norfolk Daily News, Portable.— Present license ex¬
tended for a period of 1 month from February 1, 1936, to
March 1, 1936, on a temporary basis, subject to such action
as may be taken upon application for renewal of license pend¬
ing before it.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. 1-135: George E. Heiges, Sharon, Pa. — Denied
C. P. for new broadcast station to operate on 1370 kc., 100
watts night, 250 watts day, unlimited time; Examiner R. L.
Walker sustained. Order effective March 31, 1936.
WJAR — Ex. Rep. 1-155: The Outlet Company, Providence, R. I. —
Granted modification of C. P. to make changes in equipment;
move transmitter; install directional antenna; and change
hours of operation from 250 watts night, 500 watts LS, to
1 KW ; 890 kc., unlimited time; Examiner P. W. Seward sus¬
tained. Order effective March 31, 1936.
MISCELLANEOUS
WWRL — Long Island Broadcasting Corp., Woodside, N. Y. — De¬
nied petition asking Commission to reconsider action of
December 10, 1935, in setting application for hearing and
grant said application. Applicant seeks to change specified
hours to include certain hours after midnight four days per
week. Rule 88 provides “a specified hour station shall not
broadcast any commercial or sponsored programs from mid¬
night to 6 a. m.”
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City. Okla. —
Granted regular renewal license and dismissed application
from the hearing docket.
WSJS — Winston-Salem Journal Co., Winston-Salem, N. C. —
Granted petition to intervene and be a party to hearing of ap¬
plication of C. G. Hill, Geo. D. Walker and Susan H. Walker
for a C. P. for radio broadcasting station at Winston-Salem.
WWL — Loyola University, New Orleans, La. — Extended for 30 days
from February 1, 1936, temporary authorization on same
conditions, subject to such action as may be had by the Com¬
mission upon application for extension now pending, which
has been heard, including question of alleged interference with
WLWL, New York City, and the petition of WLWL in op¬
position thereto.
KWKH — International Broadcasting Corp., Shreveport, La. — Ex¬
tended for 30 days from February 1, 1936, temporary au¬
thorization on same conditions, subject to such action as may
be had by the Commission upon application for extension
now pending, which has been heard, including question of
alleged interference with WLWL, New York City, and the
petition of WLWL in opposition thereto.
SET FOR HEARING
NEW — Southwest Broadcasting Co., Prescott, Ariz. — Application
for C. P. for new station, 1500 kc., 100 watts night, 250 watts
day, unlimited (requests facilities of KPJM which was de¬
leted effective 11-26-35).
WHAT — Independence Broadcastnig Co., Inc., Philadelphia, Pa. —
Application for C. P. to move transmitter site from Phila¬
delphia to location to be determined in Pennsylvania; install
new equipment ; change frequency from 1310 kc. to 1220 kc. ;
increase power from 100 watts to 1 KW and hours of opera¬
tion from S-WTEL to unlimited.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Applica¬
tion for C. P. to move transmitter locally to a site to be de¬
termined; make changes in equipment; install directional
antenna; change frequency from 1210 kc. to 1450 kc. ;
change power from 100 watts night, 250 watts day, to 1 KW
night, 1 KW day.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — Applica¬
tion for C. P. to move transmitter locally; make changes in
equipment; change frequency from 1200 kc. to 1210 kc.
NEW — Ellwood W. Lippincott, Bend, Ore.- — Application for C. P.
for new station, 1500 kc., 100 watts, daytime, site to be
determined.
NEW — John Perkins Rabb, Lenoir, N. C. — Application for C. P. for
new station, 1370 kc., 100 watts, daytime.
WAAW — Omaha Grain Exchange, Omaha, Nebr. — Consent to vol¬
untary assignment of license to the Nebraska Broadcasting
Co. Also application for renewal of license, 660 kc., 500
watts daytime, and temporary license granted pending
hearing. ,
WHB — WHB Broadcasting Co., Kansas City, Mo. — Application for
C. P. to install new equipment, directional antenna; change
frequency from 860 kc. to 1120 kc., time of operation from
daytime to unlimited, using 500 watts night, 1 KW day.
NEW — Voice of Marshall, Marshall, Tex. — Application for C. P.
for new station, 1500 kc., 100 watts, daytime, specified hours.
NEW — Earle Yates, Las Cruces, N. Mex. — Application for C. P. for
new station ; 930 kc., 1 KW day, daytime only.
APPLICATIONS DENIED
KOOS — Pacific Radio Corp., Coosbay, Ore. — Denied request for
authority to operate on frequency 1390 kc., with power of
250 watts daytime, at the present location, employing present
antenna system.
WGST — Georgia School of Technology, Atlanta, Ga. — Denied au¬
thority to operate with a power of 1 KW, unlimited time, for
a period not to exceed 30 days, employing the present antenna
system.
APPLICATIONS RECEIVED
First Zone
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
579 N. Y. — License to cover construction permit ( B 1 -P-813 ) to
install new equipment.
NEW — The Niagara Falls Gazette Publishing Co., Niagara Falls,
630 N. Y. — Construction permit to erect a new broadcast station
to be operated on 630 kc., 250 watts power, daytime.
NEW — E. Anthony & Sons, Inc., Pawtucket, R. I. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, 250 watts day, unlimited time. Requests facilities of
Station WNRI.
KGMB — Honolulu Broadcasting Co., Ltd., Honolulu, T. H. —
1320 License to cover construction permit (B5-P-303) as modified
to move transmitter and studio, install new equipment, and
increase power.
NEW — Auburn Publishing Co., Auburn, N. Y. — Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
unlimited time.
NEW — The Northern Corporation, Chelsea, Mass. — Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 41000 kc., 100 watts.
Second Zone
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Extension
610 of special experimental authorization to operate with 1 KW
power from 3-1-36 to 9-1-36.
WGBI — Scranton Broadcasters, Inc., Scranton, Pa.- — Extension of
880 special experimental authorization to operate with 250 watts
additional power from 3-1-36 to 9-1-36.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Modification of
1200 construction permit (B2-P-472) for move of transmitter and
studio; make changes in antenna, requesting change in hours
of operation from share-WKBO to unlimited day and share-
WKBO night; and extend commencement and completion
dates 30 days and 6 months, respectively.
NEW — Hershel Talbot Walton, East Liverpool, Ohio. — Construc-
1420 tion permit for a new station to be operated on 1420 kc.,
100 watts, unlimited time.
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Author-
1450 ity to determine operating power by direct measurement of
antenna power.
NEW — Allen T. Simmons, Village of Tallmadge, Ohio. — Construc¬
tion permit for a new general experimental station for 30100,
34600, 40100 kc., 100 watts. Amended to show 31600,
35600, 38600, 41000 kc.
Third Zone
NEW — The Tribune Co., Tampa, Fla. — Construction permit for a
550 new station to be operated on 550 kc., 1 KW night, 5 KW
day, unlimited time.
1180
NEW — The Constitution Publishing Co., Atlanta, Ga. — Construc-
590 tion permit for a new station to be operated on 590 kc., 1
KW, unlimited time.
WJAX — City of Jacksonville, Jacksonville, Fla. — Modification of
900 license to increase power from 1 KW night, S KW day, to
5 KW day and night. ,
KPRC — Houston Printing Co., Houston, Tex. — Authority to de-
920 termine operating power by direct measurement of antenna
power.
NEW — Theodore E. Johnson, Houston, Tex. — Construction permit
1210 for a new station to be operated on 1210 kc., 100 watts, un¬
limited time.
WMFJ — W. Wright Esch, Daytona Beach, Fla. — Construction per-
1210 mit to install a new transmitter and vertical antenna.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — License to
1370 cover construction permit (B3-P-18) for changes in equip¬
ment, increase in power, and move of transmitter.
NEW — Isadore Goldwasser, Tuscaloosa, Ala. — Construction permit
1370 for a new broadcast station to be operated on 1370 kc., 100
watts, unlimited time.
KNET — John C. Welch, Wm. M. Keller, and Bonner Frizzell, d/b
1420 as Palestine Broadcasting Association, Palestine, Tex. —
License to cover construction permit (B3-P-216) as modified
for a new station to be operated on 1420 kc., 100 watts
power, daytime operation.
KRLH — Clarence Scharbauer, Midland, Tex.— License to cover
1420 construction permit (B3-P-67S) as modified for new station
on 1420 kc., 100 watts power, daytime operation.
Fourth Zone
WCBD — WCBD, Inc., Waukegan, Ill. — Authority to transfer con-
1080 trol of corporation from Wilbur Glenn Voliva, Ernest E.
Harwood, M. J. Mintern to L. E. Moulds, W. F. Moss, Gene
T. Dyer, E. M. Ringwald, 100 shares of common stock
NEW — Frank M. Dunham, Fort Dodge, Iowa. — Construction permit
1210 for a new station to be operated on 1500 kc., power not given,
unlimited time. Amended to change frequency from 1500 kc.
to 1210 kc., giving power as 100 watts; change studio site
from 908 First Ave. S. to 22 S. 10th St., Fort Dodge, Iowa.
NEW — Stanley Reid and Charles Withnell Boegel, Jr., Cedar Rapids,
1310 Iowa. — Construction permit for a new station to be operated
on 1310 kc., 100 watts power, unlimited time.
KRNT — Iowa Broadcasting Co., Des Moines, Iowa. — Construction
1320 permit to install new equipment and increase power from
500 watts, 1 KW day, to 1 KW, 5 KW day, using directional
antenna. (Consideration under Rule 6 (g)).
KSCJ — Perkins Brothers Co. (The Sioux City Journal), Sioux City,
1330 Iowa. — Construction permit to make equipment changes.
Amended: Antenna and equipment changes; move transmitter
from First and Bluff Sts., Sioux City, Iowa, to Sioux City,
Iowa; increase power from 1 KW night, 2)4 KW day, to 1
KW night, 5 KW day; and change time from simultaneous
day WTAQ, specified hours night, to unlimited. Amended:
Omit request for increase in power and changes in equipment.
NEW — Telegraph Herald, Dubuque, Iowa. — Construction permit to
1340 erect new station to be operated on 1340 kc., 500 watts power,
daytime.
Fifth Zone
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Extension
710 of special experimental authorization to operate on 710 kc.,
500 watts, unlimited time, from 2-1-36 to 8-1-36.
KIEV- — Cannon System, Ltd., Glendale, Calif. — License to cover
850 construction permit (5-P-B-3268) as modified for new equip¬
ment and increase in power.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Modification
920 of construction permit (B5-P-536) for new equipment, in¬
crease in day power, move transmitter, requesting extension
of completion date from 2-25-36 to 4-25-36.
NEW — Lyman Peters Corp., Pasadena, Calif.- — Construction permit
1160 for a new station to be operated on 1160 kc., 250 watts,
daytime.
KWSC — The State College of Washington, Pullman, Wash. — Con-
1220 struction permit to make changes in equipment and increase
power from 1 KW, 2 KW day, to 1 KW, 5 KW day.
KTW— First Presbyterian Church, Seattle, Wash. — Authority to
1220 install automatic frequency control. ,
KUJ — KUJ, Inc., Walla Walla, Wash. — Construction permit to
1250 change frequency from 1370 kc. to 1250 kc., install new
equipment, and move transmitter from Second and Rose Sts.
to site to be determined, Walla Walla, Wash. Amended to
change power from 1 KW to 250 watts.
KOOS — H. H. Hanseth, Inc., Marshfield, Ore. — Modification of
1390 license to change name from H. H. Hanseth, Inc., to Pacific
Radio Corporation.
KOOS— H. H. Hanseth, Inc., Marshfield, Ore. — Construction per-
1390 mit to make changes in equipment; move transmitter from
Hall Bldg., Marshfield, Ore., to J4 mile from north city limits
of Marshfield, Ore. (Filed in new name of Pacific Radio
Corporation.)
1181
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C,
JAMES W. BALDWIN, Managing Director
NAB REPORTS *
Copyright 1936. The National Association of Broadcasters
IN THIS ISSUE
Page
Directional Antenna Permits . 1183
Securities Act Registrations . 1183
Recommends New Indiana Station . 1183
Federal Trade Commission Action . 1183
Federal Communications Commission Action . 1184
State of Washington vs. ASCAP . 1185
DIRECTIONAL ANTENNA PERMITS
The Broadcast Division of the Federal Communications Commis¬
sion has adopted the following policy in connection with applications
for construction permits for broadcast facilities:
No application for a construction permit specifying a directional
antenna will be accepted by the Commission unless a definite site
and full details of the directional antenna are given with the appli¬
cation. Any application not complete in these details will be re¬
turned to the applicant as “incomplete” under Rules 104.1 and 103.9.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
A. E. Staley Manufacturing Co., Decatur, Ill. (2-1878, Form A-2)
Trenton Valley Distillers Corp., Detroit, Mich. (2-1879, Form
A-l)
Fansteel Metallurgical Corp., North Chicago, Ill. (2-1882, Form
A-2)
International Vitamin Corp., New York City. (2-1883, Form
A-l)
Charles H. Frye, Seattle, Wash. (2-1884, Form E-l)
Hupp Motor Car Corp., Detroit, Mich. (2-1885, Form A-2)
California Oil & Land Corp., Los Angeles, Calif. (2-1886, Form
A-l)
Chicago and Southern Air Lines, Inc., Roberston, Mo. (2-1888,
Form A-l)
RECOMMENDS NEW INDIANA STATION
The North Side Broadcasting Corporation has filed an application
with the Federal Communications Commission asking for a con¬
struction permit for the erection of a new station at New Albany,
Ind., to use 1370 kilocycles, 100 watts and 250 watts LS, and un¬
limited time.
Examiner George H. Hill, in Report No. 1-188, has recommended
that so much of the application be granted as to allow such a station
to operate daytime hours only and “that the request for night¬
time hours of operation be denied.”
The Examiner found that “the granting of the application for
operation during daytime hours would not interfere with the fair
and efficient radio service of any other station ; however, the opera¬
tion of the proposed station during night-time hours would result
in objectionable interference with other existing stations.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following companies. The respondents
will be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2690. Unfair competition through misrepresentation of its
cosmetics and toilet preparations as being of English origin is alleged
in a complaint issued against Worthall, Ltd., 160 Fifth Avenue,
New York City.
The respondent is alleged to have labeled its products as “Drury
Lane,” “English Lavendar,” and “Distributed by Worthall, Ltd.,
London, Montreal, New York,” whereas, the complaint charges, the
respondent is neither a limited corporation nor an English company.
Vol. 4 - - No. 7
FEBRUARY 6, 1936
with offices in London and Montreal, but is a New York corporation.
It is also alleged that the respondent’s products are manufactured
and compounded in the United States, principally of materials pro¬
duced in this country, and not in England.
The alleged misrepresentation, the complaint says, has a tendency
to mislead dealers and purchasers into the belief that the respondent’s
toilet preparations are genuine English products, when such is not
the case, and tends to divert trade from competitors who truthfully
represent their products.
Nos. 2691-2693. Alleging unfair methods of competition, com¬
plaints have been issued against Angelo Cataldo, trading individ¬
ually and as Liberty Chocolate Co. and as Arcadia Chocolate Co.,
114 Commercial St., Boston, and against Massachusetts Choco¬
late Co., Inc., 197 Norfolk Ave., Boston. The complaints charge
that the respondents pack and assemble their candy in assortments
so as to involve the use of a lottery scheme when sold and dis¬
tributed to consumers.
Under the respondents’ lottery methods, the purchaser, for one
cent, always procures a piece of candy, but it is alleged the element
of lot or chance enters into the transaction in that the purchaser, if
he makes a lucky choice in the selection of a certain piece of candy,
receives as a prize, without additional cost, a larger piece.
Many dealers in and consumers of the respondents’ candies are
induced by the lottery sales plans to purchase these candies, accord¬
ing to the complaint, and trade is diverted to the respondents from
competitors who do not use lottery systems held contrary to an
established public policy.
Stipulations
The Commission has issued the following cease and desist orders:
No. 01108. French Clinical Laboratory and Supply Depot,
San Antonio, Tex., dealing in medicinal products, has entered into
a stipulation to cease and desist from the use of false and misleading
advertising in the sale of its “FFP No. 22,” offered as a remedy for
athlete’s foot. Under the agreement the respondent will discontinue
representing that its medicated foot powder will prevent or cure or
that it is a sure and safe remedy for athlete’s foot, when such asser¬
tions are not true.
No. 2573. International Sheffield Works, Inc., 22 West 27th
St., New York City, engaged in the sale of silverware, or silver-
plated ware, has been ordered to cease and desist from the use of a
trade name which includes the word “Sheffield,” until it actually
manufactures and sells silver products produced by the copper-rolled
plate process, generally known as “Sheffield.”
The respondent corporation is directed, under the order, to cease
representing in any manner, or suggesting directly or indirectly, that
its product is “Sheffield,” unless it is manufactured by the copper-
rolled plate process which originated in Sheffield, England, and shows
the place of origin.
No. 2582. Underran order issued, the Pratt Food Co., 124 Wal¬
nut St., Philadelphia, engaged in manufacturing and selling dairy
feed, is required to discontinue certain claims regarding “Super-
iodized B. P. Dairy Feed.”
Claims that this particular product decreases the amount of feed
necessary, builds up resistance to disease and is highly effective in
the treatment of Bang’s disease, will cease, under the order, and
the respondent is prohibited further from representing that cows,
when fed “Super-iodized Dairy Feed,” produce a richer, purer milk
which is beneficial to tubercular patients and to infants.
No. 2616. An order to discontinue representing in advertising
matter that “Cal-Aspirin” contains certain therapeutic properties
lacking in ordinary aspirin has been issued against Cal-Aspirin Cor¬
poration, 160T1. Illinois St., Chicago.
The respondent is prohibited, under the order, from representing
that “Cal-Aspirin” is less toxic and better tolerated than ordinary
aspirin, or is a more prompt and efficient analgesic and anti-pyretic,
and that it acts quicker and its effects last longer, also that it is safer
and can be used in larger doses.
1183
FEDERAL COMMUNICATIONS COMMISSION
ACTION
The Broadcast Division of the Commission held no meeting on
its regular meeting day this week but postponed it until later in the
week.
HEARING CALENDAR
Monday, February 10
NEW — Edwin A. Kraft, Fairbanks, Alaska. — C. P., 950 kc., 250
watts, unlimited time.
NEW — John A. Stump, Fairbanks, Alaska. — C. P., 1210 kc., 100
watts, 250 watts LS, unlimited time.
NEW — Northern Commercial Co., Fairbanks, Alaska. — C. P., 550
kc., 250 watts, unlimited time.
KVI — Puget Sound Broadcasting Co., Inc., Tacoma, Wash. — C. P.,
570 kc., 1 KW, 5 KW LS, unlimited time. Present assign¬
ment: 570 kc., 1 KW, unlimited time.
Tuesday, February 11
KOB— New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, N. Mex. — Renewal of license, 1180 kc., 10 KW,
simultaneous day, share night with KEX.
Thursday, February 13
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-123:
NEW — Hammond-Calumet Broadcasting Corp., Hammond, Ind. —
C. P., 1480 kc., 5 KW, daytime.
Examiner’s Report No. 1-126:
NEW — Utah Radio Educational Society, Salt Lake City, Utah. —
C. P., 1450 kc., 1 KW, unlimited time.
NEW— Louis H. Callister, Provo, Utah.— C. P„ 1200 kc., 100 watts,
unlimited time.
NEW — Paul Q. Callister, Salt Lake City, Utah.— C. P., 1370 kc., 100
watts, unlimited time.
NEW — Great Western Broadcasting Assn., Inc., Logan, Utah. —
C. P., 1500 kc., 100 watts, unlimited time.
NEW — Great Western Broadcasting Assn., Inc., Provo, Utah. — C. P.,
1210 kc., 100 watts, unlimited time.
NEW — Munn Q. Cannon, Logan, Utah. — C. P., 1210 kc., 100 watts,
unlimited time.
NEW — Jack Powers, Frank C. Carman, David G. Smith, and Grant
Wrathall, d/b as Utah Broadcasting Co., Salt Lake City,
Utah. — C. P., 1500 kc., 100 watts, unlimited time.
NEW — Cache Valley Broadcasting Service Co., Logan, Utah. — C. P.,
1370 kc., 100 watts, unlimited time.
Friday, February 14
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— Carl S. Taylor, Dubois, Pa.— C. P., 780 kc., 250 watts,
daytime.
APPLICATIONS RECEIVED
First Zone
WCAO — Monumental Radio Co., Baltimore, Md.— Modification of
600 construction permit (Bl-P-824) for changes in equipment,
requesting move of transmitter 60 feet from present site at
same address, and make changes in antenna.
NEW — North Jersey Broadcasting Co., Inc., Paterson, N. J.— Con-
620 struction permit to erect a new station to be operated on
620 kc., 250 watts power, daytime.
WAWZ — Pillar of Fire, Zarephath, N. J.— Modification of license to
1350 increase power from 500 watts, 1 KW day, to 1 KW night
and day.
W3XEY — The Baltimore Radio Show, Inc., Baltimore, Md.— Modi¬
fication of construction permit giving exact transmitter site
as Hotel Belvedere, southeast corner Chase and Charles Sts.,
Baltimore, Md.
WIEK— Atlantic Broadcasting Corp., New York, N. Y.— Construc¬
tion permit to replace transmitter and increase power to 100
watts.
WlXAV — Shepard Broadcasting Service, Inc., Quincy, Mass. —
License for 61500 kc., 100 watts.
Second Zone
WIBM — WIBM, Inc., Jackson, Mich. — Construction permit to make
1370 changes in equipment and install a new vertical antenna
system.
W8XWJ — The Evening News Assn., Portable-Mobile. — License to
cover construction permit for a new general experimental
station.
Third Zone
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Extension
580 of special experimental authorization to operate with 750
watts additional day power for period from 3-1-36 to 9-1-36.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
970 Construction permit to make changes in equipment; move
transmitter from Collins Island, Miami Beach, Fla., to 600
Biscayne Blvd., Miami, Fla. Amended (see petition) re¬
questing application be granted on temporary basis, pending
final action on application for 970 kc. (B3-P-378).
WJBO — Baton Rouge Broadcasting Co., Inc., Baton Rouge, La. —
1120 Construction permit to install new equipment, increase power
from 100 watts to 500 watts, change frequency from 1420 kc.
to 1120 kc., change hours of operation from unlimited to
specified hours. Facilities of WGCM (unlimited time, except
from 8 to 9 p. m. on Monday and Friday nights).
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Construction
1240 permit to make changes in equipment ; move transmitter from
309 Eighth St., Augusta, Ga., to Satcher Estate on the edge of
the city, North Augusta, South Carolina; change frequency
from 1500 kc. to 1240 kc.; and increase power from 100
watts to 250 watts night, 1 KW day, using directional antenna
at night if necessary. Amended to make equipment changes
(mod. equip, to 500 watts maximum power) ; change height
of antenna and omit request for directional antenna ; change
power from 250 watts, 1 KW day, to 250 watts night, 500
watts day.
KFYO — T. E. Kirksey, tr. as Kirksey Bros., Lubbock, Tex. — Vol-
1310 untary assignment of license from T. E. Kirksey, tr. as Kirk¬
sey Brothers, to Plains Radio Broadcasting Co.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
1370 Authority to transfer control of corporation from Hale V.
Davis to Harold V. Hough, 133J(j shares of common stock.
NEW — C. W. Snider, Wichita Falls, Tex. — Construction permit for
1500 a new station to be operated on 1500’ kc., 100 watts, un¬
limited daytime. Amended to request 100 watts, unlimited
time.
NEW — Radio Station WSOC, Inc., Portable. — Construction permit
for a new general experimental station to be operated on
31100, 34600, 37600, 40600 ltc., 7 watts.
NEW — The Constitution Publishing Co., Atlanta, Ga. — Construc¬
tion permit for a new general experimental station to be
operated on 31600, 35600, 38600, 41000 kc., 100 watts.
Fourth Zone
KMBC — -Midland Broadcasting Co., Kansas City, Mo. — License to
950 use old 2J4-KW transmitter for emergency purposes only.
WFAM — The South Bend Tribune, South Bend, Ind. — Modification
1200 of license to change time from share with WWAE to un¬
limited day to local sunset, share with WWAE night.
NEW — Black Hawk Broadcasting Co., Emmons L. Abeles, Secy.,
1370 Waterloo, Iowa. — Construction permit for a new station to
be operated on 1370 kc., 100 watts, unlimited time.
KWKC — Wilson Duncan, tr. as Wilson Duncan Broadcasting Co.,
1370 Kansas City, Mo. — Voluntary assignment of license from
Wilson Duncan, tr. as Wilson Duncan Broadcasting Co., to
Tom Cleveland.
Fifth Zone
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Modification
710 of special experimental authorization to operate on 710 kc.,
unlimited time, 1 KW power instead of 500 watts.
KHJ — Don Lee Broadcasting System, Los Angeles, Calif.— Modifi-
900 cation of license to change power from 1 KW to 5 KW day
and night (5 KW granted on C. P.).
KGEK — Elmer G. Beehler, Sterling, Colo. — Modification of license
1200 to change specified hours to include 1:30 p. m. to 2:00 p. m.
Saturdays.
KRE — First Congregational Church of Berkeley, Berkeley, Calif. —
1370 Voluntary assignment of license from First Congregational
Church of Berkeley to Central California Broadcasters, Inc.
1184
KFBK — James McClatchy Co., Sacramento, Calif. — Authority to
1490 determine operating power by direct measurement of antenna
power.
NEW — Don Lee Broadcasting System, Portable. — Construction per¬
mit for general experimental station for 31600, 35600, 38500,
41000 kc., 100 watts.
No Zone
NEW — Foreign Lands Corp., Honolulu, Hawaii. — Construction per-
600 mit for a new station to be operated on 600 kc., 1 KW, un¬
limited time. Amended to give transmitter site to be deter¬
mined, Honolulu, Hawaii.
STATE OF WASHINGTON VS. ASCAP
In response to numerous demands from NAB members for copies
of the proceedings in the case of State of Washington vs. ASCAP,
there are printed below copies of -the original Complaint filed in the
Superior Court of the State of Washington; Temporary Restraining
Order and Order to Show Cause, motion for Restraining Order and
affidavits in support thereof; memorandum decision by Judge Cush¬
man of the United States District Court remanding the case; Re¬
ceiver’s Report to the Superior Court of the State of Washington
and Supplemental Order of this Court.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
No. 16114— SUMMONS
Postoffice Address: Temple of Justice, Olympia, Thurston County,
Washington.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON IN AND FOR THURSTON COUNTY
No. 16114— COMPLAINT
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President ; LOUIS BERNSTEIN, its Vice-President; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND ROMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc.,
a corporation; KVOS, Inc., a corporation; KGY, Inc., a cor¬
poration; SEATTLE BROADCASTING CO., a corporation;
RADIO SALES CORPORATION, a corporation; KVL, Inc., a
corporation; SPOKANE BROADCASTING CORPORATION, a
corporation; SYMONS BROADCASTING CO., a corporation;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion; KUJ, Inc., a corporation ; WESTCOAST BROADCASTING
CO., a corporation ; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants.
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
v.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President ; LOUIS BERNSTEIN, its Vice-President ; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND RUMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc.,
a corporation; KVOS, Inc., a corporation; KGY, Inc., a cor¬
poration; SEATTLE BROADCASTING CO., a corporation;
RADIO SALES CORPORATION, a corporation; KVL, Inc., a
corporation; SPOKANE BROADCASTING CORPORATION, a
corporation; SYMONS BROADCASTING CO., a corporation;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion; KUJ, Inc., a corporation; WESTCOAST BROADCASTING
CO., a corporation; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants.
THE STATE OF WASHINGTON, To the said American Society
of Composers, Authors and Publishers, an unincorporated associa¬
tion; Gene Buck, its President; Louis Bernstein, its Vice-President;
Jerome Kern, its Vice-President; Joseph Young, its Secretary;
Robert Crawford, its Assistant Secretary; Saul H. Bornstein, its
Treasurer; Sigmund Rumberg, its assistant treasurer; Nathan
Burkan, its Counsel; E. C. Mills, General Manager; John I. Stanley ;
KXRO, Inc., a corporation; KVOS, Inc., a corporation; KGY, Inc.,
a corporation ; SEATTLE BROADCASTING CO., a corporation ;
RADIO SALES CORPORATION, a corporation ; KVL, Inc., a cor¬
poration ; SPOKANE BROADCASTING CORPORATION, a cor¬
poration; Symons Broadcasting Co., a corporation; Louis Wasmer,
Inc., a corporation ; KMO, Inc., a corporation ; KUJ, Inc., a corpora¬
tion; Westcoast Broadcasting Co., a corporation; Carl E. Haymond
D/B/A Radio Station KIT, a corporation, Defendants:
You are hereby summoned to appear, within twenty days after
the service of this summons upon you, exclusive of the day of service,
and defend the above entitled action in the court aforesaid, and
answer the complaint of the Plaintiff, and serve a copy of your
answer upon the undersigned attorneys for Plaintiff, at their office
below stated; and in case of your failure so to do, judgment will be
rendered against you according to the demand of the complaint,
which will be filed with the clerk of said court (a copy of which is
herewith served upon you).
G. W. HAMILTON,
Attorney-General.
E. P. DONNELLY,
Assistant Attorney-General.
Comes now G. W. HAMILTON and respectfully represents that
he is the duly elected, qualified and acting Attorney General of the
State of Washington, and that he prosecutes this suit in behalf of
the State of Washington and respectfuly informs the Court as
follows:
I.
That the State of Washington is one of the sovereign States of the
United States of America.
II.
That defendant, AMERICAN SOCIETY OF COMPOSERS,
AUTHORS AND PUBLISHERS, hereinafter referred to as the
“Society,” is an unincorporated membership association of music
composers, authors and publishers which has an office at 1S01 Broad¬
way, Borough of Manhattan, New York City, State of New York,
but is actually engaged in and transacting business in the form and
manner of a corporation in the State of Washington, with its prin¬
cipal Washington office at 6S2 Skinner Building, Seattle, Wash¬
ington ; that under the Laws of New York, Code of Civil Procedure,
Section 1919, the President of an unincorporated association, such
as the Society, is expressly authorized to maintain and defend actions
at law and suits in equity on behalf of such association; that the
Defendant, John L. Stanley, has been and is authorized by the
Society, to represent the Society in the State of Washington in the
transaction of its business and in the maintenance and defense of
actions at law and in equity and is authorized under by the Laws of
the State of New York, to defend this action on behalf of such
association.
III.
That the Defendant Society transacts business under a form of
organization substantially the same as that of a corporation, and
acts through officials duly elected and qualified as though they were
the officers of a corporation. That the membership of the Society
comprises approximately 100 publishers and approximately 780 com¬
posers, all of whom are made Defendants in this suit, and the names
of the membership of the Society is hereto attached, marked Plain¬
tiff’s Exhibit “A”, and by this reference is made a part hereof.
IV.
That the Defendant, John L. Stanley, is the duly qualified and
acting District Manager of the Society, domiciled in the State of
Washington, in the City of Seattle therein, and that as said District
Manager, the said John L. Stanley is the Agent of the Society author¬
ized to and actually transacts the business of the Society in the
State of Washington, with his principal office as hereinbefore alleged.
V.
That Defendant, KXRO, Inc., a corporation organized under the
Laws of the State of Washington, operates a radio station with the
call letters KXRO at Seattle; that the Defendant, KVOS, Inc., a
1185
corporation organized under the Laws of the State of Washington,
operates a radio station with the call letters KVOS at Bellingham;
that the Defendant, KGY, Inc., a corporation organized under the
Laws of the State of Washington, operates a radio station with the
call letters KGY at Olympia ; that Defendant, SEATTLE BROAD¬
CASTING COMPANY, a corporation organized under the Laws of
the State of Washington, operates a radio station with the call
letters KOL at Seattle; that Defendant, RADIO SALES COR¬
PORATION, a corporation organized under the Laws of the State
of Washington, operates a radio station with the call letters KRSC
at Seattle; that Defendant, KVL, Inc., a corporation organized
under the Laws of the State of Washington, operates a radio station
with the call letters KVL at Seattle; that Defendant, SPOKANE
BROADCASTING CORPORATION, a corporation organized under
the Laws of the State of Washington, operates a radio station with
call letters KFIO at Spokane; that Defendant, SYMONS BROAD¬
CASTING COMPANY, a corporation organized under the Laws of
the State of Washington, operates a radio station with the call letters
KFPY at Spokane; that Defendant, LOUIS WASMER, Inc., a
corporation organized under the Laws of the State of Washington,
operates two radio stations with the call letters KGA and KHQ at
Spokane; that Defendant, KMO, Inc., a corporation organized
under the Laws of the State of Washington, operates a radio station
with the call letters KMO at Tacoma; that Defendant, KUJ, Inc.,
a corporation organized under the Laws of the State of Washington,
operates a radio station with the call letters KUJ at Walla Walla;
that Defendant, WESTCOAST BROADCASTING COMPANY, a
corporation organized under the Laws of the State of Washington,
operates a radio station with the call letters KPQ at Wenatchee;
that Defendant, CARL E. HAYMOND d/b/a radio station KIT
at Yakima, Washington, individually, and not as a corporation.
VI.
That in or about the year 1918, the Defendant Society and its
members organized said Society into a combination which includes
approximately fifty per cent of the leading publishers of copyrighted
musical compositions in the United States who control and own
approximately ninety-five per cent of the copyrighted acceptable
and popular musical compositions published in the United States;
that said popular and acceptable music is that music which appeals
to the great mass of the population in the State of Washington, as
distinguished from standard church, educational, or other musical
compositions.
VII.
That said Defendant Society and its members, acting through its
Agents, its Board of Governors and Trustees, and its individual
members, and sundry other persons including hired agents and
representatives, have for several years last past, within the confines
of the State of Washington, and continuously since that time, been
engaged in and is now engaged in a nefarious combination and con¬
spiracy to restrain trade and commerce in the State of Washington,
and have been functioning actually as an illegal monopoly and trust
within said State in violation of the Constitution and the Laws of
the State of Washington.
VIII.
That every member agent and representative of said Society and
all of those persons acting by, through, or under them, whether
knowingly or unknowingly, has created, maintained and utilized
said Defendant Society and its membership as an instrumentality
for business suppression, business coercion, business compulsion, and
for promoting and maintaining an illegal combination and con¬
spiracy, in collaboration with others, for the purpose of fixing the
price and limiting the production of musical compositions and the
public performing thereof, within the State of Washington and its
confines.
IX.
That all the members of the said Defendant Society have trans¬
ferred, combined and pooled with said Defendant Society their rights
under copyrights and other proprietory rights, including performing
rights, for profit or otherwise, in said Society, or in those rights
which any member during the term of his agreement and contract
with said Society may write, compose, acquire for publication or
copyright, whether alone or in collaboration with others, for the
sole and exclusive purpose of permitting said Defendants and each
of them, particularly the member officers and agents of said Society,
to fix and control the price of said musical compositions and the
performing rights therein, within the State of Washington.
X.
That said Defendant Society has for many years prior hereto,
and has now, a complete monopoly of the right to license for public
performance for profit all of the musical compositions of all of its
members, aggregating an unknown number of musical compositions,
which Defendant has at all times herein refused and still refuses
to furnish a list to its licensees or to any person so that competition
and trade may be free and untrammeled.
XI.
That all competition and free and wholesome bargaining between
the members of said Society and the public at large has been elimi¬
nated and stifled by this said illegal combination, conspiracy and
monopoly herein described ; that the public at large has been unable
to negotiate for the purchase of the right to use any particular copy¬
righted musical composition with the individual members of said
Defendant Society separately and individually, but have been and
are now obliged, compelled, coerced and forced to acquire from said
Defendant Society, upon terms and conditions arbitrarily and
viciously fixed by it, a general license to perform publicly all of
said copyrighted musical compositions whether the public likes them
all or not; that said pool and combination exists, among other pur¬
poses, in order to force the licensees and the public to take musical
numbers of no value on the same terms as must be paid for those
compositions of great value.
XII.
That the members of said Society, its Agents, its hired representa¬
tives of every name and description, have illegally agreed and con¬
spired among themselves to establish and maintain, pursuant to
secret agreements among themselves, and by means of pooling their
individual copyrights, monopolies and trusts, non-competitive prices
and royalties, for licenses to publicly perform copyrighted musical
compositions owned and controlled by said Defendants, their mem¬
bers, or their Agents, which combination and pool represents, as
Complainant believes, ninety-five per cent of the acceptable music
in the world.
XIII.
That by reason of the said combination herein outlined, it is
utterly impossible for any member of the public, or any person not
a member of said Society, to acquire control over the public per¬
formance rights of any copyrighted musical composition, without
paying the defendants’ arbitrary price.
XIV.
That all members of defendant Society have adopted the means
and engaged in the activities aforesaid, with the intent, purpose,
and effect of unreasonably and unlawfully maintaining enhanced,
uniform, and oppressive prices, and have otherwise restrained trade
and commerce in the State of Washington.
XV.
That all members of defendant Society, through the mutual and
identical agreements hereinbefore described, have actively and effec¬
tively restricted their own activities, have eliminated competition
among themselves, and have created, maintained and utilized de¬
fendant Association as instrumentalities to dominate and restrict,
directly and indirectly, the activities of others in commerce, as here¬
tofore described.
XVI.
The members of defendant Society, through the combination and
illegal pooling of their respective individual copyright monopolies
hereinbefore described, have created in defendant Society an in¬
strumentality which has the power to and does dictate to and
dominate the radio industry, the hotel industry, and entertainment
enterprises and other business industries within the confines of the
State of Washington in violation of the Constitution and Laws of
said State.
XVII.
Thait Defendants propose to carry on said combinations and con¬
spiracies in the manner heretofore described unless restrained.
XVIII.
That every member of defendant Society has created, maintained
and utilized defendant Society as an instrumentality for promoting
and maintaining the illegal combination and conspiracy herein
described. They have created defendant Society as such instru¬
mentality with a self-perpetuating board of directors, have vested in
the twenty-four persons constituting such board the exclusive con-
1186
trol and operation of the activities of defendant Society and have
restricted membership in defendant Society to such composers, au¬
thors and publishers as may be approved by the Board of Directors.
All members of defendant Society have transferred to and pooled in
defendant Society for the period ending December 31, 1935, the sole
and exclusive right to perform publicly all musical compositions of
which they are the copyright proprietors, or which any member,
either alone or jointly or in collaboration with others, wrote, com¬
posed, published, acquired or owned, or in which any member has
any right, title, interest or control whatsoever, in whole or in part,
or which any member, during the term of the agreement, may write,
compose, acquire, own, publish, or copyright, either alone, jointly, or
in collaboration with others, or in which any member may at any
time, during the term of the agreement, have any right, title, interest
or control, either in whole or in part. All members of defendant
Society have vested in defendant Society absolutely until and in¬
cluding December 31, 1935, the sole and exclusive right to license
others to perform publicly for profit all their musical compositions.
Defendants intend to continue such pool of public performance rights
by an extension of the existing agreements or by new agreements.
XIX.
That Defendant Society since September 1, 1932, and for many
years prior thereto, has had and now has a complete monopoly of
the right to license for public performance for profit all the musical
compositions of all its members, aggregating an unknown number
of musical compositions; defendant Society has at all times herein
mentioned refused and now refuses to furnish to its licensees lists
of such musical compositions. All competition among members of
defendant Society in the sale of rights to perform publicly their
respective musical compositions, which, but for the illegal combina¬
tion and conspiracy herein described, would have existed, has been
eliminated by said illegal combination and conspiracy; that radio
broadcasting stations, advertisers desiring to utilize the service of
such stations to promote the sale of their merchandise, orchestras,
theatres, and others desiring the right to perform publicly the copy¬
righted musical compositions of members of defendant Society, have
been unable to negotiate for the purchase of the rights to use such
copyrighted musical compositions with members of defendant So¬
ciety, separately and individually, but have been and are obliged
and compelled to acquire from defendant Society, upon terms and
conditions arbitrarily fixed by it, a general license to perform pub¬
licly the copyrighted musical compositions of all members of defend¬
ant Society.
XX.
That the members of defendant Society have agreed to establish
and maintain, and pursuant to such agreement have established and
maintained, by means of the pooling of their individual copyright
monopolies, enhanced and non-competitive prices or royalties for
licenses to perform publicly copyrighted musical compositions owned
and controlled by individual defendants. Competition between
members of defendant Society in the sale of licenses to perform pub¬
licly their individual musical compositions has been eliminated, and
because of the combined power obtained by them through the un¬
lawful pooling of their individual copyright monopolies, the members
of defendant Society have concertedly refused and still refuse,
through defendant Society, to license the public performance by
radio broadcasting stations or otherwise of any copyrighted musical
composition owned and controlled by a member of defendant So¬
ciety, except on the basis of a general license covering any and all
musical compositions of all members and except upon the basis
of an arbitrary royalty for such general license, fixed and determined
by the aforesaid self-perpetuating board of directors of defendant
Society. By reason of the facts herein alleged defendant Society has
acquired control over the public performance of so great a number
of copyrighted musical compositions that it is impossible for a radio
broadcasting station to operate without using at some time some
musical composition so controlled by members of defendant Society.
Broadcasting stations must either accept a license from defendant
Society upon any terms and conditions imposed by defendant So¬
ciety, or subject themselves to numerous infringement suits in which
they may be compelled to pay not less than the minimum damages
of Two Hundred Fifty ($250) Dollars for each infringement, pro¬
vided for in the copyright laws of the United States.
XXI.
That each year for a number of years prior to September 1, 1932,
members of defendant Society, through it, have concertedly de¬
manded and have received from radio broadcasting stations increased
amounts as royalties for licenses to perform publicly copyrighted
musical compositions owned and controlled by members of defendant
Society. That on or about April 11, 1932, members of defendant
Society, through defendant Society, notified all radio broadcasting
stations in the State of Washington that, on and after June 1, 1932,
defendant Society would issue to broadcasting stations only a gen¬
eral license covering all musical compositions of all members of
defendant Society, which license would require the payment annually
as royalty of a sum approximately equal to the annual royalty there¬
tofore paid by them, and in addition thereto, five per cent of the
gross income of the broadcasting station from whatever source de¬
rived. That this represented an increase of approximately 400 per
cent in so-called “Royalty” payments over the aggregate royalty
demanded for the previous year. That protests were made by the
broadcasting stations to defendant Society and the then existing
licenses were temporarily extended to September, 1932. Thereupon
efforts were made by the broadcasting stations to obtain licenses
providing for royalty payments by each station based on the number
of performances by such station of copyrighted musical compositions
owned and controlled by defendant members of defendant Society.
The members of defendant Society, through defendant Society, re¬
fused to agree to royalty payments based upon the actual use made
of their musical compositions. Other proposals submitted by the
broadcasting stations were also rejected by defendants. Each broad¬
casting station, in order to use the copyrighted musical compositions
controlled by defendant Society and to avoid a multiplicity of in¬
fringement suits, was compelled to accede to the demands of de¬
fendant Society and to accept from defendant Society a three-year
blanket license agreement, commencing in or about September, 1932,
covering all musical compositions of all members of defendant So¬
ciety, upon then basis of a royalty payment approximately equal
to the fixed annual royalty paid for the preceding year, plus three
per cent of the station’s net receipts during the first year of the
agreement, four per cent of such receipts during the second year,
and five per cent of such receipts during the third year. As defined
in said agreement, “net receipts” constitute the full amount paid to
the station for the use of its broadcasting facilities, after deducting
commissions not exceeding fifteen per cent, if any, paid to an inde¬
pendent advertising agent or agency; that members of defendant
Society threaten further increases in the royalty amounts to be
demanded from broadcasting stations after August 31, 1935. The
percentage of income demanded by members of defendant Society
from radio broadcasting stations represents a percentage of the
entire income received by such broadcasting stations for the sale to
advertisers of their operating time on the radio ; that such demand
for the payment of these percentages constitutes a charge upon in¬
come received by radio broadcasting stations from their time devoted
to the broadcasting of lectures, dramatizations, sporting events, and
other programs, which employ none of the copyrighted musical com¬
positions of the members of defendant Society.
XXII.
That Defendant Society has created a distinction and discrimina¬
tion between the license agreements exacted of radio broadcasting
stations owned at least 51 per cent by newspapers, and license agree¬
ments exacted from radio broadcasting stations not so owned in
other sections of the nation; that the license agreement exacted by
defendant Society from broadcasting stations owned 51 per cent by
newspapers does not require payment to defendant Society of a
percentage of the station’s income derived from all advertisers, but
only requires the payment of 3 per cent of the income of the station
received from advertisers whose programs include musical com¬
positions owned or controlled by members of defendant Society;
that such three per cent is payable until the total amount paid by
the station equals an amount agreed upon between the station and
defendant Society in the agreement. Thereafter the station is re¬
quired to pay 5 per cent of all additional income received by it from
programs in which musical compositions owned or controlled by
members of defendant Society are used. The terms of all the license
agreements permit the copyright owner, through defendant Society,
to withdraw at will from the operation of the license any musical
composition and thereby prevent its broadcast by the broadcasting
station. By this means members of defendant Society are enabled
to and do frequently so withdraw any musical compositions in great
demand by the general public. Special and additional compensation
is required for the granting of permission to broadcast musical com¬
positions so withdrawn. Withdrawal of the right under the licenses
to broadcast particular compositions is often used by members of
defendant Society particularly to compel radio broadcasting stations
to broadcast other and less popular music compositions for which
publicity is desired. Radio broadcasting stations are obliged to
accept all terms and conditions imposed by members of defendant
Society for the right to broadcast popular musical compositions
which have been withdrawn from their general license because a
1187
station’s continued existence depends upon the popularity of the
programs it broadcasts.
XXIII.
That by reason of the combination and conspiracy and the con¬
certed action of members of defendant Society, as a result of which
radio broadcasting stations are obliged to accept a blanket license
as heretofore stated upon terms and conditions imposed by defendant
Society, the members of defendant Society have secured the exclusive
use of radio broadcasting as a means of conveying musical com¬
positions to the ear of the public-at-large. By the means described
the members of defendant Society have destroyed the incentive of
broadcasting stations to use the musical compositions of composers,
authors, and publishers who are not members of defendant Society
and have prevented non-members of defendant Society from re¬
ceiving the compensation for the rights at public performance of
their musical compositions, which they would otherwise receive, and
have limited and restricted the popular demand of the listening
public to musical compositions controlled by defendant Society.
XXIV.
That the members of defendant Society, through defendant So¬
ciety, have been and are enabled to enforce, and have been and are
now enforcing, acceptance of their arbitrary and non-competitive
demands for royalties upon all classes of entertainers using music.
Such entertainers must perform those musical compositions de¬
manded by their audiences. The limitation and restriction of popular
demand to the musical compositions controlled by defendant Society
has forced such entertainers to obtain from defendant Society, a
license to perform music controlled by defendant Society so de¬
manded by the public. The members of defendant Society, through
defendant Society, have concertedly refused to grant such enter¬
tainers permission to perform individual musical compositions
selected by the entertainers, but have insisted and still insist that
general licenses be accepted which cover all the musical compositions
of all the members of defendant Society, upon payment of a fixed
amount therefor, irrespective of whether one or more of such musical
compositions are actually performed. By this method of licensing,
the members of defendant Society have further restricted the popular
demand to those musical compositions owned or controlled by the
members of defendant Society, and have prevented the use of musical
compositions owned by non-members of defendant Society and who
reside in the State of Washington.
XXV.
That by reason of the concerted action of the members of de¬
fendant Society in refusing to issue licenses for the public perform¬
ance of musical compositions owned or controlled by them, except
upon the terms and conditions above set forth, the members of
defendant Society have prevented and are preventing the sale of
musical scores owned by composers, authors and publishers who are
not members of defendant Society in the State of Washington.
XXVI.
That Defendant Society has adopted and maintained a com¬
prehensive system for the acquiring of detailed and complete in¬
formation relative to the musical compositions used by broadcasting
stations, by means of which information the members of defendant
Society have been and are enabled to conduct their operations
through defendant Society so as to prevent the development of com¬
petition between members of defendant Society and owners of copy¬
righted musical compositions who are not members of defendant
Society, and have been and are enabled to maintain their combined
power to compel radio broadcasting stations and all others requiring
music in the conduct of their business to obtain licenses from de¬
fendant Society for the public performance of musical compositions
owned or controlled by the members of defendant Society upon
such terms and conditions as may be demanded by defendant Society.
XXVII.
That the members of defendant Society have agreed to restrict
and withdraw at the will of the copyright owner, from radio broad¬
casting stations licensed by defendant Society the right to perform
by broadcasting any individual musical composition and have so
restricted and withdrawn musical compositions from broadcasting
in order to enforce their demands for royalties from others. By this
means members of defendant Association, through defendant, John
L. Stanley, acting as agent and trustee for such members and others,
has maintained and utilized defendant Society as an instrumentality
of oppression, monopoly and trust.
XXVIII.
That the Defendant Association as pleaded aforesaid has avoided
and breached the laws and Constitution of the State of Washington,
and continues so to do by transacting its business in this State with
the citizens thereof, among them the Defendant Radio Stations as
hereinbefore named, and without submitting to the control and regu¬
lation of the Laws of this State.
XXIX.
That the Defendant Radio Stations, among other citizens of the
State of Washington, have at all times hereinbefore mentioned, con¬
tinued to aid, abet and contribute to the illegal and unlawful
monopoly and trust of said defendant Society and its members as
hereinbefore pleaded ; that each and every radio station named as a
Defendant in this action by voluntarily submitting to and becoming
a party to the said illegal combination and trust, whether by con¬
tract or license, has made it possible and now makes it possible for
Defendant Society to control and fix prices and limit free trade and
competition in the sale of the performing rights of all musical
compositions, to the detriment of the citizens of the State of Wash¬
ington, and against the peace and dignity of said state, and with
the result of effectually enabling Defendant Society and its agents,
members and officers, to avoid the control which the duly con¬
stituted officers and authorities of the State of Washington should
assert over them, and, therefore, are parties to the successful con¬
clusion of the illegal combination, monopoly and trust, as is operated
by said Society and its members.
XXX.
That as a result of the participation of said Defendants and each
of them in the said illegal conspiracy, monopoly and trust, defendant
Society has been effectually enabled to fix and control prices and
limit production, contrary to the intent and meaning of the Con¬
stitution of the State of Washington, and that unless all of the
Defendants are restrained by this Honorable Court, said Society will
continue to operate in disobedience to the laws of this State, and said
Defendant Radio Stations will continue to aid and abet said illegal
monopoly and trust by paying to said Society various and sundry
sums of money, all of which is to the detriment of the people of
the State of Washington, and with the result of making it possible
for the defendant Society to continue to regulate, fix and control
prices and limit production and to carry on its said illegal combina¬
tion, conspiracy, monopoly and trust, as hereinbefore alleged.
XXXI.
That the Complainant has no plain, speedy and adequate remedy
at law, and unless a restraining order is granted against the defend¬
ants, and aech of them, as hereinbefore requested, the people of
the State of Washington will be subjected to irreparable harm,
damage and injury, and the business of the defendants, and each
of them, as conducted, as hereinbefore set forth, will be and is a
detriment to the people of the State of Washington, and against
public policy and public interest.
WHEREFORE PETITIONER PRAYS:
1. That the combinations, conspiracies, agreements and activities
of the defendants described in this petition be declared to be and
do constitute a conspiracy and monopoly in restraint of trade and
commerce, and are illegal and in violation of the Constitution and
Laws of the State of Washington, and that all agreements and
licenses between the Society and the Defendant Radio Stations and
various and other sundry individuals, firms and corporations, with
whom the Society has dealt, and with whom they threaten to deal
with in the future, be declared to be illegal and void.
2. That defendants and each of them, and each and all of their
respective members, officers, managers, agents, employees, and all
persons acting or claiming to act for or on behalf of them, or any
of them, be perpetually enjoined individually and collectively,
a. From further engaging in, agreeing to perform, or performing,
said conspiracy or any part thereof, or any other conspiracy
of like character or effect, or any of the acts, agreements, under¬
standings or concerts of action described in this petition ;
b. From entering into any agreements or licenses for the public
performance of musical compositions owned and controlled by
them, or any of them, providing for the payment of royalty
determined upon any basis except such as is predicated upon
free and open competition between copyright owners with the
royalty on individual musical compositions fixed and deter¬
mined by the copyright owner thereof acting independently
in his or its own discretion ;
1188
c. From joining, becoming a part of, or in any manner becoming
associated with, any association, firm or corporation for the
issuing of general or blanket agreements, or licenses to perform
publicly musical compositions, unless the facilities of such asso¬
ciation, firm or corporation are open to all owners of copy¬
righted musical compositions upon an identical and equal basis
and unless the general or blanket agreements or licenses issued
or to be issued by such association, firm or corporation shall
provide for the payment by the licensee of such royalty as is
fixed and determined by the copyright owner of each musical
composition publicly performed by such licensee ;
d. From commencing or prosecuting any suits or actions for al¬
leged infringement of copyright against any licensee whose
agreements or license may be declared illegal and void herein.
3. That a temporary restraining order be issued and directed to
said defendant Society and its members and to Defendant, John L.
Stanley, and to each and every one of them, restraining and enjoin¬
ing them from conducting their business as hereinbefore alleged and
that said radio stations be restrained from making any further pay¬
ments whatever to the Society, or any person acting on its behalf,
or from permitting the Society, or any person on its behalf, to have
access to the books and records of Defendant Radio Stations, or
from making any further agreements whatever with the Society, and
from doing any other act according to the terms of any agreement
now in existence, except to preserve the status quo thereof, until
further order of Court, and that on the return hereof, the Court
should grant a temporary injunction, and that after a hearing on
the merits, said temporary injunction should be made permanent.
4. That the petitioner have such other, further and general relief
as the nature of the case may require and the Court may deem
proper in the premises, together with costs.
G. W. HAMILTON,
Attorney General of the State of
Washington; and
E. P. DONNELLY,
Assistant Attorney General,
Attorneys for Plaintiff.
State of Washington 1
County of Thurston j
G. W. HAMILTON, being first duly sworn, on oath deposes and
says: That he is the duly elected, qualified and acting Attorney
General of the State of Washington, and makes this verification
as such officer. That he has read the foregoing Complaint, knows
the contents thereof, and believes the same to be true.
G. W. Hamilton.
SUBSCRIBED and sworn to before me this 24 day of June 1935.
Jennie M. Tattersall,
Notary Public in and for the State of Wash¬
ington, residing at Olympia.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
NO. 16114— TEMPORARY RESTRAINING ORDER AND
ORDER TO SHOW CAUSE
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
v.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President ; LOUIS BERNSTEIN, its Vice-President ; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND RUMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc.,
a corporation; KVOS, Inc., a corporation; KGY, Inc., a cor¬
poration; SEATTLE BROADCASTING CO., a corporation;
RADIO SALES CORPORATION, a corporation; KVL, Inc., a
corporation ; SPOKANE BROADCASTING CORPORATION, a
corporation; SYMONS BROADCASTING CO., a corporation;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion; KUJ, Inc., a corporation; WESTCOAST BROADCASTING
CO., a corporation; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants.
This matter coming on for hearing on the application of the
state of Washington for this temporary restraining order and it ap¬
pearing to the court that the matter is of public importance and
the ends of justice require the issuance of this order and it appear¬
ing from the affidavits accompanying the motion for this order
that the defendant, society, has its principal office in New York
and that, therefore, a reasonable time should be given to the said
society and other defendants involved to fully present the merits
of this controversy and it appearing that no bond is required of
the state of Washington and that the importance of this case is
such as to justify the taking of oral testimony on oath in open
court in addition to such affidavits as counsel for any party may
wish to file on the return of this order NOW THEREFORE
IN THE NAME OF THE STATE OF WASHINGTON, IT IS
BY THE COURT ORDERED, ADJUDGED AND DECREED,
That you, American Society of Composers, Authors and Publish¬
ers, and each and every director, officer, member, manager or agent
thereof and particularly you, John L. Stanley, be and each of you
hereby are restrained until further order of this court from mak¬
ing any new agreements whatever with any individual or corpora¬
tion in the state of Washington for the use of copyrighted music
controlled by you; From making any collections or receiving any
money from any person or corporation in the state of Washington
on any agreement now in existence whereby the society is to receive
money for the use of copyrighted music controlled by it and par¬
ticularly you are restrained from having any access to the books
of defendant broadcasting stations named in this action from
making any other or further agreement with said broadcasting
stations regarding the use of copyrighted music; from receiving or
accepting any moneys whatever from said radio broadcasting sta¬
tions and from taking any action in any court whatever in any
way effecting the use of copyrighted music of said radio broad¬
casting stations and from doing any other thing which may in any
way hinder the true presentment of the facts as to your method
of doing business on the return of this order and specifically are
you and each of you restrained from taking any step whatever to
embarrass defendant radio broadcasting stations in the conduct of
their business either by attempting to collect money from them or
by attempting to prohibit the use of copyrighted music, until fur¬
ther order of this court.
IN THE NAME OF THE STATE OF WASHINGTON, IT IS
FURTHER ORDERED, ADJUDGED AND DECREED, That
you, KXRO, Inc., a corporation; KVOS, Inc., a corporation; KGY,
Inc., a corporation; SEATTLE BROADCASTING CO., a corpo¬
ration; RADIO SALES CORPORATION, a corporation; KVL,
Inc., a corporation; SPOKANE BROADCASTING CORPORA¬
TION, a corporation; SYMONS BROADCASTING CO., a corpo¬
ration; LOUIS WASMER, Inc., a corporation; KMO, Inc., a cor¬
poration; KUJ, Inc., a corporation; WEST-COAST BROAD¬
CASTING CO., a corporation; CARL E. HAYMOND d/b/a
Radio Station KIT, a corporation; and each of you be and you
hereby are restrained until further order of this court from in any
manner making any further payments to defendant society or any
of its members, directors, officers, agents or legal representatives,
until further order of this court and that you and each of you
hereby are restrained from allowing any of the members, agents
or representatives of said society to have any access to your books
until further order of this court and you are likewise restrained
from making any new agreement whatever with said society or
any of its members or representatives and you are restrained until
further order of this court from doing any act or series of acts
other than to continue the use of the copyrighted music con¬
trolled by the society, keeping a record of what music is used
without making any payments whatever on existing agreeemnts
or contracts and without making any new agreements or contracts
until the legality of said agreements and contracts and the legality
of the business methods of the societv, is determined in this action.
IN THE NAME OF THE STATE OF WASHINGTON, IT IS
FURTHER ORDERED, ADJUDGED AND DECREED, That
each of the defendants named in the caption of this action and in
this restraining order, be and appear in this court on the 22d day
of July at 10 o’clock A.M., then and there to show cause if any,
they or any of them may have, why this temporary restraining
order should not be continued in force and effect until the trial
of this action on the merits and that at said time and place you
and each of you be prepared with such a showing as you may
desire, by way of affidavit or oral testimony, and you and each
of you are hereby notified that on account of the public importance
of the issues presented and the fact that the interests of defend-
1189
ants in other states are effected, the court has given in its opinion
sufficient time to allow for a complete presentation of the per¬
tinent facts on the return of this order. This order shall be effec¬
tive without the requirement of a bond by virtue of chapter
122, Laws of Washington for 1935.
Done in open court this 24th day of June, 1935.
D. F. Wright,
Judge.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
NO. 16114— MOTION AND AFFIDAVIT FOR RESTRAIN¬
ING ORDER
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
v.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President ; LOUIS BERNSTEIN, its Vice-President; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND RUMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc.,
a corporation; KVOS, Inc., a corporation; KGY, Inc., a cor¬
poration; SEATTLE BROADCASTING CO., a corporation;
RADIO SALES CORPORATION, a corporation; KVL, Inc., a
corporation; SPOKANE BROADCASTING CORPORATION, a
corporation; SYMONS BROADCASTING CO., a corporation;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion ; KUJ, Inc., a corporation ; WESTCOAST BROADCASTING
CO., a corporation; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants.
Comes now plaintiff above entitled and on the affidavits hereto
attached and the complaint on file herein, moves this honorable
court for an order restraining defendants from further participa¬
tion in the unlawful and illegal manner of conducting their business
as alleged in plaintiff’s complaint.
G. W. Hamilton,
Attorney -General.
E. P. Donnelly,
Assistant Attorney-General.
Attorneys for Plaintiff.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
No. 16114— AFFIDAVIT OF SENATOR GEORGE A. LOVEJOY
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
v.
AMERICAN SOCIETY OF COMPOSERS. AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President ; LOUIS BERNSTEIN, its Vice-President ; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND RUMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc.,
a corporation; KVOS, Inc., a corporation; KGY, Inc., a cor¬
poration; SEATTLE BROADCASTING CO., a corporation;
RADIO SALES CORPORATION, a corporation; KVL, Inc., a
corporation; SPOKANE BROADCASTING CORPORATION, a
corporation; SYMONS BROADCASTING CO., a corporation;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion ; KUJ, Inc., a corporation ; WESTCOAST BROADCASTING
CO., a corporation ; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants.
State of Washington j
County of King, j
GEORGE A. LOVEJOY, being first duly sworn on oath deposes
and says: That he is a Senator from the 36th District, King county,
state of Washington, and a citizen of said state; that I have read
the petition herein and know that the defendants as therein alleged
are perpetrating a great wrong on the people of this state by said
illegal combination and monopoly ; that I have no interest, one way
or another, in the outcome of this action except to see that the
Constitution and the laws of the state of Washington are com¬
plied with and that all monopolies and trusts are forever broken
and dissolved;
That from my sources of information, the acts of the defendants,
as alleged in the attorney-general’s position, are odious and detri¬
mental to the people of this state and that their business consti¬
tutes a combination and a conspiracy to fix and control prices
which is in restraint of trade and stifles free and untramelled com¬
petition within this state in the sale of musical compositions and
the rights to performing rights therein.
That the best interests of the people of this state would be
better preserved if this business combination of defendants were
forever divorced and severed by law, and that a restraining order
should issue pending the outcome of this suit so that the defendant
society, or any of its agents, should not reap any of its ill-gotten
gains in the interim.
GEORGE A. LOVEJOY.
Subscribed and sworn to before me this 22nd day of June, 1935.
JENNIE M. TATTERSALL,
Notary Public in and for the state of
Washington, residing at Olympia.
State of Washington, 1
County of Thurston, j
E. P. DONNELLY, being first duly sworn on oath deposes and
says: That he is a duly appointed, qualified and acting assistant
attorney general of the state of Washington and that he has been
heretofore delegated to investigate the business activities of de¬
fendants in this action; that he has made such investigation as is
possible in the State of Washington and from such investigation
believes and states:
That defendant, American Society of Composers, Authors and
Publishers, referred to in this action as the “society,” was and now
is an unincorporated association organized and existing under and
by virtue of the laws of the state of New York with its principal
place of business in the city of New York.
That under the laws of New York the society, to all intents
and purposes, carries on business as though it were a corporation
in that it has a board of directors who manage the affairs of the
society through regular officers and that its president, vice-presi¬
dents secretary, assistant secretary, treasurer, assistant treasurer,
counsel and general manager, are correctly named in the caption
hereof.
That all of said officials reside outside of the state of Washington
but that defendant, John L. Stanley, is the local agent and manager
of the society which has its Washington office in the city of Seattle,
Washington; that John L. Stanley, as such agent, represents the
society in Washington in the transaction of its said business and is
apparently fully authorized so to do.
That the membership of the society is admittedly composed of
more than 800 authors, publishers and composers of musical works,
representing all popular and acceptable music and that the society
actually owns, by assignment, the copyrights of each and every
member thereof and controls all rights relative to the public per¬
formance for profit of all musical works and compositions of
said members.
That the society is ostensibly organized to protect the members
thereof but that its real purpose and the end which it has actually
accomplished is to effectually and actually fix the prices to be paid
by persons desiring to use, for profit, any of the musical produc¬
tions of any of the members; that the society has effectually con¬
trolled and fixed the prices to be paid in the state of Washington
by theatres, motion picture theatres, restaurants, hotels, cabarets,
inns, circuses, carnivals, dance halls, concerts, reviews, music halls
and radio broadcasting stations among others.
That said society has such a monopoly in the distribution of the
right to use the acceptable and popular copyrighted music that for
many years, and admittedly since August 1, 1933, no person, firm
or corporation other than the society, has received or collected any
royalties or other compensation for the public production, for profit,
in the state of Washington, of any copyrighted musical work what¬
ever.
That the society does and has, for many years, deprived the in¬
dividuals in the state of Washington, desiring to use copyrighted
music for profit, of the right to bargain for the particular copy-
1190
righted music desired, but as a result of the illegal combination and
monopoly has been able to and has forced each and every person
and individual desiring to use any copyrighted music to pay an
arbitrary price fixed by the society for all copyrighted music con¬
trolled by the society.
That as a result there is, in the state of Washington, at this time,
no right whatever on the part of any person to bargain or deal
with any individual, writer or composer for his individual output
and that all competition is effectually done away with.
That among the persons in the state of Washington frequently
having occasion to use in public, for profit, copyrighted music, are
radio broadcasting stations; that the radio broadcasting stations
named as defendants in this action, among other stations in the
state of Washington, have entered into agreements with defendant
society whereby in effect in return for the right to use the entire
output of the society publicly for profit, they pay to the said
society a percentage of their earnings as well as a fixed sum pay¬
able at stated intervals.
That the radio corporations, named as defendants in this action
by said practices, have made it possible for the society to control
the entire field of the distribution of copyrighted musical works
in the state of Washington and have made it impossible for smaller
individuals or organizations, such as hotels and small organizations,
to do anything else than to submit to the terms dictated by de¬
fendant society.
That as a result, at this time, the society is enjoying a complete
monopoly in the distribution of the right to use copyrighted music
in the state of Washington for profit, and enjoying this monopoly
the society has necessarily decreased the use thereof and increased
the price thereof to the detriment of the people generally.
That the society is so organized and managed by persons with
years of legal experience that it is apparently without existence as
an entity in this or other states and that society so conducts its
business as to make it practically impossible to prove the true
method of transacting its business without the members thereof
and the individuals who conspire and contribute to the accom¬
plishment of the illegal monopoly being restrained until the validity
of the agreement or understanding and the method of transacting
business is determined.
That the society has in the past and now continues to hold over
the heads of different individuals desiring to use copyrighted music
for profit, the threats of prosecutions unless a fixed and stipulated
sum is paid for all copyrighted music controlled by the society
and that in order to obtain a decision as to legality of the acts
in business carried on by the society in the manner in which it is
carried on in the state of Washington, it is necessary that the
said society be restrained until further order of this honorable court
from the bringing of any action whatever based upon any agree¬
ments heretofor made; it is necessary also that said society be re¬
strained from making any other or different agreements until
further order of this court and until the legality of said agreements
and said method of doing business is determined in this action.
That this action is brought on behalf of the state of Washington
and that affiant is duly authorized to represent the state in this
action and makes this showing to the best of his knowledge and
belief supporting the state’s application for the issuance of a tem¬
porary restraining order.
That no bond is required of the state of Washington in order to
support said restraining order by virtue of chapter 122, Laws of
1935.
E. P. DONNELLY.
Subscribed and sworn to before me this 24th day of June, 1935.
JENNIE M. TATTERSALL,
Notary Public in and for the state of
Washington, residing at Olympia.
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
SOUTHERN DIVISION
No. 564.— MEMORANDUM DECISION ON MOTION TO
REMAND.
Filed Dec. 12, 1935
STATE OF WASHINGTON, ex rel, G. W. Hamilton, Attorney-
General, Plaintiff,
us.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; GENE BUCK,
its President; LOUIS BERNSTEIN, its Vice-President; JEROME
KERN, its Vice-President; JOSEPH YOUNG, its Secretary;
ROBERT CRAWFORD, its Assistant Secretary; SAUL H.
BORNSTEIN, its Treasurer; SIGMUND ROMBERG, its As¬
sistant Treasurer; NATHAN BURKAN, its Counsel; E. C.
MILLS, General Manager; JOHN L. STANLEY; KXRO, Inc., a
corporation; KVOS, Inc., a corporation; KGY, Inc., a corpora¬
tion; SEATTLE BROADCASTING CO., a corporation; RADIO
SALES CORPORATION, a corporation; KVL, Inc., a corpora¬
tion; SPOKANE BROADCASTING CORPORATION, a cor¬
poration ; SYMONS BROADCASTING CO., a corporation ;
LOUIS WASMER, Inc., a corporation; KMO, Inc., a corpora¬
tion ; KUJ, Inc., a corporation ; WESTCOAST BROADCASTING
CO., a corporation; CARL E. HAYMOND d/b/a Radio Station
KIT, a corporation, Defendants,
GREENHALGH AMUSEMENT CORPORATION, a corporation,
Intervener.
G. W. Hamilton, Attorney-General, and
E. P. Donnelly, Assistant Attorney-General, Olympia, Wn.
Attorneys for Plaintiff,
Palmer, Askren, Brethorst and H. W. Haughland, and
Ryan, Askren & Ryan, Northern Life Tower, Seattle, Wn.,
Attorneys for defendant American Society of Composers,
Authors and Publishers, an unincorporated association,
specially appearing,
Byers. Westberg & James, 310 Marion Bldg., Seattle, Wn.,
Attorneys for defendants KGY, Inc., and Seattle Broadcast¬
ing Company,
Kenneth C. Davis, 1514 Northern Life Tower, Seattle, Wn.,
Attorney for defendants KVOS, Inc., a corporation; Spokane
Broadcasting Co., a corporation; KUJ, Inc., a corpora¬
tion; Westcoast Broadcasting Co., a corporation; Carl E.
Haymond d/b/a Radio Station KIT ; KMC, Inc., a cor¬
poration; KVL, Inc., a corporation and KXRO, Inc., a
corporation,
Post, Russell, Davis & Paine, Box 2193, Spokane, Wn.,
Attorneys for defendant Symons Broadcasting Co., a cor¬
poration,
Sherwood & Herman, 1411 Fourth Ave. Bldg., Seattle, Wn.,
Attorneys for Greenhalgh Amusement Corporation, Inter¬
vener.
The voluminous transcript in this cause doubtless affords mate¬
rial for an extended statement but one does not appear necessary.
The State of Washington, upon relation of its Attorney Gen¬
eral, brought suit in the Superior Court of the State for Thurston
County, against the defendants alleging that the American Society
of Composers, Authors and Publishers is organized and exists
under the laws of the State of New York as an unincorporated
association of music composers, authors and publishers; that it is
actually engaged in and transacting business in the form and name
of a corporation in the State of Washington; that the defendant
John L, Stanley is authorized to represent the defendant society
in such State ; that he is domiciled in and transacts therein its
business.
It is alleged that the membership of the defendant society com¬
prises approximately one hundred publishers and approximately
eight hundred composers. They are made defendants but, on ac¬
count of the large number of members, the named officers and
agents of the society are sued as their representatives. Other de¬
fendants are alleged to operate radio stations in the State of
Washington— a number in this district and others in the Eastern
District of Washington — . Owners and operators of theaters are
also named as parties defendant.
For the sake of brevity the defendant operators of radio stations
and the owners and operators of theatres will be herein designated
as “users.”
The complaint alleges the existence of a conspiracy on the part of
the defendants and others to restrain trade and commerce in the
State of Washington, and contains a prayer, in part, that defendants
1191
be enjoined from further conspiring and from performing the con¬
spiracy and for general relief.
After the entry of a default against the defendant society, the filing
of an amended complaint and the granting of an injunction, upon
petition of the Attorney General for the appointment of a receiver
to preserve the jurisdiction of the Court and the assets of the de¬
fendant society, the Court, on August 13th, 1935, appointed a tem¬
porary receiver to take possession of the business and property of
the defendant society in the State of Washington.
Ten days later the defendant society petitioned the Superior Court
for the removal of the cause to this court. The petition was refused.
A transcript of the proceedings in the State Court was filed in
this Court, the defendant society notified the plaintiff of such filing,
following which the plaintiff, by its attorney general, moved that
the cause be remanded — among others — upon the ground that the
action was begun by the State in its sovereign capacity to enforce
by injunction its criminal laws. See Article XII, Sec. 22 of the
Washington Constitution and Sec. 2382, sub-sections 6 and 7, Rem¬
ington’s Revised Statutes of Washington.
PLAINTIFF cites: Sec. 2382, sub-section 6, Remington’s Revised
Statutes of Washington; Article 12, Section 22, Constitution of the
State of Washington; Article 12, Section 5, Constitution of the State
of Washington; Sec. 226, sub-section 9, Remington’s Revised Stat¬
utes of Washington; Georgia Trust Co. v. State of Georgia, 109 Ga.
736, 35 S. E. 323 ; 41 Corpus Juris 198 ; State v. Racine, 63 Tex. Civ.
Appeals 663, 134 S. W. 400; 41 Corpus Juris 127 ; State ex rel Dunbar
v. American University, 140 Wash. 625, 633 ; United States v. Ameri¬
can Society of Composers, Authors and Publishers, Cause No. — ,
United States District Court for the Southern District of New York ;
11th Amendment to the Constitution of the United States; Hartford
Insurance Co. v. Chicago, Milwaukee & St. Paid Railway Company ,
175 U. S. 91 ; Howard v. Fleming, 191 U. S. 126; Pratt v. Paris Gas
Light & Coke Company, 168 U. S. 255; Randall v. Brigham, 74
U. S. 523; Boyd v. Alabama, 94 U. S. 645; In re Jordan, 49 Fed.
238; Carl Laemmle Music Co. v. Stern, et al., 209 Fed. 129; Ger¬
mania Insurance Company v. Wisconsin, 119 U. S. 473; Terrace v.
Thompson, 263 U. S. 197 ; Waverly Stone & Gravel Co. v. Waterloo,
C. F. & N. Ry. Co., et al., 239 Fed. 561-564; Pullman Palace Car
Company v. Speck, et al., 113 U. S. 84; Schipper, et al., v. Consumer
Cordage Co., Ltd., 72 Fed. 803; Kansas City Railroad v. Daughtry,
138 U. S. 298-303 ; Wisconsin v. Pelican Insurance Company, 127
U. S. 265-268-270; City of Montgomery, Ala., v. Postal Telegraph
Cable Co., et al., 218 Fed. 471-475; Huntington v. Attrill, 146 U. S.
657-672; State of Iowa v. Chicago, B. & Q. R. Co., 37 Fed. 497;
Shehane v. Smith, 257 Fed. 823-5; Straus v. American Publishers’
Association, 231 U. S. 222; Sec. 2384 and Sec. 2610, Remington’s
Revised Statutes of Washington; Daugherty v. Sharpe, et al., 171
Fed. 466; M acGinnis v. Boston Copper and Silver Mining Company,
119 Fed. 96; Heller v. Ilwaco Mill and Lumber Co., 178 Fed. Ill ;
Southern Pac. Co. v. Stewart , 245 U. S. 363 ; Maloney, Attorney
General v. American Tobacco Co., 72 Fed. 801; City of Mont¬
gomery v. Postal Telegraph Co., 218 Fed. 471; State of Arkansas
v. St. Louis Ry. Co., 173 Fed. 572; Wisconsin v. Pelican Insurance
Co., 127 U. S. pp. 290, 291, 294; State of Iowa v. Chicago, B. & Q.
Ry. Co., 37 Fed. 497 ; Huntington v. Attrill, 146 U. S. 668; State of
Indiana v. Alleghany Oil Co., 85 Fed. 870; Ferguson v. Ross, 38 Fed.
161; State of Indiana v. Tolleston Club of Chicago, 53 Fed. 18;
State of Alabama v. Wolfe, 18 Fed. 836; Grinnell v. Johnson, 28
Fed. 2; Postal Telegraph Cable Co. v. State of Alabama, 155 U. S.
482; Germania Insurance Company v. Wisconsin, 119 U. S. 473;
Arkansas v. Kansas City & Texas Coal Co., 183 U. S. 185; State v.
Morey, 105 Pac. 501; National Harrow Co. v. Hench, 83 Fed. 36;
Hoit v. Bates, 81 Fed. 641 ; Carl Laemmle Music Co. v. Stern, 209
Fed. 129; Charroin v. Romort Manufacturing Co., 236 Fed. 1011;
Straus v. American Publishers’ Association, 231 U. S. 222 at 234;
Motor Truck Ass’n of Western Mass. v. Daley, 8 Fed. Supp. 672;
Huntington v. Pinney, 126 Fed. 237 ; Thompson v. Chicago, St. Paul
Railroad Co., 60 Fed. 773; Murphy v. Johnson, 49 Fed. (2d) 410;
BPytheville Ry. Co. v. St. Louis-San Francisco Ry. Co., 33 Fed. (2d)
481; Von Herberg v. City of Seattle, 27 Fed. (2d) 457; Maloney v.
Cressler, 210 Fed. 105; Miller v. Clifford, 133 Fed. 880; Gates Iron
Works v. James E. Pepper & Co., 98 Fed. 449; McMillan v. Noyes,
146 Fed. 926; Regis v. United Drug Co., 180 Fed. 201; Gidlidge v.
Director General of Railroads, 270 Fed. 276 ; Chicago & Rock Island
v. Whitaker, 36 S. Ct. Rptr. p. 152 ; Alabama Great Southern Ry. v.
Thompson, 26 S. Ct. Rptr. p. 163 ; Egyptian Novaculite Co. v.
Stevenson, 8 Fed. (2d) 576; Vener v. Great Northern, 209 U. S.
24, 32; Sec. 2690, Remington’s Revised Statutes of Washington;
State of Texas v. Day Land and Cattle Company, 49 Fed. 593.
REMOVING DEFENDANT cites: Powers v. Chesapeake & Ohio
R. Co., 169 U. S. 91, 42 L. Ed. 673 ; Brashear v. Louisville & N . R.
Co., 32 Fed. (2d) 373; Kincheloe v. Hopkins, 4 Fed. Supp. 196;
Berry v. St. Louis & S. F. R. Co., 118 Fed. 911 ; Allen v. New York
P. & N. R. Co., 15 Fed. (2d) 532; Gable v. Chicago, M., St. P. &
P. R. Co., 8 Fed. Supp. 944; Niccum v. Northern Assurance Com¬
pany, 17 Fed. (2d) 160; Bedell v. B. & O. R. Co., 245 Fed. 788;
McKinlay v. Puget Sound Bridge & Dredging Co., 6 Fed. Supp.
114; Meyer v. Del. R. R. Con. Co., 100 U. S. 457, 25 L. Ed. 598;
Boatmen’s Bank v. Fritzlen, et al., 135 Fed. 650; Hutton v. Joseph
Bancroft & Sons Co., 77 Fed. 481 ; Baker v. Duwamish Mill Co.,
149 Fed. 612 ; Consolidated Textile Corporation v. lserson, 294 Fed.
289; Evers v. Watson, 156 U. S. 527; Carson v. Hyatt, 118 U. S.
279; Simkins Federal Practice, Revised Edition, Sec. 1168; Barney
v. Latham, 103 U. S. 205, 26 L. Ed. 514; Warax v. Cincinnati, etc.,
R. R. Co., 72 Fed. 637 ; Gulf, etc., Co. v. Gulf Refining Co., 260 Fed.
262; 35 Stat. 1075, 1088, Title 17, U. S. C. A., Sec. 1; West Pub¬
lishing Co. v. Edward Thompson Co., 169 Fed. 833; State of Cali¬
fornia v. Southern Pac. Ry. Co., 118 U. S. 109, 30 L. Ed. 103; Ames
v. Kansas, 111 U. S. 449; 54 C. J. 234, Sec. 53; State of Oregon v.
Three Sisters Irr. Co., 158 Fed. 346; The Mill Co. v. Casey, 189
NYS 275; Stevens v. Gladding and Proud. 58 U. S. 447: 15 L. Ed.
155; Feibleman v. Packard, 109 U. S. 426, 27 L. Ed. 984; Barnette
v. Wells-Fargo National Bank, 270 U. S. 438, 70 L. Ed. 669 ; Hopkins
v. Walker, 244 U. S. 486, 61 L. Ed. 1270; First National Bank v.
Williams, 252 U. S. 504. 64 L. Ed. 692 ; Littlefield v. Perry, 88 U. S.
205, 22 L. Ed. 577 ; Excelsior Wooden Pipe Co. v. Pacific Bridge
Co., 185 U. S. 281, 46 L. Ed. 1911 ; Woods Sons Company v. Valley
Iron Works, 166 Fed. 770; Wooster v. Crane & Co., 147 Fed. 515;
Hartford Fire Insurance Co. v. Kansas City, etc., R. Co., 251 Fed.
332; State ex rel Dept, of Public Works v. Northern Pacific R. R.
Co., 172 Wash. 37; Ex Partee Nebraska, 209 U. S. 436, 52 L. Ed.
876; 25 C. J. 741; State of Indiana v. Glover, 155 U. S. 513, 39 L.
Ed. 243; Maryland v. Baldwin, 112 U. S. 490, 28 L. Ed. 822; State
v. Frost, 89 N. W. 915, 113 Wis. 623; Gruetter v. Cumberland, etc.,
Co., 181 Fed. 248; State of Ohio v. Swift & Co., 270 Fed. 141 ; Ward,
et al., v. Congress Const. Co., 99 Fed. 598; Boyd v. Bradish, et al.,
10 Fed. 406; Simkins Federal Practice, Revised Edition, page 1036,
Sec. 1177 ; Kanouse v. Martin, 15 How. 198, 14 L. Ed. 660; Note 202,
U. S. Code Annotated; Straus v. American Publishers’ Association,
231 U. S. 222.
CUSHMAN, District Judge:
On account of the conclusion reached it is not now necessary to
determine whether the petition for removal was timely filed or not.
The complaint alleges, in effect, that the defendant society domi¬
nates, in the State of Washington, commerce in compositions of the
character described, controlling and owning approximately ninety-
five per cent of the copyrighted acceptable and popular musical
compositions published in the United States.
While the compositions owned and controlled by the defendant
society may be copyrighted, a suit to enjoin a conspiracy to restrain
commerce and trade in such compositions is not one arising under
the copyright laws of the United States. Straus v. American Pub¬
lishers’ Association, 231 U. S. 222-234. See also Standard Oil Co. v.
United States, 283 U. S. 163.
The allegations made in the petition for removal are not of a
nature to bring the case within Section 31 of the Judicial Code
(Title 28. U. S. C. A., Sec. 74).
In the petition for removal are allegations of collusion and the
fraudulent bringing of the suit ostensibly in the name of the Attorney
General but for and on behalf of the defendant users.
If it be conceded that it has been shown that the Attorney General
consented to the assertion in this litigation of claims by certain of
the defendant users against the defendant society, or that he sought
the granting of more favorable terms by the defendant society to
such users, — if done by him with the purpose of protecting the pub¬
lic of the State, it would not amount to fraud upon his part, and, if
he failed to disclose such purpose at once, that fact would not be a
concealment of a fraudulent character.
From time immemorial the Attorney General, using the testimony
of an accomplice — even an accomplice of a murderer — would im¬
pliedly promise that accomplice immunity. Whiskey Cases, 99 U. S.
594-605-606; Saunders v. Lowry, 58 Fed. (2d) 158.
Nothing has been shown that would impute to the Attorney Gen¬
eral any purpose beyond that of protecting the public by such
means.
So, in this case it may be conceded that the fraudulent prosecu¬
tion by the Attorney General of a suit such as this — whether fraud
was actual or constructive — would, in law, insofar as such suit was
concerned, strip him of such official character, reducing him to the
1192
status of an individual litigant, and change the state’s case from one
brought as a sovereign to one of a civil nature, which, other require¬
ments existing, would be removable.
In such a case the court would, it may further be conceded, be
concerned with a reallignment of parties plaintiff and defendant, the
existence of a separable controversy and diversity of citizenship, but,
absent such fraud, such a case — being one by the State — is not re¬
movable. Minnesota v. Northern Securities Co., 194 U. S. 48-63 ;
Postal Telegraph Cable Co. v. Alabama, 1SS U. S. 482-487 ; Ames
v. Kansas, 111 U. S. 449; Stone v. South Carolina, 117 U. S. 430;
Germania Insurance Co. v. Wisconsin, 119 U. S. 473.
It has been further contended on behalf of the removing defendant
that by requesting the appointment of a receiver to take over the
public performing rights in musical numbers, the copyrights of which
are held by the defendant society, and its members, and the request
that the receiver be authorized to extend existing contracts and make
new contracts, thereby there was presented a federal question. Such
action and that of the Court taken pursuant to it did not render
the cause removable. Such action was incidental to the main suit.
Insofar as the decision in State of Ohio v. Swift & Co., 270 Fed.
141, is similar to the present suit, it supports the motion to remand
rather than the petition for removal. The validity of no state law
nor state court construction thereof violative of the Constitution of
the United States are in question in the present suit.
The motion to remand will be granted.
Any order or orders embodying the rulings herein made will be
settled upon notice.
The Clerk is directed to notify the attorneys for the parties of the
filing of this decision.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
No. 16114— RECEIVER’S REPORT
STATE OF WASHINGTON ex rel. G. W. Hamilton, Attorney
General, Plaintiff,
vs.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association, et al., Defendants,
GREENHALGH AMUSEMENT CORPORATION, a corporation,
Intervenor.
To: The Honorable D. F. Wright, Judge of the Above Entitled
Court.
Comes now TRACY E. GRIFFIN, the duly qualified and acting
temporary Receiver of the American Society of Composers, Authors
and Publishers, an unincorporated association, and shows to this
Court as follows:
I.
That pursuant to order of this Honorable Court, dated August
13th, 1935, your Receiver, having duly qualified, took into his
possession all of the assets of the American Society of Composers,
Authors and Publishers as shown by previous reports on file herein ;
that the principal asset of the American Society of Composers,
Authors and Publishers, as shown by the evidence and as found
by the Court, was the title to copyrighted music which had,
together with the public performing rights thereof, been exclu¬
sively vested in the American Society of Composers, Authors and
Publishers by assignments from the various members of said
Society, a partial list of such membership being attached hereto and
marked Exhibit ‘'A” and by this reference made a part hereof.
II.
That although title to said copyrighted musical compositions
vested in your Receiver as of August 13th, 1935, by order of this
Honorable Court, your Receiver has given no notice thereof, but
has confined his efforts to preserving the property of the Society
of American Society of Composers, Authors and Publishers and has
maintained in full force and effect all previous contracts for the
use of said music between the American Society of Composers,
Authors and Publishers and the users thereof in the State of
Washington, as was authorized by order of this Honorable Court
on August 24th, 1935.
III.
That Defendant American Society of Composers, Authors and
Publishers heretofore filed in this cause and court a petition for
removal of this action to the United States District Court for the
Western District of Washington, Southern Division; that said
petition was by this court refused, but pursuant to law, a tran¬
script of the proceedings in this cause was filed in the said United
States District Court ; that the State of Washington thereupon filed
a motion to remand said cause back unto this court; that said
motion to remand came on for hearing, was argued and taken
under advisement. That on the 12th day of December, 1935, the
Honorable Edward E. Cushman, United States District Judge,
made and entered his memorandum decision granting the State
of Washington motion to remand; that notice of said memorandum
decision remanding this cause to this court has been given to all
counsel by the Clerk of the said United States Court.
IV.
That your Receiver respectfully represents and shows to this Court
that in his opinion it is necessary that notice be given that the
title to the copyrighted works of each and every member of the
American Society of Composers, Authors and Publishers, as listed
in Exhibit “A”, has been vested in your Receiver by order of this
Court, dated August 13th, 1935.
WHEREFORE, your Receiver prays that this report be considered
and that the Court take oral evidence as to the necessity of the
Receiver’s recommendations herein and that your Receiver be
properly instructed as to his duties and rights in the premises.
E. P. DONNELLY,
Assistant Attorney-General,
Attorney for the Receiver.
STATE OF WASHINGTON ]
County of Thurston )
TRACY E. GRIFFIN, being first duly sworn on oath, deposes
and says: That he is the duly qualified and acting receiver in
this case; that he is familiar with the contents of the foregoing
report; that he has read the same, knows the contents thereof, and
believes the same to be true.
TRACY E. GRIFFIN.
SUBSCRIBED and SWORN to before me this 13th day of
December, 1935.
WALTER REDDEN,
Notary Public in and for the State
of Washington, residing at Olympia.
EXHIBIT A.
PUBLISHERS
Abrahams, Maurice, Inc.
Ager, Yellen & Bornstein, Inc.
Alfred Music Co., Inc.— Feature Music Syndicate, Lowe-Goulston,
Inc., Manus Music Co., Inc., Piantadosi, Al., Music Publisher, Song
Creators.
Allen, Thornton W., Co.
Artmusic, Inc. — Empire Music Co., Inc., York Music Co., The.
Ascher, Emil, Inc.
Austin, Gene, Inc.
Belwin, Inc. — Berg, S. M., Cinema Music Co.
Berlin, Irving, Inc.
Berlin, Irving, Standard Music Corp.
Bibo-Lang, Inc.
Birchard, C. C., & Co. — H. F. W. Deans Catalogue (Year Book
Press)
Bloom, Harry, Inc.
Bond, Carrie Jacobs, & Son
Boston Music Company — Hatch Music Company
Bosworth & Company
Broadway Music Corporation
Brown, Nacio Herb, Inc.
Browne, Ted, Music Co.
Century Music Pub. Co.
Chappell-Harms, Inc.
Church, John Co., The
Composers’ Music Corp.
Conrad, Con, Music Pub., Ltd.
Curtis, L. B., Music Pub. — Van Alstyne & Curtis
Davis, Joe, Inc. — Triangle Music Pub. Co.
Denton & Haskins Music Pub. Co., Inc.
De Sylva, Brown & Henderson, Inc.
Ditson, Oliver Co.
Donaldson, Douglas & Gumble, Inc.
Evans Music Company
Famous Music Corporation — Spier & Coslow, Inc.
Feist, Leo, Inc.
Fischer, Carl, Inc.
Fisher, J., & Bro.
Flammer, Harold, Inc. — Luckhardt & Beider
Forster Music Publisher, Inc.
Fox, Sam, Publishing Co. — Pallma Music Publishers, Inc., Red
Star Music Co., Inc.
1193
Gamble Hinged Music Co.,
Goodman Music Co., Inc. — Handman & Goodman, Inc., Hand-
man, Kent & Goodman, Inc., Universal Music Co., Ltd.
Gordon, Hamilton S., Inc.
Gray, H. W., Company
Handy Bros. Music Co., Inc.
Harms, Inc.
Harms, T. B., Company
Harris, Charles K., Est.
Haviland, F. B., Pub. Co.
Huntzinger, R. L., Inc.
Jacobs, Walter, Inc. — Abt, Valentine, Bates & Bendix, Bendix,
Theodore, Farrand, Van L., Jaques, Percy, Musiclovers Co., Partee,
C. L., Music Co., Shattuck, B. E., Williams, Ernest S.
Jenkins, J. W., Sons’ Music Co.
Jungnickel, Ross, Inc.
Kalmus, E. F., Inc.
Kay & Kay Music Pub. Corp. — Franklin, John, Music Co.
Keit-Engel, Inc. — Davis, Coots & Engel, Inc.
Kendis Music Corporation
Kornheiser-Gottler, Inc. — Kornheiser, Phil, Inc.
Leslie, Edgar, Inc.
Lewis Music Publishing Co.
Marks, Edw. B., Music Co. — Apollo Verlag. Berlin; Berliner, Leo.
E., Pub. Co.; Chilton, Forrest S. ; Dresser, Paul, Pub. Co.; Evans
(George Honeyboy Evans) ; Globe Music Publishing Co.; Graham,
Roger; Halle, R. L. ; International Music Co., Brussels; Jordan,
Julian, Music Co.; Lecuona Music Co. — Cuba; Lyceum Music Co.;
Metz, Theodore, Music Co.; Miller, Roy M.; Musin, Ovide; Penn,
Wm. H. ; Petrie, H. W., Catalog; Primrose & West Music Co.;
Recker, Robert, Music Co.; Shields, Ren; Stern, Jos. W., & Co.;
Willis-Woodward Music Co.
Mario Music Corporation
McKinley Music Co.
Melrose Bros. Music Co., Inc.
Miller Music, Inc. — Youmans, Vincent, Inc.
Mills Music, Inc. — American Composers, Inc., Clark, Frank,
Music Co., Daly, Joseph, Music Pub. Co., Edwards, Gus, Music
Pub. Co., Fisher, Fred, Inc., Gordon & Rich, Inc., Gotham Music
Service, Inc., Jerome & Schwartz Pub. Co., Kalmar, Puck & Abra¬
hams, Consolidated, Nelson, Jack, Music Co., Stark & Cowan, Inc.,
Sunlight Music Co., Inc., Waterson, Berlin & Snyder Co.; Water-
son, Henry, Inc., Williams, Harry, Music Co.
Morris, Joe, Music Co.
New World Music Corp.
Olman Music Corporation — Down Home Music Co.
Pauli-Pioneer Music Co. — Rossiter, Harold, Music Co.
Photo Play Music Co., Inc. — Luz Brothers Music Pub., Music
Buyers Corporation
Pond, Wm. A., & Company
Quincke, W. A., & Company
Remick Music Corporation
Robbins Music Corporation — Metro-Goldwin-Mayer Corp.
Rossiter, Will
Rubank, Inc. — Carlson, M. L., Finder & Urbanek, Victor Music Co.
Santly Bros., Inc.
Schirmer, G., Inc. — Heffelfinger, R. W.; Sanders- Weiss, Inc.
Schroeder & Gunther, Inc.
Shapiro, Bernstein & Co., Inc.
Sherman, Clay & Co.
Schubert Music Pub. Corp.
Simon, Walter B., Inc. — Dixon-Lane, Inc.
Skidmore Music Co., Inc.
Sonnemann Music Co., Inc. — Feature Music Co.
Southern Music Pub. Co., Inc.
Stept & Powers, Inc. — Freed & Powers, Ltd.
Victoria Publishing Co.
Villa Moret, Inc.
Von Tilzer, Harry, Music Pub. Co.
Weil, Milton, Music Co., Inc.
White-Smith Music Pub. Co.
Williams, Clarence, Music Pub. Co.
Willis Music Company
Witmark, M., & Sons
Wood, B. F., Music Co.
COMPOSERS AND AUTHORS
Aarons, Alfred E.
Abrahams, Maurice, Est. of
Achron, Joseph
Adamson, Harold
Ager, Milton
Ahlert, Fred E.
Akst, Harry
Allen, Thornton W.
Alter, Louis
Anderson, Frank H., Jr.
Anderson, Lily Strickland
Archer, Harry
Arlen, Harold
Armstrong, Harry
Arndt, Felix, Est. of
Arnheim, Gus
\tteridge, Harold
Auer, Leopold, Est. of
Austin, Gene
Axt, William
Ayres, Frederic, Est. of
Baer, Abel
Bainbridge, Katharine
Baker, Phil
Ball, Ernest R., Est. of
Ballard, Pat
Barnett, Alice
Baron, Maurice
Barris, Harry
Barron, Ted S.
Bartholomae, Philip H., Est. of
Bartholomew, Marshall
Baskette, Billy
Bassett, Karolyn Wells, Est. of
Baxter, Phil
Bayha, Charles A.
Beach, Mrs. H. H. A.
Bennett, George J.
Berg, David
Berg, Harold
Bergh, Arthur
Berlin, Irving
Bibo, Irving
Black, Ben
Black, Frank J.
Blake, Eubie
Blaufuss, Walter
Bloch, Ernest
Bloom, Marty
Bloom, Rube
Blossom, Henry, Est. of
Bond, Carrie Jacobs
Borch, Gaston, Est. of
Borissoff, Josef
Bornschein, Franz C.
Botsford, George
Boutelje, Phil
Bowers, Robert Hood
Bradford, James C.
Bratton, John W.
Breau, Lew, Est. of
Brennan, James A.
Brennan, J. Keirn
Breuer, Ernest
Bridges, Ethel
Brockman, James
Brooks, Shelton
Broones, Martin
Brown, Al. W., Est. of
Brown, A. Seymour
Brown, Bertrand —
Brown, Lew
Brown, Nacio Herb
Browne, J. Lewis
Bruhns, George F. W.
Bryan, Alfred
Bucharoff, Simon
Buck, Gene
Burke, Johnny
Burke, Joseph A.
Burleigh, Harry T.
Burns, Annelu
Burnside, R. H.
Burtnett, Earl
Burton, Val
Buzzi-Peccia, A.
Byrnes, James A.
Caddigan, Jack J.
Cadman, Charles Wakefield
Caesar, Irving
Caine, Sidney C.
Callahan, J. Will
Carlo, Monte
Carmichael, Hoagy
Carpenter, John Alden
Carroll, Earl
Carroll, Harry
Charig, Philip
Chase, Newell
Chattaway, Thurland
Chenoweth, Wilbur
Clare, Sidney
Clark, Amy Ashmore
Clarke, Grant, Est. of
Claypoole, Edward B.
Cleary, Michael H.
Clifford, Gordon
Cobb, Will D„ Est of
Coburn, Richard
Cohan, George M.
Cohen, Henry R.
Cohn, Chester
Collins, Will
Confrey, Edw. E.
Conrad, Con
Connor, Pierre
Cook, Philip D.
Cook, Will Marion
Cool, Harold
Coombs, C. Whitney
Cooper, Bud
Cooper, Joe
Coots, J. Fred
Coslow, Sam
Costello, Bartley
Cowna, Rubey
Cox, Ralph
Creamer, Henry, Est. of
Crist, Bainbridge
Crosby, Bing
Crumit, Frank
Cunningham, Paul
Curran, Pearl G.
Curtis, Billy
Curtis, Loyal
Daly, William
Daniels, Charles N.
Dash, Irwin
David, Benjamin
David, Lee
Davis, Benny
Davis, John Carlyle
Davis, Lou
Dawson, Eli
De Costa, Harry
De Costa, Leon
De Francesco, L. E.
DeKoven, Reginald, Est. of
Deleath, Vaughn
Delf, Harry
Denniker, Paul
Deppen, Jessie L.
De Rose, Peter
DeSylva, Bud
Dett, R. Nathaniel
De Voll, Cal
Dietz, Howard
Dillon, Will
Dixon, Harold
Dixon, Mort
Donaldson, Walter
Donaldson, Will
Donnelly, Andrew
Donnelly, Dorothy, Est. of
Dougherty, Dan
Dreyer, Dave
Drumm, George
Dubin, Al
Duncan, Wm. C.
Dunn, James P.
Dyson, Hal
Eberhart, Nelle Richmond
1194
Edelheit, Harry
Edmonds, Shepard N.
Edwards, Clara
Edwards, Gus
Edwards, Leo
Egan, John C.
Egan, Raymond B.
Ehrlich, Sam. Est. of
Elie, Justin, Est. of
Eliscu, Edward
Elman, Mischa
English, Granville
Erdman, Ernie
Fain, Sammy
Farley, Roland. Est. of
Fazioli, Billy, Est. of
Federlein, Gottfried H.
Fields, Buddy
Fields, Dorothy
Fiorito, Ted
Fisher, Fred
Fisher, Mark
Fisher, William Arms
Flatow, Leon
Fleeson, Neville
Forster, Dorothy
Forsyth, Cecil
Fowler, B. Sherman
Fox, Oscar J.
Franklyn, Blanche
Franko, Nahan, Est. of
Freed, Arthur
Freer, Eleanor Everest
Frey, Hugo
Fried, Martin
Friedland, Anatol
Friend, Cliff
Friml, Rudolf
Frisch, Billy
Gahm, Joseph
Gaines, Samuel Richard
Gardner, William H., Est. of
Garrett, Lloyd Fry
Gaskill. Clarence
Gaul, Harvey B.
Gay, Byron
Gensler, Lewis E.
Gerard, Richard Hirsch
Gerber, Alex
Gershwin, George
Gershwin, Ira
Gilbert, L. Wolfe
Gillespie, Haven
Gillespie, Marian E.
Ginsberg, Sol
Glick, Jesse G. M.
Glougau, Jack
Godowsky, Leopold
Goetz, Coleman, Est. of
Goetz, E. Ray
Gold, Joe
Golden, Ernie
Golden, John
Goldman, Edwin Franko
Goodhart, A1
Goodman, Alfred
Goodman, Frank
Goodman, Lillian Rosedale
Goodwin, Joe
Goold, Sam, Est. of
Gorney, Jay
Gottler, Archie
Grainger, Percy Aldridge
Grant, Bert
Grant, Charles N.
Green, Bud
Green, John W.
Greene, Schuyler, Est. of
Greer, Jesse
Grey, Clifford
Grey, Frank H.
Grofe, Ferde
Grossman, Bernie
Grunberg, Jacques
Grunn, Homer
Guion, David W.
Gumble, Albert
Gurewich, Jascha
Gusman, Meyer
Hadley, Henry
Haenschen, Walter G.
Hageman. Richard
Hagen, Milt
Hager, Clyde
Hahn, Carl, Est. of
Hajos, Karl
Hamblen, Bernard
Hammerstein, Oscar, 2nd
Handman, Lou
Handy, William C.
Hanley, James F.
Hanlon, Bert
Harbach, Otto A.
Harburg, E. Y.
Harling, W. Franke
Harris, Charles K., Est. of
Harris, Harry
Harris, Victor
Harrison, C. F.
Hart, Lorenz
Hartmann, Arthur
Hawley, C. B., Est. of
Hazzard, John E.
Heagney, William H.
Hein, Silvio, Est. of
Henderson, Charles E.
Henderson. Ray
Herbert, Victor, Est. of
Herscher, Louis
Hersom. Frank E.
Hess, CUff
Heyman, Edward
Hill, William J.
Hirsch, Louis A., Est. of
Hirsch, Walter
Hobart, George V., Est. of
Hoffman, A1
Holden, Sidney
Hollingsworth, Thekla
Holzmann, Abraham
Homer, Sidney
Hooker, Brian
Hoschna, Karl, Est. of
Hosmer, Lucius
Howard, John Tasker
Howard, Joseph E.
Hubbell, Raymond
Huerter, Charles
Hughes. Rupert
Huhn. Bruno
Hupfeld, Herman
Jacobi, Frederick
Jaffe, Moe
James, Billy
James, Paul
James, PhiUp
Janis. Elsie
Janssen, Werner
Jentes, Harry
Jerome, M. K.
Jerome, William, Est. of
Johnson, Arnold
Johnson, Horace
Johnson, Howard E.
Johnson, J. C.
Johnson, James P.
Johnson, J. Rosamond
Johnson, James Weldon
Johnstone, Gordon, Est. of
Johnstone, Thomas A.
Johnstone, Will B.
Jolson, A1
Jones, Isham
Jones, Stephen
Kahal, Irving
Kahn, Grace Le Boy
Kahn, Gus
Kalmar, Bert
Kassel, Art
Kaufman, Mel B., Est. of
Keithley, E. Clinton
Kempinski, Leo A.
Kendis, James
Kenny, Nick A.
Kern, Jerome
Kernell, Wm. B.
Kernochan, Marshall
Kerr, Harry D.
Kilenyi, Edward
King, Robert A., Est. of
Klages, Raymond W.
Klein, Lou
Klemm, Gustav
Klenner, John
Klickmann, R. Henri
Knox, Helen
Koehler, Ted
Kortlander, Max
Kountz, Richard
Kramer, A. Walter
Kreisler, Fritz
Kriens, Christiaan
Lada, Anton
La Forge, Frank
Lake, Mayhew Lester
Lampe, J. Bodewalt, Est. of
Lane, Eastwood
Lange, Arthur
Lange, Henry W.
Lannin, Paul
Laska, Edward
Lawlor, Chas. B.. Est. of
Layton, Turner
Lee, Norah
Lerner, Sammy
Leslie, Edgar
Levant, Oscar
Levenson, Boris
Levey, Harold
Lewis, A1
Lewis, Roger
Lewis, Samuel M.
Lief, Max
Lief, Nathaniel
Link, Harry
Little, George A.
Little, Jack
Livingstone, Mabel
Lockhart, Eugene
Leob, John Jacob
Logan, Fred’k Knight, Est. of
Logan, Virginia K.
Lombardo, Carmen
Lyman, Abe
MacBoyle, Dari
MacDermid, James G.
MacDonald, Ballard
MacDonough, Glen, Est. of
Mack, Andrew, Est. of
Madden, Edward —
Maduro, Charles
Maganini, Quinto
Magidson, Herbert
Magine, Frank
Mahoney, Jack
Maley, Florence Turner
Malie, Tommie, Est. of
Malneck, Matt
Mana-Zucca, Mme.
Manney, Charles F.
Manning, Kathleen L.
Marion, Jr., George
Marks, Gerald
Marshall, Henry I.
Martens, Frederick H.
McCarthy, Joseph
McConnell. George B.
McHugh, Jimmie
McKee, Frank W.
McKenna, William
McLaughlin, John
McPherson, R. C.
Melrose, Walter
Mencher, Murray
Mendoza, David
Merele, George
Meskill, Jack
Metz, Theo. A.
Meyer, George W.
Meyer, Joseph
Meyers, Billy
Miles, Walter E.
Miller, Ned
Mills, F. A.
Mills, Irving
Moll, Billy
Mitchell, Sidney D.
Monaco, James V.
Moore, Elizabeth Evelyn
Moore, Leslie F.
Moore, McElbert
Morgan, Carey
Morris, Edward
Morris, Melville
Morse, Arthur Cleveland
Morse, Dolly
Morse, Theodore, Est. of
Motzan, Otto
Murchison, Kenneth M.
Murphy, Owen
Murphy, Stanley, Est. of
Murray, Jack
Myers, Richard
Nelson, Ed. G.
Nevin, Arthur
Nevin, Ethelbert, Est. of
Nevin, George B.
Newman, Charles
Norworth, Jack
O’Dea, Anne Cladwell
O’Flynn, Charles
O’Hara, Geoffrey
O’Keefe, James
O’Keefe, Lester
Olcott, Chauncey, Est. of
Olman, Abe
Oppenheim, David
Orlob, Harold
Osborne, Nat
Osgood, H. O., Est. of
Otvos, Adorjan
Owens, Harry
Paley, Herman
Palmer, Jack
Parenteau, Zoel
Parish, Mitchell
Paskman, Dailey
Pasternack, Josef
Pauli, E. T., Est. of
Pease, Harry
Peck, Raymond W.
Penn, Arthur A.
Perkins, Ray
Perry, Sam A.
Peters, Wm. Frederick
Petkere, Bernice
Phillips, Fred
Piantadosi, A1
Pinkard, Maceo
Pirani, Eugenio Di
Pochon, Alfred
Polla, W. C.
Pollack, Lew
Ponce, Phil
Porter, Cole
Powell, John
Price, Georgie
Prival, Max
Pryor, Arthur
Rachmaninoff, Sergei
Rainger, Ralph
Rapee, Erno
1195
Rapoport, Ruth
Rasback, Oscar
Raskin, William
Razaf, Andy
Reddick, William
Repper, Charles
Rice, Lieut. Gitz
Rich, Max
Richman, Harry
Riesenfeld, Hugo
Ringle, Dave
Robe, Harold
Roberts, Charles J.
Roberts, Lee S.
Robin, Leo
Robinson, J. Russel
Robison, Willard
Robyn, Alfred G.
Rodgers, Richard
Rogers, James H.
Rolfe, Walter
Roma, Caro
Romberg, Sigmund
Ronell, Ann
Rose, Billy
Rose, Ed
Rose, Fred
Rose, Vincent
Rosemont, Walter L.
Rosey, George
Rosey, Joe
Rosoff, Charles
Rourke, M. E.
Rubens, Maurie
Ruby, Harry
Ruby, Herman
Rupp, Carl
Russell, Alexander
Russell, Benee
Russo, Dan
Ryan, Ben
Ryder. Sturkow, Mme.
Saar, Louis Victor
Saenger, Gustav
St. Clair, Floyd J.
Salter, Mary Turner
Saminsky, Lazare
Samuels, Frank
Sanders, Alma M.
Sanders, Joe L.
Santly, Henry W.
Santly, Joseph H.
Santly, Lester
Savino, Domenico
Schad, Walter C.
Schafer, Bob
Schmid, Adolf
Schmidt, Edwin R.
Schoebel, Elmer
Schonberg, Chris.
Schonberger, John
Schuster, Ira
Schuster, Joseph
Schwartz, Arthur
Schwartz, Jean
Schwarzwald, Milton
Scott, John Prindle
Selden, Edgar, Est. of
Severn, Edmund
Seymour, Tot
Shapiro, Ted
Shay, Larry
Shelley, Harry Rowe
Sherman, A1
Shields, Ren., Est. of
Shilkret, Nathaniel
Siegel, Monty
Silberta, Rhea
Silver, Abner
Silvers, Louis
Silvers, Sid
Simon, Edward G.
Simon, Walter C.
Simons, Seymour B.
Sissle, Noble
Sizemoure, Arthur L.
Skilton, Charles S.
Sloane, A. Baldwin, Est. of
Smith, Chris
Smith, Clay, Est. of
Smith, Edgar
Smith, Harry B.
Smith, H. Wakefield
Smith, Robert B.
Smith, Walter Wallace
Snyder, Ted
Solman, Alfred
Sousa, John Philip, Est. of
Sowerby, Leo
Spaeth, Sigmund
Spalding, Albert
Speaks, Oley
Spencer, Fleta Jan Brown
Spencer, Herbert
Spencer, Otis
Spencer, Robert E.
Spier, Larry
Spitalny, Maurice
Spross, Charles Gilbert
Squires, Harry D.
Stamper, Dave
Stanley, Jack
Stanton, Frank L., Est. of
Steiger, Jimmy, Est. of
Stein, Jules K.
Stept, Sam H.
Sterling, Andrew B.
Stern, Henry R.
Stern, Jack
Stevens, David
Stickles, William
Stoddard, George E.
Stone, Billy, Est. of
Stothart, Herbert
Straight, Charley
Stults, R. N.
Sturm, Murray
Suesse, Dana
Sullivan, Alexander C.
Sullivan, Henry
Swanstrom, Arthur
Sweatmen, Wilbur C.
Swift, Kay
Taylor, Deems
Terry, Robert Huntington
Thompson, Harlan
Thornton, James
Tierney, Harry
Tobias, Charles
Tobias, Harry
Tobias, Henry H.
Tracey, Wm. G.
Trent, Jo’
Trinkaus, George J.
Tucker, John Aloyseus
Turk, Roy
Twohig, Daniel S.
Tyers, Wm. H., Est. of
Vallee, Rudy
VanAlstyne, Egbert
Vanderpool, Frederick W.
Verges, Joe
Vicars, Harold, Est. of
Vincent, Nathaniel H.
Von Der Goltz, Eric, Jr.
Von Tilzer, Albert
Von Tilzer, Harry
Waller, Thomas
Walsh, J. Brandon
Ward, Sam
Warford, Claude
Warren, Harry
Washington, Ned
Wayne, Mabel
Webb, Kenneth S.
Webb, Roy
Webster, Paul Francis
Weeks, Harold
Weidt, A. J.
Weill, Irving
Weinberg, Chas.
Wells, John Barnes
Wendling, Pete
Wenrich, Percy
Weslyn, Louis
West, Eugene
Westphal, Frank C.
White, Clarence Cameron
Whithorne, Emerson
Whiting, George
Whiting, Richard A.
Wiedoeft, Rudy
Wilkie, Bud
Williams, Clarence
Williams, Sam
Williams, Spencer
Williams, W. R.
Wilson, A1
Wilson, Irving M.
Wilson, Mortimer, Est. of
Winne, Jesse M.
Winternitz, Felix
Witmark, Jay
Wood, Cyrus D.
Wood, Leo, Est. of
Woodin, W. H.
Woodman, R. Huntington
Woods, Harry M.
Wright, Frank A.
Wynn, Ed
Yellen, Jack
Yon, Pietro A.
Youmans, Vincent
Young, Joseph
Young, Victor
Zamecnik, J. S.
John Doe and Jane Doe,
Hannah Roe and Richard Roe
and all other members of said
society whose true given names
are unknown.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON FOR THURSTON COUNTY
No. 16114— SUPPLEMENTAL ORDER RE INVOLUNTARY
ASSIGNMENT OF MUSICAL COMPOSITIONS
STATE OF WASHINGTON, ex rel., G. W. Hamilton, Attorney
General, Plaintiff,
vs.
AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND
PUBLISHERS, an unincorporated association; et al., Defendants,
GRENHALGH AMUSEMENT CORPORATION, a corporation,
Intervenor.
The Court having considered the Report of TRACY GRIFFIN,
Receiver of the American Society of Composers, Authors, and
Publishers, dated December 13th, 1935, and having listened to the
evidence offered in support thereof, and having found that in
order to preserve the jurisdiction of the proper Court that it is
necessary that notice be given of the fact that the legal and
equitable title to all musical compositions copyrighted and held
in the name of each and every member of the American Society
of Composers, Authors and Publishers, as partially listed and
named in Exhibit “A”, attached hereto and to the Receiver’s
Report, has been heretofore legally vested in said Receiver by
order of this Court, dated August 13th, 1935, and the Court being
further advised in the premises, it is now
ORDERED, ADJUDGED, AND DECREED that TRACY E.
GRIFFIN, the duly qualified and acting Receiver of the American
Society of Composers, Authors and Publishers be and he is hereby
authorized and directed to file with the Register of Copyrights at
Washington, D. C., a certified copy of this order together with
a copy of the Receiver’s Report, in lieu of the prior order of this
Court of August 23d, 1935, and that notice shall be given that
the Receiver herein is exclusively entitled to the control and pos¬
session of all of the joint property of the American Society of
Composers, Authors, and Publishers for the purpose of preserving
it pendente lite, and that the title to each and every copyrighted
musical composition, together with the public performing rights
thereof, of each and every member of the American Society of
Composers, Authors and Publishers, is and has been exclusively
vested in TRACY E. GRIFFIN, as the Receiver of said Society,
for all purposes, and said Receiver shall possess and control said
property and the affairs of said Society during the continuation
of this receivership, or until further order of the Court.
DONE IN OPEN COURT this 14th day of DECEMBER, 1935.
D. F. WRIGHT,
Judge.
Presented by
E. P. DONNELLY,
Assistant Attorney General
of the State of Washington.
Exhibit A attached to the supplemental order is a duplicate of
Exhibit A which appears in connection with the Receivers Report
and is, therefore not reproduced here.
1196
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, IS36. The National Association of Broadcasters
Vol. 4
No. 8
FEBRUARY 7, 1936
BROADCAST ADVERTISING IN 1935
Highlights of the Year
Broadcast advertising volume reached a new high level
during 1935. Gross time sales of the medium totalled
$87,523,848, a gain of 20.0% over the preceding year.
The most pronounced gains were experienced in the
regional network and national non-network fields. Follow¬
ing a slight recession in 1934, local broadcast advertising
rose materially and more than offset the losses of the
previous year.
Local stations continued to show the greatest gains,
while non-network business rose most rapidly in the south¬
ern and far western parts of the country.
Live talent programs, produced in station studios,
showed the greatest increase of the year in the non-net¬
work field, due principally to the marked gain in the use
of this type of rendition by national advertisers in their
non-network broadcasting. Transcription volume experi¬
enced the most pronounced rise in the local broadcast
advertising field.
Gains in broadcast advertising volume were general
throughout all product and service groups employing the
medium. Automotive, clothing, housefurnishing and to¬
bacco advertising gained particularly. Financial adver¬
tising alone experienced any recession, declining 0.2%
from the previous year’s level. A general tendency toward
more diversified sponsorship manifested itself throughout
the year, as is evidenced partly by the statistical summaries
as to radio advertising sponsorship and even more by ex¬
amination of individual station accounts.
Total Broadcast Advertising
The volume of broadcast advertising placed over the various
subdivisions of the medium during 1934 and 1935 is presented in
Table I.
TABLE I
gains: Regional networks 160.4%, national non-network business
66.3%, and local broadcast advertising 22.0%.
Composition of Broadcast Advertising
The composition of the total broadcast advertising has remained
very much the same as during the preceding year. National network
advertising accounted for 57.2% of the industry’s gross revenues
during the year under review as compared to 58.5% in 1934, 55.2%
in 1933, and an estimated 51.2% in 1931. The increasing proportion
of total volume represented by national network advertising was due
to the more rapid recovery of this portion of the medium from the
effects of the depression. The situation over the past two years,
however, seems to have become fairly well stabilized.
The marked rise in regional network volume is reflected in the
growing proportion of total radio advertising which it represents.
Regional network advertising accounted for 1.2% of total gross
time sales in 1935 as compared to 0.9% in 1934 and 0.7% in 1933.
National non-network advertising represented 19.5% of the gross
volume of the medium in 1935 as against 18.6% in 1934 and 17.5%
in 1933.
The relative importance of local broadcast advertising remained
unchanged during the past year as compared with 1934. Advertising
of this type accounted for 22.1% of total volume in 1935.
Comparison with Other Media
Broadcast advertising continued to make the most rapid forward
strides of any medium during 1935. Compared to the 20.0% in¬
crease in gross time sales, national magazine volume rose 5.9% as
against 1934. National farm paper advertising increased 7.0%,
while newspaper lineage increased 5.8%. Newspaper department
store advertising increased 3.4% as compared to a rise of 30.9% in
radio department store volume.
Advertising volume by major media during the year of 1935 is
found in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
TOTAL BROADCAST ADVERTISING
Class of Business
National networks . . .
Regional networks . . .
National non-network
Local .
Gross Time Sales
1934 1935
$42,647,081
717,117
13,541,770
15,981,201
$50,067,686
1,110,739
17,063,688
19,281,735
Total
$72,887,169 $87,523,848
1This includes the Mutual Network formed during the year.
Total broadcast advertising volume in 1935 increased 20.0% over
the preceding year’s level. It is particularly interesting to note that
the rate of increase was maintained fairly steadily throughout the
entire year.
National network advertising increased 17.4%. Regional network
volume experienced the greatest gain over the preceding year, rising
54.7%. National non-network advertising rose 26.0%. Following
a decrease in 1934 of 3.2% from the estimated previous year’s level,
local broadcast advertising rose materially during the year. Broad¬
cast advertising of this type registered a gain of 20.6% over 1934.
It is interesting to note that gross time sales of the medium ex¬
ceeded estimated 1931 volume by 25.0%, and the estimated depres¬
sion low of the medium, $57,000,000 in 1933, by 53.5%.
National network volume exceeded 1933 by 59.0%. Data are
available with regard to other portions of the medium only for the
latter half of that year. A comparison of revenues for that period
with those of the corresponding months of 1935 showed the following
Advertising Medium
Gross Time and Space Sales
1934 1935
Radio broadcasting . .
National magazines1 .
National farm papers1
Newspapers2 .
$72,887,169
116,268,492
5,200,067
485,481,718
$87,523,848
123,093,289
5,565,059
517,513,000
Total . $679,837,446 $733,695,196
1 Publishers’ Information Bureau.
3 Estimated.
Non-network Broadcast Advertising
Non-network advertising rose 23.3% as compared to the preceding
year. Local station volume continued to show the strength exhibited
during the latter portion of 1934 and experienced a gain of 31.9%
over that year. Clear channel and high-powered regional station
non-network advertising increased 23.6% as compared to 1934, while
regional station volume rose 19.9%.
When comparison is made with the latter half of 1933, representing
the depression low point of the industry, regional and local station
non-network advertising is revealed to have made the most pro-'
nounced gains. Regional station non-network volume for the corre¬
sponding period of 1935 exceeded the 1933 level by 49.3%, while
local station volume rose 76.5%. Clear channel and high-powered
regional station non-network advertising experienced an increase
of 18.6% over the level of two seasons ago.
Non-network broadcast advertising by power of station is pre¬
sented in Table III.
1197
RADIO BROADCAST ADVERTISING VOLUME
BY QUARTERS
January, 1934 to December, 1935
NON-NETWORK ADVERTISING BY GEO¬
GRAPHICAL DISTRICTS (QUARTERLY)
January, 1934 to December, 1935
LOCAL ADVERTISING BY TYPE OF
RENDITION (QUARTERLY)
January, 1934 to December, 1935
NON-NETWORK ADVERTISING BY STATION
POWER (QUARTERLY)
January, 1934 to December, 1935
NATIONAL NON-NETWORK ADVERTISING BY
TYPE OF RENDITION (QUARTERLY)
January, 1934 to December, 1935
NATIONAL NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
January, 1934 to December, 1935
1198
NATIONAL NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
January, 1934 to December, 1935
NATIONAL NON-NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
January, 1934 to December, 1935
NATIONAL NON-NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
January, 1934 to December, 1935
1934- I 1935
LOCAL ADVERTISING BY PRODUCT CLASSES
(QUARTERLY)
January, 1934 to December, 1935
LOCAL ADVERTISING BY PRODUCT CLASSES
(QUARTERLY)
January, 1934 to December, 1935
BROADCAST ADVERTISING BY RETAIL
ESTABLISHMENTS (QUARTERLY)
January, 1934 to December, 1935
1199
TABLE III
NON-NETWORK BROADCAST ADVERTISING BY
POWER OF STATION
Power of Station
Over 1 ,000 watts .
250-1,000 watts . . .
100 watts .
Gross Time Sales
1934 1935
$13,408,584 $16,564,505
12,132,301 14,523,795
3,982,086 5,257,213
type accounted for by each section of the country. Whereas the
New England and Middle Atlantic States accounted for 33.2% of
total non-network volume in 1934, they represented but 24.5% in
the following year. Non-network advertising represented by the
South Atlantic and South Central States amounted to 16.6% during
the year under review as compared to 13.5% in 1934.
The increase in the proportion accounted for by the Mountain and
Pacific States was from 16.9% to 20.7%. Whereas the North Central
States were responsible for 36.4% of total non-network advertising
in 1934, they accounted for 38.2% in 1935.
Total
$29,522,971 $36,345,513
Non-network Advertising by Type of Rendition
There has -been little change in the proportion of non-network
advertising placed over stations of varying power as compared with
1934. Clear-channel and high-powered regional stations accounted
for 45.5% of non-network volume during 1935. Regional stations
represented 40.0% of the total, and local stations 14.5%. The pro¬
portion represented by regional stations declined approximately 1.0%
from the previous year, while the percentage accounted for by local
stations rose a corresponding amount.
The southern and far western portions of the country experienced
the most important increases in non-network volume during the year.
Non-network advertising in the South Atlantic and South Central
States increased 52.8% as compared with 1934, while Mountain and
Pacific State volume rose 49.3%. Non-network broadcast advertis¬
ing in the North Central States experienced a gain of 28.6%, while
volume in the New England and Middle Atlantic States rose 9.7%.
The comparatively small gain in the last-mentioned region is prob¬
ably due to the relatively large proportion of total station facilities
affiliated with the so-called basic networks of the national network
companies. The decided rise in network business has thus acted as
an automatic brake on non-network growth by absorbing much of
the desirable time.
Non-network broadcast advertising in various sections of the
country is set forth in Table IV.
TABLE IV
NON-NETWORK ADVERTISING BY
GEOGRAPHICAL DISTRICTS
Geographical District
New England-Middle Atlantic Area. . .
South Atlantic-South Central Area. . . .
North Central Area .
Pacific and Mountain Area .
Gross Time Sales
1934 1935
$9,815,695 $8,945,782
3,944,650 6,060,358
10,822,445 13,941,087
4,940,181 7,398,286
Total
$29,522,971 $36,345,513
The rise in non-network volume in the west and south has mate¬
rially affected the relative proportion of total advertising of this
Live talent programs, produced in station studios, experienced the
greatest increase of any major type of rendition during the year,
gaining 25.1% over the 1934 level. Transcription volume rose 18.9%,
while announcement business increased 19.6%. Records, represent¬
ing but a small proportion of total non-network advertising volume
by type of rendition, registered a gain of 83.7% over the previous
year.
The marked gain in live talent business was due principally to a
decided trend toward the use of this type of rendition by national
advertisers in their non-network broadcasting. National non-net¬
work live talent advertising rose 38.2% during the year, as compared
to a rise of 15.3% in transcription volume and of 19.1% in announce¬
ment business.
Compared to the last six months of 1933, for which data alone are
available, national transcription advertising for the corresponding
period of 1935 rose 59.6%, live talent volume increased 146.0%, and
announcement revenues declined 9.6%.
Local broadcast advertising presented a somewhat different picture
as to trends in the use of various types of rendition. Largely because
of a marked rise during the latter portion of the year, local transcrip¬
tion volume showed a gain of 33.5% over 1934. Record volume rose
82.4%, live talent business 15.5%, and announcement revenues
20.3%.
Comparing the latter half of the year under review to the corre¬
sponding period of 1933 emphasizes, even more clearly, the local
transcription trend during the past two seasons. Transcription vol¬
ume is found to have gained 54.9%, live talent 10.3%, records 12.1%,
and announcements 13.9%.
The proportion of total non-network broadcast advertising repre¬
sented by various types of rendition differed very little from that
of the previous year, both in the national and local fields. With
regard to total non-network advertising, transcriptions represented
20.9%, live talent 48.3%, records 2.3%, and announcements 28.5%.
In the case of national non-network advertising, transcriptions
accounted for 37.7% of total volume, live talent 42.9%, records
0.4%, and announcements 19.0%. Transcription volume amounted
to 9.0% of the local broadcast advertising total, live talent 50.0%,
records 3.8%, and announcements 37.2%.
Broadcast advertising by type of rendition is represented in
Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
Gross Time Sales
National Non-network Local Total
Type of Rendition
1934
1935
1934
1935
1934
1935
Electrical transcriptions .
. $5,090,925
$5,870,614
$1,308,265
$1,743,894
$6,399,190
$7,614,508
Live talent programs .
. 5,798,723
8,015,119
8,356,675
9,664,411
14,155,399
17,679,530
Records .
. 55,847
103,914
407,280
745,157
463,127
849,071
Announcements .
. 2,596,275
3,074,131
5,908,980
7,128,273
8,505,255
10,202,404
Total .
. $13,541,770
$17,063,778
$15,981,201
$19,281,735
$29,522,971
$36,345,513
Broadcast Advertising Sponsorship
With the exception of financial advertising, which declined 0.2%
as compared to the preceding year, all forms of broadcast advertising
sponsorship experienced gains during 1935. Automotive advertising
increased 49.6% as against 1934. Automotive volume rose on all
portions of the medium, national non-network business leading with
a gain of 148.8%. Clothing advertising volume rose 52.8%, due
principally to an increase in the local field. Housefurnishings ad¬
vertising exceeded the 1934 level by 47.7%, local volume again being
responsible in the main. Department store advertising increased
35.3%; national non-network volume, composed of advertising by
the retail branches of mail order houses, rose 93.8%.
Other increases as compared to 1934 were as follows: Amusements,
1.4% ; gasoline and accessories, 5.6%; drugs and pharmaceuticals,
18.3%; cosmetics, 9.0%; foodstuffs, 20.6%; beverages, 1.0%; con¬
fectionery, 30.0%; soap and kitchen supplies, 3.8%; radio sets,
66.0%; tobacco products, 26.5%; and miscellaneous advertisers,
11.8%.
Foodstuffs again lead the sponsor field, accounting for 19.0% of
the total broadcast advertising volume of the year. This was the
same as in 1934. The combined food, beverage and confectionery
group represented 26.7% of the year’s radio advertising volume, as
compared to 27.4% in 1934.
Cosmetics ranked second, with 13.1% of the medium’s total as
compared to 14.4% in the previous year. Drugs and pharmaceuticals
ranked third with 12.1% in 1935 and 12.3% in the year prior to that.
The miscellaneous group again ranked fourth, accounting for 10.2%
of the total revenues of the medium during the year under review,
1200
and 11.3% in 1934. Accessories placed fifth, as in the preceding year,
accounting for 7.6% in 1935 and 8.6% in 1934.
The most marked change in proportion of total broadcast advertis¬
ing represented by it occurred in the automotive field, which, though
remaining in sixth place, rose from 5.7% of the medium’s revenues
to 7.1%.
Broadcast advertising in 1934 and 1935 by different product and
service groups is found in Tables VI (A) and VT (B).
TABLE VI(A)
BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(1935)
Gross Time Sales
National
Regional
National
Type of Sponsoring Business
Networks
Networks
Non-network
Local
Total
la. Amusements .
1-2. Automobiles and accessories:
1. Automobiles .
$3 ,466,379
6.9%
$8,174
.7%
2. Accessories, gas and oils
4,311,909
456,743
8.6%
156,937
14.1%
3. Clothing and apparel .
.9%
54,103
4.9%
4-5. Drugs and toilet goods:
4. Drugs and pharma¬
ceuticals .
6,145,306
12.3%
76,627
6.9%
5. Toilet goods .
10,294,126
20.6%
33,769
3.0%
6-8. Food products:
6. Foodstuffs .
10,456,847
20.9%
272,317
24.5%
7. Beverages .
3,016,912
6.0%
31,963
2.9%
8. Confections .
1,317,113
2.6%
48,122
4.3%
9-10. Household goods:
9. Household equipment
and furnishings ...
566,610
1.1%
83,212
7.5%
10. Soaps and kitchen sup¬
plies .
2,816,578
5.6%
51,246
4.6%
11. Insurance and financial .
442,425
.9%
5,350
.5%
12. Radios .
1,081,460
2.2%
—
—
13. Retail establishments .
59,119
.1%
860
.1%
14. Tobacco products .
3,528,790
7.1%
169,565
15.3%
15. Miscellaneous .
2,107,369
4.2%
118,494
10.7%
Total .
$50,067,686
100.0%
$1,110,739
100.0%
$53,740
.3%
$504,515
2.6%
$558,255
.6%
1,795,853
10.5%
949,056
4.9%
6,219,462
7.1%
1,152,268
6.6%
966,093
5.0%
6,587,207
7.6%
367,420
2.2%
2,757,916
14.3%
3,636,182
4.2%
3,480,850
20.5%
918,934
4.8%
10,621,717
12.1%
851,281
5.0%
276,395
1.4%
11,455,571
13.1%
3,513,948
20.6%
2.405,326
12.5%
16,648,438
19.0%
658,622
3.9%
1,063,642
5.5%
4.771,139
5.5%
431,733
2.5%
126,307
.7%
1,923,275
2.2%
670,221
3.9%
2,096,064
10.9%
3,416,107
3.9%
940,083
5.5%
87,743
.5%
3,895,650
4.5%
208,429
1.2%
673,867
3.5%
1,330,071
1.5%
129,565
.8%
191,543
1.0%
1,402,568
1.6%
109,008
.6%
1,659,122
8.6%
1,828,109
2.1%
457,380
2.7%
79,611
.4%
4,235,346
4.8%
2,243,287
13.2%
4.525,601
23.4%
8,994,751
10.2%
$17,063,688
100.0%
$19,281,735
100.0%
$87,523,848
100.0%
TABLE VI(B)
BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(1934)
National
Type of Sponsoring Business Networks
Gross Time Sales
Regional National
Networks N on-network
Local
Total
la. Amusements .
—
—
—
—
$35,742
.3%
$514,986
3.2%
$550,728
.8%
1-2. Automobiles and accessories:
1. Automobiles .
$2,785,685
6.2%
$5,853
.9%
721,743
5.3%
644,545
4.1%
4,157,826
5.7%
2. Accessories, gas and oils
3,827,158
8.6%
222,266
31.0%
1,287.053
9.5%
901 .302
5.6%
6,237,779
8.6%
3. Clothing and apparel .
372,776
.8%
15,723
2.2%
301,563
2.2%
1,690,076
10.6%
2,380,138
3.2%
4-5. Drugs and toilet goods:
4. Drugs and pharma-
ceuticals .
4,804,381
9,400,764
11.1%
23,922
3.2%
3,134,909
795,945
23.1%
1.012,440
6.3%
8.975,652
12.3%
5. Toilet goods .
24.2%
7,883
1.1%
5.8%
305,868
1.9%
10,510,460
14.4%
6-8. Food products:
6. Foodstuffs .
8,450,701
20.1%
178,726
25.1%
2,778,730
20.5%
2,404,898
15.1%
13,813,055
19.0%
7. Beverages .
3,358,805
7.5%
71,319
10.0%
517,721
3.8%
774,948
4.8%
4,722,793
6.4%
8. Confections .
1,081,363
2.4%
9,210
1.3%
335,975
2.4%
46,514
.3%
1,473,062
2.0%
9-10. Household goods:
9. Household equipment
and furnishings .
417,168
.9%
20,502
2.8%
535,848
3.9%
1,345,497
8.4%
2,319,015
3.2%
10. Soaps and kitchen sup-
plies .
2,210,178
5.1%
796
.1%
515,415
3.7%
94,403
.6%
2,820,791
3.8%
11. Insurance and financial .
611,822
1.3%
21,904
3.0%
201,369
1.5%
497,758
3.1%
1,332,853
1.8%
12. Radios .
656,090
1.4%
—
—
50,382
.4%
138.938
.9%
845,410
1.0%
13. Retail establishments .
—
—
—
—
56,256
.5%
1,295,026
8.1%
1,351,282
1.9%
14. Tobacco products .
3,181,988
7.1%
3,835
.5%
125,544
.9%
35,853
.2%
3,347,220
4.6%
15. Miscellaneous .
1,488,202
3.3%
135,178
18.8%
2,147,575
16.2%
4.278,149
26.8%
8,049,105
11.3%
Total .
$42,647,081
100.0%
$717,117 100.0%
$13,541,770 100.0%
$15,981,201
100.0%
$72,887,169
100.0%
National Network Advertising in 1935
With but two exceptions, all fields of national network advertising
increased as compared to 1934. The exceptions in question were a
decline of 27.7% in network financial advertising and a decrease of
10.2% in the beverage field.
The most important gains in the national network field were an
increase of 24.4% in automotive advertising, a rise of 23.7% in food
sponsorship, and one of 27.9 % in the drug and pharmaceutical field.
Network drug advertising declined toward the end of the year, how¬
ever, as the new policies with regard to this type of advertising
began to take effect. The miscellaneous group showed a rise of
41.6% during the year, indicating a widening sponsorship of broad¬
cast advertising over networks. Radio set advertising, representing
a somewhat less important segment of the network total, experi¬
enced the most pronounced relative increase over the previous year,
rising 64.8%.
Other increases in the national network field were as follows:
Accessories and gasoline, 12.7%; clothing, 22.5%; cosmetics, 9.5%;
confectionery, 21.8%; household equipment, 35.8%; soap and
1201
kitchen supplies, 27.5%; tobacco, 10.9%. National network retail
volume represents mail order advertising. None of this class was
broadcast in 1934.
Foodstuffs lead the national network field in 1935, accounting for
20.9% of the total volume. Cosmetics, which ranked first in 1934
with 24.2% of the year’s total, moved to second place, accounting
for 20.6% of 1935 revenues. Drugs were third with 12.3%; acces¬
sories and gasoline fourth with 8.6%; tobacco fifth with 7.1%; and
automotive advertising sixth with 6.9%. With the exception of the
decline in relative importance of cosmetics, the proportion of total
volume represented by the leading sponsor groups changed but little
from 1934.
Regional Network Advertising
The outstanding development of the year in the regional network
field was the increasing diversity of products utilizing this form of
broadcast advertising. In addition to several comparative new¬
comers among the users of regional network advertising, there was a
general increase in many sponsoring groups.
Tobacco advertising, principally cigars, rose from $3,835 in 1934
to a total of $169,565 during the year under consideration. Soap
and kitchen supply advertising increased from $796 in the previous
year to $51,246 in 1935.
Other fields to experience marked gains included the following:
Clothing, 244.1%; cosmetics, 328.8%; drugs and pharmaceuticals,
220.3%; confectionery, 422.5%; and household equipment, princi¬
pally paints, 305.9%. Foodstuffs, the most important sponsoring
group in the regional network field, registered an increase of 52.4%
over the 1934 level. Automotive volume rose 39.7%.
Decreases in the remainder of the sponsor group were as follows:
Accessories and gasoline, 29.4% ; beverages, 55.2% ; financial, 75.6% ;
and miscellaneous, 12.3%. Of these, only gasoline and the miscel¬
laneous group represented important segments of the regional net¬
work total.
The important developments in the regional network field with
respect to advertising sponsorship brought with them a marked re¬
alignment of product groups with regard to their relative importance.
Foodstuffs remained in first place, and accounted for 24.5% of the
regional total, as compared to 25.1% in 1934. Tobacco climbed
from fifteenth in 1934 to second during the year under review and
accounted for 15.3% of the regional network total. Gasoline and
accessories dropped from first in 1934, when they amounted to 31.0%
of the total, to third in 1935, with 14.1%.
The miscellaneous group represented 10.7% in 1935 and ranked
fourth. This group accounted for 18.8% of regional revenues in the
previous year. Household equipment ranked fifth with 7.5% and
drugs sixth with 6.9%. In 1934 drugs ranked fifth with 3.2% and
household equipment sixth with 2.8%.
National Non-network Advertising
National non-network advertising experienced increases with re¬
gard to all sponsoring product and service groups with but a single
exception, gasoline and accessories, which decreased 10.5%. The
decline in this field occurred principally since August 1935.
Several highly important gains were recorded during the year.
Tobacco advertising, principally cigars and pipe tobacco, increased
264.3% during the year. Automotive advertising rose 148.8%, soap
and kitchen supply advertising 82.4%, and mail order retail store
advertising 93.8%. The automotive rise began in February 1935
and continued steadily since that time.
Other increases in the national non-network field were as follows:
Amusements, 50.4%; clothing, 21.8%; drugs, 11.0%; cosmetics,
7.0%; foodstuffs, 26.3%; beverages, 27.2%; confectionery, 28.5%;
household equipment, 25.1%; financial, 3.5%; radios, 57.2%;
miscellaneous, 4.5%.
As in the case of national and regional network advertising, food¬
stuffs comprised the largest single class of national non-network
advertising, accounting for 20.6% of the total volume in 1935. This
was the same proportion as in the preceding year. However, in 1934,
drugs ranked first and represented 23.1% of national non-network
revenues. This class of goods dropped to second place, with 20.5%,
during the year just closed.
The miscellaneous group ranked third in the national non-network
field, comprising 13.2% and 16.2% of total revenues in 1935 and
1934. respectively. Automotive advertising ranked fourth in 1935,
with 10.5% of the total, as against sixth in 1934 with 5.3%. Gaso¬
line and accessories ranked fifth in the year just completed with
6.6% as compared to fourth, with 9.5%, in the preceding year.
Soap and kitchen supplies ranked sixth in 1935 with 5.5% of the
national non-network total. This class of commodity was ninth in
the previous year with 3.7%.
Local Broadcast Advertising
Increases again were fairly general in the local broadcast adver¬
tising field, though in practically no instance were they as spectacular
as in other portions of the medium. Automotive, clothing and
house furnishing advertising, fields enjoying considerable growth in
sales during the past year, gained especially. Local automotive ad¬
vertising exceeded the 1934 level by 47.2%. Clothing volume rose
63.2%, while house furnishing advertising increased 55.8%. Local
department store sponsorship gained 28.1% over the previous year.
Other gains included the following: Gasoline and accessories,
7.2%; beverages, 37.3%; confectionery, 171.5%; financial, 35.3%;
radio sets, 37.9%; tobacco products, 22.0%; and miscellaneous,
5.8%.
Several decreases occurred during the year in the local field.
Amusement advertising declined 2.0%, drug volume 9.2%, cosmetic
advertising 9.6%, and soap and kitchen supplies 7.0%. Foodstuff
volume remained practically unchanged from the previous year’s
level.
As in 1934, the miscellaneous group comprised the largest single
classification in the local broadcast advertising field, accounting for
23.4% of the total revenues of this type. Clothing volume ranked
second, and comprised 14.3% of the local total. In 1934 this class
of local advertising ranked third and represented 10.6% of local
business.
Foodstuffs ranked third in 1935, with 12.5% of the total. House
furnishings ranked fourth with 10.9%, automotive advertising fifth
with 8.6%, and beverages sixth with 5.5%.
Retail Broadcast Advertising
Broadcast advertising by retail establishments of various types is
set forth in Table VII. It will be noted from the table that broadcast
advertising by retail establishments increased 48.1% over the pre¬
vious year.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
Type of Sponsoring Gross Time Sales
Business 1934 1935
Automobiles and acces¬
sories:
Automobile agencies and
used car dealers .
$594,400
8.3%
$991,595
9.3%
Gasoline stations, gar¬
ages, etc .
525,997
7.3%
638,195
6.0%
Clothing and apparel shops
1,681,573
23.3%
2, 810,962
26.4%
Drugs and toilet goods:
Drug stores .
180,220
2.5%
245,428
2.3%
Beauty parlors .
59,358
.8%
108,393
1.0%
Food products:
Grocery stores, meat
markets, etc .
568,157
7.9%
587,265
5.5%
Restaurants and eating
places .
222,461
3.1%
245,506
2.3%
Beverage retailers .
11,187
.2%
42,739
.4%
Confectionery stores, etc.
23,535
.3%
26,459
.3%
Household goods:
Household equipment
retailers .
413,340
5.7%
652,914
6.1%
Furniture stores .
612,223
8.5%
1,045,802
9.9%
Hardware stores .
134,525
1.8%
220,838
2.0%
Radio retailers .
145,805
2.0%
172,219
1.6%
Department and general
stores .
1,351,282
18.7%
1,768,990
16.6%
Tobacco shops .
8,896
.1%
8,702
.1%
Miscellaneous .
650,109
9.5%
1,074,192
10.2%
Total .
$7,183,069
100.0%
$10,640,199
100.0%
The most spectacular increase in the field was with regard to
beverage retailers, the advertising volume of which rose 282.0% as
compared to the preceding year. This class of retail trade, however,
is comparatively unimportant and represents but 0.4% of the total
retail radio advertising volume.
The most significant increases in retail broadcast advertising in¬
cluded the following: Automotive, 66.8%; clothing, 67.2%; house¬
hold equipment dealers, principally electrical appliances, 57,9%;
furniture stores, 70.8%; hardware retailers, 64.2%; miscellaneous
retail establishments, 65.2%; and department stores, 30.9%.
1202
Gasoline and accessory retail advertising rose 21.3%, drug store
volume 36.2%, that of beauty parlors 82.6%, grocery stores 3.4%,
restaurants 10.4%, confectionery shops 12.4%. Retail tobacco shop
business alone declined, dropping 2.2%. This class, however, is
quite negligible.
As will be noted from the percentages appearing on Table VII,
clothing store volume led the retail field with 26.4% of the entire
radio volume. Department stores ranked second with 16.6%, miscel¬
laneous third with 10.2%, furniture stores fourth with 9.9%, auto¬
motive fifth with 9.3%, and household equipment dealers sixth
with 6.1%.
Comparison with Latter Half of 1933
Since the year of 1933 represented the low point of broadcast ad¬
vertising during the depression, a comparison of 193S sponsorship
with that period will be of interest. Since complete data are avail¬
able only for the second half of the former year, all comparisons
have been made on the basis of that period and the corresponding
months of the year just closed.
Interesting shifts are to be observed in the national network field.
The miscellaneous group showed the greatest gain as compared to
1933, rising 162.6%, again pointing to an increasing diversity of
broadcast advertising sponsorship.
Soap and kitchen supply volume rose 158.0%, while automotive
advertising increased 156.8%. Other gains were as follows: Radio
sets, 111.3% ; drugs, 81.4% ; cosmetics, 99.4% ; and foodstuffs, 78.8%.
Advertising in several fields declined. Clothing dropped 14.2%,
beverage volume 7.5%, house furnishings 49.0%, tobacco 5.0%, and
financial 59.0%.
In the regional network field comparison with 1933 merely con¬
firmed the trends noted in the past year. There were no important
decreases.
Marked gains were indicated throughout the entire national non¬
network field. Automotive volume more than tripled. Tobacco ad¬
vertising increased more than thirty times the 1933 figure, while
radio set volume rose sevenfold. House furnishing and beverage
advertising doubled. Clothing and food advertising rose materially,
as did drug sponsorship.
Principal decreases in the national non-network field were a decline
of 31.2% in gasoline and accessory volume as compared with the
latter half of 1933, a drop of 41.0% in cosmetic advertising and of
27.7% in confectionery business.
In the case of local broadcast advertising volume, most gains were
comparatively slight as compared to the latter half of 1933. Out¬
standing increases were as follows: Clothing, 73.1%; house furnish¬
ings. 88.0%; beverage and radio set advertising, more than doubled.
Food advertising remained at the 1933 level. Amusement volume
declined 34.6%, drug advertising 70.0%, and soap and kitchen sup¬
ply business 54.7%.
1203
PI IBS
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright. 1836. The National Aieoelation of Broadcasters
Vol. 4
No. 9
FEBRUARY 13, 1936
IN THIS ISSUE
Page
Pratt New NAB Attorney . 1205
Board of Directors Meeting . 1205
Additional Power Recommended for WJAS . 1205
Gardner Nursery Company, Osage, Iowa . 1205
Duffy Copyright Bill . 1205
Rule 100.6 Relaxed Temporarily . 1205
R. R. Minton . 1205
New Sacramento Station Recommended . 1205
Securities Act Registrations . 1205
Recommends Denying New California Station . 1206
Increased Power and Time Suggested . 1206
Brooklyn Hearing Date Set . 1206
New Georgia Station Recommended . 1206
Federal Trade Commission Action . 1206
Federal Communications Commission Action . 1207
PRATT NEW NAB ATTORNEY
Elmer W. Pratt, for some years attorney and Examiner for the
Federal Radio Commission, has been appointed attorney for the
NAB.
Mr. Pratt was born at Salt Lake City, Utah, on October 28,
1900, educated in the grade and high schools and a business college
of that city and graduated from the National University Law
School, this city.
He was employed by former Senator Reed Smoot of Utah for
five years, the last two years of which he was private secretary to
Senator Smoot as well as clerk of the Senate Finance Committee
of which the Senator was chairman.
Mr. Pratt was the first attorney to enter the employ of the old
Federal Radio Commission as well as the first Examiner. He was
employed by the Commission for five years and left on June 30,
1933, since which time he has been engaged in the practice of law
specializing in radio.
He will devote all of his time to the NAB work and will deal
primarily with matters relating to state and municipal taxation.
He will, however, be given time to dispose of his present active
law cases.
BOARD OF DIRECTORS MEETING
The NAB Board of Directors held a meeting in Chicago, Illi¬
nois, February 3rd, on the subject of copyright. The full text
of a report on copyright, with conclusions and recommendations
of the Managing Director, and the actions taken thereon by the
Board, will be furnished to the members in a special edition of
NAB Reports which will be mailed about February 18th. The
mailing of this report was delayed at the request of a member
of the Board in order that he might file a minority report.
ADDITIONAL POWER RECOMMENDED FOR
WJAS
Broadcasting Station WJAS, Pittsburgh, Pa., operating on a
frequency of 1290 kilocycles applied to the Federal Communica¬
tions Commission to increase its power from 2,500 to 5,000 watts
daytime. It now operates with 1,000 watts night full time.
Examiner Ralph L. Walker in Report No. 1-190 recommended
that the application be granted. The Examiner found that “there
is a need for the additional service proposed” and that “the interest
of existing stations will not be adversely affected by reason of
interference.”
GARDNER NURSERY COMPANY, OSAGE, IOWA
Members are advised to communicate with NAB headquarters
before contracting with Gardner Nursery Company, Osage, Iowa.
DUFFY COPYRIGHT BILL
Members are urged to wire or telephone their Con¬
gressmen at once urging them to sign petition No. 26
filed February 12, 1936, by Congressman Marion A.
Zioncheck to report the Duffy Copyright Bill (S. 3047)
to the House. It is necessary that 218 signatures be
affixed to the petition.
RULE RELAXED TEMPORARILY
At a general session of the Federal Communications Commis¬
sion it was decided to relax until February 15, Rule 100.6 pending
further study. This rule now reads:
“Subject to the provisions of Sections 4 (j), 412 and 606 of the
Act, the files of the Commission shall be open to inspection as
follows:
(a) Tariff schedules required to be filed under Section 203 of
the Act and annual and monthly reports required to be
filed under Section 219 of the Act.
(b) Hearing dockets, only as to applications, licenses, and other
instruments of authorizations, notices, appearances, mo¬
tions, petitions, and other pleadings, depositions, tran¬
scripts of testimony, exhibits, examiners’ reports, exceptions,
and orders of the Commission.
(c) Other files, in the discretion of the Commission, upon written
request describing in detail the document to be inspected,
and the reasons therefor.”
R. R. MINTON
The Managing Director is desirous of learning the present ad¬
dress of R.‘R. Minton, who has been putting on “BY-NOW”
programs.
NEW SACRAMENTO STATION RECOMMENDED
Application was filed by the Golden Empire Broadcasting Com¬
pany with the Federal Communications Commission for a con¬
struction permit for a new station at Sacramento. Cal., to use
1310 kilocycles, 100 watts unlimited time. Royal Miller also
applied for a permit for a station to be located at the same place
to use 1210 kilocycles, 100 watts power and daytime power.
Chief Examiner Davis G. Arnold in Report No. 1-199 recom¬
mends that the application of Royal Miller be granted but that
of the Golden Empire Broadcasting Company be denied. The
Examiner found that there is not need for two additional radio
stations at Sacramento. The Examiner states that Mr. Miller has
been “for more than twenty years a resident of the city of Sacra¬
mento and is in a better position to know, and to render, the class
and character of the radio service need in the area proposed to be
served.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
American Centrifugal Corporation, New York City (2-1890,
Form A-l).
American Lime & Stone Company, Bellefonte, Pa. (2-1891,
Form A-2).
James Talcott, Inc., New York City (2-1893, Form A-2).
Holland Furnace Company, Holland, Mich. (2-1894, Form A-2).
Rome Cable Corporation, Rome, N. Y. (2-1896, Form A-l).
1205
Washington Garden, Inc., Washington, D. C. (2-1897, Form
A-l).
General Finance Corporation, Detroit, Mich. (2-1898, Form
A-l).
RECOMMENDS DENYING NEW CALIFORNIA
STATION
F. W. Atkinson, applied to the Federal Communications Com¬
mission for authority to erect a new broadcasting station at Watson¬
ville, Cal., to use 1310 kilocycles, 250 watts power and daytime
operation.
Examiner John P. Bramhall in Report No. 191 recommended
that the application be denied. He found that the area proposed
to be served is already receiving ample radio service. The Exam¬
iner states also that there are now two applications pending before
the Commission which might cause interference. “The interfer¬
ence which might be created,” says the Examiner, “by the granting
of this application with the proposed station would be only
slight, since the required separation is 74 miles and the actual
separation is 70 miles.” He found, however, that granting the
application will not serve the public interest.
INCREASED POWER AND TIME SUGGESTED
Broadcasting Station KRSC, Seattle, Wash., filed an application
with the Federal Communications Commission asking that its
power be increased from 100 to 250 watts and that its opera¬
tion be increased from daytime to unlimited. The station operates
on a frequency of 1120 kilocycles.
Examiner P. W. Seward in Report No. 1-192 recommends that
the application be granted. He found that a need for local service
in the area proposed does exist and therefore that granting of the
application would be in the public interest.
BROOKLYN HEARING DATE SET
The Federal Communications Commission has extended the pres¬
ent licenses of all Brooklyn radio stations involved in Dockets
Nos. 1780, 1936, 2039, 2641, 1882, 2013, 2014, 1967, 2643, 1883,
1968, 2642, for an indefinite period, but not beyond the expiration
of the present license period — May 1 — and ordered that the cases
be opened de novo before the Commission en banc. Hearings
will begin in this case on April 6.
NEW GEORGIA STATION RECOMMENDED
E. F. and S. F. Sapp applied to the Federal Communications
Commission for a construction permit for the erection of a new
broadcasting station at Waycross, Ga., to use 1200 kilocycles,
100 watts and unlimited time on the air. •
Examiner R. H. Hyde in Report No. 1-193 recommended that
the application be granted. He states that granting of the appli¬
cation would not cause any interference and that it is “shown
that there is no available radio service of primary signal quality in
the area proposed to be served, and that there is an active interest
on the part of the public in the establishment of local broadcast
facilities. From this it is concluded that there is a need for the
proposed new station.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following companies. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2692. Alleging the use of a sales scheme involving a lottery,
a complaint has been issued against General Concessions Corpora¬
tion, 6545 Carnegie Ave., Cleveland, manufacturer and distributor
of candies.
Every package of candy sold by this company contained a prize
but some prizes were of greater value than the ordinary run, in fact,
exceeded in value the retail price of the package of candy itself,
according to the complaint. Purchasers receiving packages contain¬
ing the more valuable prizes did so entirely by chance, it is alleged.
No. 2694. Deceptive use of the initials of the International Sea¬
men’s Union of America and of names which falsely imply a con¬
nection with that union is alleged in a complaint issued against the
I. S. U. Rank and File Group, and others, of No. 1 Union Square,
New York City, associations publishing the “I. S. U. Pilot,” “I. S. U.
Guide,” “Union Seaman,” and “The Pilot.”
Operating from its New York office and from branch offices in
Baltimore, New Orleans, Philadelphia, and other cities, the respond¬
ents are alleged to be in competition with other associations engaged
in the sale of magazines in interstate commerce, including the Inter¬
national Seamen’s Union of America, which, according to the com¬
plaint, has become known and has been referred to for more than
twenty years as the “I. S. U.” The International Seamen’s Union
of America publishes a monthly magazine called the “Seamen’s
Journal.”
Nos. 2695-2696-2697-2698-2699-2702-2704-2705-2706-2707-2708-
2 <09. Unfair methods of competition are alleged in complaints
issued against 12 companies engaged in the manufacture and sale
of candy. It is charged that the respondents pack their products in
assortments so as to involve the use of lottery schemes when the
candy is sold and distributed to consumers.
The complaints set out that some of the respondent companies use
push boards in their sales plans. Others rely upon lottery schemes
by which the purchaser, for a stated price, selects a piece of candy
from the assortment and may, if his choice is lucky, win a larger
piece of candy, bars of candy, a box of candy, or an article of
merchandise. Similar prizes may be won under the push board
method, which also involves an element of chance.
The complaints were issued against the following respondents:
Bnnte Bros., Inc., Chicago; Walter T. Hall and Minnie M.
Hall, individually, and doing business under the name of Walter
T. Hall & Co., Ottumwa, Iowa; Woody Candy Co., 609 N. W.
2nd St., Oklahoma City, Okla.; Avalon Candy Corporation, 2064
Marengo St., Los Angeles; Fine-Reding Candy Manufacturing
Co., Inc., 323 N. Queens St., Oklahoma City. Okla.; Pearson
Candy Co., 108 Glenwood Ave., Minneapolis; Williams-Crahan
Co., One N. W. First St., Oklahoma City, Okla.; Startup Candy
Co., Provo, Utah; J. G. McDonald Chocolate Co., Salt Lake
City; Raleigh Candy Co., First and Vine Sts., St. Louis. Mo.;
Shupo-Williams Candy Co., Wall Avenue and 26th St., Ogden,
Utah; John H. Dockman & Son, Inc., 32 E. Montgomery St.,
Baltimore.
No. 2709. Alleging that Julius Abrahams, trading as Phila¬
delphia Badge Co., practiced unfair competition by falsely adver¬
tising that his products were purchased by the United States Gov¬
ernment, a complaint has been issued against Abrahams, whose
address is 942 Market St., Philadelphia.
Manufacturing and selling stamp photos, Abrahams is alleged to
have advertised that among his nationally known users is the United
States Government. This representation, when applied to the re¬
spondent’s products, is alleged to be false, misleading and deceptive,
tending to deceive buyers into believing that Abrahams’ commodity
is purchased in large quantities by the Government, and, by in¬
ference, that it is endorsed by the Government.
No. 2701. A complaint has been issued against George Landon
and M. M. Warner, of 360 North Michigan Ave., Chicago, trading
as Landon & Warner, charging unfair competition in the sale of
an elastic fabricated belt.
Designed for use as an abdominal support, and to provide a
means of massaging in reduction of surplus fat, this belt, called
the “Director”, was advertised as being capable of reducing the
waistline from 4 to 6 inches, of eliminating practically all adipose
tissue, and doing away with a tired and bloated feeling after meals.
Nos. 2703-2713. Two California wine companies have been
served with complaints alleging unfair competition in the designa¬
tion of their wines for sale in interstate commerce.
E. A. and H. L. Wente, of Livermore, Calif., and Roma Wine
Co., Inc., San Francisco, are charged with unfairly using the name
“Chateau Yquem” to designate their wines, when, the complaints
point out, this name means to the trade and public a specific wine
produced from grapes grown on the estate of the Marquis de Lur-
Saluce, in the Sauterne country, Province of Bordeaux, France.
The complaints cite findings of the Federal Alcohol Administrator
that “Chateau Yquem” is a name of geographic significance known
to the consumers and the trade to distinguish the specific wine
made of grapes from the Lur-Saluce estate in France.
No. 2710. Alleging unfair representation in advertising matter
and radio announcements in aid of the sale of a solution for house¬
hold uses, a complaint has been issued against Strong, Carlisle &
Hammond Co., 1392 West Third St., Cleveland, manufacturer of
“SIB, Sunshine in Bottles”, a sodium hypochlorite solution.
Among representations alleged to have been made are the fol¬
lowing: That “SIB, Sunshine in Bottles”, will completely and
safely remove stains, kill odors instantly, destroy or kill germs,
disinfect as it cleans, sterilize dishes, and representations to the
effect that it may be taken internally, as “rigid tests prove it
safe”.
1206
The complaint alleges that these assertions are misleading and
that their use constitutes unfair competition with dealers in the
same class of products who do not untruthfully advertise them.
No. 2711. Use of false and misleading statements in advertise¬
ments is charged in a complaint issued against Foster-Milburn Co.,
1280 Main St., Buffalo, N. Y., engaged in the manufacture and sale
of Doan’s Pills, offered as “a stimulant diuretic to the kidneys”.
Claims in the advertisements that the pills contain certain cleans¬
ing properties beneficial in kidney disorders, that they restore vigor
and vitality, etc., are untrue, according to the complaint.
The complaint alleges such representations are misleading in
that they give the impression that the pills are a cure for the condi¬
tions described in the advertisements, whereas it is alleged no
diuretic is a cure for kidney troubles, and the symptoms enumerated
might not indicate a condition for which a diuretic would be pre¬
scribed by a qualified physician.
Stipulations
The Commission has issued the following stipulations and cease
and desist orders.
No. 2343. An order to cease and desist has been issued against
the Rossett Manufacturing Corporation, 8 Astor Place, New
York City, engaged in the sale of hats and caps in interstate com¬
merce, is directed to discontinue representing that it is a manu¬
facturer, by use of the words “manufacture”, “manufacturing”, or
“mills”, unless and until it actually does own plants where its
products are made.
The order prohibits the respondent from making the assertion
“We buy cloth direct from the mills, manufacture caps at our
own plant, and sell them direct to you at a small profit — That is
the reason we can sell you winter caps at these prices”, until such
representation is true.
No. 2348. Universal Extract Co., Inc., 380 Throop Ave.,
Brooklyn, N. Y., has been ordered to discontinue representing by
labels, newspaper advertising or radio broadcasts, or by any other
method, that it imports or exports the flavoring extracts it manu¬
factures and sells in interstate commerce, or that the ingredients
composing the extracts are imported from foreign countries.
The order prohibits use on extract container labels of words in
a foreign language or in any language which imply that the re¬
spondent is the sole representative in America in the sale of
preparations of certain extracts.
No. 2358. The Blind Weavers, Inc., 2215 South Turner Ave.,
Chicago, engaged in selling hand-woven and machine-made chenille
rugs, has been directed to cease and desist from representing that
it is a charitable institution for the blind, also from representing
to purchasers of its merchandise that they are buying products of
blind people domiciled in such institutions, instead of the products
of a private commercial enterprise.
The respondent, under the order, is to discontinue advertising for
sale or selling machine-made chenille rugs without a statement in
clear and legible type, in its advertising matter or on tags affixed
to the rugs, that such products are not made or woven by the
blind.
No. 2457. Simulation of the dress and appearance of containers
used by competitors in the sale of toothpaste is forbidden under an
order to cease and desist issued against New England Collapsible
Tube Co., 170 Broad St., New London, Conn., manufacturer and
seller of dentifrices and other merchandise, and against Robert P.
Gust Co., Inc., 529 South Franklin St., Chicago, manufacturers’
sales agent, which sold the dentifrices of the New England firm.
The order requires the respondents to discontinue selling tooth¬
paste or other merchandise in tubes, boxes, cartons or packages
which in dress and appearance simulate the containers used by
competitors and thus tend to deceive and mislead dealers and the
purchasing public into the belief that the respondents’ toothpaste
and other products are those of competitors.
No. 2464. Frederick W. Dobe, of near Libertyville, Ill.,
doing business as Dobe School of Drafting and as Engineer Dobe,
has been ordered to cease and desist from certain unfair methods
of competition in the sale of his correspondence course of instruc¬
tion in drafting.
Representations that draftsmen are in demand and that jobs
in their field are plentiful at times when such is not the case, or
that salaries of beginners and experts in the field are other than
the salaries actually prevailing at the time the representations are
made, are to be discontinued, under the order. The respondent is
required by the order to cease representing that he maintains an
employment agency for his students, and will refund money paid
to him by students if they do not obtain jobs, unless such assertions
are truthful.
No. 2584. Union Pencil Co., Inc., 305 Broadway, New York
City, has been ordered to cease and desist from certain unfair meth¬
ods of competition in selling its products in interstate commerce.
The respondent is required, under the order, to discontinue rep¬
resenting through advertising, letterheads, or other stationery, that
its pencils will outlast other brands in the same price range by
three or four times, or that they have been tested by the United
States Bureau of Standards, or tested for comparison with compet¬
ing pencil products by an independent and unbiased agency.
No. 2609. The Stetson Pants Co., 212 East 8th St„ Cincinnati,
has been ordered to cease and desist from making, publishing, or
circulating statements falsely creating the belief among potential
purchasers that it manufactures the trousers it sells in interstate
commerce.
Representations that the respondent company is exclusive owner
of a particular form of merchandise or that it holds any patent
or copyright on a so-called “Vizulizer”, which is an integral part
of a sales promotion plan, are prohibited under the order.
No. 2640. An order has been issued against the American White
Cross Laboratories, Inc., prohibiting certain unfair competitive
methods in the sale of absorbent cotton products. The company has
its headquarters at 52 Webster Ave., New Rochelle, N. Y.. and a
branch plant at Cape Girardeau, Mo. It distributes merchandise
to chain and syndicate stores, drug stores, surgical supply com¬
panies and hospitals.
This company is directed to cease advertising, labeling or other¬
wise representing packaged cotton as “sterilized” or “sanitary”,
unless it is sterilized and free from bacteria after it has been
packaged and while in its original unbroken package.
No. 2653. Harry Kapust, 2557 West North Ave., Chicago,
has been ordered to discontinue unfair methods of competition in the
sale of men’s clothing. Kapust is in business under the trade names
Roselile Manufacturing Co. and Roselile Clothing Manufac¬
turing Co.
The order prohibits representation by advertisements or other
means that the respondent or his companies are manufacturers of
men’s suits, until he operates or controls a factory where such
merchandise is made.
No. 2659. H. T. Poindexter & Sons Merchandise Co., 801
Broadway, Kansas City, Mo., has been ordered to cease and desist
from representing, directly or indirectly, that the cotton print
goods it sells in interstate commerce are “tub fast”, or that such
goods will not fade when washed in the normal course of use, unless
and until such goods are in fact dyed with a “tub fast” dye and
will not fade when so washed.
No. 2669. The General Tire & Rubber Co., Akron, Ohio, is
directed to discontinue representing or advertising that its tires
are “blow-out proof”, until such is a fact, under an order to
cease and desist.
The order prohibits the respondent company from phrasing its
advertisements so as to cause the public to believe that its tires
are “blow-out proof”, and from furnishing its dealers and distribu¬
tors with advertising copy which represents or implies that its tires
are “blow-out proof”, until and unless they are proof against
blow-outs.
No. 2581. Eton Knitting Corporation, 13 West 36th St., New
York City, is directed to discontinue unfair methods of competition
in the sale of wearing apparel knitted or crocheted from yarn, under
an order to cease and desist.
The order prohibits the respondent from using the word “knit¬
ting” as a part of its corporate name, and from advertising or
otherwise representing, directly or by implication, that it is a
manufacturer or knitter of the wearing apparel it sells, until and
unless it owns, operates and controls a factory where its products
are actually knitted or crocheted from yarn.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Thursday, February 20
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-130:
NEW — Dudley J. Connolly, Elliot Knight, Roy W. Knight & Fred
Sullivan, d/b as Dudley J. Connolly & Co., Chattanooga,
Tenn. — C. P., 1200 kc., 100 watts, daytime.
1207
Examiner’s Report No. 1-136:
KMA — May Seed & Nursery Co., Shenandoah, Iowa — Modifica¬
tion of license, 930 kc., 1 KW, iy2 KW LS, unlimited time.
Requests facilities of KGBZ. Present assignment: 930 kc.,
1 KW, iy2 KW LS, shares with KGBZ.
KGBZ — KGBZ Broadcasting Co., York, Nebr. — Renewal of license,
930 kc., 1 KW, zy2 KW LS, shares with KMA.
KGBZ — KGBZ Broadcasting Co., York, Nebr. — Modification of
license., 930 kc., 1 KW, iy2 KW LS, unlimited time. Re¬
quests facilities of KMA. Present assignment: 930 kc., 1
KW, 2/2 KW LS, shares with KMA.
KMA — May Seed & Nursery Co., Shenandoah, Iowa — Renewal of
license, 930 kc., 1 KW, 2j4 KW LS, shares with KGBZ.
Examiner’s Report No. 1-168:
NEW — W. A. Patterson, Chattanooga, Tenn. — C. P., 1420 kc.,
100 watts LS, daytime.
Examiner’s Report No. 1-108:
NEW— Robert E. Herbst, Moorhead, Minn. — C. P., 1310 kc.,
100 watts, unlimited time.
APPLICATIONS GRANTED
KWJJ — KWJJ Broadcast Co., Inc., Portland, Ore. — Granted C. P.
to install new antenna; move transmitter and studio locally.
WIS — Station WIS, Inc., Columbia, S. C. — Granted modification
of C. P. to extend completion date from 2-10-36 to 3-10-36.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted
modification of C. P. to extend completion date from 2-25-36
to 4-2S-36.
WSAY — Brown Radio Service & Lab., Rochester, N. Y.— Granted
modification of C. P. to change type of equipment; move
transmitter and studio sites locally; extend commencement
date to this date.
WIL — Missouri Broadcasting Corp., St. Louis, Mo.— Granted
license to cover C. P. authorizing installation of new equip¬
ment; 1200 kc., 100 watts night, 230 watts day, unlimited.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted license to cover C. P. authorizing installa¬
tion of new equipment; 570 kc., 250 watts, unlimited time.
KIEV — Cannon System Ltd., Glendale, Calif. — Granted license to
cover C. P. authorizing new equipment and increase in day
power to 230 watts, 850 kc. ; daytime.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — Granted
license to cover C. P. authorizing changes in equipment;
1200 kc., 100 watts, unlimited time.
WPFB — Forrest Broadcasting Co., Inc., Hattiesburg, Miss. —
Granted license to cover C. P. authorizing new equipment;
change in hours of operation from S.H. to unlimited, and
move transmitter locally, installing new antenna; 1370 kc.,
100 watts, unlimited time.
WMFR — Hart & Nelson (J. A. Hart & Wayne M. Nelson), High
Point, N. C. — Granted license to cover C. P. authorizing
new station; 1200 kc., 100 watts, daytime.
KHJ — Don Lee Broadcasting System, Los Angeles, Calif. — Granted
license to cover C. P. authorizing new station; 900 kc., 1
KW night, 5 KW day, unlimited ; also granted license for
auxiliary transmitter for auxiliary purposes only.
KPRC— Houston Printing Co., Houston, Tex. — Granted license to
cover C. P. authorizing removal of transmitter to Deep¬
water; installing new equipment, and increasing day power
to 3 KW ; 920 kc., 1 KW night, unlimited.
KGMB — Honolulu Broadcasting Co., Ltd., Honolulu, T. H. —
Granted license to cover C. P. authorizing move of trans¬
mitter and studio locally, installing new equipment, and in¬
crease in power to 1 KW ; 1320 kc., unlimited time.
KNET — John C. Welch, Wm. M. Keller, Bonner Firzzell, d/b as
Palestine Broadcasting Assn., Palestine, Tex. — Granted li¬
cense to cover C. P. authorizing new station; 1420 kc., 100
watts, daytime.
KRLH — Clarence Scharbauer. Midland, Tex. — Granted license to
cover C. P. authorizing new station; 1420 kc., 100 watts,
daytime.
Standard Radio Inc., Hollywood, Calif.— Granted authority to
transmit electrical transcription to foreign stations.
KPRC — Houston Printing Co., Houston, Tex. — Granted authority
to determine operating power by direct measurement of
antenna input in accordance with Rule 137.
KDYL — Intermountain Broadcasting Corp., Salt Lake City, Utah
— Granted amended C. P. to move transmitter site to near
Salt Lake City to site to be determined; install new equip¬
ment; increase day power from 1 to 5 KW.
W7XBD — Oregonian Publishing Co., Portland, Ore. — Granted
modification of C. P. extending commencement date to
1-13-36 and completion date to 8-15-36.
W2XJH- — General Electric Co., Portable-Mobile, Schenectady,
N. Y. — Granted license to cover C. P. (Exp. Gen. Ex.) ;
frequencies 31100, 34600, 37600, 40600 kc., IS watts, un¬
limited, in accordance with Rule 308.
W4XBT — Radio Station WSOC, Inc., Portable-Mobile (Charlotte,
N. C.) — Granted license to cover C. P.; frequencies 31100,
34600, 37600, 40600 kc., 2 watts, unlimited, in accordance
with Rule 308.
WLBC — Donald A. Burton, Muncie, Ind. — Granted C. P. to change
equipment and increase power to 100 watts night, 230 watts
day, inasmuch as Rule 131 has now been complied with.
WJBC — Wayne Hummer & H. J. Dee, d/b as Kashaskia Broad¬
casting Co., Bloomington, Ill. — Granted consent to voluntary
assignment of license to Arthur Malcolm McGregor and
Dorothy Charlotte McGregor, his wife, a partnership.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — Granted
modification of C. P. to make changes in equipment.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — Granted
application in part, authorizing station to move locally and
install new antenna system.
WIBA — Badger Broadcasting Co., Inc., Madison, Wis. — Granted
extension of special temporary authority to operate with
reduced power of 500 watts night, employing non-direc-
tional antenna, for the period Feb. 9 to March 9, 1936, in
order to facilitate completion of construction authorized
by C. P.
NEW — G. D. Goff, Tampa, Fla. — Reconsidered action in denying
application for new station at Tampa, Fla., and granted
applicant a re-hearing. Desires to operate on 1500 kc.,
100 watts.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KEHE, Los Angeles; KFDY, Brookings, S. Dak.; KFEL,
Denver, Colo.; KFRU, Columbia, Mo.; KFSD, San Diego, Cal.;
KGFX, Pierre, S. Dak.; KGKO, Wichita Falls, Tex.; KHJ, Los
Angeles; KLZ, Denver, Colo.; KMJ, Fresno, Cal.; KOAC, Cor¬
vallis, Ore.; KOMO, Seattle, Wash.; KPRC, Houston, Tex.; KSAC,
Manhattan, Kans.; KTAR, Phoenix, Ariz. ; KVI, Tacoma, Wash.;
KVOD, Denver, Colo.; KWTO, Springfield, Mo.; WAAF, Chicago,
Ill.; WBAA, W. Lafayette, Ind.; WBEN, Buffalo, N. Y., and
auxiliary; WCAC, Storrs, Conn.; WCHS, Charleston, W. Va.;
WCOC, Meridian, Miss.; WEAN, Providence, R. I.; WEEI, Bos¬
ton, Mass.; WGBF, Evansville, Ind.; WGBI, Scranton, Pa.; WGR,
Buffalo, N. Y.; WGST, Atlanta, Ga.; WHJB, Greensburg, Pa.;
WILL, Urbana, Ill.; WIP, Philadelphia, Pa.; WJAR, Providence,
R. I.; WKRC, Cincinnati, Ohio; WKY, Oklahoma City, Okla.;
WKZO, Kalamazoo, Mich.; WLBZ, Bangor, Me.; WMAL, Wash¬
ington, D. C., and auxiliary; WMC and auxiliary, Memphis, Tenn.;
WNAX, Yankton, S. Dak., and auxiliary; WORL, Needham,
Mass.; WOSU, Columbus, Ohio; WPEN, Philadelphia, Pa., and
auxiliary; WPRO, Providence, R. I.; WQAM, Miami, Fla.; WRAX,
Philadelphia, Pa., and auxiliary; WREC, Memphis, Tenn.; WSPA,
Spartanburg, S. C.; WSUI, Iowa City, Iowa; WTAR auxiliary,
Norfolk, Va. ; WWNC, Asheville, N. C.; WCAO, Baltimore, Md.,
and auxiliary; WDAF, Kansas City, Mo.; WDBO, Orlando, Fla.;
WICC, Bridgeport, Conn.; WKBN, Youngstown, Ohio; WSVA,
Harrisonburg, Va.; WTAD, Quincy, Ill.; KGW, Portland, Ore.;
KPOF, Denver, Colo.; KSD, St. Louis, Mo.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted renewal of license
for the period ending Aug. 1, 1936.
ACTION ON EXAMINERS’ REPORTS
WKZO — Ex. Rep. 1-8: WKZO, Inc., Kalamazoo, Mich. — Granted
C. P., subject to Rule 131, to move transmitter; make
changes in equipment; change power from 1 KW day, to
250 watts night, 1 KW day, and change time from daytime
to unlimited; 590 kc. Examiner Geo. H. Hill sustained.
Order effective, April 7, 1936.
NEW — Ex. Rep. 1-34: Helena Broadcasting Co., Helena, Mont. —
Denied C. P. for new station to operate on 1420 kc., 100
watts, unlimited time. Examiner Melvin Dalberg reversed.
NEW — Montana Broadcasting Co., Freda Wessell, Sec’y, Helena,
Mont. — Denied C. P. for new station to operate on 1420 kc.,
100 watts, specified hours. Examiner Dalberg sustained.
NEW — E. B. Craney, Helena, Mont. — Denied C. P. for new station
to operate on 1420 kc., 100 watts, unlimited time. Examiner
Dalberg sustained. Order effective April 7, 1936.
1208
KPPC — Ex. Rep. 1-102: Pasadena Presbyterian Church, Pasadena,
Calif. — Denied C. P. to install new equipment and increase
power from SO to 100 watts night, 250 watts day; 1210 kc.,
share with KFXM. Examiner P. W. Seward sustained.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Granted
modification of license to increase power from SO to 100
watts; 1210 kc., share with KFXM. Examiner Seward sus¬
tained. Order effective April 14, 1936.
KGBU — Ex. Rep. 1-128: Alaska Radio & Service Co., Inc., Ketchi¬
kan, Alaska — Granted C. P., subject to recommendations of
Engineering Department with respect to antenna construc¬
tion, to make changes in equipment, and increase power from
S00 watts to 1 KW night, S KW day; 900 kc., unlimited
time. Examiner Melvin H. Dalberg sustained. Order effec¬
tive April 14, 1936.
NEW — Ex. Rep. 1-172: Eastern Utah Broadcasting Co. (Sam G.
Weiss), Price, Utah — Granted C. P. for new broadcast sta¬
tion to operate on 1420 kc., 100 watts, unlimited time.
Examiner P. W. Seward sustained. Order effective April 7,
1936.
NEW — Ex. Rep. 1-177: Wisconsin Broadcasting Co., Oshkosh, Wis.
— Denied C. P. for new broadcast station to operate on
1310 kc., 100 watts night, 250 watts day, unlimited time.
Examiner John P. Bramhall sustained. Order effective April
14, 1936.
NEW — Edward Hoffman, St. Paul, Minn. — Reaffirmed original
grant of C. P. for new radio station at St. Paul, Minn., to
operate on 1370 kc., 100 watts, unlimited time, sustaining
Examiner Melvin H. Dalberg in Report No. 1-76.
ACTION ON CASES HEARD BEFORE BROADCAST
DIVISION
KFYR — Meyer Broadcasting Co., Bismarck, N. Dak. — Granted re¬
newal of license, 550 kc., 1 KW night, 5 KW day, unlimited
time. Order effective April 21, 1936.
NEW — Ward Walker, Seattle, Wash. — Denied C. P. for new broad¬
cast station to operate on 760 kc., 250 watts night, 500 watts
day, unlimited time (facilities of KXA). Order effective
April 21, 1936.
NEW — Symons Investment Co., Seattle, Wash. — Denied C. P. for
new broadcast station to operate on 760 kc., 250 watts night,
500 watts day, limited time (facilities of KXA) . Order effec¬
tive April 21, 1936.
KXA — American Radio Tel. Co., Seattle, Wash. — Granted renewal
of license, 760 kc., 250 watts night, 500 watts day, limited
time. Order effective April 21, 1936.
MISCELLANEOUS
WCFL — Chicago Federation of Labor, Chicago. III. — Granted reg¬
ular renewal of license.
KOB — New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, N. Mex. — Granted petition asking continuance
of hearing on application for renewal of license. New date
set for March 25. Hearing was scheduled for Feb. 11, 1936.
C. G. Hill, Geo. D. Walker, and Susan H. Walker, Winston-Salem,
N. C. — Granted request to take depositions in support of ap¬
plication for new station at Winston-Salem, N. C.
WDOD— WDOD Broadcasting Corp., Chattanooga, Tenn. — Granted
petition to intervene in application of J. R. Maddox and Dr.
W. B. Hair for C. P. for new radio station at Chattanooga
to operate on 590 kc., 1 KW, unlimited.
Wyoming Tribune Leader and Wyoming Eagle, Cheyenne, Wyo. —
Denied petition to intervene '“to oppose granting of applica¬
tion of Wyoming Educational Society (Wyoming Radio Edu¬
cational Assn.), or any other pending application for radio
facilities in Cheyenne.”
WHO — Central Broadcasting Co., Des Moines, Iowa. — Granted re¬
newal of license for regular period.
KMMJ — The M. M. Johnson Co., Clay Center, Nebr. — Granted re¬
newal of license for regular period.
WLS — Agr. Broadcasting Co., Chicago, Ill. — Granted renewal of
license for regular period.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Granted renewal of license for the regular period.
WATR — The WATR Company, Inc., Waterbury, Conn. — The Com¬
mission, Broadcast Division, today granted the petition of
WATR, Waterbury, Conn., and ordered the issuance to said
station of special experimental authority to operate for the
hours 1 to 3 a. m., EST, for a period of 30 days, provided
station WOAI, San Antonio, Tex., does not operate during
said hours, and provided further that said authority be issued
only upon the express condition that it may be withdrawn at
any time by the Commission without advance notice or
hearing.
ORAL ARGUMENTS POSTPONED
NEW — Ex. Rep. 1-138: Big Springs Herald Broadcasting Co., Big
Springs, Tex. — Oral arguments scheduled for February 27
changed to March 12, 1936.
NEW — Vernon Taylor Anderson, Mgr., ABC Broadcasting Co., Big
Springs, Tex. — Oral arguments scheduled for February 27
changed to March 12, 1936.
NEW — Plainview Broadcasting Co., Plainview, Tex. — Oral argu¬
ments scheduled for February 27 changed to March 12, 1936.
NEW — North Texas Broadcasting Co., Paris, Tex. — Oral arguments
scheduled for February 27 changed to March 12, 1936.
SET FOR HEARING
NEW — Emilio Dafillo Ramirez, Mayaguez, P. R. — Application for
C. P. for new station, 1370 kc., 100 watts night, 250 watts
day, S.H. (6 to 9 a. m., 12 M-3 p. m., 6 to 9 p. m. daily).
NEW — A. W. Mills, Gallup, N. Mex. — Application for C. P. for new
station, 1310 kc., 100 watts, unlimited.
NEW — Berks Broadcasting Co., Pottsville, Pa. — Application for
C. P., 640 kc., 250 watts, daytime. Site to be determined.
NEW — Charles E. Wilkinson, Mason City, Iowa. — Application for
C. P., 1370 kc., 100 watts, unlimited time. Site to be de¬
termined.
NEW — Alex F. Suss, Sacramento, Calif. — Application for C. P.,
1310 kc., 100 watts, unlimited time. Site to be determined.
WPRO — Cherry & Webb Broadcasting Co., Providence, R. I. — Ap¬
plication for C. P. to install new equipment, increase power
from 250 watts to 500 watts night, 1 KW day, employing
directional antenna system night-time.
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — Application
for C. P. to move transmitter from Jackson, Tenn., to another
site to be determined ; install new equipment ; increase power
from 100 watts night, 250 watts day, to 250 watts night, 500
watts day ; change frequency from 1310 kc. to 920 kc., using
directional antenna.
NEW — The Press Democrat Pub. Co., Santa Rosa, Calif. — Applica¬
tion for C. P. for new station, 1310 kc., 250 watts, daytime.
KFBI — The Farmers & Bankers Life Ins. Co., Abilene, Kans. —
Application for C. P. to move transmitter site from Milford
to 3 miles west of city limits on No. 54 Highway, Wichita,
Kans., and studio from Abilene to Wichita ; and make changes
in equipment.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Application for
modification of C. P. to change time of operation from sharing
with WKBO to unlimited daytime, share with WKBO night ;
extend commencement date to 30 days after grant and com¬
pletion date to 6 months thereafter.
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — Application
for C. P. for new equipment; change frequency from 1200 kc.
to 1250 kc. ; increase power from 100 watts night, 250 watts
day, to 1 KW day and night.
KIUN — Jack W. Hawkins and Barney H. Hubbs, Pecos, Tex. —
Application for modification of license to change frequency
from 1420 kc. to 1310 kc.
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Application
for modification of license to increase power from 250 watts
night and 500 watts day, to 1 KW night, using directional
antenna, and 1 KW day.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa. — Applica¬
tion for modification of license to increase power from 250
watts night (directional antenna), 500 watts day, to 1 KW
night (directional antenna), 1 KW day.
NEW — Albert E. Davis, Brownwood, Tex. — C. P., already in hearing
docket, amended to read: 1420 kc., 100 watts, daytime. Site
to be determined.
NEW — Herbert Hollister, Emporia, Kans. — Application for C. P.
for new station, 1500 kc., 100 watts, unlimited time.
NEW — Ruth W. Adcock and S. E. Adcock, d/b as General Broad¬
casters, Rossville, Ga. — Application for C. P., already in hear¬
ing docket, amended to read: 1120 kc., 250 watts daytime.
Site to be determined.
NEW — Ruth W. Adcock and S. E. Adcock, d/b as General Broad¬
casters, Johnson City, Tenn. — Application for C. P., 880 kc.,
250 watts daytime. Site to be determined.
NEW — Struble, Strong & Fagan, The Dalles, Ore. — Application for
1209
C. P., already in hearing docket, amended to read: 1200 kc.,
100 watts, unlimited. Site to be determined.
NEW — C. A. Rowley, Ashtabula, Ohio. — Application for C. P.,
already in hearing docket, amended to read: 940 kc., 2 SO
watts, daytime only.
NEW — Wm. H. Davis, Dixon Pyles, W. H. Johnson, d/b as Mag¬
nolia Broadcasting Co., Jackson, Miss. — Application for C. P.
for new station, 1420 kc., 100 watts, unlimited time.
APPLICATIONS DENIED
WEDC — Emil Denemark, Inc., Chicago, Ill. — Denied request for
temporary authority to operate from 12 midnight to 6 a. m.,
CST, for a period not to exceed 30 days, pending application
for modification of license, requesting same authority on a
permanent basis.
KARK — Arkansas Radio & Equipment Co., Little Rock, Ark. — De¬
nied authority to operate with power of 500 watts night, 1
KW day, at present location with present antenna system,
pending the installation of antenna system meeting require¬
ments of Rule 131.
NEW — -Northern Commercial Co., Fairbanks, Alaska. — Denied as
in cases of default application for C. P. for new station to
operate on 550 kc., 250 watts, unlimited time, for failure to
file an appearance and statement of facts in accordance with
Rule 104.6(c). Application heretofore set for hearing.
APPLICATIONS RECEIVED
First Zone
WREC — WREC, Inc., Memphis, Tenn. — Modification of construc-
600 tion permit (B3-P-161) for changes in equipment; installation
of directional antenna; move of transmitter; and increase of
power from 500 watts, 1 KW day, to 1 KW, 2J4 KW day,
requesting extension of completion date from 2-29-36 to
4-29-36.
NEW — Maine Broadcasting Co., Inc., Portland, Maine. — Construc-
620 tion permit for a new station to be operated on 620 kc., 500
watts, 1 KW day, unlimited time.
WLBZ — Maine Broadcasting Co., Inc., Bangor, Maine. — Modifica-
970 tion of license to change frequency from 620 kc. to 970 kc.,
and hours of operation from unlimited time to daytime until
sunset at Chicago, Ill., contingent upon the granting of Bl-P-
966 requesting a new station at Portland, Maine.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. — Modifi-
1270 cation of license to use present licensed transmitter as an
auxiliary and the auxiliary transmitter as a main transmitter.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. — License
1270 to cover construction permit (Bl-P-847) for changes in aux¬
iliary equipment.
NEW — Auburn Publishing Co., Auburn, N. Y. — Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
unlimited time. Amended to make changes in equipment.
NEW — Atlantic Broadcasting Corp., Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 31100, 34600, 37600, 40600, 86000, 400000,
401000 kc. and above, 50 watts.
Second Zone
WHBC — Edward P. Graham, Canton, Ohio. — Voluntary assignment
1200 of license and construction permit from Edward P. Graham
to The Ohio Broadcasting Co.
Third Zone
NEW — Van Luke Walling, Huntsville, Ala. — Construction permit
1210 for a new station to be operated on 1210 kc., 100 watts, un¬
limited time.
NEW — Earl Weir, St. Petersburg, Fla. — Construction permit for a
1370 new station to be operated on 1370 kc., 100 watts, unlimited
time.
KILU — Arkansas Radio & Equipment Co., Little Rock, Ark. —
Modification of license to add frequencies 2060 and 2790 kc.
NEW — Voice of Longview, Portable-Mobile. — Construction permit
for a new broadcast pickup station to be operated on 1622,
2060, 2150, 2790 kc., 40 watts.
Fourth Zone
WOWO — The Main Auto Supply Co., Fort Wayne, Ind. — Consent
1160 to transfer of control of corporation from Fred C. Zieg, C. R.
Durbin and J. A. Becker to Westinghouse Electric & Manu¬
facturing Co., 800 shares common stock.
WGL — F. C. Zieg (Allen-Wayne Co.) , Fort Wayne, Ind. — Voluntary
1370 assignment of license from F. C. Zieg (Allen-Wayne Co.) to
Westinghouse Electric and Manufacturing Co.
Fifth Zone
KLZ — The Reynolds Radio Co., Denver, Colo. — Modification of
560 license to change name from The Reynolds Radio Co., Inc.,
to KLZ Broadcasting Co.
1210
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * *
Copyright. 1936. The National Association of Broadcasters
Special
FEBRUARY 18, 1936
REPORT ON COPYRIGHT
Submitted to the Board of Directors at a meeting held in Chicago, Illinois, February 3, 1936
To the Board of Directors of the National Asso¬
ciation of Broadcasters:
You have been called to this meeting held February 3,
1936, primarily for the purpose of considering questions
of vital importance to the broadcasting industry in the
field of copyright. To assist in your determination of
these questions, I have prepared this report setting forth
the facts as I find them, and closing with certain con¬
clusions and recommendations submitted for your con¬
sideration.
By resolution adopted on December 17, 1935, at your
last meeting, you conferred broad authority on me to
negotiate in behalf of independently-owned stations for
copyright licenses. Pursuant to that resolution, over 300
broadcasters gave me powers of attorney to act for them
in the crisis which was at hand. This response far ex¬
ceeded the fondest hopes even of those who voted for the
resolution, and represented a unified action in the broad¬
casting industry beyond anything yet seen. Further pur¬
suant to that resolution, I assembled an advisory com¬
mittee which I am sure you will agree was truly repre¬
sentative of various classes of independent stations and
was composed of able and conscientious men. These
men worked long and laboriously with me through two
sessions in New York, one of them from December 27 to
December 31, 1935, and again on January 10-11, 1936,
and I had the constant advice and assistance of several
of them in the interim between the two sessions.
Notwithstanding these facts, I regret to report that, so
far as ASCAP is concerned, the result was a complete
and humiliating failure. This fact is a challenge to the
Officers and Directors of the NAB, and to every broad¬
caster in the United States. How did it come about that
the combined negotiating power of over 300 broadcasting
stations (including most of the larger independent sta¬
tions) could be not only utterly ignored but be treated
with contempt? One of the principal purposes of this
report is to set forth and analyze the facts to determine
the answer to this question. This, it seems to me, is
necessary in order to decide upon the future course of
action of the NAB in the field of copyright, and to avoid
any mistakes that may have been made in the past.
In Parts VII and VIII of this report I have set forth
my conclusions and my recommendations and shall not
anticipate them in detail here. It is necessary, however,
to say a word in advance. Whatever approach is made
to the study of the causes of the repeated failure of NAB
negotiations with ASCAP, the path leads inevitably to
certain basic causes which are familiar to everyone, such
as ASCAP’s monopolistic power, combined with lack of
availability of sufficient non-ASCAP music and with de¬
fects in the copyright law. More recently, however, there
has been added to these basic causes a factor so important
as to have been well nigh a determining influence in all
negotiations. I refer to the discriminatory contracts
enjoyed by the two national network companies, com¬
bined with the power indirectly given to ASCAP by the
contracts which those companies have with affiliated
stations, under which the latter are obligated to have
ASCAP (and other) licenses. As I shall point out, this
factor (in addition to the basic causes) more than any¬
thing else brought about our recent defeat, and will con¬
tinue to stand in the way of success of any fair and
equitable copyright program NAB may adopt, whether
it be per-piece, measured service, or some other kind of
system.
If I am correct in this conclusion, then, if NAB is to
continue to function in the field of copyright and fairly
to represent the great majority of its membership, among
its principal objectives should be
1. Elimination of all discriminations in contracts with
ASCAP and other licensing pools.
2. Elimination of the requirement in network-affiliate
contracts that affiliate stations have licenses from ASCAP
or any other licensing pool.
3. Clearance of copyright at the source on network
programs, to the end that the network is responsible for
the obtaining of licenses and the payment of fees on
network programs broadcast by affiliate stations.
Obviously, in the absence of assent by the network
member stations of the NAB, these objectives cannot be
striven for without a division in the ranks of the Asso¬
ciation with all the consequences this would entail. On
the other hand, these objectives cannot be ignored with¬
out forcing upon the great majority of independent sta¬
tions a realization that to have any measure of success
in future copyright negotiations they must unite outside
of NAB and act independently of it. As I see it, the issue
for them is not whether they shall or shall not have a
per-piece or measured service plan (although, in view
[1]
of the fact that the NAB has gone on record in favor
of such a plan at its last three conventions, this issue is
extremely important). The issue is, whether they are
to have any voice whatever in determining what agree¬
ments they will enter into with licensing pools. So far
they have been denied that voice.
Broad as were the powers given me by the resolution
of December 17, 1935, 1 do not construe them as authoriz¬
ing me definitely to commit either the Board or the Asso¬
ciation to either course. It seems to me that a choice
must quickly be made between
1 . a comparatively innocuous course avoiding any issue
wherein the interests of the networks are opposed to those
of the independent station, and
2. a militant course which would include the objectives
above set forth.
This report is, therefore, also a request for instructions
from the Board of Directors by whom I am employed and
to whom I am responsible. It may be that the Board
will feel that this issue is so far-reaching that it should
be submitted to the membership either at the next Annual
Convention or at a Special Meeting to be called at an
earlier date.
In view of the importance which attaches to the dis¬
criminatory contracts, I have, at some length, summarized
their nature, their history and their effect on our nego¬
tiations, in order that, as nearly as is in my power, the
correct facts shall be before the Board. Other headings
included in this report explain themselves.
I. ANALYSIS OF TOTAL COPYRIGHT FEES
PAID BY BROADCASTERS IN 1935
This analysis is of fundamental importance to an under¬
standing of the present situation. First, it explains the
basis for one of the principal complaints against ASCAP
by the overwhelming majority of independent broad¬
casters, as well as the principal obstacle to negotiation
of a per-piece or measured service plan. Second, it ex¬
plains one of the principal reasons leading to the with¬
drawal of the Warner Brothers group of music publishing
houses from ASCAP, i.e., that, because of the discrimina¬
tory contracts in favor of the networks, a large portion
of the broadcasting industry’s net receipts is escaping the
payment of fees for the use of copyright music.
For the sake of simplicity and because of lack of data
on other licensing organizations, this analysis will be
confined largely to copyright fees paid to ASCAP, and
will be made in round numbers.
The broadcasting industry paid ASCAP approximately
$2,995,000 in 1935, or, in round figures, $3,000,000. Of
this sum about $850,000 consisted of sustaining fees, and
about $2,150,000 of fees paid on so-called net receipts
of broadcasters on commercial programs. The sum of
$2,150,000 represents 5% of $43,000,000. The term “net
receipts,” as defined in ASCAP contracts, refers to the
full amount paid to the broadcaster for the use of his
broadcasting facilities after deducting commissions not
exceeding 15%, if any, paid to advertising agents or
agencies not employed or owned in whole or in part by
the broadcaster. Even if it be assumed that 15% has
been paid in all cases (which is, of course, not the fact),
net receipts of $43,000,000 would correspond to less than
$51,000,000 of gross receipts.
The fact is that, as nearly as can be calculated on the
basis of data now available, the gross receipts of the
broadcasting industry for 1935 were about $87,500,000
and, if a 15% commission were deducted in all cases
(which, as already stated, is not the fact), the net receipts
were about $74,000,000. From these figures it is clear
that about $30,000,000 or more of net receipts (corre¬
sponding to about $35,000,000 of gross receipts) is escap¬
ing the payment of copyright fees.
The overwhelming majority of independent broad¬
casters are paying ASCAP 5% of their net receipts and
the discrepancy is not due to them. The discrepancy
is due primarily to the discriminatory contracts men¬
tioned at the outset.
Let it be assumed that $74,000,000 represents the net
receipts of the broadcasting industry and that $2,150,000
represents the sum (exclusive of sustaining fees) paid to
ASCAP for the year 1935. If the entire broadcasting
industry were paying on a uniform non-discriminatory
percentage basis, each broadcaster would have paid 3%
of his net receipts (instead of 5% as at present). If sus¬
taining fees were abandoned and all fees reduced to a
percentage basis, the total of $3,000,000 received by
ASCAP in 1935 would represent about 4% of each broad¬
caster’s net receipts (instead of 5% plus a large sustain¬
ing fee as at present). If the percentages be figures in
terms of the gross receipts of $87,500,000, each broad¬
caster need have paid only about 2.5% plus his sustaining
fee, or less than 3.5% without any sustaining fee.
The discriminatory ASCAP contracts, so far as they
are known, consist (1) principally in the contracts of the
two national network companies, and, to a much smaller
extent, (2) in the contracts of about 48 newspaper-owned
stations, and (3) the contract of WCAU, Philadelphia.
The nature of the discriminations will be briefly described.
1. The Network Contracts. The two national network
companies (NBC and CBS) pay nothing to ASCAP as
networks. Each company pays a sustaining fee plus 5%
of net receipts with respect to each station owned or con¬
trolled by it, NBC with respect to 14 stations (KDKA,
KGO, KOA, KPO, KYW, WBZ, WEAF, WENR, WGY,
WJZ, WMAL, WMAQ, WRC and WTAM) and CBS
with respect to 7 stations (KMOX, WABC, WBBM,
WBT, WCCO, WJSV and WKRC).
Neither company pays any sustaining fee or percentage
of net receipts on revenue received from advertisers for
the facilities of affiliated stations, not owned or controlled
by the network company. For example, Station A, inde¬
pendently owned but affiliated with NBC, may have a
rate of $300 an hour at which rate its facilities are sold
by NBC to a network advertiser. Of this $300, NBC
pays only $50 to Station A and keeps $250. Station A
pays ASCAP 5% of the $50 received by it; NBC pays
ASCAP nothing on the remaining $250.
[2]
Furthermore, neither company pays 5% on the total
net receipts even of its own stations. By a process of
bookkeeping or by use of subsidiary corporations, only a
portion of what is paid by a network advertiser is credited
to these stations and subjected to the 5% fee. For ex¬
ample, Station B, owned by NBC, may have a rate of
$1200 an hour at which rate its facilities are sold by NBC
to a network advertiser. Of this $1200, NBC may credit
the station with only $400 and retain $800 as “network”
receipts. NBC pays the 5% fee only on the $400.
While complete exact figures are not available (due in
part to the unwillingness of the networks to supply them),
sufficient are at hand to give some idea of the amount
of net receipts which thus escape taxation by ASCAP.
The following figures show what was actually paid to
ASCAP by the two national network companies during
1934 and during the first six months of 1935.
1934
Sustaining Advertising
Fee Fee Total
NBC . 1 $173,500.00 $137,541.96 $311,041.96
CBS . 68,500.00 106,778.44 175,278.44
Total . . . $242,000.00 $244,320.40 $486,320.40
1 One of NBC’s 14 stations, KYW, was not acquired until De¬
cember 3, 1934.
January 1-July 1, 1935
Sustaining Advertising
Fee Fee Total
NBC . $ 89,250.00 $ 89,794.79 $179,044.79
CBS . 34,249.92 68,633.06 102,882.98
Total . . . $123,499.92 $158,427.85 $281,927.77
Multiplying the six-months figures by two, we arrive
at the following payments made by the two national net¬
work companies to ASCAP in 1935:
Sustaining Advertising
Fee Fee Total
NBC . $178,500.00 $179,589.58 $385,089.58
CBS . 68,499.84 137,266.12 205,765.96
Total . . . $246,999.84 $316,855.70 $563,855.54
According to the above figures, the two network com¬
panies paid substantially $247,000 out of the total of
$832,000 in sustaining fees received by ASCAP from
broadcasting in 1934, or 29.7%.
According to the above figures, the two network com¬
panies paid substantially $317,000 out of the total of
$2,150,000 in advertising fees received by ASCAP from
broadcasters in 1935, or 14.7%. The sum of $317,000
represents 5% of $6,340,000 net receipts.
It is now appropriate to compare the total net receipts
of the two national networks with the total net receipts
of the rest of the broadcast industry. Exact figures for
the net receipts are not available and a calculation must,
therefore, be made on the basis of gross receipts (gross
time sales). Even these involve an approximation since
exact figures for the month of December are not yet avail¬
able. The gross and net receipts for 1935, thus calculated,
are as follows:
Gross Receipts for 1935
1st 6-mos.
National Networks . $26,120,410
Regional Networks . 465,899
National non-Network . 8,591,053
Local . 9,898,610
Total
$50,067,686
1,110,739
17,063,688
19,281,735
Total
$45,075,972 $87,523,848
The national network business, therefore, represents
slightly over 57% of the total broadcasting business for
1935. At this point, however, we meet with a lack of
information which makes it difficult to reach even approxi¬
mate conclusions. It is not known how much of the net
receipts of the national networks are (a) paid over to
affiliate stations, or (b) paid over or credited to stations
owned or controlled by the networks. It is also not known
how much of the national non-network and the local re¬
ceipts represent receipts on business of stations owned
or controlled by the national network companies. Even
with the making of liberal allowances, however, it seems
clear that at least the sum of $25,000,000 (and probably
more) of national network net receipts is escaping the
payment of any tax to ASCAP. Or, to state the matter
in another way, the national network companies are pay¬
ing ASCAP only about 1% of their net receipts, in con¬
trast to the 5% paid by independent broadcasters.
2. The Newspaper Contracts and the WCAU Contract.
While the discriminatory features in these contracts per¬
mit the licensees to escape a certain amount of the burden
borne by other stations, the amount of saving is not
known. In any event, the total saving is not large enough
so that elimination of the discriminations would make
possible any material reduction in the percentage paid
by other stations.
II. ORIGIN OF DISCRIMINATORY ASCAP
CONTRACTS
For some years prior to 1932 broadcasters paid ASCAP
on the basis of flat annual license fees, payable in monthly
installments. The total paid ASCAP in 1932 was ap¬
proximately $960,000. The licenses were for short term
periods, such as a year or two; the end of each period
brought a bitter controversy and almost invariably an
increase in fees. While undoubtedly ASCAP attempted
in a general way to relate the size of the fee to the im¬
portance of the station there was little uniformity and
the amounts paid by stations were kept secret. Such
discriminations as there were, however, are irrelevant
to the present discussion.
In the latter part of 1931, as licenses terminated, re¬
newals were placed on a month-to-month basis and
ASCAP let it be known that it was working out a new
system of fees. On April 11, 1932, the new basis was
(3]
announced by E. Claude Mills, General Manager of
ASCAP, effective June 1, 1932, as follows:
Sustaining License
“At approximately present rates, with such readjust¬
ments either upward or downward as will equalize the
fee paid by stations operating under similar or equal
conditions * *
Commercial License
“At 5% of the amounts charged for use of the facilities
of the station in respect to all commercially sponsored
non-network programs. In the case of network programs,
the fee of 5% is payable by the key station based upon
the gross amount charged for use of broadcasting facili¬
ties * *
Thus it will be noticed ASCAP’s first proposal recog¬
nized that in network programs copyright should be
cleared at the source. At that time it was estimated
that the gross receipts of the broadcasting industry were
between $50,000,000 and $60,000,000. The proposal
therefore meant an increase in the total fees to be paid
ASCAP of over 300%.
An emergency meeting of the NAB Board was held
in New York April 18-19. As a result of conferences
with Mills a moratorium until September 1st was decided
upon in order to permit negotiations. A special copy¬
right committee was appointed by the NAB Board to
carry on negotiations with ASCAP, consisting of Morency,
WTIC, Chairman; Ashby, Vice President of NBC; Klau-
ber, Vice President of CBS; Cummings, WOAI; and
Shaw, WMT. Cummings and Shaw were thereafter
unable to be present or to participate in the committee’s
work, so that the committee in reality consisted of Mo¬
rency, Ashby and Klauber. A plenary committee was
created to survey the entire music situation. The NAB
addressed a formal communication to ASCAP in which
it refused to accede to the ASCAP proposal and pointed
out, among other things, the unsoundness of the proposed
basis for assessing fees, particularly with respect to pro¬
grams in which no use is made of copyrighted music con¬
trolled by ASCAP.
The negotiating committee thereupon proceeded to
have conferences with ASCAP representatives. The
plenary committee considered a survey of music in the
public domain as well as a study of the foreign music
copyright situation. Oswald F. Schuette was engaged as
a sort of generalissimo, with his principal duties on the
legislative front. Since the legislative history of this
period, while important, is of only incidental relevancy
to this discussion, it will be passed over. A further meet¬
ing of the NAB Board was held in Chicago on May 24th.
A special meeting of the NAB negotiating committee, the
plenary committee and others (including the presidents
of the two networks) was held in New York on July 6th.
No progress, however, had yet been made by the nego¬
tiating committee.
Finally, Mills and the NAB negotiating committee
worked out a proposition whereby the broadcasters would
pay a flat increase of 25% for one year beginning Jan¬
uary 1, 1933, during which period a legislative truce in
Congress would be declared and further negotiations
would be undertaken towards an acceptable basis. The
NAB Board was called into a special session in New
York on July 21st. It rejected the proposal, principally
because of the provision for legislative truce, and made
a counter-proposal calling for a 25% increase for two
years during which time a joint committee of the NAB
and ASCAP would cooperate in drafting a scale based
on a “per-piece” arrangement. This proposal was sub¬
mitted to Mills on July 26th by the Negotiating Com¬
mittee and was rejected by the ASCAP Board on the fol¬
lowing day, apparently by a very close vote.
On July 28th Mills made an announcement virtually
breaking off negotiations. Orally, however, he announced
new terms consisting of a modification of the proposal
first made on April 11th. These terms consisted of a
sustaining license fee, as previously proposed, plus a per¬
centage of gross receipts for a period of three years, the
percentages being 3% the first year, 4% the second year
and 5% the third year. The same principle was followed
with respect to network programs as in the proposal of
April 11th; namely, that the networks should bear the
entire cost on network programs, in other words, that
copyright should be cleared at the source. In response
to a letter from the NAB Negotiating Committee, Mills
indicated willingness to reopen negotiations by letter
dated August 3rd, in which he stated the modified pro¬
posal in written form.
What happened between this date and August 24th is
a matter of speculation. A meeting of the NAB Board
was held on August 24th in New York and at that meeting
the Negotiating Committee presented another proposition
from ASCAP with the following recommendation:
“The committee believes that the foregoing settlement
is the most favorable that can be reached and recommends
that the Board accept it and recommend its acceptance
by the independent stations.”
This final proposal was the same as that announced by
Mills on July 28th with one very important exception.
The exception was that the networks would not pay any¬
thing on their receipts as networks but would pay only
royalties on the net sales of each station owned and oper¬
ated by them, whereas network affiliates would pay the
percentage rate on their receipts on network as well as
on non-network commercial programs. After a tumultu¬
ous session the Board voted acceptance of the report, with
four representatives of independent stations not voting.
A number of the Directors that voted for it did so only
because under the circumstances they felt they had no
alternative.
In the course of the weeks that followed more favorable
contracts were also negotiated by a group of newspaper-
owned stations. Under the terms of these contracts the
newspaper-owned stations were to pay (1) a sustaining
fee of 50% of the fee previously paid; (2) 3% of re¬
ceipts up to an amount equal to 50 times the sustaining
fee, and 5% of receipts above that amount, and (3) in
any event, a minimum fee of not less than 4 times the
sustaining fee.
WCAU, Philadelphia, also negotiated a more favorable
contract. In its case the percentage is based on receipts
from programs using music and the contract contains
other advantageous provisions, consisting chiefly of a
low sustaining fee and the privilege of deducting legitimate
salesmen’s commissions.
While a number of incidental facts are in doubt and
open to controversy, the conclusion is inescapable that
during the final hours of the negotiations the NAB Nego¬
tiating Committee directed its efforts toward relieving
the networks of the burdens that would have fallen on
them under Mills’ proposal of July 28th, and transferring
a substantial share of this burden to the independently-
owned affiliate stations. Under these circumstances it is
not surprising or open to serious criticism that in their
later negotiations other stations, including the newspaper
group, attempted to secure concessions. In fairness to
the newspaper group it should be stated that its leaders
and spokesmen have regularly proved willing to cooperate
with other independent stations in the attempt to obtain
from ASCAP a per-piece or a measured service plan avail¬
able to all stations on a non-discriminatory basis. So far
as publicity is concerned (including the allegations in the
government’s suit against ASCAP), however, the news¬
paper contract has been the chief target as an example
of discrimination, while comparatively little has been
printed about the much greater discrimination involved
in the network contracts which, as hereinafter shown,
were fundamentally responsible for the recent failure in
NAB’s negotiations with ASCAP.
III. RENEWAL OF THE DISCRIMINATORY
CONTRACTS IN JUNE, 1935.
Assurances given by Mills in 1932 that the forced ac¬
ceptance of the new ASCAP contracts did not foreclose
further negotiations and that ASCAP stood ready to con¬
sider a revision at any time were, with minor exceptions,
not borne out by later events. On October 10, 1932,
ASCAP did announce that it would not require payment
of royalties on political speeches, the national election
campaigns being then in full progress, and, in the case of
many of the smaller stations, there were reductions in
sustaining fees, the total reduction, however, not amount¬
ing to very much.
During the fall of 1932, Mills assured Schuette that
he was willing, subject to the approval of the ASCAP
Board, to limit royalties to programs using ASCAP music,
but on November 2nd the ASCAP Board went through
the familiar process of refusing to ratify the proposal.
Tactics such as these were to be repeated over and over
again during the ensuing three years, principally on occa¬
sions when ASCAP had reason to fear some concerted
or effective action on the part of the broadcasting in¬
dustry and desired to delay such action.
At the NAB Annual Convention, held in St. Louis on
November 14-16, 1932, Schuette was given broad author¬
ity and a resolution was unaimously adopted declaring
that
“the composers and publishers are entitled to fair com¬
pensation, measured in proportion to the actual use of
their compositions”
and, by other actions, the basis was laid for the three-
point program of the NAB discussed under a later head¬
ing, which was formally put into motion at a NAB meet¬
ing held in New York on April 5, 1933.
Immediately after the Convention Schuette made a
proposal that royalties be 4% of revenue from programs
using ASCAP music, plus a sustaining fee. Mills re¬
sponded that action on this proposal must await an
ASCAP Board meeting in January. In a letter dated
January 18, 1933, Mills offered to reopen negotiations
but declared that under no circumstances would he deal
with Schuette (who was sending out some rather vigorous
circulars to all stations, having to do principally with
“plugging” and “restricted” ASCAP numbers).
On January 24, 1933, announcement was made that
Hon. Newton D. Baker had been retained and on Feb¬
ruary 20-21, 1933, an NAB Board meeting was held in
Washington at which Mr. Baker’s partner, Mr. Hostetler,
was present and stated his plans for future activity. It
was decided that Schuette’s work was henceforth to be
confined principally to the Radio Program Foundation
proposal. Mills immediately extended an invitation to
Baker to enter into negotiations. These negotiations came
to an abrupt end on April 4, 1933, when at a meeting
with Hostetler, Levy and McCosker, Mills announced
point blank that there would be no revision of the con¬
tracts except upward.
Immediately after the NAB Board meeting of April
5, 1933, when the three-point program was definitely
decided upon, Mills communicated »with Baker and in¬
formed him that he was again ready to talk over matters.
Baker replied on April 6th that he would be willing to talk
only if it were understood in advance that the basis would
be in the direction of a per-piece plan and that, during
the working out of such a plan, the present scale would
be amended so that royalties would be paid only on pro¬
grams using ASCAP music. The ASCAP Board met to
consider this proposition April 27th. It turned the matter
over to its general counsel, Nathan Burkan, while Mills
departed for Europe.
From that time on, for a period of two years, while
there were occasional conversations, no progress whatso¬
ever was made in negotiations with ASCAP and nothing
occurred in connection with these negotiations that would
add to the picture given by the foregoing account. This
brings us to the early Spring of 1935.
Before resuming the story of the negotiations at this
point, I must call your attention to the situation as a
whole in April, 1935. I do this because of some of the
statements which have been so widely made as to the
reasons for events which took place the following June,
[5]
and the charges that those who have worked for the per-
piece or measured service plans have been “dividing the
industry.”
First, let us consider the per-piece or measured service
plan. It had been endorsed by the NAB at the St. Louis
Convention in November, 1932, after a proposal made by
Schuette for a measured service plan had been turned
down by ASCAP. It was endorsed again by the NAB at
the White Sulphur Springs Convention in October, 1933.
It was endorsed again by the NAB at the Cincinnati
Convention in September, 1934. It was endorsed again
by the NAB at the Colorado Springs Convention in July,
1935. Throughout this period the plan was expressly
or impliedly endorsed at many meetings of the NAB
Board of Directors, among which need be mentioned only
the meetings held in Washington, May 14, 1934, and in
New York on June 22, 1935. It was the basis of all nego¬
tiations with ASCAP conducted, first by Schuette and
later by Baker and Hostetler, for the entire three-year
period, and this fact was made clear beyond question in
reports made by Hostetler and others at the White Sul¬
phur Springs, the Cincinnati, and Colorado Springs Con¬
ventions. Prior to the Spring of 1935, either expressly
or tacitly the two networks and Levy gave approval to
what was being done by Hostetler and others negotiating
in behalf of the industry. Large contributions were sought
from and made by independent stations, as well as by
the networks and Levy, for the carrying forward of the
program of which this was an integral part. The Gov¬
ernment suit against ASCAP, instituted August 30, 1934,
had, as one of its principal express purposes, a reorgani¬
zation of ASCAP so as to establish a system of fees based
upon actual use of music and competition between copy¬
right-owners. This was thoroughly explained to and
understood by the NAB membership.
Secondly, we should note the progress which had been
made on the NAB three-point program by the Spring
of 1935. With reference to the Government suit against
ASCAP, the Government had won an overwhelming vic¬
tory on March 26, 1935, when the Court granted the
Government’s motion to strip the case of irrelevant issues
and denied ASCAP’s motion seeking to delay trial by
permitting the taking of depositions all over the world.
By the second week in May, it was clear that trial would
be had at an early date, beginning on June 10th. On the
legislative side, the Duffy Copyright Bill was moving
slowly but surely toward enactment, it being certain by
the second week in May that it would be favorably re¬
ported by the Senate Patents Committee and would even¬
tually be passed by the Senate. A surprise attempt to
commit the United States to the International Copyright
Convention had been frustrated and on April 22, 1935,
the Senate had rescinded its ratification of that treaty.
The only point in which no recent progress had been made
was that represented by the Radio Program Foundation,
which had lain dormant for a year or more. In addition
to all this, ASCAP was torn with internal dissensions and
a number of its important members were threatening to
withdraw as of December 31, 1935. There was even talk
among some of them of the per-piece plan and there was
open talk of a consent decree in the Government suit.
As early as December, 1932, it had been reported that
ASCAP was working out a revised system of distributing
royalties to its own members based on a per-piece plan.
On the whole, therefore, it may be said that never before
had the broadcasting industry been in as strong a position
to demand justice from ASCAP as it was in the Spring
of 1935. By June 1, 1935, it was possible for comments
to be made such as appeared in the issue of Broadcasting
for that date, such as the editorial caption “Old ASCAP- —
Last Curtain,” and the statement “ASCAP appears to be
on its last legs as the hard-hearted music trust.” Proof
of this, if proof is necessary, is furnished by the fact
that shortly prior to April 26, 1935, ASCAP invited the
broadcasters into a conference which was held that day.
With this conference the all too familiar tactics of the
past began once more. In behalf of the NAB Hostetler
made it clear that any agreement reached must be accept¬
able to the Government; also, that NAB was on record
in favor of a per-piece or measured service plan and that
such a plan was contemplated in the Government suit.
A six-months’ license extension under present terms was
suggested, contingent upon any action taken in the Gov¬
ernment’s suit. The ASCAP spokesmen promised a
recommendation to that effect to the ASCAP Board, but
it was later turned down.
A meeting of the NAB Copyright Committee was held
in New York May 13th. It was understood that repre¬
sentatives of both the broadcasting industry and ASCAP
would meet at noon for further discussions to work out
a temporary arrangement. There were present McCos-
ker, Chairman of the Copyright Committee; Ward, NAB
President; Allen, WLVA; Klauber, CBS; Ashby, NBC;
Damm, WTMJ; Russell, NBC; Levy, WCAU; Loucks,
NAB Managing Director; and Hostetler. Bennett, spe¬
cial assistant to the Attorney General in charge of the
ASCAP suit, was called in. There is a marked difference
of opinion as to whether Bennett did or did not make
certain statements. According to Levy’s statement made
later (in the Convention in July), Bennett had said in
substance that it would jeopardize the Government’s case
if the NAB were to ask for anything except an extension
of the present contract, and particularly if the NAB were
to ask for and secure a more favorable contract. Hos¬
tetler has no recollection of Bennett’s saying that nothing
better could be accepted. Among the others, some ap¬
parently corroborate Levy and some Hostetler. Several
months later the Department of Justice, through the Hon.
John Dickinson, addressed a letter to NAB stating that
it is not, and never has been, the position of the Depart¬
ment of Justice that a better contract should not be sought.
In any event, at the meeting with ASCAP that day,
ASCAP offered a straight five-year extension. Hostetler
opposed this on the ground that it would affect the Gov¬
ernment suit adversely. At a meeting held May 23rd
the NAB Copyright Committee rejected the proposal and
made a counter-proposal of extension of all existing con¬
tracts until the conclusion of the litigation. According
[6]
to Levy, Bennett had advised the Committee that if this
were turned down by ASCAP the broadcasters would then
be in the position of having been coerced into accepting
the five-year extension and the extension would not be
prejudicial to the Government’s case. The chairman of
the ASCAP committee agreed to submit the proposition
to the ASCAP Board, with a reply expected the following
week. The ASCAP Board not only rejected the proposal
but, pursuing the oft-repeated tactics of the past, sought
to alarm the broadcasters by withdrawing the offer of a
straight five-year extension.
In the meantime, on May 20, 1935, Loucks, NAB Man¬
aging Director, had reached an agreement with Mills for
an extension of all licenses from their expiration date,
September 1, 1935, to January 1, 1936. This date coin¬
cided with the date on which the existing contracts be¬
tween ASCAP and its members were to expire. The form
of extension was approved and, by public announcement
in the NAB Bulletin (as well as in Broadcasting) , broad¬
casters were advised that they might execute and return
the extensions.
During this same period there were other proposals
made and informally discussed, as to which the record
is not clear enough to justify my attempting to describe
them. With possibly one or two exceptions, they do not
add anything to the picture as a whole. At one point
Mills made a proposal which, in the judgment of Hostetler
and his associates, was simply intended to divide the in¬
dustry by arraying the independent stations against the
networks, and which therefore was not submitted to broad¬
casters generally. Failing in this, he apparently decided
to pursue the opposite tactics and, by dealing with the
two networks and WCAU, to array them against the
independent stations. At least, that is what he succeeded
in doing and, as is well known to those who have had
dealings with him, he has frequently asserted that such
was his intent.
It should be noted at this point that during this entire
period at least one and probably both of the networks
were negotiating for the purchase of the Warner Brothers
group and perhaps other publishing houses. I am in¬
formed that these negotiations were broken off on June 2,
1935. The fact of these negotiations was not, so far as
I know, communicated to the officers, directors or copy¬
right committee of the NAB.
On June 3, 1935, a meeting of the copyright committee
was held on short notice in New York. A quorum was
not present. Those present were McCosker, Russell,
Levy, Klauber, Colin, Kaye, Ashby, Sprague, Loucks,
and Hostetler. Mills sent over a proposal contemplating
a five-year renewal based on the available catalog rather
than on the present catalog, i.e., on whatever catalogs
ASCAP happened to have. This, of course, raised a ques¬
tion as to the effect of the threatened withdrawal of the
Warner Brothers group. By about 6 p. m., on that date,
no progress had been made. Hostetler and Loucks still
opposed a straight five-year extension; Levy and others
were in favor of it.
Finally, Levy telephoned Mills and asked whether
ASCAP would agree to a straight five-year extension.
Mills assented. The Committee, after discussion, came
to no decision. Levy then informed the Committee that
he would meet with ASCAP the following morning and
arrange for a five-year extension for his station. He also
stated that he would send out a letter to all broadcasters
informing them of his action and advising them to do
likewise. Hostetler told Levy that if he sent such a letter
he should inform all stations of the advantageous features
of the WCAU contract. According to Hostetler, Levy
said he would. According to Levy, Levy said it was un¬
necessary since the WCAU contract was well-known, its
terms having been voluntarily disclosed at the St. Louis
and later Conventions. In any event, it was Hostetler’s
and Loucks’ understanding that McCosker was to get
Mills’ offer in written form so that it could be submitted
to the Copyright Committee and in turn to the NAB
Board before it was executed.
The following day Hostetler and Loucks waited at the
St. Regis Hotel until about 3:30 p. m. when they had to
leave to catch a train for Washington. On arriving in
Washington in the evening they learned for the first time
that during the day, Levy and the two networks had
concluded 5-year extensions of their contracts from Janu¬
ary 1, 1936, Levy’s contract being renewed without
change, and the network contracts being subject to an
increase in sustaining fees of $25,000 each for three of
their stations (WEAF, WJZ and WABC). Late in the
afternoon Levy had advised Bennett of these renewals
by telephone to Washington.
Hostetler, arriving in Cleveland on the morning of
June 5th, immediately sent Loucks a letter summarizing
his recollection of the understandings at the meeting of
June 3rd and expressing his views on the actions of Levy
and of the networks. Levy sent out a letter to all sta¬
tions informing them of the extensions, and advising
them to do likewise. He gave, as reasons for the advice,
that the Government suit would not be terminated for
several years, and that the suit would in no wise be affected
by a 5-year extension. He mentioned that Hostetler and
Loucks held contrary views to his, but was silent on the
subject of the WCAU contract. Thereupon, Loucks cir¬
culated the material portions of Hostetler’s letter. On
June 11th, Levy sent out a second letter, setting forth
his views at length. In addition to defending his failure
to mention the WCAU contract and reiterating his con¬
tention that the Government’s suit could not possibly
be prejudiced, he asserted that the Copyright Committee
“had been reliably informed that the minutes of ASCAP
showed that they intended to increase our payments up
to 25% of our gross receipts.”
So far as I can discover, the sole basis for this assertion
was a statement which had been made by Bennett at the
Committee’s meeting of May 13th; he told the Committee
that the ASCAP minutes showed that one Sol Bernstein
had made that proposal to ASCAP.
[7]
In his letter Hostetler had referred to the network con¬
tracts and stated that he did not see how it was now pos¬
sible to avoid calling the Court’s attention
“to this preference in explanation of the willingness of
the chains to execute an extension agreement on the very
eve of trial of the Government suit.”
Levy replied
“Mr. Hostetler knows full well that reference to the
chain contracts are without justification. He is fully
acquainted with the situation and knows that ASCAP
always intended to exact the highest possible tribute from
all independents, irrespective of charges against the
chains.”
This last statement is also apparently based on a state¬
ment made by Bennett at the meeting of May 13th as to
what he had seen in ASCAP minutes.
On June 11, 1935, trial of the Government’s suit com¬
menced. It was apparent from the outset that ASCAP
was going to make capital out of the 5-year extensions.
Its counsel referred repeatedly to them, and asserted that
there could be no question of oppression or unreasonable¬
ness because several of the most important units in the
industry had entered into extensions at even higher figures
than before.
On June 17, 1935, Mills sent a letter to McCosker,
advising that all license agreements would be extended
to December 31, 1935, and offering (for the first time in
writing) a 5-year extension from January 1, 1936.
A special meeting of the NAB Board was called for
and held on June 22, 1935, at New York. The opposing
parties were heard at length, including Levy, Klauber,
Ashby and Hostetler. No useful purpose would be served
by a detailed account of their contentions further than
to note that emphasis was placed on an alleged lack of
preparedness by the Government in its suit, as a reason
of the networks seeking 5-year extensions. Also, for the
first time, intense opposition to the per-piece plan by
both Levy and the networks came out into the open. At
the conclusion of the meeting, two resolutions were unani¬
mously adopted by the Board. In one, it reiterated its
support of the per-piece or measured service plan and
absolved the networks and WCAU of anything improper
in their negotiation of extensions. In the other, it upheld
Loucks in sending Hostetler’s letter to all NAB members.
At the Colorado Springs Convention held July 8-10,
1935, McCosker, Kay, Levy and Hostetler addressed the
members at length. Again, no useful purpose would be
served by even attempting to summarize their statements.
At the conclusion, the Convention approved the resolution
of the Board of June 22nd, declaring in favor of the
per-piece or measured service plan and absolving WCAU
and the networks. Other resolutions were adopted favor¬
ing continuation of the Government suit, instructing the
NAB officers and directors to support it, and warmly
commending Hostetler for his efforts and recommending
that he be given an opportunity to continue giving the
same service to NAB.
One excerpt from the Convention discussion is, I be¬
lieve, of sufficient importance to deserve quotation.
Church, KMBC, stated that as a network affiliate he had
a contract with a network requiring him to have the neces¬
sary copyright arrangements. He asked Levy the direct
question as to whether such stations now had any choice
in the matter. The following colloquy ensued:
“Isaac D. Levy: In a legal manner or business man¬
ner?
“Mr. Church: Both. In other words, has the action
of the networks and yourself almost automatically bound
us to the five-year contract with ASCAP?
“Isaac D. Levy: Yes — but pleasantly so.
“Mr. Church: I am not questioning that. The point
is: do we have a choice in the matter?
“Isaac D. Levy: I don’t believe you do.”
By the end of July, some 55 stations had applied for
and received 5-year extensions of their ASCAP licenses.
The 55 included the 21 chain-owned or controlled units,
WCAU and several of the newspaper-owned stations;
very few of the indepenednt stations not enjoying dis¬
criminatory advantages had sought extensions. Mills
was promulgating the statement (as he has both before
and since then) that ASCAP would still like to secure
from the NAB a definite formula for the payment of
copyright fees, which he said had never been forthcoming
from the Association.
Before the end of the summer it became apparent that,
in spite of the assurance given by Mills to McCosker on
June 17th, stations other than the original 55 would not
be given unqualified extensions of their contracts. Mills
was now insisting on adding a rider protecting ASCAP
against any obligation to maintain its catalog at sub¬
stantially its size at the time and limiting the license to
the empty right of cancellation of the license “in case
there shall be a substantial diminution in the quantity of
musical numbers.” The rider obviously anticipated the
withdrawal of the Warner Brothers group.
On September 23rd the NAB Executive Committee
(Fitzpatrick, Levy and Baldwin) met with Mills infor¬
mally to discuss provisions of the contract offered sta¬
tions as well as the per-piece method of payment of
royalties. In the meantime, it seems, ASCAP officials
were privately advising stations to defer signing ASCAP
contracts until that organization had put its own house
in order, it being felt there was still some possibility that
the Warner group would remain with ASCAP. An NAB
Board meeting was called for October 17th.
At the Board meeting on October 17th in New York,
there was discussion of the advisability of advising sta¬
tions to seek 5-year extensions of their ASCAP contracts,
and the Board instructed the Managing Director to do so.
It also instructed him to prepare a report and recom¬
mendations dealing with the possible working out of a
per-piece or measured service plan. By November 15th,
only about 80 stations had signed ASCAP renewals and
Mills was quoted as saying that full opportunity would
be given all stations to negotiate “new contracts” in the
[8]
event of withdrawal by the Warner group. He asserted
that the basis for negotiations naturally could not be
foretold.
For reasons later explained to the Board, I did not
send the letter. On December 3rd, Levy, calling from
Klauber’s office, insisted that such a message be sent.
After consultation with Fitzpatrick, NAB President, I
polled the NAB Board and, as a result of a vote of 10
to 9, I sent a telegram instructing them to accept 5-year
extensions. Two of the directors thereupon changed their
votes, with the result that the vote was 11 to 8 against
sending the telegram. Thereupon, I sent a second tele¬
gram notifying members not to ask for extensions. In
the meantime, a small number of stations had sought and
secured extensions so that the total of those who, in
addition to the original 55, had such extensions (but with
the rider as to repertoire) was slightly over 70.
An NAB Board meeting was called and held in New
York on December 9th, 10th, 16th and 17th. The results
of this meeting are best treated under the next heading.
IV. THE RECENT FAILURE IN ASCAP
NEGOTIATIONS
On December 17, 1935, the last day of its meeting
held in that month in New York, the NAB Board of
Directors designated its Managing Director to act in the
emergency created by the approaching copyright crisis
created by the expiration of ASCAP licenses on Decem¬
ber 31, 1935 and the withdrawal of the Warner Brothers
group from ASCAP effective after that date. He was
given authority to act for such stations as desired to have
him do so, and stations were urged to send him powers
of attorney enabling him to negotiate in their behalf.
He was also given authority to name and assemble an
Advisory Committee to confer and advise with him in
New York.
Pursuant to the Board’s action over 300 broadcasters
executed and sent in powers of attorney. This number
included a large proportion of the important independent
stations in the country and far exceeded the response
which had been hoped for.
Further pursuant to the Board’s action, I selected an
Advisory Committee, consisting of Messrs. Allen, Cald¬
well, Carpenter, Church, Clark, Craig, Cowles, Damm,
Fitzer, Gough, Loucks and Myers, and on December 24,
1935, sent each of them a wire as follows:
“Will greatly appreciate your advice and counsel dur¬
ing further negotiations on copyright beginning Friday,
December 27, St. Regis Hotel Stop I make this request
because I believe you are free and willing to exercise
your best judgment for industry as whole Stop If I have
erred in judgment and circumstances are such that you
must be guided by your personal interests or the interests
of any group then I expect you to decline invitation Stop
Am sure you can appreciate importance of premise upon
which invitation is extended Stop Similar invitation ex¬
tended to (here follows list of names other than the party
to whom addressed) Please advise will be in Washington
until Wednesday evening.”
Of those invited, Messrs. Allen, Caldwell, Carpenter,
Clark, Damm, Fitzer and Loucks were able to accept and
to be present. Mr. Craig accepted but was unable to be
present at the first session.
The Advisory Committee met with me at the St. Regis
Hotel, New York, on the morning of Friday, December
27th, and were in continuous session until Tuesday, De¬
cember 31st. Due to the appearance of the first Warner
contract Friday morning, and the necessity for attempt¬
ing to secure a revision of it, the committee had to sub¬
divide its labors, and a subcommittee consisting of Messrs.
Caldwell, Damm and Loucks devoted themselves prin¬
cipally to the Warner negotiations, described under the
next heading.
Mills, ASCAP’s general manager, left New York just
prior to the day on which the Advisory Committee as¬
sembled, and remained out of town until Tuesday, De¬
cember 31st. Buck, president of ASCAP, was out of
town from Friday until Monday. This left only Burkan,
the ASCAP General Counsel, with whom to negotiate.
On Friday, I had arranged a meeting with Burkan for
late in the afternoon. The meeting was delayed by Bur¬
kan from hour to hour and finally I was told that he
could not see me that day. This, I learned, was because
of conferences he was having with network representa¬
tives. During the day, the network companies secured
from Burkan a letter as follows:
“Confirming our conversation today, this is to inform
you that from and after January 1, 1936, you may con¬
tinue to broadcast and to publicly perform for profit the
compositions in the repertory of the American Society of
Composers, Authors & Publishers as of January 1, 1936,
under your network system without any interruption on
and after January 1, 1936, until further notice from the
American Society of Composers, Authors and Publishers,
such notice to be not less than two-day period. It is
understood, of course, that we are not relieving these
affiliates of the obligation to pay us performing fees in
accordance with existing contracts.”
They immediately advised their affiliates of this ar¬
rangement by telegraph.
On Saturday morning, December 28th, I succeeded in
seeing Burkan. In the course of the discussion, I was
clearly given to understand that ASCAP would be willing
to grant temporary extensions of the same sort as those
accorded to network affiliates on network programs with
the understanding that a joint committee representing
all interested elements would meet shortly after January
1st to arrive at a definite and permanent solution. I
was also given to understand that ASCAP might be will¬
ing to accord an extension for a definite period, e. g.,
6 months, to broadcasters who had not accepted five-year
renewals. With this understanding I returned to discuss
such an extension with the Advisory Committee, and,
with their approval, sent the stations a telegram as fol¬
lows:
“Am assured by ASCAP general counsel that tempo¬
rary extensions all ASCAP licenses will be granted by let¬
ter to me at present rates and without signing contracts,
[9]
stations and ASCAP each to have right to cancel on two
days’ notice with understanding joint committee all in¬
terested elements meeting shortly after January 1 to ar¬
rive definite permanent solution. On Monday expect to
ask and obtain six-month extension on this basis. Ad¬
vise whether I may use if necessary your power attorney
on this basis with ASCAP. Negotiations with Warner
proceeding today. Langlois & Wentworth, New York
City, can furnish 60 fifteen-minute programs public do¬
main music. Transcontinental Broadcasting Company,
Los Angeles, can furnish 200 musical selections which can
be performed without coypright license cost 60 cents per
selection. Both copyright libraries should offer oppor¬
tunity to avoid Warner music pending adjustment their
proposed contract.”
Nothing further occurred, so far as ASCAP is con¬
cerned, until Monday morning. At that time I con¬
ferred with Buck and Burkan. They refused to grant a
6-months or any other definite extension and I was able
to secure only an indefinite extension represented by the
following letter, signed by Buck, President of ASCAP:
“This is to inform you that such of your member sta¬
tions and such stations, in respect to which your Mr.
James W. Baldwin holds power of attorney to act for
them, as do not have licenses from the American Society
of Composers, Authors & Publishers (for brevity called
“Society”), from and after January 1, 1936, may con¬
tinue to broadcast and to publicly perform for profit the
compositions in the repertory of the Society, as of Jan¬
uary 1, 1936, without any interruption on and after Jan¬
uary 1, 1936, until further notice from the Society, such
notice to be not less than two (2) days.
“It is understood, of course, that we are not releasing
these stations (those which are members of your Asso¬
ciation and those which are represented by Mr. Baldwin
by virtue of powers of attorney) of the obligation to
pay the Society performing fees in accordance with the
existing contracts.”
I accepted this extension in writing.
On the same day, December 30th, ASCAP sent out a
wire to all stations which had not already secured 5-year
renewals, as follows:
“This is to notify you that the American Society of
Composers, Authors & Publishers is prepared to extend
your present license agreement with it upon the same
terms and conditions for five additional years from Jan¬
uary 1, 1936, except that the rights granted by the So¬
ciety shall be limited to compositions of the member¬
ship as constituted on January 1, 1936. The Society
challenges the claims made by others to ownership in the
small performing rights of various compositions published
by them but written and composed by members of the
Society. The Society controls the performing rights of
many of such compositions and within a very short time
will publish a list thereof. As our examination of indi¬
vidual contracts progresses we are confident that our rep¬
ertory will be increased in respect of many compositions
the performing rights of which are exclusively claimed
by others. To illustrate published reports that the So¬
ciety can no longer license small performing rights in the
works of George M. Cohan, Victor Herbert and some
others are absolutely without foundation. The Society
has the right to grant licenses in respect of these works
and will protect all its licensees broadcasting the same.
While we of course have no objection to your taking any
other licenses which you may desire to take we feel it
only fair to tell you that your fee to the Society will not
be reduced and the formula will not be altered except that
the license will be limited to works in Society’s repertory
as of January 1, 1936, and furthermore to advise that
with respect to any composition the licensing rights of
which are exclusively vested in us we will not recognize
any license which you may obtain from others.”
I immediately sent out wires to all stations advising
them of the temporary extension accorded by Buck’s let¬
ter and advising them not to accept the 5-year extensions
offered in the above-quoted telegram. It is my under¬
standing that approximately 400 stations followed this
advice and refrained from taking the 5-year extensions.
We immediately turned to the task of preparing the
way for the joint discussions with ASCAP which Burkan
had given me to understand would now take place. Since
one of the oft-reiterated complaints of ASCAP had been
the lack of definite proposals by NAB which could be used
as a basis for discussion, I set to work to prepare a state¬
ment of principles which should guide our negotiations
and state our objectives, in a manner suitable for serving
both as a basis for discussion and as a proper way to
advise the NAB membership of our activities. With the
completion of a draft statement I called the Advisory
Committee to meet with me again in New York on Jan¬
uary 10th, to discuss it with me and, after putting it in
final form, to take it up with ASCAP. Both ASCAP
and the networks knew that this meeting was being held.
On Friday, January 10th, we spent the entire day in
putting the statement into final form and by evening it
was completed. At a late hour, approaching midnight, I
was called by a third party and was told for the first time
that during the evening the following wire had been sent
by ASCAP to about 400 stations:
“On December 30, 1935, the ASCAP offered to extend
your present license agreement upon the same terms and
conditions for five additional years from January 1, 1936,
except that the rights granted by the Society to you shall
be limited to compositions of the membership as con¬
stituted on January 1, 1936. To this wire the Society
has received no answer and unless we hear from you
by January T 5 that you accept such offer the Society will
deem you to be an infringer in respect of the perform¬
ances and broadcasting of any of its works and you shall
be held to strict accountability on account of all per¬
formances of its works beginning January 1, 1936.”
I immediately made every effort to get in touch with the
ASCAP officials, without success. I also immediately
telephoned Ashby and Klauber and found that both knew
of the telegram. Both of them vigorously defended
ASCAP’s action. Several days later, an ASCAP official
informed a member of the NAB Board of Directors that
the telegram had been sent at the insistence of the two
networks. If this be true it means, of course, that over
300 independent broadcasting stations in this country
[10]
were deprived of their liberty of contract and of their last
opportunity to negotiate by joint action of the networks
and ASCAP.
The following day, Saturday, January 11, every effort
was made, both directly with ASCAP and by contact with
the networks, to secure a reconsideration of ASCAP’s
action. During the day I sent a wire to stations as fol¬
lows:
“Am advised ASCAP last night wired all stations that
unless they communicate acceptance of five-year offer by
January IS they will be deemed infringers. This in effect
appears to be cancellation of temporary arrangement
based on Buck’s letter of December 30. Consequently,
if you need ASCAP music suggest you wire acceptance to
ASCAP on January 15 but not before in order that give
me benefit of such last-minute desperate efforts as I can
make.”
For a while there seemed a faint hope that I might
be permitted to appear at an ASCAP Board meeting to
be held Tuesday, January 14th, and to argue in favor of
a withdrawal of the ultimatum. The statement which
had been agreed upon with the Advisory Committee on
the preceding Friday was printed and circulated to the
members on January 13th as an NAB Bulletin with the
title “Tentative Program of Activity in Behalf of the
NAB.” Copies were immediately sent to ASCAP and the
two networks. All efforts, however, were unavailing and
on January 14, I sent the following telegram to all sta¬
tions who had given me powers of attorney:
“ASCAP has refused request for stay of their action
taken tenth Stop This leaves no alternative for stations
that must use ASCAP music but to accept offer contained
Buck’s telegram December 30 Stop Have not used your
power of attorney to bind you in any way Stop Because
some stations for which I hold power attorney have al¬
ready accepted ASCAP offer per my wire eleventh and
others have indicated they may not accept suggest it is
best under all circumstances and my future plans toward
reformation of contracts that you clear matter yourself
by addressing telegram to ASCAP not later than fifteenth
stating you accept Buck’s offer thirtieth.”
On January 15th the ASCAP ultimatum went into
effect and by the close of that day practically all broad¬
casting stations had been forced to wire ASCAP for ex¬
tensions of their S-year contracts.
V. NEGOTIATIONS WITH THE WARNER
BROTHERS GROUP OF MUSIC
PUBLISHERS
By May IS, 1935, it became generally known that the
Warner Brothers group of music publishing houses
(Harms, Inc., T. B. Harms, Witmark, Remick and New
World) had stated that they were planning not to renew
their memberships in ASCAP, which memberships expired
December 31, 1935, and that thereafter they would deal
in their own right with broadcasters and other groups
of music-users. How long before May 15th they had evi¬
denced such an intention within a limited circle, I do not
know. In addition, several other important houses (said
to include Feist, Mills, Marks, Fisher, Schirmer, Berlin
and Robbins) were reported as indicating that they
might follow the lead of the Warner Brothers group.
The Warner Brothers group controls a very large per¬
centage of all music broadcast. They claim it is 40%
of ASCAP music. The fact seems to be, however, that,
in the case of the networks and the larger stations at
least, the percentage was not more than about 20% of
ASCAP music, while, in the case of smaller stations and
particularly stations making a heavy use of phonograph
records, the percentage is considerably higher. The other
important houses who were considering withdrawal con¬
trolled, it is said, an additional 40% of ASCAP music.
There was also a rumor that the Austrian and German
societies might withdraw from ASCAP and follow the lead
of SESAC as new and separate licensing pools.
Until about June 2, 1935, at least one of the networks
had been negotiating for the purchase of the Warner
Brothers group and perhaps others of the houses. On
that date negotiations were broken off.
On June 24, 1935, the Warner Brothers group made
public announcement of their withdrawal from ASCAP,
effective December 31, 1935, and, in a letter to all sta¬
tions, notified broadcasters that after that date all li¬
censes for performing rights of their compositions must
be obtained from them and that any infringement would
be prosecuted.
Passing over relatively unimportant developments, we
find that on November 26, 1935, the Warner Brothers
group put all doubts at rest by issuing a public statement
in which their resignation from ASCAP was announced
and explained, principally on the ground of “insufficient
and inadequate royalties collected by the society from
radio broadcasters.” It organized a corporation, known
as Music Publishers Holding Corporation (MPHC)
through which it proposed to issue licenses.
Prior to the morning of December 27, 1935, the Warner
Brothers group had not, however, offered or submitted
any definite proposal or formal contract to the NAB or,
so far as we know, to broadcasters generally. There had
been informal discussions earlier in December, but with¬
out result. It was known, however, that
(a) the Warner Brothers group was dissatisfied with
the amount it has been receiving from ASCAP ($340,000,
which when combined with the like amount paid to the
group’s composers, made a total of $680,000 out of a
total of slightly under $3,000,000 paid by broadcasters
to ASCAP during 1935);
(b) that it was demanding a total of not less than
$2,000,000 ($1,000,000 to the publishers and $1,000,000
to the composers) or approximately three times as much
as in the past;
(c) that it proposed to obtain this amount by (1)
charging sustaining fees equal to 40% of those charged
by ASCAP; (2) charging 2% of net receipts of the
broadcasters, and (3) applying the 2% percentage to
what it considered a hitherto untapped source of revenue,
i. e., the revenue of networks as networks (as distinguished
from the network-owned or -controlled stations).
[11]
In the course of the NAB Board meeting December 9th
to 17th, no action was taken with regard to the Warner
Brothers group. The matter was one which was cov¬
ered by the authority vested in me as Managing Direc¬
tor, by action taken by the Board December 17th, de¬
scribed under the preceding heading.
In the course of Friday morning, December 27th, a
definite formal contract was presented by the Warner
Brothers group for the first time.
The contract was immediately read over to the Ad¬
visory Committee. It was obvious from a single reading
that its terms were not only exorbitant and objectionable,
but, in certain respects, impossible to comply with. With
the approval of the Advisory Committee, I wired the sta¬
tions as follows:
“Am informed Warner Brothers contract mailed to all
stations today stop Together with committee and attor¬
neys have examined it and believe terms wholly unac¬
ceptable stop Am endeavoring negotiate modification of
contract but there is chance negotiation will prove unsuc¬
cessful and that you should be prepared to face alterna¬
tive of signing this contract or doing without Warner
music January first stop Negotiations continuing on
ASCAP contract stop Will keep you informed.”
In the meantime a sub-committee was designated to study
the contract and draw up a memorandum analyzing it
and pointing out its objectionable features. This mem¬
orandum was completed in the course of the afternoon,
and was mimeographed and mailed to stations with a
covering letter signed by me as follows:
“Herewith enclosed is an analysis of proposed Warner
Brothers contract. It has been prepared hurriedly. Some
of the criticisms are of minor importance but on the
whole it will be observed that the terms and conditions
of the contract are entirely too severe. Conversations had
this evening indicate that there is a possibility of meeting
a few but not all the objections raised. The conversations
will be pursued tomorrow.”
The memorandum was used as the basis for conversations
held that Friday evening with Mr. Herman Starr, exec¬
utive in charge of the Warner Brothers group, and as the
basis for negotiations conducted Saturday and Sunday
with Mr. Starr and Mr. A. M. Wattenburg, general coun¬
sel for the group.
It is unnecessary to repeat what was set forth in that
memorandum. It will be sufficient if attention is called
simply to the amount and the basis for calculating com¬
pensation that would have been required under its terms.
It would have required each licensee to pay 40% of the
sustaining fee paid ASCAP and 2% of the licensee’s net
receipts (the term “net receipts” to include not merely
the actual net receipts of the licensee but also, in the case
of a network affiliate, the receipts of the network for the
affiliate’s facilities).
Starr appeared before us at about 8:00 p. m. Friday
evening. The conference lasted until about midnight.
He was adamant in refusing to modify his position with
reference to the principal objections. He stated that the
Warner Brothers group would not depart from its funda¬
mental premise that the Warner Brothers group was en¬
titled to a total of $2,000,000 yearly for use of its music
by broadcasters and evidenced no inclination to depart
from the means, methods and percentages specified in the
contract.
With reference to some of the minor objections, Starr
was impressed with the arguments presented by us. He
explained that he was not familiar with the practical side
of broadcasting and that he was perfectly willing, with
his attorney, to sit down with our group and attempt to
improve mistakes that might have been made in the
contract due to his lack of knowledge of the effect of its
provisions on practical operations. This left, of course,
only a very slender thread on which to pursue negotia¬
tions. We felt, however, that it was better to pursue this
narrow thread for what it was worth than to abandon all
hope of improving the terms of the first contract.
At this point, certain premises and assumptions on
which we were in agreement should be set forth. They
were as follows:
1. It would not be proper for the NAB, or for me as
its Managing Director, to advise members of the NAB
not to sign any contract with the Warner Brothers group
or to dispense with Warner Brothers music, both for rea¬
sons hereinafter stated and because, taken in conjunction
with the actions of the network and of ASCAP, such a
procedure ran the risk of being held to be an illegal boy¬
cott.
2. A considerable number of broadcasters needed or
wanted to use Warner Brothers music after December 31,
1935, and, if no other alternative were presented, many of
them would sign the contract on the 40%-2% basis.
3. An even greater number of broadcasters, whether or
not they needed or wanted to use Warner Brothers music,
would be unable to avoid infringements and liability
therefor at the rate of a minimum of $250 per infringe¬
ment. Their inability would proceed from insufficient
facilities, records and staffs, from lack of any lists from
either ASCAP or Warner, from the difficulty of control¬
ling music played by remote control orchestras, etc.
4. For want of information and lack of opportunity
for obtaining it, we were in no position to form any
opinion on the merits of the issues in dispute between
ASCAP and the Warner Brothers group as to control over
the performing rights on a number of musical composi¬
tions. The course taken by the two national network
companies, who had had much greater opportunity to
look into the matter, was some indication that it would
be extremely hazardous to broadcast any Warner music
without a license from the Warner Brothers group.
During Saturday a sub-committee conferred with A.
M. Wattenburg, general counsel for the Warner group,
and later in the afternoon, with Wattenburg and Starr.
Its starting point consisted merely in certain concessions
which, as already stated, Starr had shown himself willing
to make the evening before, having to do principally with
requirements as to records and reports. The sub-com¬
mittee, however, succeeded in re-opening the entire sub¬
ject and by the end of the afternoon had made substantial
progress. Among other things, Starr and Wattenburg be¬
gan to appreciate more fully the justice of the broadcast-
[ 12]
ers’ claims that compensation should be based not on
revenue but temporarily on card rates and eventually on
a per-piece system; that broadcasters have a right to
trustworthy lists of compositions controlled by the li¬
censor; and that copyright should me cleared at the
source, particularly in connection with network programs
and electrical transcriptions. While no agreement was
reached at this session, sufficient progress was made so
that the sub-committee agreed to make calculations show¬
ing what revenue might be expected by Warner if com¬
pensation were based on card rates. The sub-committee
returned to the hotel and made these calculations from
the December issue of Radio Advertising , reducing
their calculations to itemized statements showing the
highest quarter-hour and the highest half-hour rates for
each station in the United States; the deductions that
would have to be made on a proportional basis for sta¬
tions having less than full time; and the number of sta¬
tions whose quarter-hour rate was $18.00 or less. It
proved impossible to use an hourly rate as a basis of cal¬
culations as so many stations do not publish such rates,
and in fact the same was partially true of the one-half¬
hour rate. The sum total of the highest quarter-hour
rates of all stations, thus calculated, came to slightly over
$23,000.
Up to this point, Warner had not receded from its de¬
mand that the total costs be $2,000,000 annually from
broadcasters. Obviously, to reach this amount if would
be necessary for each station to pay a monthly compen¬
sation of approximately seven times its highest quarter-
hour rate. This seemed impossible on its face and was
very disheartening. The sub-committee, however, re¬
ported back to the full committee and in spite of the ap¬
parent obstacles it was agreed that the group was to con¬
tinue the negotiations for the sake of whatever advan¬
tages might be secured.
Negotiations, therefore, were resumed early on the
following day (Sunday, December 29). They were ac¬
companied by discussions of all the other points raised
and, in particular, discussion of the per-piece plan. Mem¬
bers of the full committee participated from time to time.
Finally, by late in the afternoon, Starr agreed to reduce
the basis for compensation for independently-owned sta¬
tions from seven times the highest quarter-hour rate to
four times the highest quarter-hour rate, the license to
cover only non-network programs. It was apparent to
all present that no further concession in total amount of
compensation would be made. It was also apparent that,
for lack of information on both sides, it would be im¬
possible to put into effect immediately a per-piece plan
although considerable consideration was given to working
out a per-piece plan which would be based on the highest
quarter-hour rate (that is, a certain percentage such as
Yi of \°/o of such rates for each piece broadcast). Be¬
cause of this lack of information and because of the fact
that the contract might serve as a precedent, Warner
felt it would have to fix a fee per-piece that would be
high enough to protect it in the future while the com¬
mittee felt, for somewhat the same reasons, it must in¬
sist on a fee sufficiently low to meet all situations. Both
sides recognized that the matter needed further study.
The result was that Warner chose the flat fee basis for its
revised contract for a temporary period of three months,
the flat fee being based on four times the highest quarter-
hour rate and covering all non-network programs, and
agreed to cooperate in working out a per-piece plan in
that period.
By late Sunday afternoon when the committee was con¬
vinced that Warner would make no further concessions,
Wattenburg proceeded with drafting the revised contract
in the presence of the committee. During the course of
revision a number of further points arose, some impor¬
tant and some not, but all of them entailing a certain
amount of delay and discussion. It was not until well
after midnight that the draft was completed and even
then one or two points were left open in cases where the
parties did not differ in principle but had not succeeded
in finding the precise language which would be appro¬
priate. These were settled early the following morning.
Somewhere between 2 a. m. and 3 a. m., Monday morn¬
ing, after conferring with members of the committee, I
sent out the following telegram:
“Disregard Warner contract sent you this last week.
Warner Brothers now offering revised three months con¬
tract which will remedy many of objections pointed out
by us and which in opinion of committee and myself will
be substantially more favorable. Basis for compensation
for full time station for all non-network programs is to
be monthly payment of four times your highest quarter-
hour rate. Other stations proportionally. Stations where
highest quarter-hour rate less than $18 basis of compen¬
sation not to exceed twice highest quarter-hour rate.
Networks to have responsibility for clearing copyright on
all network programs over their own stations, and over
affiliate stations. Warner agrees to attempt to work out
per-piece plan during contract period and to furnish com¬
plete catalogue by Feb. 1. Several other improvements
in contract agreed to by Warner. Printed revised con¬
tract cannot be delivered to you for a day or two. If you
desire to use Warner music after December 31 Warner
assures me you can gain rights given by this contract
by instructing me to accept in your behalf. Please wire
immediately.”
During Monday, December 30th, the revised contract
was printed and by that evening it was on its way to
most of the stations.
Space will not permit a detailed comparison of the pro¬
visions of the revised contract with those of the first
contract. It will be helpful, however, to point out what
progress was made with respect to the principal objec¬
tions.
(a) The amount of compensation. Instead of asking
for a total of $2,000,000, the revised contract is based on
asking a theoretical total of $1,104,000 from all stations
(including those owned and operated by the networks),
for non-network programs. This sum represents 48 times
the total of the highest quarter-hour rates of all stations.
It must, however, be reduced by the amount of the con¬
cessions made by Warner to small stations and to stations
[13]
having various kinds of time limitations. For example,
stations having quarter-hour rates less than $18.00 were
to pay only twice the highest quarter-hour rate monthly;
since then Warner has made further concessions and
raised the dividing line to $25.00. Also since the network
companies have not accepted Warner’s contract, the total
must be reduced by another very substantial sum, pos¬
sibly in the neighborhood of 20%, assuming that all in¬
dependently-owned stations accept the contract.
( b ) Method oj calculating compensation. As already
noted, for the temporary period covered by the contract,
the basis is a flat rate based on the highest quarter-hour
rate. The contract recites the intention of the licensor
to attempt to work out a per-piece plan. The principle of
payment of copyright fees at the source is given complete
recognition with respect to network programs and to some
extent with reference to electrical transcriptions. Finally,
very significant progress was achieved in the provision
requiring Warner to furnish a complete list of its com¬
positions not later than February 1, 1936.
(c) The agreement to indemnify. Only partial suc¬
cess was had under this heading. Warner did not agree
to remove the limitation on the amount of guarantee,
claiming that for a station having both ASCAP and
Warner licenses no greater protection is necessary; its
reason for this conclusion is that the only serious issue
likely to arise on its music is ASCAP’s claim to have the
right to license performing rights on some of it and there¬
fore the only thing likely to affect any station is that
money paid to Warner should have been paid to ASCAP.
Considerable progress was made through the inclusion of
the item already mentioned; i.e., the furnishing of lists
by February 1, 1936. In Starr’s statement made public
late in the afternoon of December 30th, the agreement
of indemnity is given an entirely satisfactory construc¬
tion in the following language:
“3. For the first time radio stations will be fur¬
nished with a complete catalogue of the composi¬
tions of which we warrant ourselves to be the own¬
ers.”
(d) Records and reports. Under this heading the re¬
vised contract still calls for weekly reports of all com¬
positions including those not controlled by licensor. This
feature is objectionable. On the other hand, the require¬
ments were considerably lightened with respect to re¬
porting on compositions contained in network programs,
electrical transcriptions, and phonograph records, so as
to make compliance at least possible if not to relieve the
burden.
Other improvements will be noted at several points in
the revised contract in line with some of the suggestions
made in the committee’s memorandum drawn up on Fri¬
day, December 27th.
During Monday, December 30th, a large number of
replies were received from stations to the telegram above
quoted sent out early that morning. The same was true
of days which followed. Many of the stations communi¬
cated by telephone. Without attempting to tabulate the
results by days, it may be said that by the morning of
January 1, 1936, the totals indicated that 154 stations
were accepting the contract, 67 more were doing so ten¬
tatively, and 64 (in addition to the networks) had indi¬
cated that they were not accepting the contracts. Most
recent reports indicate that considerably over 200 stations
have taken the contract.
In letters sent to their clients and agencies on Decem¬
ber 24th, the two networks notified them that, effective
December 31st, and until further notice, no music con¬
trolled by the Warner Brothers group would be per¬
formed. These letters set forth at length their reasons.
They will be found reprinted in full in Broadcasting, Jan¬
uary 1, 1936 (Vol. 10, No. 1), at page 7.
The developments beginning with Monday, Decem¬
ber 30th, were complicated by telegrams sent by Gene
Buck, President of ASCAP, to stations which had not yet
agreed to a five-year extension, by the National Broad¬
casting Company, Inc., and Columbia Broadcasting Sys¬
tem, Inc., to all (or most) of their affiliated stations re¬
spectively; and by Leo J. Fitzpatrick, President of the
NAB, to all member stations.
A copy of Buck’s wire has been set forth under the pre¬
ceding heading. The NBC wire was substantially as fol¬
lows:
“We have had a number of telegraphic and telephone
inquiries today asking our position in regard to a tele¬
gram received this morning by many associated stations
from Mr. Baldwin regarding negotiations he has appar¬
ently had with Warner Brothers. Baldwin did not send
us a copy of his message nor has he consulted us about
it nor has the National Broadcasting Company agreed to
any of the terms therein. National Broadcasting Com¬
pany’s position continues to be the same as outlined in
Kobak’s letter of December Twenty-third sent you by
Brophy and accordingly National Broadcasting Company
does not intend to schedule Warner publications on and
after January First and will not agree to the terms out¬
lined in Baldwin’s telegram. We will continue with
ASCAP catalogue on and after January First in accord¬
ance with my wire to you dated December Twenty-
seventh quoting Mr. Burkan’s letter.”
The CBS wire was substantially as follows:
“For your information CBS is in no wise a party to
the contract we understand is being offered to stations
by Warner publishers group nor does any CBS owned
station intend to take this contract stop On contrary we
intend to abide by our decision to rely on ASCAP license
but to play no Warner Brothers music until confused
legal status is clarified stop Signing of Warner Brothers
contract will not relieve you of obligation to pay copy¬
right fees on local and network programs broadcast by
you stop Printed list of Warner numbers mailed you to¬
day represents best information on what Warners claim to
control but we are informed by ASCAP counsels that
many compositions in list can be licensed only through
ASCAP.”
Mr. Fitzpartick’s wire was substantially as follows:
“In answer to numerous telegrams I feel I should
clarify my position in the present copyright controversy
stop As Vice-President of WJR Detroit and WGAR
Cleveland I am not entirely in accord with the course
pursued by the Managing Director of NAB stop In July
of this year I renewed my present contract with ASCAP
for period of five years and do not intend dividing the
114]
industry by signing any other contracts stop I do not
want this telegram to be construed as advising members
as to what course to pursue but as one of the owners of
two stations I urge a united front.”
Since January 1, 1936, the Warner Brothers group have
instituted a large number of suits for infringement
against the two networks (or their subsidiaries) and
against a few independent stations not having Warner
contracts. I am advised that in the case of the networks
ASCAP is undertaking the defense of these cases; I do
not know whether it intends to do the same for indepen¬
dent stations.
VI. THE NAB THREE-POINT PROGRAM
Resolutions adopted at the St. Louis Convention in
November, 1932, laid the basis for a three-point program
of activity in the field of copyright. This program was
formally adopted at an NAB Board meeting held April
S, 1933, as follows:
1. Immediate incorporation and establishment of the
Radio Program Foundation.
2. Immediate steps toward litigation against ASCAP
under the anti-trust laws.
3. The securing of remedial legislation to check
ASCAP’s activity.
A brief account of the progress made on each point
of this program is helpful both because of the light it
throws on the course of the negotiations and because of
the assistance it may afford in determining NAB’s future
course of action.
Radio Program Foundation. In a general way, the idea
of making public domain music available had been con¬
sidered at meetings of the NAB Board and by the so-
called Plenary Committee in the spring and summer of
1932. At the St. Louis Convention in November, 1932,
Schuette strongly advocated the creation of an industry-
owned radio music supply through a new corporation
which would become a subsidiary of NAB, to rid the
industry of its dependence upon ASCAP. He offered a
resolution providing that a Radio Program Foundation,
with a capitalization of about $150,000, be subscribed by
the industry. His resolution was referred to the NAB
Board for consideration.
In a bulletin sent out to all stations on December 31,
1932, Schuette took an initial step to test out the plan.
Two compositions published by a non-member of ASCAP
were sent out to all stations for performance. Further
steps of the same sort were taken at later dates, but none
of them was attended by any great amount of success,
primarily because of the quality of the music.
At the NAB Board meeting held in Washington, Feb¬
ruary 20-21, 1933, the proposal for a Radio Program
Foundation was adopted, and a special committee was
designated to carry forward the project. On February
23rd, Schuette sent out a bulletin describing the pur¬
poses of the Foundation.
On April 5th after negotiations with ASCAP were again
broken off, it was decided to proceed immediately with
the establishment. It was incorporated as a Delaware
corporation in the second week in April with Messrs.
McCosker, Loucks, Hostetler, Schuette, and Flamm as its
incorporators, and with Schuette as its operating head.
Among others, its objectives were to establish relations
with independent copyright owners and publishers and at
once set up an organization competitive with ASCAP, to
open up negotiations with certain other copyright pools
probably along with certain foreign associations, and to
explore public domain music.
Organization of the Radio Program Foundation was
completed at a meeting of its Board of Trustees in New
York, May 3, 1933. McCosker was elected chairman of
the Board, Schuette president, Hostetler, secretary, and
Loucks, treasurer. Schuette immediately began confer¬
ences with owners and their representatives owning titles
not included in the ASCAP pool. Headquarters were
opened in Washington.
On June 14, 1933, the Foundation secured the Amer¬
ican radio rights to the catalogue of G. Ricordi & Co.,
of Milan, Italy, containing more than 123,000 numbers
in all branches of music, including the hitherto restricted
Puccini catalogue. Ricordi had, several years before,
withdrawn its affiliation with ASCAP because of meager
royalties. The Foundation offered the catalog to NAB
members at monthly royalties ranging from $2.50 to
$25.00, with higher fees for non-members. On network
programs, the principle of clearing copyright at the source
was given full recognition in these licenses. Licenses were
offered to NBC and CBS and, if they were consummated,
the Foundation was to pay additional sums to Ricordi,
which arranged the transaction on a sliding scale providing
for increased charges for network participation as well as
for stations outside the NAB. After considerable delay,
both networks took licenses. The amount of the license
was calculated on a non-profit basis to the Foundation
and NAB. It is true, of course, that a large portion of
the Ricordi catalog was not protected by copyright in
the United States, but it was also true that much of the
catalog had already been recorded and had the advan¬
tage of being immediately available.
Shortly afterwards Schuette sent to all NAB members
a compilation of records that are in the public domain.
At the Annual Convention held in Cincinnati Septem¬
ber 16-18, 1934, a resolution offered by Schuette was
adopted directing the NAB Board
“to organize a music pool, either by a reorganization of
the Radio Program Foundation or otherwise for the pur¬
pose of obtaining for radio broadcasting stations the air
rights to such music as may not otherwise be available
or which may be made more readily available by such a
pool, and to enlist the cooperation of all radio stations
and their program departments in promoting the widest
possible use of such music.”
Unfortunately, the Foundation met with apathy on the
part of the NAB Board, the networks, and the broad¬
casters generally. It was never adequately staffed with
trained and experienced personnel. During 1934 and 1935
it was virtually dormant. By arrangement between
Schuette and Ricordi, stations were permitted to renew
[15]
licenses directly with Ricordi. Finally, as of December
31, 1935, the corporation was formally dissolved.
Anti-Trust Proceedings Against ASCAP. Proceedings
against ASCAP under the anti-trust laws were vigorously
urged by Levy, WCAU, at the St. Louis Convention in
November, 1932, in a plea based on his own experience.
With the breaking off of negotiations again with
ASCAP on April 4, 1933, the institution of litigation be¬
came an active part of the NAB program.
On September 1, 1933, a test suit was filed against
ASCAP in the Federal District Court for the Southern
District of New York, in the name of Pennsylvania
Broadcasting Company operating WIP, Philadelphia. The
suit sought dissolution of ASCAP as an illegal combina¬
tion in violation of the anti-trust laws, and asked that
WIP’s contract with ASCAP be declared void.
The WIP suit never came to trial, although it is at
issue. With the filing of the Government suit against
ASCAP, however, it was felt that every effort should be
concentrated on assistance to the Government rather than
on the private suit.
On August 30, 1934, in the same Federal District
Court, the United States Government instituted suit under
the Sherman anti-trust law asking dissolution of ASCAP,
the Music Publishers Protective Association (which in
March, 1933, had demanded a new rate of 25c per num¬
ber of electrical transcriptions, instead of 2c per record),
and the Music Dealers Service, Inc., naming approxi¬
mately 125 officers and directors of the organizations,
including Buck, Mills, Burkan and Paine.
By this suit the Government sought to establish a sys¬
tem of fees based upon the actual use made of public
performance rights and to substitute competition among
copyright owners for the monopolistic control exercised
by ASCAP. It prayed that existing contracts of ASCAP
with broadcasters and other users be declared invalid, as
well as contracts between ASCAP and MPPA, and
authors, composers and publishers. The suit asked that
the defendants be restrained from entering into similar
contracts; from joining similar firm, corporation, or so¬
ciety unless the facilities of such firm, association, cor¬
poration or society are open to every copyright owner
on equal terms and unless license fees to be collected pur¬
suant to licenses are determined by individual copyright
owners for each musical composition owned by them; and
from instituting infringement suits against any licensee
upon the giving of bond by such licensee to insure pay¬
ment of a reasonable charge as the court may determine
or as may be arrived at between licensee and individual
copyright owners. The Government’s petition called at¬
tention to the
“distinction and discrimination between the license agree¬
ments exacted of radio broadcasting stations owned at
least 51 per cent by newspapers, and license agreements
exacted from radio broadcasting stations not so owned”
and verbatim copies of the two types of license agree¬
ments were appended as exhibits.
The suit was filed just as the existing ASCAP license
agreements with broadcasters were entering upon the
third year of their life, and the percentage on receipts
to be paid by broadcasters was increased from 4% to 5%.
While naturally the suit was more than welcome, and a
great hope was aroused by its institution, it was obvious
that only a miracle could bring about a successful termi¬
nation of the suit in the lower court alone by September
1, 1935, when the contracts expired.
At the Annual Convention held in Cincinnati Septem¬
ber 16-18, 1934, the NAB adopted a resolution instructing
its officers and directors to support the Government suit.
An answer by the great majority of the1 defendants
(83) was filed November 1st. It was a voluminous docu¬
ment of 42 pages and for the most part was a repetition
of the story so often told by ASCAP at Congressional
hearings, with which broadcasters are already familiar.
The answer declared that a system of royalties based on
actual use would be unworkable, and that broadcasters
and other users were really seeking a situation under
which they would pay nothing for copyrighted music. It
alleged dire consequences if ASCAP were dissolved. It
attempted to justify the favorable newspaper station con¬
tracts.
In the Government suit, a motion was made by the
Government that a great deal of irrelevant matter be
stricken from the defendant’s answer. ASCAP moved
that a commission be appointed by the Court to take
testimony both in this country and abroad. The Court
heard arguments on the motions January 11, 1935.
On March 26th, Federal Judge Knox granted the Gov¬
ernment’s motion to strip the case of irrelevant matter
and denied ASCAP’s motion which sought to delay the
case by taking depositions all over the world. He left
the way open, however, for ASCAP to reapply to take
testimony on 3 or 4 relatively minor points, but only if
exceptional reasons should be advanced. The Court’s rul¬
ing was tantamount to a holding that the case was
henceforth limited to the important issue of illegal price¬
fixing by ASCAP, and the way was open for expediting
trial of the case.
On May 7th Andrew W. Bennett, special assistant to
the Attorney General in charge of the Government suit,
appeared before Judge Knox on a motion previously filed
that the Court fix a definite early date for trial. He called
the Court’s attention to the widespread apprehension in
the broadcast industry and elsewhere as to the demands
that might be made by ASCAP at the expiration of exist¬
ing contracts on September 1, 1935. Shortly afterwards
the case was set down for trial June 10th and the De¬
partment of Justice proceeded to prepare for trial.
A further attempt by ASCAP to delay the case by a
motion for postponement until fall was denied. On June
11th the case got under way before Federal Judge God¬
dard.
A half-dozen witnesses were heard in behalf of the
Government and were subjected to lengthy cross-exami¬
nation by Burkan, ASCAP counsel. On several occasions
Burkan referred to the 5-year extensions secured by
WCAU and the networks and asserted that there was no
question of oppression or reasonableness in the charges
[ 16]
for music involved because several of the most impor¬
tant units of the industry had entered into 5-year exten¬
sions at a figure even higher than before. After less
than two weeks, when it became obvious that the case
could not be completed by July 1st, the Court adjourned
the case until November 4th.
At the NAB Convention held at Colorado Springs, July
8-10, 1935, resolutions were adopted favoring and ap¬
proving a continuation of the activities of the Attorney
General and his staff in the Government suit against
ASCAP, and instructing the officers and directors of the
NAB to support the suit.
“to the end that royalties for the public performance
of music may be determined by free and open competi¬
tion among copyright owners.”
On October 17, 1935, Government counsel conferred
with ASCAP counsel and with the Court, and as a result
the date of trial was again deferred from November 4,
1935, to January 6, 1936. This postponement was due
primarily to delay on the part of counsel in agreeing on
a stipulation of facts which the Court had asked them
to prepare.
As a result of the public announcement of the with¬
drawal of the Warner Brothers group on November 26,
1935, trial was not resumed on January 6, 1936.
Legislation. Prior to September 1, 1932, there had, of
course, been a great deal of important legislative activity
which cannot be summarized here and which, in any
event, did not result in any changes in the Copyright
Act of 1909.
With the breaking off of negotiations again with
ASCAP on April 4, 1933, remedial legislation again be¬
came an active part of the NAB program.
At the Annual NAB Convention held in Cincinnati
September 16-18, 1934, a resolution was adopted peti¬
tioning Congress to amend the copyright law by omit¬
ting the language which fixes the minimum infringement
penalty at $250 and attorney’s fees, leaving the court free,
in each instance, to fix such penalty as in its discretion
the court shall deem proper.
In January, 1935, a surprise move occurred in the
form of an attempt to commit the United States to ad¬
herence to the International Copyright Convention. Tech¬
nically this is not the correct title of the treaty ( the Rome
Revision of the Berne Berlin Convention for the Protec¬
tion of Literary and Artistic Property) but it will be
used for convenience. A bill to amend the Copyright
Act of 1909, designed to lead to such adherence, was in¬
troduced with the sponsorship of the Department of
State and had been referred, not to the Senate Commit¬
tee on Patents, but to the Senate Committee on Foreign
Relations. Due to vigilance on the part of Managing
Director Loucks, a protest was filed in behalf of NAB
and, in conjunction with protests filed by other organi¬
zations, caused the Senate Committee to refer the bill
to the Department of State for the taking of further testi¬
mony.
The original bill already contained significant modifi¬
cations of the existing law, some favorable and some un¬
favorable to the broadcasting industry and other groups
of users. Conferences were held before an Inter-Depart¬
mental Committee, with Mr. Wallace McClure of the
Department of State as chairman. By March 28, 1935,
the Committee was ready to submit a revised bill in which
practically all the broadcasters’ objections were met in a
satisfactory manner. On April 1, the revised Bill (S.
3047) was introduced by Senator Duffy of Wisconsin and
was referred to the Senate Committee on Patents.
Certain of the outstanding changes proposed by the bill
were summarized by Managing Director Loucks in his
report to the 1935 NAB Convention as follows:
(1) the establishment of “automatic copyright” (i. e.
copyright without the necessity for complying with any
formalities), but with sharp limitations on the right of
recovery of damages for infringement wherever registra¬
tion and notice of copyright have not been had;
(2) a material enlargement of the “writings” for which
copyright may be secured, but no acceptance of the gen¬
eral European theory of “oral” copyright;
(3) a considerable limitation of the right of injunction
in cases where infringement of copyright is claimed;
(4) the complete elimination of the fixed minimum
statutory damage provision of the existing law, leaving
the measure of damages in each case to be determined
by the court;
(5) the grouping together of all infringements by any
one infringer up to the date of judgment, with the provi¬
sion that any unauthorized network performance shall
be regarded as the act of one infringer;
(6) the reversal of the present law, as established in
the Jewell-LaSalle case, by providing that there shall be
no liability, civil or criminal, for the reception of any
copyrighted work by the use of a radio receiving set, ex¬
cept where special admission fees are charged;
(7) a provision regarding the “author’s moral right,”
based on the very broad provisions of the Rome Con¬
vention but so modified as to give users considerable free¬
dom in adapting copyright material for their special re¬
quirements.
Protection is given the copyright owner against un¬
authorized broadcasting of any copyrighted writing (in¬
cluding the reading of prose or poetry). The writings to
which copyright protection is extended include
“Works prepared expressly for radio broadcasting, or
for recording by means of electrical or mechanical trans-
scription, including programs and continuities in so far
as they embody original work of authorship.”
The Senate Foreign Relations Committee had already
voted to report favorably on the proposed ratification of
the International Copyright Convention. On April 19,
1935, the Senate suddenly ratified the treaty. On April
22nd, the action was rescinded and, at the request of Sen¬
ator Duffy and with unanimous consent, the measure was
returned to the executive calendar.
On May 8th the Senate Patents Committee, in execu¬
tive session, heard eight witnesses (including ASCAP
representatives) who opposed certain phases of the Duffy
Copyright Bill, as the bill was now called. The witnesses
were given opportunity to submit briefs.
[17]
On June 17th the Bill (S. 3047) was favorably re¬
ported by the Senate Patents Committee. In the report
Senator McAdoo, Chairman of the Committee, explained
at length the elimination of the $250 statutory minimum
penalty for infringement, saying that the purpose of the
amended provision is
“to accord a remedy for infringement, not a weapon
under which the owners of copyright may stimulate the
sale of their works.”
At the NAB Convention held at Colorado Springs,
July 8-10, 1935, a resolution was adopted petitioning
Congress speedily to enact the Duffy Copyright Bill. On
July 26th the Managing Director, jointly with officials
of the Motion Picture Theatre Owners of America and
the American Hotels Association, issued a statement ask¬
ing passage of the bill.
On August 7, 1935, the Senate passed the bill. On
August 12 th it was referred to the House Committee on
Patents, but Congress adjourned before any action was
taken by the House Committee.
Since the convening of Congress on January 3, 1936,
no progress has been made with the bill in the House.
No hearings have been held and no date is set for hear¬
ings. My best information is that it will be at least sev¬
eral weeks before hearings are held and I believe that
there is justification for the conclusion that ASCAP is
at least partly responsible for causing this delay. The
House Committee has, at present prospects, only one
calendar day, early in March, and if hearings have not
been held and if the bill is not reported by that date,
the chance of its becoming law are very slight.
Another interesting development was the introduction
on January 27, 1936, of H. R. 10632, by Mr. Daly of
Pennsylvania. It also is a bill to amend the Copyright
Act of 1909 and follows very closely the Duffy Copy¬
right Bill. It restores, however, most of the objectionable
features of the present law and of the original State De¬
partment bill, including the minimum statutory damages
of $250 for each infringement. It gives extensive copy¬
right protection to phonograph records as such. This
bill has also been referred to the House Committee on
Patents.
VII. CONCLUSIONS
To some extent this heading overlaps the next heading
in which I set forth my recommendations, and it will
not be necessary to enumerate certain conclusions which
are implied in some of these recommendations. There
are, however, certain conclusions to which separate atten¬
tion should be called, even though some repetition is in¬
volved.
A. Reason for Failure of ASCAP Negotiations
That the combined efforts of over 300 stations to
negotiate an improved contract with ASCAP and to give
effect to just principles of compensation endorsed by
several successive NAB Conventions met with complete
failure must, I think, be attributed to the following
causes:
1. ASCAP’ s monopolistic power. Even with the with¬
drawal of the Warner Brothers group, ASCAP controls
60% to 70% of the music used by a large proportion of
broadcasting stations. This music is, at least in the
present state of affairs, indispensable to practically all
stations, both because it is necessary to meet the needs
and desires of the listening public and because it would
be virtually impossible for a station to avoid innocent in¬
fringements, with their attendant heavy penalities. So
long as this power exists, and no element of competition
is introduced or enforced among the members of the
ASCAP group, the broadcasting industry must expect to
be at a heavy disadvantage in negotiating with ASCAP.
The principal weapons open to the broadcasting indus¬
try against this power are:
(a) proceedings under the anti-trust laws, such as the
pending Government suit and the pending WIP suit;
( b ) amendment of the copyright law, and
(c) the marshalling of an independent source of supply
of non-ASCAP music, so as to be able to operate broad¬
casting stations temporarily without ASCAP music and
without danger of innocent infringement.
These are referred to again below.
2. Dejects in the copyright law. While I am treating
this as a separate factor, it is closely interwoven with the
first factor. The defects in the existing copyright law,
which have made it possible for ASCAP to have and to
wield arbitrary monopolistic power, are
(a) The provision imposing minimum statutory dam¬
ages of $250 for each infringement, no matter how inno¬
cent;
( b ) The interpretation given to the law by the courts
that, in the case of a network program, for example, not
only the originating station but every affiliate station
broadcasting the program and every receiving set in a
hotel public room, restaurant, or other public place of a
commercial character is infringing; in other words, the
failure to recognize the principle of clearing copyright
at the source;
( c ) The failure of the law to make provision for ob¬
viously innocent and unavoidable infringement, such as
a broadcast of a football game during which a college
band plays a copyrighted song;
( d ) The failure of the law to impose suitable restric¬
tions on combinations and pools of copyright owners.
3. The lack of an independent supply of music. This is
sufficiently covered both above and under a later sub¬
heading.
4. The discriminatory ASCAP contracts of the net¬
works. The networks are obviously ASCAP’s largest indi¬
vidual customers. In turn, they are very important mem¬
bers of NAB and as such have regularly been represented
on NAB’s Board of Directors and, until the last few
weeks, have played an important role in all NAB copy¬
right activities, including negotiations with ASCAP.
By securing more favorable contracts from ASCAP in
1932 than were given the rest of the industry, they were
placed in a position where their interests in copyright
have proved to be opposed to the interests of independent
t 18]
stations from a financial point of view (although not, I
believe, from a sound, long-range point of view). They
face a substantially increased financial burden for copy¬
right licenses if any method of compensation, such as a
per piece or measured service basis, is adopted, even
though the total paid to ASCAP is no larger than before.
This accounts, I believe, at least in large measure, for
their opposition to the per-piece or measured service plan,
for their attitude toward five-year extensions of ASCAP
contracts, for their opposition to the Government suit,
and perhaps other points in the policies followed by them.
The discriminatory ASCAP contracts are, in my opin¬
ion, the fundamental reason for the lack of a united
front on copyright in the broadcasting industry today.
5. The network-affiliate contracts. The group of sta¬
tions affiliated with the two national network companies
is very large and constitutes a very important group.
When they are forced to follow a certain course of ac¬
tion in copyright, it is almost inevitable that the remain¬
ing independent stations will be forced to do likewise.
No more effective weapon was placed in the hands of
ASCAP than the provisions contained in the network-
affiliate contracts requiring the affiliate to have ASCAP
and other licenses. These provisions subjected the affi¬
liate stations to the danger of heavy liability not only to
ASCAP but also to the networks.
6. Pressure exercised by the networks. As I have al¬
ready stated, a member of the NAB Board has been in¬
formed by ASCAP that their telegraphic demand for
signed contracts was at the insistence of both major net¬
works. Certain other circumstances tend to corroborate
this. If this is true, the loss of the last opportunity for
negotiations must be ascribed to the networks as well as
to ASCAP.
B. Prospect of Success in Future Negotiations
with ASCAP
By success in future negotiations with ASCAP, I mean
primarily, of course, the establishment of a sound basis
for compensation, such as the per-piece or measured serv¬
ice plan, without any substantial increase in the amounts
paid to ASCAP. I mean also the achievement of certain
related objectives which need not be summarized here.
It is my conclusion that no important objective will be
accomplished by more negotiations with ASCAP during
the period covered by the five-year renewals. This con¬
clusion is based on the following reasons:
1. The obstacles enumerated under the preceding sub¬
heading are still present, and unless removed they will
continue to be present, and to block any progress by more
negotiation.
2. By their conduct after the 1932 contracts had been
forced on the broadcasting industry, Mills and other
ASCAP representatives made it clear that, in spite of their
oft-repeated protestations of willingness to negotiate, they
were not willing to revise the contracts in any respect
except on the basis of substantially increased compensa¬
tion, and that their invitations to negotiate were inspired,
at least in part, by a desire to delay steps contemplated
by the NAB or for other reasons to gain time. There
is no reason to believe that any different tactics will be
pursued during the next five years.
3. The only occasions in the past on which ASCAP
has seemed really willing to negotiate have been when
by reason of developments on other fronts the broad¬
casting industry seemed on its way toward achieving
a measure of progress toward bargaining equality.
A corollary conclusion is that, to have any hope of
success, the broadcasting industry must concentrate on
removing so far as possible the obstacles which have
-been enumerated under the previous subheading. Such
a program includes litigation, legislation, the establish¬
ment of an independent source of music supply, doing
away with the discriminatory ASCAP contracts, elimi¬
nating the objectionable features from network-affiliate
contracts, and any and all steps and proceedings neces¬
sary to these ends.
C. The Music Publishers Holding Corporation
No one contemplates with pleasure the prospect of in¬
creased cost for music due to (a) ASCAP’s refusal to
reduce its fees to a degree corresponding to the recent
diminution of its repertoire and (b) the necessity of
having to deal separately with, and pay license fees to,
the Warner Brothers group, represented by Music Pub¬
lishers Holding Corporation.
On the other hand, for the first time in the history of
the broadcasting industry, progress was made toward
sound objectives in the negotiation of the revised MPHC
contract. The favorable features of this contract have
already been summarized. If the broadcasting industry
will give its support and cooperation, still further prog¬
ress has been promised by MPHC and will be achieved
with the negotiation of a further contract at the expira¬
tion of the current 3-months’ period expiring March 31,
1936. If, on the other hand, broadcasters join in any
movement to boycott Warner music, or refuse to take
MPHC licenses for any reason other than a bona fide
lack of need for such licenses, any further progress will
be seriously prejudiced.
It is my conclusion that, in the present state of the
law and the actual condition of affairs, it is to the ad¬
vantage of all users of music and of the public that the
Warner Brothers group be maintained as a separate li¬
censing organization, for the following reasons:
1. Some possibility of competition is opened up in a
field in which ASCAP now enjoys a virtual monopoly.
2. Important progress may be made toward developing
a per-piece or measured service plan of compensation,
demonstrating its feasibility and advantages and serving
as an example to ASCAP and other licensing pools.
3. An ASCAP victory over the Warner group, whereby
the latter is forced back into ASCAP, would be disastrous
in its effect on music publishers and composers generally
and on any tendency or willingness among them to work
toward a sound solution of the problem.
[19]
Needless to say, my conclusions are not reached with a
view to assisting the Warner Brothers group as such, but
solely and simply because of the reasons above set forth.
D. The Government Suit
As stated in the NAB Bulletin sent out January 13,
1936, the Government suit “is as important now as it
has been at any time in the past and its prosecution should
be pursued with vigor.”
Certain considerations must, however, be frankly faced.
Among them are the following:
1. The Government’s suit was definitely weakened and
prejudiced by the action of the networks and WCAU in
obtaining five-year extensions on the eve of trial.
2. The situation presented by the Government’s peti¬
tion has been somewhat altered by the withdrawal of
the Warner Brothers group, and the actions of ASCAP
and the networks in connection therewith.
3. The discriminatory network contracts (which are
not mentioned in the Government’s petition) and the ob¬
jectionable provisions in the network-affiliate contracts
have assumed an importance to the issues raised by the
suit, not heretofore apparent.
4. The forcing of independent stations to accept five-
year extensions with a diminished repertoire, by January
IS, 1936, raises issues that may be of importance to the
successful prosecution of the suit.
5. The terms of the new contracts between ASCAP
and its members are not known and may contain pro¬
visions pertinent to the case.
Because of these considerations, it is my conclusion that'
the Attorney General should be informed of all the de¬
velopments covered by this report and should be urged
to have an intensive study made of the suit in the light
of possible new issues and new evidence. It may be
that the Government’s petition should be amended or
that new or supplemental proceedings should be insti¬
tuted, and it would be unfortunate if the pending suit
should result unfavorably for want of the taking of proper
steps at this time. This study should be made and con¬
cluded at the earliest possible date, after which the suit in
its present or in modified form should be prosecuted
with all vigor.
E. The Duffy Copyright Bill
It is my conviction that no effort should be spared in
attempting to secure enactment of the Duffy Copyright
Bill in the form in which it was passed by the Senate in
August, 1935. This is not because the bill remedies all
the injustices worked by the present law or because it is
free from objectionable new features. Neither is true.
It is because it goes far to remedy one defect in the pres¬
ent law which overshadows all others; it eliminates the
minimum statutory damage of $250 for each infringement,
no matter how innocent, without which the arbitrary
power of ASCAP to force unacceptable and unjust con¬
tracts on the broadcasting industry and on other groups
of users of music would be greatly lessened.
Recent developments, however, force me to the con¬
clusion that
( 1 ) without a determined effort on the part of the broad¬
casters and other groups of users, the Duffy Bill will not
be passed by the House this session, or,
(2) even if it reaches the state of being voted on by the
House, there is serious danger that the $250 minimum
damage provision will be restored, and that only the ut¬
most vigilance will prevent this.
If the bill is not passed this session, then the whole
procedure must be recommenced, since the next session
will be that of a new Congress. If this is so, then it is
proper to consider whether the broadcasting industry
should not then endeavor to secure a remedying of other
defects in the present law not cured by the Duffy Bill.
What I have in mind is that, after acquainting the Senate
and House Patent Committees with the more recent de¬
velopments and problems, we should ask definitely for
provisions that would
( 1 ) render any licensing pool illegal unless it operates
on a per-piece or measured service basis, is open on
fair and equitable terms to all persons owning or con¬
trolling performing rights, and preserves competition be¬
tween such persons, and
(2) confine infringement suits, in the case of network
programs, to the originating station.
F. An Independent Music Supply
It is my conclusion that the failure of the Radio Pro¬
gram Foundation to achieve the results expected of it is
not due to any want of inherent merit in this part of the
NAB program but rather (1) inadequate financing, (2)
apathy on the part of the NAB, its directors and members
and the networks, and (3) insufficient experienced per¬
sonnel. There were, of course, minor defects and mis¬
takes which, in my opinion, could all be remedied if an¬
other attempt is made.
It is my further conclusion that there is no more impor¬
tant feature of sound copyright program for the NAB
than the establishing of an independent source of music
supply such as was attempted in the Radio Program
Foundation. This is not the place in which to present
a detailed proposal; it should be made in a separate re¬
port confined to this one subject. Among the objectives
to be accomplished by such an institution are the fol¬
lowing:
1. The purchase, sales and licensing of performing
rights.
2. The compilation and distribution of catalogs.
3. The collecting of information with respect to public
domain music and, if necessary, the making of such music
available.
4. The compilation and distribution of information re¬
garding music (whether copyrighted, by whom controlled,
and whether in the public domain) used in the manu¬
facture of electrical transcriptions and phonograph rec¬
ords.
5. Entering into agreements with foreign copyright
owners and licensing pools.
6. If necessary, the publication of music.
[20]
Not all these functions need necessarily be lodged in a
separate corporation. Some of them (such as the dis¬
tribution of catalogs) might well be considered to be more
properly exercised directly by the NAB, through a copy¬
right bureau.
There are, of course, problems with reference to the
form of corporation, financing, the sale of stock, limi¬
tations on stock control, the profit or non-profit character
of the enterprise, etc., which must be studied and in con¬
nection with which legal advice will be necessary. If the
corporation is adequately financed and supported, none
of those problems offers any serious difficulty.
G. The International Situation
On February 27, 1936, a meeting of the Union Inter¬
nationale de Radiodiffusion (U. I. R.) opens in Paris,
and during a week or more one of the principal subjects
of debate will be copyright. The U. I. R. is composed
of practically all the European broadcasting organizations
and of many outside of Europe. In this country, the
NAB is a member. The two networks and one inde¬
pendent clear channel station are the only members from
the broadcasting industry. The copyright problems re¬
volve mainly on the forthcoming international conference
on copyright to take place next September, and have to
do with proposals that the manufacturers of electrical
transcriptions and phonograph records, as such, be given
extensive copyright protection, and likewise that per¬
forming artists be given similar protection. These pro¬
posals are being vigorously urged and cannot be ignored.
If the United States should ultimately adhere to the
Convention, it will be bound to give effect to its provi¬
sions in the law of this country. It is my conclusion
that within practical limits, the NAB should do every¬
thing in its power to support the U. I. R. in the position
it is taking in opposition to the proposals. It is also my
conclusion that any adherence to the Convention by the
United States should be postponed until after it is known
what the provisions of the Convention are to be.
VIII. RECOMMENDATIONS
My recommendations must necessarily be somewhat
in the alternative, depending on whether and how the
Board of Directors chooses between the following courses
of action:
1. To determine itself the copyright program for the
NAB until the next Annual Convention, including the
adoption or rejection of my recommendations hereinafter
set forth, or
2. To call a special meeting of the NAB and to refer
some or all of my recommendations to the membership
for action, or
3. To refer this report with its conclusions and recom¬
mendations to the membership of the NAB, and to ask
the members to determine whether a special meeting shall
be called.
There is evidence of some sentiment in favor of a mem¬
bership meeting at an early date but, without a poll of
the members, I am unable to tell whether the sentiment
is sufficiently widespread to justify the calling of such
a meeting, with its attendant expense and inconvenience
to the members. Under the By-Laws, a special meeting of
the members may be called on 15 days’ notice on request
of either eight directors or of one-third of the members.
The suggestion has been made that the date of the An¬
nual Meeting be advanced to some date in the early fu¬
ture but I am inclined to believe that a special meeting
would be preferable. A special meeting could be more
easily confined to the pressing problems (principally in
copyright) , would be free of election turmoils, and would
not be so likely to be interrupted by social functions.
I am not making any recommendations, therefore, as
to whether a special meeting should or should not be
called. Both the advantages and the disadvantages of
such a course are more or less obvious and need not be
recited. It seems to me that the answer to the question
depends largely on whether the Board chooses to act on
certain of the recommendations set forth below or to refer
them to the members for discussion.
My recommendations are as follows:
Printing of the Report
1. That the Managing Director be authorized to print
and distribute this report, together with a statement of
the Board’s actions thereon, to NAB members and to such
other persons as in the judgment of the Managing Di¬
rector have a legitimate interest therein.
Approval and Ratification of Actions of
the Managing Director and the
Advisory Committee
2. That the actions of the Managing Director and his
Advisory Committee in the field of copyright since the
December meeting of the Board of Directors be ap¬
proved and ratified, both generally and particularly with
respect to the following:
(a) Their attempts to negotiate a better license ar¬
rangement with ASCAP and their acceptance in the in¬
terim of a temporary arrangement cancellable on two
days’ notice.
(b) Their attempts to negotiate a better license agree¬
ment with Music Publishers’ Holding Corporation and
their actions in advising broadcasters of the improved
terms of the revised contract and in acting as intermediary
for stations desiring to accept said contract.
(c) Their adoption of the “Tentative Program of Ac¬
tivity in Behalf of the NAB,” as contained in the printed
NAB bulletin and issued January 13, 1936.
Policies with Respect to Copyright
3. That the resolutions adopted by the NAB at its 1935
and earlier Conventions, declaring in favor of the per-
piece or measured service plan of compensation for per¬
forming rights be re-affirmed.
4. That all discriminations in ASCAP license agree¬
ments (as well as in the license agreements of any other
copyright pool) be declared wrongful and against the
best interests of the broadcasting industry and of the
[21]
public, including the discriminations involved in the net¬
work contracts, the newspaper-owned station contracts
and the WCAU contract, and such discrimination should
be done away with.
5. That those provisions in network-affiliate contracts
requiring affiliate stations to have ASCAP or other li¬
censes be declared to constitute an undue burden on
affiliate stations, a serious obstacle to successful nego¬
tiations both in behalf of affiliate stations and of all other
independent stations, and an unfair weapon in the hands
of ASCAP and the networks, and such provisions should
be eliminated from said contracts.
6. That, in the case of network programs, the NAB
declare itself in favor of clearance of copyright at the
source so that only the originating station will be held
responsible for infringement and affiliate stations will be
under no obligation to secure licenses with respect to such
programs or to bear responsibility for any infringements
that may occur therein.
7. That, generally, Part A of the above-mentioned
“Tentative Program of Activity in Behalf of the NAB”
be approved as a correct statement of the policies to be
followed in negotiating license arrangements with ASCAP
and other licensing pools.
8. That the action of ASCAP in refusing to reduce its
fees by an amount corresponding to the diminution of its
repertoire consequent on the withdrawal of the Warner
Brothers group be declared to be arbitrary and unjust.
9. That the possibility of competition and of a sound
basis for compensation offered by the withdrawal of the
Warner Brothers group from ASCAP be declared, in the
present state of the law and in view of the arbitrary
power exercised by ASCAP, to be wholesome and in the
interest of the broadcasting industry; that broadcasters
be urged to do everything in their power to prevent a
forcing of the Warner Brothers group to return to ASCAP,
and that any attempt to refuse to deal with the Warner
Brothers group for such purpose be condemned.
10. That the Officers and Directors of the NAB be au¬
thorized and instructed to take any and all necessary
and proper steps to put the foregoing policies into effect.
The Government Suit
11. That the Managing Director be instructed to bring
the contents of this report, together with any other facts
pertinent thereto, to the attention of the Attorney Gen¬
eral; to urge upon the Attorney General the imperative
necessity for an immediate study of the Government suit
against ASCAP and for a determination whether amend¬
ments or new or additional proceedings are necessary or
advisable to attain the objectives sought to be accom¬
plished by that suit; and to urge upon the Attorney Gen¬
eral the imperative necessity for an early resumption of
the prosecution of that suit either in its original or in
amended or modified form.
The Duffy Copyright Bill
12. That the Managing Director be instructed to bend
every effort to bring about enactment of the Duffy Copy¬
right Bill (S. 3047) in the form in which it passed the
Senate, and to oppose any attempt to insert or restore
minimum statutory damages or penalties for infringe¬
ment; and, if it should appear that enactment of the
Bill in satisfactory form is impossible at this session, the
Managing Director is further instructed to consider and
to report back to the Board of Directors on the advis¬
ability of seeking further amendments to accomplish the
following objectives:
(a) To render any licensing pool illegal unless it op¬
erates on a per-piece or measured service basis, is open on
fair and equitable terms to all persons owning controlling
performing rights, and preserves competition between
such persons.
( b ) To confine infringement suits, in the case of net¬
work programs, to the originating station.1
Radio Program Foundation
13. That the need for the immediate establishment of
a corporation having substantially the same purposes and
powers as the Radio Program Foundation be recognized,
and that the Managing Director be instructed to prepare
and submit to the Board at an early date a detailed plan
and program for the establishment of such a corporation
and its successful operation.
International Copyright Problems
14. That the importance of the copyright questions to
be discussed at the U. I. R. Meeting to be held at Paris,
beginning February 27, 1936, and to be determined at
the Conference to be held at Brussels, beginning Sep¬
tember 7, 1936, be recognized and that the Managing Di¬
rector be instructed to take any steps that may be neces¬
sary to protect the interests of American broadcasters in
the questions to be discussed and decided.
Assistance to the Managing Director
15. That the Managing Director be authorized to retain
legal counsel and such other assistance as may in his
judgment be necessary or advisable for the successful
accomplishment of the objectives herein decided upon.
* * * *
In pursuing this or any other program it cannot be
made too clear that it is in the best interest not only of
the broadcasting industry but of the public that every
encouragement be given to writers and composers of mu¬
sic, both for the sake of the advancement of their art as
such and in order that a constant supply of music of the
best quality be made available to listeners. To accom¬
plish this, as I know is realized by the entire industry,
no scheme will succeed that attempts to do anything less
than compensate them, and compensate them generously,
for their work and their talent. It is not that the broad¬
casting industry desires, or ever has desired, to escape
this obligation that it has engaged in its copyright activi-
1 The Duffy Copyright Bill, in its present form, goes a long way
towards, but still falls somewhat short of, accomplishing this ob¬
jective.
[22]
ties but rather that it desires, and justly, that it be re¬
quired to pay only for what it uses and that the fees
paid by it actually reach those to whom they are due.
Respectfully submitted,
JAMES W. BALDWIN,
Managing Director.
RECORD OF BOARD ACTION
In acting on the above recommendations, the Board
by majority vote adopted the following:
Printing of the Report
1. That the Managing Director be authorized to print
and distribute this report, together with a statement of
the Board’s actions thereon, to NAB members and to such
other persons as in the judgment of the Managing Direc¬
tor have a legitimate interest therein.
Approval and Ratification of Actions of
the Managing Director and the
Advisory Committee
2. That the actions of the Managing Director and his
Advisory Committee in the field of copyright since the
December meeting of the Board of Directors be ap¬
proved and ratified, both generally and particularly with
respect to the following:
(a) Their attempts to negotiate a better license ar¬
rangement with ASCAP and their acceptance in the in¬
terim of a temporary arrangement cancellable on two
days’ notice.
( b ) Their attempts to negotiate a better license agree¬
ment with Music Publishers’ Holding Corporation and
their actions in advising broadcasters of the improved
terms of the revised contract and in acting as interme¬
diary for stations desiring to accept said contract.
( c ) Their adoption of the “Tentative Program of Ac¬
tivity in Behalf of the NAB,” as contained in the printed
NAB Bulletin and issued January 13, 1936.
Policies with Respect to Copyright
3. That the resolutions adopted by the NAB at its
1935 and earlier Conventions, declaring in favor of the
per-piece or measured service plan of compensation for
performing rights be reaffirmed.
4. That all discriminations in license agreements in re¬
spect of commercial stations be declared wrongful and
against the best interests of the broadcasting industry
and of the public, and such discriminations should be
done away with. (Note: Specific references to actual
existing discriminatory contracts were stricken from the
recommendation as originally made.)
6. That, in the case of network programs, the NAB
declare itself in favor of clearance of copyright at the
source so that only the originating station will be held
responsible for infringement and affiliate stations will be
under no obligation to secure licenses with respect to such
programs or to bear responsibility for any infringements
that may occur therein.
8. That the action of ASCAP in refusing to reduce its
fees by an amount corresponding to the diminution of its
repertoire consequent on the withdrawal of the Warner
Brothers group be declared to be arbitrary and unjust.
10. That the Officers and Directors of the NAB be au¬
thorized and instructed to take any and all necessary and
proper steps to put the foregoing policies into effect.
The Duffy Copyright Bill
12. That the Managing Director be instructed to bend
every effort to bring about enactment of the Duffy Copy¬
right Bill (S. 3047) in the form in which it passed the
Senate, and to oppose any attempt to insert or restore
minimum statutory damages or penalties for infringe¬
ments; and, if it should appear that enactment of the bill
in satisfactory form is impossible at this session, the Man¬
aging Director is further instructed to consider and to
report back to the Board of Directors on the advisability
of seeking further amendments to accomplish the follow¬
ing objectives:
(a) To render any licensing pool illegal unless it oper¬
ates on a per-piece or measured service basis, is open on
fair and equitable terms to all persons owning controlling
performing rights, and preserves competition between
such persons.
( b ) To confine infringement suits, in the case of net¬
work programs, to the originating station.
Radio Program Foundation
13. That the need for the immediate establishment of
a corporation having substantially the same purposes and
powers as the Radio Program Foundation be recognized
and that the Managing Director be instructed to pre¬
pare and submit to the Board at an early date a detailed
plan and program for the establishment of such a corpor¬
ation and its successful operation.
International Copyright Problems
14. That the importance of the copyright questions to
be discussed at the U. I. R. Meeting to be held at Paris,
beginning February 27th, 1936, and to be determined at
the conference to be held at Brussels, beginning Septem¬
ber 7th, 1936, be recognized and that the Managing
Director be instructed to take any steps that may be
necessary to protect the interests of American broadcast¬
ers in the questions to be discussed and decided.
Assistance to the Managing Director
15. That the Managing Director be authorized to re¬
tain legal counsel and such other assistance as may in
his judgment be necessary or advisable for the successful
accomplishment of the objectives herein decided upon.
The Board extended the authority given their Man¬
aging Director in December to select as Advisory Com¬
mittee to confer and advise with him.
[23]
Minority Report of Harry C. Butcher
I heard Jim Baldwin read the foregoing report at the
Chicago Board meeting.
To attempt to answer or even to clarify a 21,000-word
report covering several years of copyright history would
require perhaps another 21,000 words. You would “tune-
out” long before you got to me.
The apparent purpose of rehashing past history seems
to be to make the networks the “goats.” I notice par¬
ticularly that the report disregards what to me is the
unquestionable fact that all of the NAB copyright activi¬
ties to date have resulted in increasing the cost of music
to broadcasters generally and engendering bitterness
among various groups of broadcasters.
Last summer after two years and a half of negotiation,
the broadcasters had no idea on what terms they could
renew their ASCAP licenses and they did not know
whether they could renew for one year, or five, or ten, on
any terms. It is perfectly true that the networks played
a leading part in negotiating a new 5-year contract, en¬
abling all broadcasters to go on without paying any more
than they had been paying, with the sole exception of
the networks themselves, who did consent — in order to
get all broadcasters including themselves out of their
difficulties — to pay substantially larger sustaining fees for
their key stations. It is not the fault of the networks
that many broadcasters were induced not to avail them¬
selves of this opportunity.
But words, words and words — talk, talk and talk— -are
not what broadcasters want and need on copyright. They
want action along constructive lines.
So I will content myself with a few observations — and
the reiteration of a practical suggestion for constructive
united action made at the Chicago meeting.
I have already said that I am not going to attempt to
answer Jim Baldwin but I am tempted to hit a few of
the high spots. On the authority of some anonymous
informant in ASCAP, it is stated that the networks in¬
spired or influenced the sending by ASCAP of the tele¬
gram which required all broadcasters to renew their con¬
tracts by January 15 of this year. That statement is
untrue. Representatives of both networks were called
into a meeting of the entire ASCAP Board on January 10
and the telegram was read to them and they were in¬
formed that it had already been sent. I have confirmed
by numerous witnesses that this was the case and that
the networks had no knowledge of the telegram in
advance.
Jim Baldwin’s report furthermore seems to me to be
founded on basic misconceptions, the most important of
which is that there is a fixed and definite amount of
money to be paid for copyrights and that the question
at issue is how much of that fixed amount the inde¬
pendent station should pay and how much the networks
should pay. This is not the fact. All the copyright inter¬
ests are unanimous in seeking larger and larger sums
from all broadcasters, whether network or independent
stations. Those who subscribe to this misconception have
wittingly or unwittingly fallen for some of our opponent’s
insidious propaganda which is intended to split the
broadcasters and which, unfortunately, is showing rather
ghastly success.
It also seems to me that undue stress is put on the fact
that our network contracts require affiliated stations to
have ASCAP licenses. This clause was put into contracts
years ago for the protection of the local stations, our¬
selves and the clients of both. It is not practical to carry
on network broadcasting without an ASCAP license. It
is not practical to carry on network broadcasting with¬
out transmitters at local stations. But the local stations
don’t get indignant at us because they have to have trans¬
mitters.
Our contracts also recognize that affiliated stations
must have licenses from the Federal Communications
Commission and our mutual operations are based upon
performance thereunder. If we were to remove the
ASCAP clause from our contracts, would it lessen the
local station’s need for an ASCAP license any more than
deletion of reference to the Government license in our
contracts would lessen the local station’s need of that
license?
Furthermore, anyone who actually knows the temper
and disposition of ASCAP is well aware that it would be
utterly impossible to persuade ASCAP to allow local sta¬
tions to go unlicensed. ASCAP on the contrary was
utterly determined that there should be neither network
broadcasting nor local broadcasting unless the stations
were licensed for both. We don’t control ASCAP. (We
sometimes wish we did.)
Now, finally, for a constructive note. I find no mention
in Mr. Baldwin’s report or press release (in which he
sums up the batting average of his own recommendations
to the Board) of the most promising development at the
Chicago meeting. I refer to a general agreement which
was reached at the end of that meeting. This agreement
was to the effect that the broadcasters, including the con¬
trolling and operating heads of the network companies,
should sit down and try to put an end to the bickering
and the name-calling, and see if together they could work
out some constructive actions for and in behalf of all
broadcasters. This suggestion, made by Ed Craig of
WSM, Nashville, was endorsed by all who attended the
Chicago meeting. The heads of my company stand will¬
ing to participate whole-heartedly in such a meeting. We
are ready to support any fair and constructive measures
which such a meeting may evolve. Such a meeting should
consider among other things a practical plan for creating,
financing and operating a music pool for all broadcasters.
I urge that immediate action be taken to convene such
a meeting. And until a program looking toward the
future has been worked out, I deplore the issuance of
statements and reports which serve only to split our own
ranks to the advantage of our adversaries, and I suggest
that until the results of such a meeting are made known,
every broadcaster should preserve an open mind.
Respectfully submitted,
Harry C. Butcher.
[24]
The National Association of Broadcasters
NATIONAL PRESS BUILDING * ★ * ★ ★ WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS
Copyright. 1036. The National Association of Broadcasters
Vol. 4
No. 10
FEBRUARY 20, 1936
IN THIS ISSUE
Page
Favorable Report Ordered on Wheeler Radio Bill . 1211
Copyright Hearings Announced . 1211
Federal Radio Education Committee Meets . 1211
American Society of Recording Artists . 1211
Georgia Station Move Recommended . 1211
C. C. I. R. Meeting . 1212
Denial Recommended for Georgia Station . 1212
Securities Act Registrations . 1212
Renewal of WRBL Recommended . 1212
KABC Labor Case . 1212
AMERICAN SOCIETY OF RECORDING
ARTISTS
The new attempt by the American Society of Re¬
cording Artists to license stations apparently grows
out of the decision in the so-called “Waring-WDAS”
case. The decision rendered in this case by Judge
McDevitt of the Court of Common Pleas in Phila¬
delphia does not, in my opinion, justify the inter¬
pretation placed upon it by the Society. The opinion
rvf T n /-? rro TUT/'FioTritf n-f oonroo Vioo
off /Mif pi H o
Recommends Dismissal with Prejudice . 1212
Recommends Ohio Station Denial . 1212
FCC Report on Alleged Bribery Charges . 1213
Stations Using Warner Brothers Music . 1214
Deen Talks on Copyright Bill . 1214
Connery Talks on FCC . 1216
Federal Trade Commission Action . 1216
FTC Case Closed . 1218
Federal Communications Commission Action . 1218
FAVORABLE REPORT ORDERED ON WHEELER
RADIO BILL
The Senate Committee on Interstate Commerce has ordered a
favorable report on the Wheeler radio bill (S. 2243) relating to
the allocation of radio facilities. The bill was slightly amended and
as it was ordered reported it provides that Section 302 of the Com¬
munications Act of 1934 be repealed and that Section 2, subsection
(b) of Section 307 of the Act be amended to read as follows:
“(b) In considering applications for licenses, and modifications
and renewals thereof, when and in so far as there is demand for the
same, the Commission shall make such distribution of licenses, fre¬
quencies, hours of operation, and of power among the several States
and communities as to provide a fair, efficient and equitable dis¬
tribution of radio service to each of the same.”
COPYRIGHT HEARINGS ANNOUNCED
The House Committee on Patents on Wednesday announced that
it will hold hearings on various copyright bills three days a week
for four weeks.
The dates announced include February 25, 26 and 27, and March
3, 4, 5, 10, 11, 12, 17, 18 and 19.
The first hearings will be devoted to ASCAP, the next to the
Authors League and the American Dramatists and other writing
interests, while the third and fourth weeks’ hearings will be devoted
to radio, hotel and motion picture interests.
FEDERAL RADIO EDUCATION COMMITTEE
Plans and methods of securing greater cooperation between edu¬
cators and broadcasters for the extension and improvement of the
use of radio, were the subjects of a two-day conference on Monday
and Tuesday of this week.
United States Commissioner of Education, J. W. Studebaker,
presided over the sessions of the Committee, which was named by
the Federal Communications Commission.
After considering suggestions for a number of surveys and suc¬
cessful practices in the educational and public service uses of radio,
and adequate training of personnel, the Committee voted to set up
five sub-committees to report at the next meeting.
Members of the Federal Radio Education Committee attending
the meeting were:
Waldo Abbot, University of Michigan; James W. Baldwin, Na¬
tional Association of Broadcasters; Morse A. Cartwright, American
Association for Adult Education; W. W. Charters, Ohio State
University; H. W. Chase, New York University; A. G. Crane, Uni¬
AMERICAN SOCIETY OF RECORDING
ARTISTS
The new attempt by the American Society of Re¬
cording Artists to license stations apparently grows
out of the decision in the so-called “Waring-WDAS”
case. The decision rendered in this case by Judge
McDevitt of the Court of Common Pleas in Phila¬
delphia does not, in my opinion, justify the inter¬
pretation placed upon it by the Society. The opinion
of Judge McDevitt, of course, has no effect outside
the State of Pennsylvania. Further, through special
counsel, the NAB has filed exceptions to Judge
McDevitt’s decision and these exceptions are sched¬
uled for argument before a three-judge court on
February 27. If Judge McDevitt’s decision is af¬
firmed we will take an appeal.
The important thing for members to consider is
that the issues in this case have not been finally
adjudicated. It is my recommendation that mem¬
bers do not recognize the American Society of Re¬
cording Artists until their rights have been finally
determined.
JAMES W. BALDWIN,
Managing Director.
versity of Wyoming; Walter Damrosch, National Broadcasting
Company; M. S. Eisenhower, Department of Agriculture; Willard
E. Givens, National Education Association; Tom C. Gooch, Daily
Times Herald, Dallas, Texas; Rev. George Johnson, Catholic Uni¬
versity of America; Lambdin Kay, Radio Station WSB, Atlanta,
Georgia; John F. Killeen, Federal Communications Commission;
Cline M. Koon, Office of Education; Mrs. B. F. Langworthy, Presi¬
dent, National P. T. A.; Luella S. Laudin, Women’s National Radio
Committee; L. R. Lohr, National Broadcasting Company; H. B.
McCarty, University of Wisconsin; C. S. Marsh, American Council
on Education (for Dr. Zook) ; Allen Miller, University Broadcast¬
ing Council; E. R. Murrow, Columbia Broadcasting System; A. D.
Ring, Federal Communications Commission; Morse Salisbury, De¬
partment of Agriculture; John Shepard, III, Yankee Network;
Levering Tyson, National Advisory Council; Judith C. Waller, Na¬
tional Broadcasting Company; Frederick S. Willis, Columbia Broad¬
casting System; William Dow Boutwell, Office of Education; C. F.
Klinefelter, Office of Education; J. W. Studebaker, U. S. Commis¬
sioner of Education, Presiding.
Other members of the Committee are: Edgar Bill, Radio Station
WMBD; Dr. S. Parkes Cadman, Federal Council of Churches of
Christ in America; Gardner Cowles, Jr., Des Moines Register;
Lester E. Cox, Radio Station KWTO ; Edwin Craig, Radio Station
WSM; John Elmer, Radio Station WCBM; O. D. Fisher, Radio
Station KOMO; Leo J. Fitzpatrick, president, National Association
of Broadcasters; William Green, American Federation of Labor;
Mrs. Rose Jacobs, Hadassah Women’s Zionist Organization; Dr.
C. B. Jolliffe, Radio Corporation of America; A. J. McCosker,
Bamberger Broadcasting Service; Mrs. Harold B. Milligan, Women’s
National Radio Committee; Dr. Robert A. Millikan, California
Institute of Technology; and Dr. William S. Paley, Columbia
Broadcasting System.
GEORGIA STATION MOVE RECOMMENDED
The Liberty Broadcasting Company (WTFI) applied to the
Federal Communications Commission to move the station from
Athens to Atlanta, Ga. The station operates on 1450 kilocycles,
500 watts power, and unlimited time.
1211
Examiner Ralph L. Walker, in Report No. 1-195, recommends that
the change be granted on condition that the antenna to be installed
shall comply with the provisions of the Commission’s rules and
regulations and upon the further condition that the exact station
location to be hereafter selected shall be subject to the approval of
the Commission. The Examiner said also that “it appears from the
record that there is a need in the Atlanta area for the additional
service which the applicant proposes to render, and that the opera¬
tion of WTFI as contemplated will not result in any material in¬
crease in objectionable interference to existing stations.”
C. C. I. R. MEETING
In preparation for the participation of the United States in
the Bucharest 1937 Conference of the International Consulting
Committee on Radio, the Federal Communications Commission
held a meeting on Friday, February 14, of the various govern¬
mental and private interests involved. T. A. M. Craven, chief
engineer of the Commission, presided and was made chairman
of the general committee. Four subcommittees were appointed.
The names of the respective chairmen and vice chairmen and
the questions to be handled by each of the subcommittees follow:
ORGANIZATION AND TECHNICAL COMMITTEE— Chair¬
man, Dr. J. H. Dellinger; Vice Chairman, Major J. H. Gardner, Jr.
Questions: Selectivity curves; wave propagation curves; re¬
vision and renumbering of opinions; radio symbols and termi¬
nology; methods of measuring field intensity and noise.
FREQUENCY ALLOCATION AND RELATED PROBLEMS
— Chairman, E. K. Jett; Vice Chairman, Gerald C. Gross. Ques¬
tions: Harmonics; shared bands; anti-fading antennas.
OPERATIONS — Chairman, Capt. S. C. Hooper; Vice Chairman,
E. M. Webster. Questions: Wave characteristics in respect to di¬
rection finding; field intensities necessary for reception; high-
frequency mobile calling.
BROADCASTING QUESTIONS— Chairman, A. D. Ring; Vice
Chairman, Raymond Asserson. Questions: Synchronization of
broadcast stations; broadcast frequency separation; reduction of
electrical interference; single sideband in broadcasting; measure¬
ments and tolerances, electrical interference to broadcasting; miti¬
gation of electrical interference in receiving equipment; measure¬
ment and tolerances, background noise.
These subcommittees will meet again March 3 and 4, and the
full committee will meet March 26.
Attendance at the meeting was as follows:
Lieut. W. B. Ammon, Navy Department; R. D. Armiger, Short¬
wave Institute of America; Raymond Asserson, Federal Communi¬
cations Commission; E. K. Cohan, Columbia Broadcasting System;
H. L. Cornell, American Steamship Owners Association; A. J.
Costigan, Radio Corporation of America; T. A. M. Craven, Federal
Communications Commission; Roland C. Davies, Editor, Tele¬
communication Reports; Dr. J. H. Dellinger, Bureau of Standards;
Francis C. de Wolf, Department of State; Lloyd Espenschied, Bell
Telephone Laboratories; Maj. J. H. Gardner, Jr., War Department;
E. J. Girard, Mackey Radio and Telegraph Company; Gerald C.
Gross, Federal Communications Commission; Capt. S. C. Hooper,
Navy Department; C. W. Horn, National Broadcasting Company;
E. K. Jett, Federal Communications Commission; Dr. C. B. Jolliffe,
Radio Corporation of America; William N. Krebs, Federal Com¬
munications Commission; J. J. Lamb, American Radio Relay
League; W. B. Lodge, Columbia Broadcasting System; J. C. Mc-
Nary, National Press Building; Paul D. Miles, Mackay Radio and
Telegraph Company; C. E. Pfautz, Radio Corporation of America;
A. D. Ring, Federal Communications Commission; Oswald F.
Schuette, Shortwave Institute of America; B. J. Shimeall, Federal
Communications Commission; Judge Eugene O. Sykes, Federal
Communications Commission; K. B. Warner, American Radio
Relay League; E. M. Webster, Federal Communications Commis¬
sion; L. E. Whittemore, American Telephone and Telegraph Com¬
pany; W. V. Whittington, Federal Communications Commission.
DENIAL RECOMMENDED FOR GEORGIA
STATION
The L & S Broadcasting Company filed an application with
the Federal Communications Commission for the erection of a new
station at Atlanta, Ga., to use 1210 kilocycles, 100 watts power
and daytime hours of operation.
Examiner R. H. Hyde in Report No. 1-196 recommended that
the application be denied. He states that the evidence presented
in support of the application does not show that there is a
public need for the construction and operation of the proposed
new station. He says also that “there is no convincing proof
that the interests of listeners, the requirements of religious, edu¬
cational, civic, and charitable organizations or the demands of
local talent, desiring means for expression, justify the construction
of another station.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Sunstrand Machine Tool Company, Rockford, Ill. (2-1899,
Form A-2).
Iniskin Drilling Company, Los Angeles, Cal. (2-1900, Form A-l).
American Electric Securities Corporation, New York City (2-
1902, Form A-2).
Administered Fund Second, Inc., Jersey City, N. J. (2-1903,
Form A-l).
Varnishes & Paints, Inc., Hamtrack, Mich. (2-1904, Form A-l).
Northern Oklahoma Gas Company, Ponca City, Okla. (2-1905,
Form A-l).
Iron Foreman Mfg. Company, Portland, Ore. (2-1907, Form
A-2).
T. H. Banfield et al., Portland, Ore. (2-1908, Form F-l).
Independence Fund of North America, Inc., New York City
(2-1909, Form C-l).
RENEWAL OF WRBL RECOMMENDED
The facilities of Station WRBL, Columbus, Ga., were requested
of the Federal Communications Commission and at the same time
the station asked for license renewal.
Examiner George H. Hill in Report No. 1-197 recommended that
the license renewal be granted. The Examiner found that some
of the programs of the station were objectionable but the applicant
station “has assured the Commission that programs involving lot¬
tery or gift enterprise will not in the future be broadcast over
the station and that the station will in all respects be operated
in accordance with the rules and regulations of the Commission.”
The entire record considered, says the Examiner, it is his “opinion
that the granting of the application of WRBL for renewal of li¬
cense would serve the public interest.”
KABC LABOR CASE
The National Labor Relations Board has announced that a
complaint has been filed against Broadcasting Station KABC, San
Antonio, Texas, by the Radio Division of Local No. 60, Inter¬
national Brotherhood of Electrical Workers et al.
The complaint alleges that the company discriminatorily dis¬
charged five employees, and has at all times refused to bargain
collectively with the union. Hearing will be held at San Antonio
on March 3.
RECOMMENDS DISMISSAL WITH PREJUDICE
Broadcasting Station WCMI, Ashland, Ky., applied to the
Federal Communications Commission to change its frequency from
1310 to 1350 kilocycles, its power from 100 to 1,000 watts and to
operate unlimited time as at present.
Examiner P. W. Seward in Report No. 1-198 “recommends that
the motion offered by the applicant for continuance of this case
be denied” and “that the motion offered by respondents to dis¬
miss with prejudice be granted and this case is dismissed with
prejudice.” Counsel for the applicant at the hearing stated that
an amendment to the original application had been filed the day
before the hearing with the Commission and that therefore the
case was removed from the hearing docket.
RECOMMENDS OHIO STATION DENIAL
Carter & Wolfe applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new
broadcasting station at Mansfield, Ohio, to use 1370 kilocycles,
100 watts LS and 50 watts night unlimited time operation.
Examiner Ralph L. Walker in Report No. 1-194 recommended
that the application be denied. The Examiner found that opera¬
tion as proposed would “probably result in some slight curtail¬
ment of the already limited satisfactory service area of two exist¬
ing stations. At the same time the proposed station, by reason
of low power and interference from existing stations, would serve
only a very limited area— considerably less than that expected
from a local assignment.”
1212
FCC REPORT ON ALLEGED BRIBERY CHARGES
On February 14 the Federal Communications Commission made
public the following report:
REPORT OF THE COMMITTEE APPOINTED BY THE
COMMISSION JANUARY 9, 1936, TO INVESTIGATE THE
FACTS AS TO THE CONVERSATION ALLEGED TO HAVE
TAKEN PLACE IN THE WILLARD HOTEL ON
SEPTEMBER 3, 1935.
On January 9, 1936, the Commission appointed the undersigned
as a committee to investigate what was known as the Willard
Hotel incident. The committee immediately began its work, and
on January 10, 1936, it requested the Department of Justice to
make a full and complete investigation of the matter. Pursuant
to that request, a report was submitted to the committee on
January 25, 1936. The committee then requested the Department
of Justice to procure certain additional information, pursuant to
which request a supplementary report was made by the Depart¬
ment on February 1, 1936. With this report the Department of
Justice informed the committee that “this closes the investiga¬
tion”. The committee itself examined, among others, all persons
now on the Commission’s staff who participated in the hearings
on the applications of the Howitt-Wood Radio Company, Inc.,
owners of Station WNBF, Binghamton, N. Y., and the Knox
Broadcasting Company, Schenectady, N. Y., for facilities on 1240
kc.
The committee has obtained sworn statements from all persons
interrogated either by the Department of Justice or by it. Upon
the basis of those statements and of other information obtained
by it, the committee submits the following report:
On September 5, 1935, after the recess of the afternoon session
of the hearing on the application of the Knox Broadcasting Com¬
pany, Mr. Cecil D. Mastin, of Binghamton, N. Y., Mr. Harold
E. Smith, of Albany, N. Y., Mr. C. M. Jansky, Jr., and Mr. Alfons
B. Landa, of Washington, and Mr. Maurice Jansky, of Madison,
Wisconsin, met in Mr. Mastin ’s room (803) at the Willard Hotel.
There they discussed and criticised the hearing which they had
just left. Highballs were served, but some of those present state
that they did not participate.
Mr. A. Mortimer Prall was registered in Room 804, which ad¬
joined Mr. Mastin’s room. With him that afternoon was Major
Malcolm M. Kilduff.
Mr. Prall and Major Kilduff joined Mr. Anning S. Prall, Chair¬
man of the Federal Communications Commission, and Mr. Herbert
L. Pettey, Secretary of the Commission, at Chairman Prall’s
apartment for dinner that evening. There they told the substance
of a conversation which they said they had overheard late that
afternoon in Room 803. The essential feature of the overheard
conversation, as Mr. Mortimer Prall and Major Kilduff state it
was told to Chairman Prall and Mr. Pettey, was that Mr. Harry
Butcher could straighten out Station WNBF’s difficulties with the
Commission for $25,000, and that one of the speakers was pre¬
pared to pay $25,000 or $50,000. This story was told to an agent
of the Department of Justice who came to the apartment that
evening to begin an investigation in response to a request from
Chairman Prall.
Mr. Pettey has informed the committee that the alleged con¬
versation as it was reported to Chairman Prall and himself that
evening also included (1) a description of a person connected with
the Commission who could be “gotten to”, which description was
discussed by those present, although the person was not identified;
and (2) an intimation that the described person had been in the
pay of some company for a number of years. Mr. Pettey’s recol¬
lection was that the description was given to the agent of the
Department of Justice; this does not accord with the agent’s re¬
port. The intimation that the described person had been in the
pay of some company was not passed on to the agent.
Mr. Mortimer Prall states that on September 6 he told Chairman
Prall and Mr. Pettey that upon his return to his room about
12:40 a.m. he had heard one man in Room 803 tell another that
a described, but not named, Commissioner had instructed the
examiner what to recommend. That same day Mr. Mortimer
Prall told the Department of Justice agent that he had given
the agent all the information in his possession, but he did not
mention the description or the purported instructions to the ex¬
aminer. A short time thereafter Chairman Prall and Mr. Pettey
informed the agent that they had no information in addition to
that which had already been furnished to him.
The investigation by the Department of Justice was suspended
early in September, after Chairman Prall had told the agent that
the psychological moment for pursuing it had passed and that the
investigation could be more advantageously pursued later.
Upon receiving a report on the matter from Chairman Prall on
December 18, 1935, the Commission directed the Chairman to re¬
quest the Department of Justice to continue the investigation.
Except for a letter of December 30, 1935, reciting developments as
they stood early in September, the committee has seen no report
from the Department of Justice prior to that of January 25, 1936.
Each of the occupants of Room 803 has sworn that he made no
such statements as those reported by Mr. Mortimer Prall and
Major Kilduff; likewise each has reported that he did not hear
any such statements made by anyone in the room. Mr. Butcher
has sworn that never upon any occasion did he make any state¬
ment that anyone on the Commission “could be bought or con¬
trolled”. All of the persons involved have declared that they have
never made any statements reflecting upon the character and in¬
tegrity of any member of the Commission.
The examiner who heard the Knox Broadcasting Company ap¬
plication has testified that no member of the Commission, or any
other person, spoke to him about his recommendation or about any
phase of the hearing. The committee’s investigation within the
Commission reveals no irregularities in the handling of either the
Binghamton or the Schenectady application.
The committee is unable to state whether the alleged conversa¬
tion ever took place. If the purported statements were made, they
have been completely repudiated. Grave responsibility for un¬
supported statements attacking the integrity of a Government offi¬
cial lies at the door of some person involved in this matter. If
the individuals responsible could be identified, they should be
prosecuted as relentlessly as the maligned person should have been
Had the charges been substantiated. While we conclude that there
is no basis for the charges made, we keenly regret that we can
not fix the responsibility for them.
Respectfully submitted, Irvin Stewart, Chairman. Thad H.
Brown. Paul A. Walker. Norman S. Case. George Henry Payne.
List of documentary evidence considered by the committee:
(1) Letter of December 19, 1935 to the Federal Bureau of In¬
vestigation ;
(2) Letter of December 30, 1935 from Federal Bureau of In¬
vestigation ;
(3) Letter of December 31, 1935 from Mr. Harold E. Smith to
Mr. Harry Butcher;
(4) Letter of January 2, 1936 from Mr. Cecil D. Mastin to Mr.
Harry Butcher;
(5) Transcript of telephone conversation between Mr. Harry
Butcher and Mr. Alfons B. Landa;
(6) Transcript of telephone conversation between Mr. Harry
Butcher and Mr. Cecil D. Mastin;
(7) Transcript of telephone conversation between Mr. Harry
Butcher and Mr. Harold Smith;
(8) Memorandum of telephone conversation with Mr. E. A.
Tamm, January 10, 1936;
(9) Letter of January 10, 1936 from Chairman Prall to Federal
Bureau of Investigation ;
(10) Letter of January 14, 1936 to Federal Bureau of Investi¬
gation ;
(11) Letter of January 21, 1936 from Federal Bureau of Investi¬
gation ;
(12) Letter of January 25, 1936 from Federal Bureau of Investi¬
gation containing copy of report and copies of sworn state¬
ments by:
(a) Harry C. Butcher.
(b) C. M. Jansky, Jr.
(c) Aaron Kellert.
(d) Malcolm M. Kilduff.
(e) Alfons B. Landa.
(f) Horace L. Lohnes.
(g) Cecil D. Mastin.
(h) A. Mortimer Prall.
(i) Harold E. Smith.
(13) Letter of January 27, 1936 to Federal Bureau of Investiga¬
tion;
(14) Letter of February 1, 1936 from Federal Bureau of Investi¬
gation inclosing copy of report and sworn statement of Mr.
Maurice Jansky;
(15) Letter of February 3, 1936 to Federal Bureau of Investiga¬
tion;
(16) Transcript of statement by Miss Mary Belle Anthony;
(17) Transcript of statement by Mr. Tyler Berry;
1213
(18) Transcript of statement by Mr. John P. Bramhall;
(19) Transcript of statement by Mr. Herbert L. Pettey, Jan. 10,
1936;
(20) Transcript of statement by Mr. Herbert L. Pettey, Feb. 6,
1936;
(21) Transcript of statement by Mr. P. W. Seward;
(22) Transcript of statement by Judge E. O. Sykes;
(23) Transcript of statement by Mr. John Wesley Weekes;
(24) Letter of February 10, 1936 to Judge E. O. Sykes;
(25) Letter of February 10, 1936 to Chairman Anning S. Prall;
(26) Memorandum of conversation with Chairman Anning S.
Prall, Feb. 10, 1936;
(27) Summary of information relating to application of Knox
Broadcasting Company, Inc.
(28) Summary of information relating to application of Howitt-
Wood Radio Company, Inc.
(29) List of participants in hearing on application of Knox Broad¬
casting Company, Inc.
(30) List of participants in hearing on application of Howitt-
Wood Radio Company, Inc.
STATIONS USING WARNER BROS. MUSIC
In response to many inquiries there is furnished below a list
of stations that have signed the Warner Brothers contract as of
February 4, 1936:
KALE — Portland, Oregon; KAST — -Astoria, Oregon; KBTM —
Jonesboro, Arkansas; KDLR — Devils Lake, North Dakota;
KDON — Del Monte, California; KDYL — Salt Lake City, Utah;
KFAC — Los Angeles, California; KFBB — Great Falls, Montana;
KFEL, KVOD— Denver, Colorado; KFH — Wichita, Kansas; KFIZ
—Fond du Lac, Wisconsin; KFJB — -Marshalltown, Iowa; KFJI —
Klamath Falls, Oregon; KFJR — Portland, Oregon; KFJZ — Fort
Worth, Texas; KFNF — Shenandoah, Iowa; KFOR — Lincoln, Ne¬
braska; KFOX — Long Beach, California; KFPL — Dublin, Texas;
KFPW — Fort Smith, Arkansas; KFRO — Longview, Texas;
KFSD — San Diego, California; KFVD — Los Angeles, California;
KFVS — Cape Girardeau, Missouri; KFWB — -Hollywood, Cali¬
fornia; KFXD — Nampa, Idaho; KFXM — San Bernardino, Cali¬
fornia; KFXR — Oklahoma City, Oklahoma; KGBX — Springfield,
Missouri; KGCU — Mandan, North Dakota; KGDM — Stockton,
California; KGEK — Sterling, Colorado; KGFI — Corpus Christi,
Texas; KGFJ — Los Angeles, California; KGFK — Moorhead, Min¬
nesota; KGFW — Kearney, Nebraska; KGGC — San Francisco, Cal¬
ifornia; KGGM — Albuquerque, New Mexico; KGHL — Billings,
Montana; KGNC — Amarillo, Texas; KGVO — -Missoula, Montana;
KHSL — Chico, California; KIDO — Boise, Idaho; KIEM — Eureka,
California; KIEV — Glendale, California; KIUJ — Santa Fe, New
Mexico; KIUL — Garden City, Kansas; KJBS — San Francisco,
California; KLPM— Minot, North Dakota; KLS — Oakland, Cali¬
fornia; KLZ — Denver, Colorado; KMAC — San Antonio, Texas;
KMBC — Kansas City, Missouri; KMLB — Monroe, Louisiana;
KMPC — Beverly Hills, California; KNOW — Austin, Texas;
KNX — Los Angeles, California; KOIL — Council Bluffs, Iowa;
KONO — San Antonio, Texas; KORE — Eugene, Oregon; KOY —
Phoenix, Arizona; KPAC — Port Arthur, Texas; KPLC — Lake
Charles, Louisiana; KQW — San Jose, California; KRE — Berkeley,
California; KRGV — Weslaco, Texas; KRLC — Lewiston, Idaho;
KRLD — Dallas, Texas; KRLH — Midland, Texas; KRMD —
Shreveport, Louisiana; KRNR — Roseburg, Oregon; KSL — Salt
Lake City, Utah; KSUN — Lowell, Arizona; KUMA — Yuma, Ari¬
zona; KVOA — Tucson, Arizona; KVOD — Denver, Colorado;
KVOE — Santa Ana, California; KVOO — Tulsa, Oklahoma;
KWBG — -Hutchinson, Kansas; KWJJ — Portland, Oregon;
KWTO — Springfield, Missouri; KWYO — Sheridan, Wyoming;
KXL — Portland, Oregon; KXO — El Centro, California.
WAAB — Boston, Massachusetts; WAAF — Chicago, Illinois;
WAAT — Jersey City, New Jersey; WAAW — Omaha, Nebraska;
WAGF — Dothan, Alabama; WAIM — Anderson, South Carolina;
WAIU — Columbus, Ohio; WALR — Zanesville, Ohio; WATR —
Waterbury, Connecticut; WBNX — New York, N. Y. ; WBOW —
Terre Haute, Indiana; WCAX — Burlington, Vermont; WCAZ—
Carthage, Illinois; WCBD — Waukegan, Illinois; WCBS — Spring-
field, Illinois; WCLO — Janesville, Wisconsin; WCLS — Joliet, Illi¬
nois; WCMI- — Ashland, Kentucky; WCOC — Meridian, Mississippi;
WCOP — Boston, Massachusetts; WCPO — Cincinnati, Ohio;
WDAF — Kansas City, Missouri; WDAS — Philadelphia, Pennsyl¬
vania; WDBJ— Roanoke, Virginia; WDEV — Waterbury, Vermont;
WDZ — Tuscola, Illinois; WEAN — Providence, Rhode Island;
WEBC — Superior, Wisconsin; WEBQ — Harrisburg, Illinois;
WEED — Rocky Mount, North Carolina; WEEI — Boston, Massa¬
chusetts; WELI — New Haven, Connecticut; WELL — Battle Creek,
Michigan; WEMP — Milwaukee, Wisconsin; WEXL — Royal Oak,
Michigan; WFAA — Dallas, Texas; WFAS — White Plains, New
York; WFBM — Indianapolis, Indiana; WFDF — Flint, Michigan;
WGBF — Evansville, Indiana; WGBI — Scranton, Pennsylvania;
WGES — Chicago, Illinois; WGH — Newport News, Virginia;
WGN — Chicago, Illinois; WHAT — Philadelphia, Pennsylvania;
WHAZ — Troy, New York; WHB — Kansas City, Missouri;
WHBC — Canton, Ohio; WHBL — Sheboygan, Wisconsin; WHBQ —
Memphis, Tennessee; WHBU — Anderson, Indiana; WHDF — Calu¬
met, Michigan; WHDH— Boston, Massachusetts; WHDL — Olean,
New York; WHK— Cleveland, Ohio; WHO — Des Moines, Iowa;
WIBG — Glenside, Pennsylvania; WIBM — Jackson, Michigan;
WIBU — Poynette, Wisconsin; WIBW — Topeka, Kansas; WIBX —
Utica, New York; WICC— Bridgeport, Connecticut; WIL — St.
Louis, Missouri; WIND — Gary, Indiana; WJAC — Johnstown,
Pennsylvania; WJAG — Norfolk, Nebraska; WJAY — Cleveland,
Ohio; WJBC— Bloomington, Illinois; WJBK — Detroit, Michigan;
WJIM— Lansing, Michigan; WJJD— Chicago, Illinois; WKBB —
East Dubuque, Illinois; WKBH — La Crosse, Wisconsin; WKBZ —
Muskegon, Michigan; WKEU — Griffin, Georgia; WKOK — Sun-
bury, Pennsylvania; WKZO — Kalamazoo, Michigan; WKY — Okla¬
homa City, Oklahoma; WLBC — Muncie, Indiana; WLBF — Kan¬
sas City, Kansas; WLLH — Lowell, Massachusetts; WLS — Chicago,
Illinois; WLVA — Lynchburg, Virginia; WLW — Cincinnati, Ohio;
WMAS — Springfield, Massachusetts; WMAZ — Macon, Georgia;
WMBC — Detroit, Michigan; WMBD — Peoria, Illinois; WMBH —
Joplin, Missouri; WMC— Memphis, Tennessee; WMFG — Hib-
bing, Minnesota; WMFR — High Point, North Carolina; WNAC —
Boston, Massachusetts; WNBC — New Britain, Connecticut;
WNBF — Binghamton, New York; WNBH — New Bedford, Massa¬
chusetts; WNBR — Memphis, Tennessee; WNOX — Knoxville, Ten¬
nessee; WOAI — San Antonio, Texas; WOC — Davenport, Iowa;
WOOD, WASH— Grand Rapids, Michigan; WOPI— Bristol, Ten¬
nessee; WORL — Needham, Massachusetts; WORC — Worcester,
Massachusetts; WOW — Omaha, Nebraska; WPAD — Paducah,
Kentucky; WPAY — Portsmouth, Ohio; WQBC — Vicksburg, Mis¬
sissippi; WRGA — Rome, Georgia; WRJN — Racine, Wisconsin;
WROK — Rockford, Illinois; WRR— Dallas, Texas; WSAI — Cin¬
cinnati, Ohio; WSBC — Chicago, Illinois; WSFA — Montgomery,
Alabama; WSM — Nashville, Tennessee; WSVA — Harrisonburg,
Virginia; WSYB — Rutland, Vermont; WTAG — Worcester, Massa¬
chusetts; WTBO — Cumberland, Maryland; WTEL — Philadelphia,
Pennsylvania; WTIC — Hartford, Connecticut; WTMJ — Milwau¬
kee, Wisconsin; WTMV — East St. Louis, Illinois; WTRC — Elk¬
hart, Indiana; WWJ — Detroit, Michigan; WWRL — Woodside,
New York; WXYZ — Detroit, Michigan; W6XAI — Bakersfield,
California.
DEEN TALKS ON COPYRIGHT BILL
Representative Braswell Deen of Georgia on Wednesday night
talked over the red network of NBC in favor of the Duffey
copyright bill as follows:
There is pending before the United States Senate for consent
to ratification the International Copyright Convention, to which
Convention approximately forty of the leading countries of the
world are parties, including all of the English-speaking nations.
The essential purpose of the Convention is to furnish protection
to authors, composers and producers of literary, musical and
artistic productions from infringement.
In 1931 the Convention was before the Senate for consideration.
Hearings were held on the entire copyright situation by the
Senate Committee on Patents in 1931 and by the Committee on
Patents of the House of Representatives in 1931 and 1932.
In 1934 a sub-committee of the Senate Committee on Foreign
Relations conducted hearings. At the request of the Senate
Committee on Foreign Relations, the Inter-departmental Commit¬
tee on Copyright, named by the Departments of State and Com¬
merce and the Copyright Office in the Library of Congress, under¬
took the work of assisting and cooperating with members of
Congress in the preparation of appropriate copyright legislation
which was deemed necessary and essential, prior to further con¬
sideration of the International Copyright Convention by the
Senate,
The Copyright Convention in revised form was again trans¬
mitted to the Senate on February 19, 1934, with the request from
the President of the United States that the advice and consent
of the Senate to adherence thereto on behalf of the United
States should be accorded. After consideration by the Foreign
Relations Committee of the Senate, the Committee reported to
the Senate the Copyright Convention Treaty on April 18, 1935,
and it was approved by the Senate on April 19, 1935, without
1214
a dissenting vote, but a few days later it was placed back on
the Senate Calendar to await legislation from the Senate Com¬
mittee on Patents. After hearings which gave all persons who
had any objections to the Bill as introduced an opportunity to
be heard, and after careful consideration by the Committee, the
Duffy Bill, S. 3047, was reported to the Senate by the Committee
on Patents and the Bill was passed by the Senate without a roll
call vote on August 7, 1935. The Senate now proposes to ap¬
prove the Copyright Convention as soon as appropriate action
is taken by the House of Representatives.
As a member of the Committee on Patents of the House of Rep¬
resentatives to which the Duffy Bill has been referred, I am ad¬
vocating prompt and favorable consideration of this legislation.
Doubtless the House of Representatives will wish to make a few
amendments designed to improve the Bill, but in its essential
features the Bill seems to fulfill the outstanding needs of copy¬
right legislation.
Under the provisions of our existing Copyright Laws there is a
minimum statutory penalty of $250.00 for infringement, with a
maximum penalty of $5,000.00. I contend that the owner of the
copyright should be justly compensated in case of infringement.
This is a property right guaranteed under the Constitution, how¬
ever, there is no more justification for minimum damages of
$250.00, irrespective of the loss or damage done, than there is for
a minimum penalty of $250.00 in case of a collision between two
automobiles.
Because of the unfairness of this provision of existing law pub¬
lic sentiment has not been in sympathy with its enforcement.
Federal Courts have therefore found it exceedingly difficult to
enforce the provision of minimum damages. The Duffy Bill elim¬
inates this provision and leaves it discretionary with the courts
to determine the minimum amount of damage or liability in case
of infringement.
The Bill provides that the Federal Courts shall award suffi¬
cient statutory damages to prevent infringement and such as may
be just, proper and adequate, in view of the circumstances of the
particular case.
The maximum penalty is changed from $5,000.00 to $20,000.00.
This is deemed appropriate in view of the increased value of
copyrighted works. It should be emphasized that under these
provisions of the Duffy Bill larger benefits will accrue to pro¬
ducers, composers and authors.
One of the outstanding features of the Bill consists in what
is generally referred to as the “Right of Divisibility” — that is,
the copyright may be divided so that the sale of the right for
one purpose does not include the right for any other purpose.
Although it is possible under existing law to secure the right of
divisibility by private contract, such procedure, as is required
under existing law, is unsatisfactory. The proposed law specifically
recognizes that an author can sell book rights to a publisher;
serial rights to a magazine publisher; motion picture rights to a
producer of motion pictures, dramatic rights to a dramatist, etc.
This will result in larger remuneration to authors, producers and
composers.
Sub-section (d) of section 1 of the Act of 1909 is amended by
adding, “That the right to produce a motion picture shall include
the right to exhibit it. This provision is added to prevent an
author who has sold motion picture producing rights from con¬
tending that he is entitled to prevent the picture from being ex¬
hibited.
Under existing law the right of registration of unpublished
manuscripts is permitted only in a very limited number of cases,
for a period of 28 years, renewable for a like period of time.
The Duffy Bill provides for a single term of 56 years and permits
the registration of manuscripts of all kinds.
Under the present Copyright Law, a photographer may copy¬
right a photograph which he has made of a person and the per¬
son cannot publish or permit his friends to publish his own photo¬
graph. The Duffy Bill corrects this ridiculous situation by insert¬
ing in sub-section (c) of section 62 of the Act, as amended by
section 28 of the Bill, as follows: “Copyright in the photograph
of a single individual shall not be had except with the written
consent of the person photographed.”
In order to protect their interests many producers of literary
and artistic works years ago formed an organization which is
appropriate and indispensable — just as are organizations among
those who labor and among farmers. A large percentage of the
song writers and composers of this country maintain an organi¬
zation known as The American Society of Composers, Authors
and Publishers to which have been confided the performing rights
of their music. This organization has grown strong and powerful
in its operation. The presence in the law of the inflexible pro¬
vision requiring the courts to award not less than $250.00 for each
infringement, regardless of the damage done or loss sustained, is
a sort of legalized subsidy to this organization in the form of a
super-charge or extraordinary bargaining power, frequently re¬
sulting in high license fees and often in double license fees to
those who desire, as consumers, to use copyrighted works.
Whenever a work in which it holds performing rights is broad¬
cast, the broadcaster remunerates the copyright owners, usually
by a fixed percentage of the advertising returns of the broadcast.
After a broadcasting company has paid the organization for the
right to broadcast copyrighted music, there should be no further
charges, either to the affiliated radio stations or to the consum¬
ing public who have radios or receiving sets; however, under the
provisions of our present Copyright Laws as enacted in 1909 and
now stand on the statute books, every owner of a radio in the
United States which is used for the least possible commercial
purpose is liable for the minimum damages of $250.00.
In other words, every drug store, dry goods store, furniture
store, hardware store, grocery store, barber shop, bootblack stand,
cafe, restaurant, hotel, boarding house, beer parlor, amusement
and dance halls, newsstands, and any and all other commercial
places of business where radios and receiving sets are maintained
and through which copyrighted music is received are subject to
damages of not less than $250.00 for each infringement on a
copyrighted piece of music, unless they have obtained a license
from the copyright holder. The minimum penalty or damage of
$250.00 furnishes copyright owners a basis for bargaining with
consumers, with the result that the charge to the consuming public
is almost prohibitive.
Proprietors or managers of these places of commercial business
have no way of knowing whether or not music is copyrighted.
Under the provisions of existing law if they receive copyrighted
music over their radios in their places of business they can be
sued in the Federal Courts, and the judges of which have, under
the law, no discretion in respect to the minimum damages which
are fixed at $250.00 for each infringement. If a radio in a drug
store, or any other place of business, by way of illustration, re¬
ceives 25 pieces of copyrighted music in one day then the minimum
amount of damage would be $6,250.00. This would be rather
expensive music for one store in one day.
How can a proprietor or manager know when to cut off his
radio in order not to infringe on a piece of copyrighted music?
He has no way of knowing. The broadcasting companies cannot
be blamed because they have already paid the copyright holder
for the right to broadcast the music.
A recent and concrete illustration of what occurred in New
York City on February 3rd will serve to show the seriousness
of the present situation. Damages in the amount of $670,000.00
were asked by the Remick Music Corporation in a suit filed in
United States District Court against the Columbia Broadcasting
Company. The Remick Music Corporation contends that the
song “That Old Fashioned Mother of Mine” was broadcast over
a network of 66 stations, and the song entitled “Some Sunny
Day” was broadcast over a network of 68 stations. The Music
Corporation is asking the maximum penalty of $5,000 each for
the 134 stations, or a total of $670,000 for the two songs. Of
course, the Remick Music Corporation has no definite way of
knowing or proving what commercial places of business had their
radios tuned in to receive these songs. It is therefore difficult
and practically impossible for the company to single out and
name individual places of commercial business and undertake to
collect damages, hence the suit is filed against the Columbia Broad¬
casting Company, even though the broadcaster had paid or will
pay for the right to broadcast the two songs.
Granting that there was infringement, the amount of damages
asked for is absurd, but it impressively illustrates the essential and
absolute importance of needed revision and amendment of our
existing Copyright Laws. Since the broadcaster pays for the right
to broadcast copyrighted music it is nothing less than pyramiding
of fees to require affiliated stations and consumers by means of
receiving sets in their places of business to pay for it again. This
is wrong. It would be equally wrong for a manufacturer or
owner of a patent on a manikin or model of the human body
to undertake to collect additional fees or charges on his product
from proprietors of dry goods stores, after these places of busi¬
ness had purchased the manikins or models on which to display
their merchandise. This supercharge in the form of a license or
penalty of $250.00 will, if continued, destroy the source of con¬
sumption of musical and dramatic works.
Because of this condition, it seems clearly evident to me that
the time has come when Congress should speedily and quickly
enact legislation to correct this situation. I have read and studied
1215
carefully Senate Report No. 896 from the Committee on Patents,
also Senate Executive Report No. 4 from the Committee on
Foreign Relations; also the Duffy Bill, Senate 3047, and after due
consideration I am convinced that the Duffy Bill should be
promptly and forthwith enacted into law. There is every reason
why the International Copyright Convention, if agreed to by the
Senate and made effective by participation on the part of the
United States, will do justice to authors, composers and pro¬
ducers. Likewise provisions of the Duffy Copyright Bill, when
enacted into law will be fair to authors, composers and producers
and at the same time will be most beneficial to the consuming
public.
Article 1, section 8 of the Constitution empowers Congress “To
promote the progress of science and useful arts, by securing for
limited times to authors and inventors and exclusive right to their
respective writings and discoveries.”
The Convention for the protection of industrial property com¬
prising patents and trademarks was established and signed orig¬
inally at Paris on March 20, 1883. The United States has been a
party to this Convention for the protection of industrial property
rights since 1887. The Convention, of course, has been revised
from time to time and our patent laws have also been revised and
amended accordingly. This protection provided for on behalf of
the United States for the owners of patents and trademarks is
highly essential and important. It is as equally important that the
same protection be given producers in the literary and artistic
fields.
The United States has become a great exporter of books, maga¬
zines, musical and artistic productions, and the rights of American
authors, producers and composers should be safe-guarded by the
Federal Government against infringement in foreign countries.
Two months of the present session of Congress will soon have
passed and no action on the part of the Committee on Patents of
the House of Representatives has been taken on the Duffy Copyright
Bill or on any other copyright legislation. No hearings have been
held by the Committee on Patents of the House of Representatives,
either at this session or during the session of 1935. In my humble
judgment and opinion prompt and immediate consideration should
be given this matter by the committee. Meritorious legislation
should never be pigeon-holed, but should be considered and en¬
acted or defeated on its merit or lack of merit. I sincerely believe
you will join me in the hope that the Duffy Bill should forthwith
and promptly be considered and enacted into law. Thank you.
CONNERY TALKS ON FCC
Representative Connery of Massachusetts made another speech
in the House on Monday of this week asking the Rules Committee
of the House to report out his resolution providing for a thorough
investigation of “radio broadcasting from top to bottom.
Mr. Connery addressed the House in connection with the report
of the Federal Communications Commission committee regarding
certain alleged facts which were investigated. The Commission’s
report will be found in another part of this issue.
Mr. Connery said in part: “Last Friday the people of the
United States celebrated Valentine’s Day. The Federal Communi¬
cations Commission took advantage of the day to present to the
American people a valentine, the Uke of which I hesitate to believe
has ever been Dresented by a governmental agency to the Congress
or to the American people.
“With a Commission of five of the seven members having sat
for the past 6 weeks investigating alleged corruption or miscon¬
duct on the part of some of those officially connected with this
governmental agency, this body, with the signatures of five
of the seven members attached to the report, state that the Chair¬
man and the secretary of the Commission were told by the son
of the Chairman and an associate, one Major Kilduff, that they
had overheard a conversation wherein the vice president of one
of the national broadcasting companies was alleged to be able, on
payment of $25,000, to straighten out the difficulties of an appli¬
cant for favor at the hands of the Commission. Further, that the
applicant was prepared to pay $25,000 or $50,000.
“The report further states that the secretary of the Federal
Communications Commission told the committee of five of the
seven members of the Federal Communications Commission that
the alleged conversation which was heard, or supposed to have
been heard by the son of the Chairman of the Commission and
Major Kilduff, included a description of a person connected with
the Commission who could be “gotten to”, which description was
discussed by those present, although the person was not identified,
and, further, an intimation that the described person had been in
the pay of some company for a number of years.
“The committee in its findings states:
The committee is unable to state whether the alleged conversa¬
tion ever took place. If the purported statements were made, they
have been completely repudiated. Grave responsibility for unsup¬
ported statements attacking the integrity of a Government official
lies at the door of some person involved in this matter.
“Is it the belief of any Member of this House that those who
made such statements or who were alleged to have discussed the
possibility of bribing a public official are going to admit willingly
that they entered into such a conspiracy”
“In conclusion, many Members of the House feel that this
investigation of radio is a very important matter and should be
acted upon by this House. I have had letters from all over the
United States protesting about conditions on the radio and condi¬
tions in the Federal Communications Commission. Many Members
of this House are anxious to have these conditions cleaned up and
believe that the Rules Committee ought to report to this House a
resolution for a thorough investigation of radio broadcasting from
top to bottom.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following companies. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2712. The Marion Vault Manufacturing Co., 274 North
Main St., Marion, Ohio, is named respondent in a complaint alleg¬
ing unfair methods of competition in the sale of two types of metal
burial vaults, one designated “The New Imperial Burial Vault,”
and the other, “Gold Seal Burial Vault.”
In circulars distributed to undertakers, funeral directors and
morticians for their use in selling the vaults, the respondent is
alleged to have made representations to the effect that the New
Imperial Burial Vault “will protect through the years” and is
“inherently qualified to provide enduring protection,” and that the
Gold Seal Burial Vault is equipped with a patented double seal,
represented to be “permanently secure” and “improving as time
goes on.”
No. 2714. Alleging unfair competition in the use of the word
“distilling,” a complaint has been issued against Keystone Dis¬
tilling Co., 1824 North Fourth St., Harrisburg, Pa.
The respondent sells in interstate commerce whiskies, gins, and
other spirituous beverages which it purchases, rectifies, blends and
bottles, according to the complaint.
By use of the word “distilling” in its corporate name and on its
labels and stationery, the respondent, the complaint charges, repre¬
sents to its customers and furnishes them with the means of
representing to their vendees, both retailers and ultimate consumers,
that it is a distiller and manufactures its products by the process of
distillation, when in fact it is not a distiller, and does not own a
plant where the products it sells are distilled.
No. 2715. Unfair competition in the sale of powdered and
liquid ink is charged in a complaint against Milton Tock, trading
as Universal Ink Co., 1847 68th St., Brooklyn, N. Y.
It is alleged that the respondent, through letters, labels and
circulars, represents he has been established in business since 1895,
that he manufactures writing inks of the highest quality, and that
his powdered ink is manufactured and distributed by Universal Ink
Co., when in fact, according to the complaint, his business was
established in 1934, he does not manufacture powdered ink prod¬
ucts, and does not own or operate a factory in which powdered ink
is made.
No. 2716. False and exaggerated representations in connection
with the sale of “Neet,” a depilatory, are alleged in a complaint
issued against Neet, Inc., 4316 North Kilpatrick Ave., Chicago.
In its advertising, the respondent is alleged to have represented
that “Neet” permanently eradicates hair, discourages its growth
and delays its reappearance for a substantial length of time, when,
according to the complaint, these claims are untrue. The respondent
also advertises that “Neet” is not caustic, and gives results unlike
other methods of hair removal, whereas, the complaint charges,
the product is caustic, particularly when introduced into the eye,
and the results it produces are similar to those of other depilatories,
and it is an ordinary hair remover.
No. 2717. Charging violation of Section 3 of the Clayton Act,
a complaint has been issued against Soft-Lite Lens Co., Inc.,
119 West 57th St., New York City, engaged in the sale of a line
of optical lenses distributed under the general trade name “Soft-
Lite.”
1216
It is alleged that the respondent, in marketing its products, uses
a sales service plan and enters into agreements, contracts and under¬
standings with wholesalers, retailers and dealers, the effect of which
practices may be to substantially lessen competition and tend to
create a monopoly in favor of the respondent in the optical lens
business in the United States.
According to the complaint, the respondent corporation is selling
and making contracts for the sale of its products upon condition
and with the agreement and understanding that the purchasers who
are wholesalers, retailers and dealers shall not sell or deal in any
lenses or goods of any competitor similar in tint, color, shade or
type to “Soft-Lite” lenses.
No. 2718. In a complaint issued against Economy Rubber
Products Co., 600 Burkhardt Ave., Dayton, Ohio, the company is
charged with making false representations in the sale and distribu¬
tion of “Tiger- Grip Tire Patches.”
The respondent is said to have represented in advertising matter
and in radio broadcasts that, among other things, its product is
“guaranteed 10,000 miles” and “saves motorists SO per cent” ; that
it “insures permanent tire repairs” and “tire mileage,” and that it
“permanently repairs blow-outs, rim cuts, etc., by self-vulcanizing,”
when, according to the complaint, such assertions are untrue.
No. 2719. Michael Whitehouse, 800 Washington Boulevard,
Detroit, trading as International Tableware Co., and engaged
in the sale of tableware and dishes, is named respondent in a com¬
plaint alleging false representations in the use of a sales promotion
plan to advertise his products and increase his volume of business.
The complaint alleges that the respondent, through personal
solicitation by his agents, sells to retail dealers for $4.50 a thousand
trade cards to be distributed to retailers’ customers, which cards
the respondent represents will be redeemed by him in tableware or
dishes when returned to him by the customers. He also represents,
according to the complaint, that he will refund to the retailers
$4.50 for each thousand cards returned.
Under this sales promotion plan, it is said, retailers contract to
buy from the respondent, for 20 cents each, gift boxes to be dis¬
tributed to their customers and purportedly containing four pieces
of tableware, and a certificate entitling the customer to match the
four pieces by making additional purchases of tableware from the
respondent at specified special prices.
No. 2720. A complaint has been issued against Granada Vine¬
yards, Inc., 95 Harvey St., Cambridge, Mass., alleging unfair
competition in the sale of wines in interstate commerce.
The respondent has a plant at Cambridge where it bottles wines
purchased in California, but, according to the complaint, by use of
the word “Vineyards” in its corporate name, on stationery and on
labels attached to bottles, it represents to customers and furnishes
them with the means of representing to retailers and consumers that
it owns vineyards and manufactures wine without intervention of a
middleman’s profit, when such are not the facts.
Stipulations
The Commission has issued the following cease and desist orders:
No. 1600. Diamond Silver Co., Lambertville, N. J., engaged
in manufacturing and selling flatware and hollow ware for table
use, agrees to desist from use in printed matter of the coined words
“Diamondgold” and “Goldcraft” as descriptive of products not
composed of gold, in whole or in part. The respondent also agrees
to discontinue use of the word “Gold,” either alone or in connection
with the prefix “Diamond,” or with the suffix “craft,” or with any
words which tend to mislead purchasers into the belief that its
products are composed partly or wholly of gold, when such is not
the fact.
No. 1601. John C. Koch, trading as St. Louis Wilbert Vault
Co., 3239 Alfred St., St. Louis, manufacturing and selling the
“Wilbert Asphalt Burial Vault,” agrees to discontinue use in adver¬
tising matter of the word “eternal,” alone or in connection with
other words tending to mislead purchasers into the belief that these
products are of infinite duration, or will give permanent protection
to the bodies encased therein, when such are not the facts. Under
the stipulation, the respondent will cease advertising his product
as “The only dual vault in the world.”
No. 1602. London House, Ltd., 411 Fifth Ave., New York
City, is engaged in the sale of a soap and brush kit designated
“Devon Milk Pre-Facial, by Kent of London.” The respondent
agrees to discontinue use of the words “By Kent of London,” either
independently or in connection with the words “Devon Milk Pre-
Facial” or with its trade name “London House, Ltd.,” so as to
imply or have a tendency to mislead purchasers into the belief that
this product is of English origin and imported into the United States
when, according to the stipulation, the package is composed of parts
which, with but one exception, are manufactured in the United
States and not by Kent of London.
No. 1603. Samuel Hansen and Thomas Kjorsvik, 746 South
Figueroa St., Los Angeles, trading under the firm name “Nu-
Jo-Wa Institute,” agree to discontinue false and misleading adver¬
tising in the sale of a mineral water. According to the stipulation,
the product is made from city tap water, and subjected to an al¬
leged oxidation and aging process. The respondents will discon¬
tinue representing that this product provides a satisfactory relief
from conditions such as hyperacidity, indigestion, and heartburn,
that it is a positive neutralizer of stomach acids, that it tends to
produce sleep, that it will relieve a rundown, nervous condition, or
that it has practical value in the treatment of cuts, abrasions, or
skin diseases, when such assertions are untrue. The respondents
also stipulate that they will cease and desist from making any rep¬
resentations which may have a tendency to mislead purchasers into
the belief that their product has a therapeutic value or properties
in excess of those which it actually possesses.
No. 1604. Anna E. McGrew, 1837 W. Gage Ave., Los An¬
geles, trading as Nu-Jo-Wa Process Water Co., manufactures
the mineral water sold by Samuel Hansen and Thomas Kjorsvik
(Stipulation No. 1603). She entered into a stipulation, the terms
of which are the same as those in the agreement signed by Hansen
and Kjorsvik.
No. 1605. Goldey Bros., Inc., trading as Goldey Bros. Co.,
652 Main St., Cincinnati, engaged in the sale of barber and beauty
shop supplies, has entered into a stipulation to cease and desist
from use of the words “Hair Color Restorer” as a part of a trade
name for its products which do not have the property of restoring
gray hair to its natural color. The respondent will also cease
representing that its “Goldey Lox Hair Color Restorer” is a food
or tonic to the hair, or that the product is other than a dye or
stain.
No. 1606. Table Tennis Corporation of America, 311 Moun¬
tain Road, Union City, N. J., engaged in manufacturing and
selling nets and other equipment used in the game of ping pong or
table tennis, agrees to cease and desist from labeling or otherwise
branding its nets with the word “Patented,” when in fact it has
not obtained a patent. The respondent company also is to dis¬
continue use of any other word of equivalent meaning tending to
mislead purchasers into the belief that it has a patent on its prod¬
ucts, when such as not the fact.
No. 1607. Pearson Co., Inc., 128 North Pennsylvania St.,
Indianapolis, engaged in the sale of pianos, radios and other
merchandise, has agreed to discontinue representing in its advertis¬
ing matter or otherwise, that it has a piano or pianos of a given
type, make or description in any designated community, when in
fact it has no such pianos in such communities. The respondent is
said to have advertised in certain newspapers that “We have in
this community a small grand piano with bench being returned to
us,” and that the respondent would “transfer this account to re¬
sponsible party, allowing all that has been paid,” at a certain price.
No. 1668. Newell Massey, trading as Reliable Monument
Co. and as Burton Gray Co., with office and sales room at 1618
Madison Ave., Covington, Ky., and a plant at 530 Hodge St., New¬
port, Ky., is engaged in the sale and distribution of granite and
marble monuments. He agrees to discontinue use of the words
“Highest Quality Gray Granite” and “Highest Quality,” as descrip¬
tive of his granite, when such representations are untrue. Under
the agreement, he will also desist from using in advertising matter
the phrase. “Special for 30 Days Only,” and “This Marker only
$27.50,” implying that the price of $27.50 is a special price for a
30-day period, when this is not true.
No. 1609. A. Cohen & Sons Corporation, 584 Broadway,
New York City, wholesale dealer in watches, agrees to discontinue
selling watches to which are affixed tags bearing what purport to
be retail selling prices, but which prices are exaggerated, fictitious,
and much in excess of the prices at which the watches are sold in
the ordinary course of trade.
No. 2164. Home Drug Co., 18 North Fourth St., Minneapolis,
Minn., has been ordered to cease representing that its “Prescription
No. 69,” or any of its proprietary articles of substantially the same
composition, is an effective remedy for gall stones or for diseases
caused by the presence of gall stones.
Under the order, the respondent is directed to cease representing
that “Prescription No. 69” will cause gall stones to be dissolved or
evacuated from the body, or will relieve or cure diseases of the
gall bladder or connected ducts.
No. 2437. Vernon and Raymond G. Seitz, trading as Winona
Monument Co., 172 West 3rd St., Winona, Minn., have been
1217
ordered to cease and desist from representing that the monuments
and memorials they manufacture and sell are made of “Barre”
granite, until and unless these products are made of granite quarried
in the Barre district of Vermont. The respondents are directed
to discontinue substituting any other type of granite where Barre
granite is specified in an order or contract.
No. 2504. An order to discontinue false and misleading repre¬
sentations in the sale of flashlight and dry cell batteries has been
issued against United States Electric Manufacturing Corpora¬
tion, 222 West 14th St., New York City.
Under the order, the respondent is directed to cease and desist
from representing in circulars, on labels, in catalogues, or in other
advertising literature, that its flashlight and dry cell batteries have
a “Special Patented Lok-Top,” or are “Patented.” Also, the re¬
spondent is prohibited from using other words of similar tenor to
describe these products as being “patented” or as having a “Special
Patented Lok-Top.”
FTC CASE CLOSED
No. 2290. The Federal Trade Commission has issued an order
closing its case against Stefano Crisafulli, trading as Lucca Olive
Oil Co., 20 Leonard St., New York City, who was charged with
unfair competition in the sale of olive oil and blended vegetable
and salad oils.
The Commission closed the case without prejudice to its right
to reopen it at any time for further investigation and action.
Closing of the case was ordered because the record failed to dis¬
close interstate sales of the respondent’s products alleged to be
falsely labeled, advertised, or misbranded.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
The regular weekly meeting of the broadcast division of the
Commission was not held early this week. It will be held later in
the week.
HEARING CALENDAR
Thursday, February 27
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-127:
NEW — Bellingham Publishing Co., Bellingham, Wash. — C. P., 1420
kc., 100 watts, unlimited time.
Examiner’s Report No. 1-139:
KDFN — Donald Lewis Hathaway, Casper, Wyo. — Modification of
license, 789 kc., 500 watts, unlimited time. Present assign¬
ment: 1440 kc., 500 watts, unlimited time.
KGHL — Northwestern Auto Supply Co., Inc., Billings, Mont. —
Modification of license, 780 kc., 1 KW, 2j4 KW LS, un¬
limited time. Present assignment: 950 kc., 1 KW, 2 KW
LS, unlimited time.
KSOO — Sioux Falls Broadcast Assn., Inc., Sioux Falls, S. Dak. —
Modification of license, 780 kc., 1 KW, 2J4 KW LS, specified
hours except used by KFDY. Present assignment: 1110 kc.,
2J4 KW, limited time.
KXL — KXL Broadcasters, Portland, Ore. — Modification of license,
780 kc., 250 watts, specified hours. Present assignment:
1420 kc., 100 watts, 250 watts LS, shares with KBPS.
KXL — KXL Broadcasters, Portland, Ore. — Modification of license,
780 kc., 250 watts, specified hours. Present assignment:
1420 kc., 100 watts, 250 watts LS, shares with KBPS.
KEHE — Evening Herald Publishing Co., Los Angeles, Calif. — C. P.,
780 kc., 1 KW, 5 KW LS, unlimited time. Present assign¬
ment: 780 kc., 500 watts, 1 KW LS, shares with KELW.
APPLICATIONS RECEIVED
First Zone
NEW — North Jersey Broadcasting Co., Inc., Paterson, N. J. —
620 Construction permit for a new station to be operated on
620 kc., 250 watts, daytime. Amended to make changes in
equipment.
WHDI — Olean Broadcasting Co., Inc., Olean, N. Y. — Construction
1400 permit to install new equipment, change frequency from
1260 kc. to 1400 kc., move transmitter from Exchange
National Bank Bldg., corner Union and Laurens Sts., Olean,
N. Y., to town of Allegany, N. Y. Amended to make changes
in equipment and increase power from 250 watts to 500
watts.
WlXER— Shepard Broadcasting Service, Inc., Quincy, Mass. —
License to cover construction permit for a new general ex¬
perimental station.
WlXEH — The Travelers Broadcasting Service Corp., Avon, Conn.
—Modification of construction permit for 63509 kc. to re¬
place 63000 kc.
W2XIS — Standard Cahill Co., Inc., Bronx, N. Y. — Modification of
construction permit to delete frequencies 1614, 2398, 3492.5,
4797.5, 6425, 12862.5 kc., and increase power to 100 watts
and make changes in equipment.
Second Zone
NEW — WBNS, Inc., Portable. — Construction permit for a new
broadcast pickup station to be operated on 1646, 2090, 2190,
2830 kc., 3 watts.
NEW — WBNS, Inc., Portable. — Construction permit for a new
broadcast pickup station to be operated on 1646, 2190, 2090,
2830 kc., 20 watts.
Third Zone
WQAM — Miami Broadcasting Co., Miami, Fla. — Construction per-
560 mit to install new equipment.
KWKH — International Broadcasting Corp., Shreveport, La. — Au-
850 thority to install automatic frequency control.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
970 Construction permit to change frequency from 1300 kc. to
970 kc., install new equipment. Amended to change power
from 1 KW, 5 KW day, to 5 KW, and transmitter site from
600 Biscayne Blvd., Miami, Fla., to site to be determined,
Miami, Fla.
NEW — Voice of Corsicana, Corsicana, Tex. — Construction permit
1200 for a new station to be operated on 1200 kc., 100 watts,
unlimited time. Amended to change hours of operation from
unlimited to daytime.
NEW — Charles T. Copeland, Jr., and W. H. May, Troy, Ala. —
1219 Construction permit for a new station to be operated on
1210 kc., 100 watts, daytime.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — Modifi-
1300 cation of construction permit (B3-P-220) to install new
equipment, move transmitter, and increase power, request¬
ing changes in equipment.
NEW— Jack E. Brantley, Savannah, Ga. — Construction permit for
1310 a new station to be operated on 1310 kc., 100 watts, un¬
limited time.
NEW — Isadore Goldwasser, Tuscaloosa, Ala. — Construction permit
1370 for a new station to be operated on 1370 kc., 100 watts,
unlimited time. Amended to make antenna changes and to
give transmitter site as First National Bank Bldg., 5th St.
and 24th Ave., Tuscaloosa, Ala.
KBIX — Oklahoma Press Publishing Co., Muskogee, Okla. — Modifi-
1500 cation of construction permit (B3-P-353) for approval of
transmitter and studio sites at Barnes Bldg., corner Third
and Wall Sts., Muskogee, Okla., and make changes in an¬
tenna.
NEW— J. E. Churchwell, G. O. Russell, H. O. Freeman, Jr., d/b as
1500 Panama City Broadcasting Co., Panama City, Fla. — Con¬
struction permit for a new station to be operated on 1500 kc.,
100 watts, daytime.
W3XEN — Havens & Martin, Inc., Portable-Mobile. — Modification
of construction permit to increase power and change equip¬
ment, power increased to 40 watts.
W5XAQ — East Texas Broadcasting Co., Portable-Mobile. — License
to cover construction permit for a new general experimental
station.
WIEF — Miami Broadcasting Co., Portable, Miami, Fla. — License
to cover construction permit to make changes in equipment
and increase power.
NEW — Pape Broadcasting Corp., Portable-Mobile. — Construction
permit for a new broadcast pickup station to be operated on
2830 kc., 20 watts. Amended to include frequencies 1646,
2090 and 2190 kc.
Fourth Zone
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Authority to
550 determine operating power by direct measurement of an¬
tenna.
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WEW — The St. Louis University, St. Louis, Mo. — Construction
760 permit to make changes in equipment.
WCFL — Chicago Federation of Labor, Chicago, Ill. — License to
970 cover construction permit (B4-P-701) for auxiliary trans¬
mitter.
NEW — Winona Radio Service, a partnership, Harry Dahl, Otto M.
1200 Schlabac, Maxwell H. White, Herman R. Wiecking, Winona,
Minn. — Construction permit for a new station to be operated
on 1200 kc., 100 watts, unlimited time.
WHBL — Press Publishing Co., Sheboygan, Wis.— Construction per-
1300 mit to install a new transmitter, erect a new vertical antenna,
and move transmitter from 636 Center Avenue, Sheboygan,
Wis., to site to be determined, near Sheboygan, Wis. Amended
to make changes in antenna and give exact transmitter site
as near Sheboygan, Wis.
NEW — Midway Broadcast Co., by Emmons L. Abeles, Secy., Eau
1300 Claire, Wis. — Construction permit for a new station to be
operated on 1310 kc., 100 watts, unlimited time. Amended
to change frequency from 1310 kc. to 1210 kc. and hours
of operation from unlimited time to daytime on 100 watts.
NEW — Saint Cloud Broadcasting Co., by Emmons L. Abeles, Secy.,
1310 Saint Cloud, Minn. — Construction permit for a new station
to be operated on 1200 kc., 100 watts, unlimited time.
Amended to change frequency from 1200 kc. to 1310 kc.,
power from 100 watts to SO watts night, 100 watts day.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Modifica-
1310 tion of construction permit (B4-P-412) authorizing changes
in equipment and increase in power, requesting further
changes in equipment, move of transmitter from Elkhart
Hotel, Main and East Marion Sts., Elkhart, Ind., to at
junction of State Highway 19 and Mishawaka Road, Elk¬
hart, Ind., and for approval of antenna.
NEW — Evans Broadcasting Co., Kansas City, Mo. — Construction
1370 permit for a new station to be operated on 1370 kc., 100
watts, unlimited time. Requests facilities of KWKC.
KABE — National Battery Broadcast Co., Portable-Mobile. —
License to cover construction permit for a new broadcast
pickup station.
W9XAA — Chicago Federation of Labor, Chicago, Ill. — License to
cover construction permit to change location of station.
NEW — Mississippi Valley Broadcasting Co., Portable-Mobile. —
Construction permit for a new general experimental station
to be operated on 31100, 34600, 37600, 40600 kc., S watts.
Fifth Zone
KMJ— James McClatchy Co., Fresno, Calif. — Authority to deter-
580 mine operating power by direct measurement of antenna.
KGHL — Northwestern Auto Supply Co., Inc., Billings, Mont. —
7801 Construction permit to install new equipment, change fre¬
quency from 950 kc. to 780 kc., power from 1 KW, 2J4 KW
day, to 1 KW, S KW day, and move transmitter 70 feet
from present site at same address.
NEW — Smith, Keller & Cole, a partnership composed of Ralph E.
1200 Smith, A. H. Keller and H. Wadsworth Cole, San Diego, Calif.
— Construction permit for a new station to be operated on
1200 kc., 100 watts, daytime.
NEW — Wm. B. Smullin, Sacramento, Calif. — Construction permit
1310 for a new station to be operated on 1310 kc., 100 watts, 250
watts day, unlimited time. Amended to make changes in
equipment.
NEW — George Harm, Fresno, Calif. — Construction permit for a
1310 new station to be operated on 1310 kc., 100 watts, un¬
limited time. Amended to change transmitter site from
McKinley and First Sts., Fresno, Calif., to southwest corner
Clinton and N. First St., Fresno, Calif.
KRKO — KRKO, Inc., Everett, Wash. — Construction permit to in-
1370 stall new equipment, increase power from 50 watts to 100
watts, 250 watts day; change time from share-KVL to un¬
limited time; move transmitter from 2814 Rucker Avenue,
Everett, Wash., to site to be determined, Everett, Wash.
Requests time used by KVL, contingent upon KVL being
granted permission to change frequency. (Filed under new
name.)
KRKO — Lee E. Mudgett, Everett, Wash. — Voluntary assignment
1370 of license from Lee E. Mudgett to KRKO, Inc.
NEW — Harold H. Hanseth, Fresno, Calif. — Construction permit
1410 for a new station to be operated on 1410 kc., 1 KW, un¬
limited time. Amended to make changes in equipment.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
1450 Construction permit for a new station to be operated on
1450 kc., 500 watts, unlimited time.
NEW — Nichols & Warinner, Inc., Portable-Mobile. — Construction
permit for a new general experimental station to be operated
on 31100, 34600, 37600, 40600 kc., 2 watts.
NEW — Don Lee Broadcasting System, Portable, San Francisco,
Calif. — Construction permit for a new general experimental
station to be operated on 31600, 35600, 38600, 41000 kc.,
100 watts.
1219
'
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’ . ' 1 1 v ■ ;
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'■
■ 5 ‘ ‘ ■ it, ■ .
The National Association of Broadcasters
NATIONAL PRESS BUILDING * ★ ★ * * WASHINGTON, D. C,
JAMES W, BALDWIN, M anaging Director
NAB REPORTS
Copyright, 1836. The National Association of Broadcasters
Vol. 4
No. 11
FEBRUARY 27, 1936
IN THIS ISSUE
Copyright Hearings Begun .
Government Radio Station Rumored .
Coaxial Cable Decision .
Additional Stations Sign for Warner Bros. Music
New California Station Recommended .
Asks Restraining Order Against FCC .
Recommends Denying Changes for KFJM .
Recommends Power Increase for WDAE .
Committee Report on Radio Amendment .
FCC Rules Amended .
Federal Trade Commission Action .
Federal Communications Commission Action ....
Page
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COPYRIGHT HEARINGS BEGUN
Copyright hearings were 'begun this week before the House
Committee On Patents with Gene Buck, president of ASCAP
as the first witness. The hearings were held on Tuesday and
Wednesday and were scheduled to continue through Thursday.
Further hearings will be held on the same subject before
the committee on March 3, 4, 5, 10, 11, 12, 17, 18 and 19. Ac¬
cording to the present program broadcasters will present their
testimony during the last few days of the hearings.
GOVERNMENT RADIO STATION RUMORED
There was talk in Washington on Wednesday in connection
with the Pan American conference which President Roosevelt
is considering calling, that the government will use a short wave
station of its own.
While no official confirmation could be obtained of this
rumor the story was to the effect that a short wave station
would be erected with WPA funds and that the President would
allocate some short wave frequency, under executive order, which
he is empowered to do under the Federal Communications Act.
No one at the Communications Commission apparently knows
anything of the proposed station, but it was pointed out in well
informed circles that, if the plan is worked out along the lines
discussed, the Commission would have nothing to do with such
a project, it all being done under executive order.
COAXIAL CABLE DECISION
The Federal Communications Commission on Wednesday
reached its second division in connection with the application
of the American Telephone & Telegraph Company for authori¬
zation to construct a coaxial cable between New York and Phil¬
adelphia. The Commission in its decision granted the company
permission to construct this cable for experimental purposes
only and provided that before it could be used commercially
the company would have to obtain further permission from the
Commission. The telephone company had already told the Com¬
mission that it would allow other television experimenters to
use the new cable and the Commission provides in this con¬
nection that there shall be no discrimination.
ADDITIONAL STATIONS SIGN FOR WARNER
BROS. MUSIC
The following stations have signed the Warner Brothers con¬
tract since February 4, 1936. (See NAB Reports — p. 1214):
KFAB — Lincoln, Nebraska; KGCX — Wolf Point, Montana;
KGER — Long Beach, California; KMED — Medford, Oregon;
KMMJ — Clay Center, Nebraska; KOB — Albuquerque, New Mex¬
ico; KOIN — Portland, Oregon; KRKD — Los Angeles, California;
KSLM — Salem, Oregon; KVSO — Ardmore, Oklahoma; WAML —
Laurel, Mississippi; WBCM — Bay City, Michigan; WCHV — Char¬
lottesville, Virginia; WGCM — Mississippi City, Mississippi; WHIS
— Bluefield, West Virginia; WJAR — Providence, Rhode Island;
WJEJ — Hagerstown, Maryland; WMBO — Auburn. New York;
WPAX — Thomasville, Georgia; WTAX — Springfield, Illinois.
NEW CALIFORNIA STATION RECOMMENDED
The Merced Star Publishing Company applied to the Federal
Communications Commission for a construction permit for a new
broadcasting station to be erected at Merced, Cal., to use 1040
kilocycles, 250 watts power and daytime operation.
Examiner John P. Bramhall in Report No. 1-200 recommends
that the application be granted “on condition that applicant
install a suitable antenna and on a site which complies with the
engineering standards of the Commission.” The Examiner found
that there is need for additional service in the area proposed
to be served, and no interference would be caused by the erec¬
tion of such a station.
ASKS RESTRAINING ORDER AGAINST FCC
The Monocacy Broadcasting Company, Rockville, Md., has
asked the Supreme Court of the District of Columbia to re¬
strain the Federal Communications Commission from holding a
hearing in its case and from extending the time for its construc¬
tion permit.
The record shows that this company was granted a con¬
struction permit for a new station at Rockville, Md., without
a hearing. It later developed that Station WCAU, Philadelphia,
filed a protest against the grant on the ground of interference.
WCAU later rescinded its protest but the Commission set the
case down for hearing anyhow. The Commission will file a
motion to dismiss the appeal in the Court.
RECOMMENDS DENYING CHANGES FOR KFJM
Broadcasting station KFJM, Grand Forks, N. D., using 1370
kilocycles with 100 watts power unlimited time and special
authorization to use 250 watts power until local sunset applied
to the Federal Communications Commission to use 1410 kilo¬
cycles, with 1,000 watts power unlimited time.
Examiner Ralph L. Walker in Report No. 1-199 recommends
that the application be denied. He found that the use of 1,000
watts at night by the station would result in objectionable in¬
terference to Station KGNC, reducing the present service area of
that station. It would also increase the overquota status of North
Dakota and also of the zone.
RECOMMENDS POWER INCREASE FOR WDAE
Broadcasting station WDAE, Tampa, Florida, applied to the
Federal Communications Commission to increase its power from
1.000 watts, with special authorization for 2,500 watts LS to
5,000 watts LS. The station operates on 1220 kilocycles with
unlimited time.
Examiner R. H. Hyde in Report No. 1-201 recommends that
the application be granted. He found that the service would be
improved “and made more efficient by the use of the increased
power.” The Examiner found also that “no interference with
other stations would result from the use of such increased power;
the improvement that would be effected in the applicant’s service
would not result in any detriment to the interests of the public
in the reception of any other station or stations.”
COMMITTEE REPORT ON RADIO AMENDMENT
Senator Wheeler, chairman of the Committee on Interstate Com¬
merce has made a report on his own bill (S.2243) providing
1221
amendments to the radio act. The bill as reported was pub¬
lished in last week’s Bulletin and the report in full is as follows:
The Committee on Interstate Commerce, to whom was referred
the bill (S. 2243), to amend the Communications Act of 1934,
relating to the allocation of radio facilities, having considered
the same, report the bill back favorably to the Senate with the
recommendation that it be passed as amended.
This bill seeks to restore to the Communications Act of 1934
similar language to that contained in the second paragraph of
section 9 of the Radio Act of 1927. The language of the later
act reads: uifM
In considering applications for licenses and renewals of licenses,
when and insofar as there is a demand for the same, the licensing
authority shall make such a distribution of licenses, bands of
frequency of wave lengths, periods of time for operation, and of
power among the different States and communities as to give
fair, efficient, and equitable radio service to each of the same.
Under the act of March 28, 1928, the above paragraph of sec¬
tion 9 of the Radio Act of 1927 was amended to read as follows:
It is hereby declared that the people of all the zones estab¬
lished by section 2 of this Act are entitled to equality of radio
broadcasting service, both of transmission and of reception, and
in order to provide said equality the licensing authority shall,
as nearly as possible, make and maintain an equal allocation ol
broadcasting licenses, of bands of frequency or wave lengths, of
periods of time for operation, and of station power, to each of
said zones when and insofar as there are applications therefor;
and shall make a fair and equitable allocation of licenses, wave
lengths, time for operation, and station power to each of the
States, the District of Columbia, the Territories and possessions
of the United States within each zone, according to population.
The licensing authority shall carry into effect the equality of
broadcasting service hereinbefore directed, whenever necessary or
proper, by granting or refusing licenses or renewals of licenses, by
changing periods of time for operation, and by increasing or de¬
creasing station power, when applications are made for licenses or
renewals of licenses: Provided, That if and when there is a lack
of applications from any zone for the proportionate share of li¬
censes, wave lengths, time of operation, or station power to
which such zone is entitled, the licensing authority may issue
licenses for the balance of the proportion not applied for from
any zone, to applicants from other zones for a temporary period
of ninety days each, and shall specifically designate that said ap¬
portionment is only for said temporary period. Allocations shall
be charged to the State, District, Territory, or possession wherein
the studio of the station is located and not where the transmitter
is located.
The above language, known as the “Davis amendment,” was
substantially carried over into the Communications Act of 1934.
The bill repeals section 302 of the Communications Act, which
reads as follows:
Sec. 302. (a) For the purposes of this title the United States
is divided into five zones, as follows: The first zone shall em¬
brace the States of Maine, New Hampshire, Vermont, Massa¬
chusetts, Connecticut, Rhode Island, New York, New Jersey, Dela¬
ware, Maryland, and the District of Columbia; the second zone
shall embrace the States of Pennsylvania, Virginia, West Virginia,
Ohio, Michigan, and Kentucky; the third zone shall embrace the
States of North Carolina, South Carolina, Georgia, Florida, Ala¬
bama, Tennessee. Mississippi, Arkansas, Louisiana, Texas, and
Oklahoma; the fourth zone shall embrace the States of Indiana,
Illinois, Wisconsin. Minnesota, North Dakota, South Dakota, Iowa,
Nebraska, Kansas, and Missouri; and the fifth zone shall em¬
brace the States of Montana, Idaho, Wyoming, Colorado, New
Mexico, Arizona, Utah, Nevada, Washington, Oregon, and Cali¬
fornia.
(b) The Virgin Islands, Puerto Rico, Alaska, Guam, American
Samoa, and the Territory of Hawaii are expressly excluded from
the zones herein established.
Subsection (6) of section 307 of the Communications Act, which
would be replaced by the language of this bill, reads as follows:
(b) It is hereby declared that the people of all the zones estab¬
lished by this title are entitled to equality of radio broadcasting
service, both of transmission and of reception, and in order to
provide said equality the Commission shall as nearly as possible
make and maintain an equal allocation of broadcasting licenses,
of bands of frequency, of periods of time for operation, and of
station power to each of said zones when and insofar as there
are applications therefor; and shall make a fair and equitable allo¬
cation of licenses, frequencies, time for operation, and station
power to each of the States and the District of Columbia, within
each zone, according to population. The Commission shall carry
into effect the equality of broadcasting service hereinbefore di¬
rected, whenever necessary or proper, by granting or refusing li¬
censes or renewals of licenses, by changing periods of time for
operation, and by increasing or decreasing station power, when
applications are made for licenses or renewals of licenses: Provided,
That if and when there is a lack of applications from any zone
for the proportionate share of licenses, frequencies, time of opera¬
tion, or station power to which such zone is entitled, the Com¬
mission may issue licenses for the balance of the proportion not
applied for from any zone, to applicants from other zones for
a temporary period of ninety days each, and shall specifically
designate that said apportionment is only for said temporary
period. Allocations shall be charged to the State or District
wherein the studio of the station is located and not where the
transmitter is located: Provided further, That the Commission may
also grant applications for additional licenses for stations not
exceeding one hundred watts of power if the Commission finds
that such stations will serve the public convenience, interest, or
necessity, and that their operation will not interfere with the
fair and efficient radio service of stations licensed under the pro¬
visions of this section.
The legislation is recommended for practical reasons of ad¬
ministration by the Communications Commission, which has
found that the drawing of artificial zone lines for guides in allo¬
cating radio facilities cannot satisfactorily be applied because
of the physical laws governing radio transmission. As a conse¬
quence, the policy of Congress, to so distribute radio facilities
that every section of the country will be adequately supplied, has
been very difficult of effectuating.
On May 23, 1935, the Chairman of the Communications Com¬
mission wrote the chairman of your committee as follows:
With further reference to S. 2243, which was introduced by you
March 13, 1935, I beg to advise that this Commission favors iW
adoption for the following reasons:
The existing law, which S. 2243 seeks to repeal, is contrary to
natural laws and has resulted in the concentration of the use
of frequencies in centers of population, and the restriction of
facilities in sparsely populated States, even though interference
consideration would permit the operation of one or more addi¬
tional stations. Because of the size of the zones provided for
bv existing law, the distribution required by the Davis Amend¬
ment has resulted in providing ample broadcast service in small
zones and lack of service in large zones. The experience of the
Federal Radio Commission and this Commission has proved that
the Davis Amendment is very difficult of administration and can¬
not result in an equality of radio broadcasting service.
This Commission is, therefore, in hearty accord with and favors
the passage of S. 2243.
One amendment, the insertion of the words “a fair, efficient and”
immediately before the word “equitable” in line 12 and the deletion
of the word “an” in the same line, is recommended to make the
language more nearly conform with the original wording in the
Radio Act of 1927.
FCC RULES AMENDED
The Federal Communications Commission has announced the
following amendments of its rules:
Rule 100.6 was amended to read as follows:
“100.6. Subject to the provisions of Sections 4(j), 412 and 606
of the Act, the files of the Commission shall be open to inspection
as follows:
(a) Tariff schedules required to be filed under Section 203
of the Act, and annual and monthly reports required to be filed
under Section 219 of the Act.
(b) All applications and amendments thereto filed under
Title II or Title III of the Act; all documents filed with
applications made when specific mention is made in the ap¬
plication referring to such document; authorizations issued
upon such applications; all pleadings, depositions, transcripts
of testimony, exhibits, examiners’ reports, exceptions, and
orders of the Commission.
(c) Other files in the discretion of the Commission upon
written request describing in detail the documents to be in¬
spected and the reasons therefor.”
* * * * *
The Commission amended Rule 105.34 to read as follows:
“105.34 A. Each application or amendment thereto shall be
personally subscribed and verified: (1) by the party filing said
1222
application or amendment, or by one of the parties, if there be
more than one; (2) by an officer of the party filing the appli¬
cation or amendment if the party be a corporation; Provided,
however, That subscription and verification may be made by the
attorney for the party (1) in case of physical disability of the
party, or (2) his absence from the continental United States.
B. Each pleading initiating or supplementing a proceeding be¬
fore the Commission shall be subscribed by the party or his at¬
torney; Provided, however, That each pleading of fact verified
by the affidavit of the attorney shall be made only when the
facts are within the personal knowledge of the attorney, which
said affidavit shall include a statement by affiant that said facts
are within his personal knowledge.”
The Commission directed that the following be substituted for
the last paragraph of the present Rule 105 .35:
“105.35. * * *
All pleadings or documents (other than applications under
Title II, formal complaints, supplemental complaints, cross
complaints and amended complaints) filed in any proceeding
shall be served by the party filing the same, proof of which
service shall be by signature of the party served or by
affidavit showing service by registered mail (postage pre¬
paid) of a true copy thereof, to the last known address of
said party, and such proof shall be submitted to the Com¬
mission, together with the original and 8 copies of such
pleading or document.”
*****
The Commission directed that the provision in Rule 105.36 call¬
ing for papers filed with the Commission to be 8 1-2 inches by
12 inches, be corrected to read “8 1-2 inches by 13 inches.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2721. A complaint has been issued against R. M. Barnett,
trading as Home and School Education Society, 1621 Real
Estate Trust Building, Philadelphia, alleging unfair competition
in the sale of a set of books designated “Source Book,” together
with a “Perpetual Pictured Semi-Annual Loose Leaf Extension
Service,” and memberships in a “Perpetual Bureau of Research.”
Through verbal assertions made by his agents, and by means
of advertising literature and prospecti he furnishes them, the re¬
spondent is alleged to represent and to encourage his salesmen
to represent to the purchasing public that, as a special intro¬
ductory offer, a limited number of persons in each place visited
by the salesmen will be given a set of the “Source Book” free if
they subscribe for the semi-annual extension service for 10 years,
at a price varying from $49.50 to $79.50; that the stated price
is the total cost of the extension service to the purchaser, and
that the regular price of the Source Book with the extension
service would be twice the price quoted to the prospective purchaser,
or some other sum in excess of the quoted price.
No. 2722. A complaint has been issued against Samuel Gold¬
berg, trading as U. S. Specialty & Mfg. Co., 10222 Superior Ave¬
nue, Cleveland, with unfair competition in the sale of candy.
The respondent, selling and distributing candy to wholesale
dealers, jobbers, retailers and schools, is alleged to have repre¬
sented to the effect that he controls and operates factories and
is the manufacturer of the candy he sells, when, according to
the complaint, this is not true.
No. 2723. Unfair competition through misbranding of wine is
alleged in a complaint issued against Shewan-Jones, Inc., engaged
in the manufacture and sale of wine to wholesalers and retailers,
and having offices at 85 Second St., San Francisco, and a plant
at Lodi, San Joaquin County, Calif.
The respondent corporation is charged with misuse of the name
“Chateau Yquem” on labels of bottles, on invoices and in ad¬
vertising matter, to designate one of the brands of wines it sells,
and by such practices, according to the complaint, represents to
customers and furnishes them with the means of representing to
vendees, including ultimate consumers, that the wine so sold is
the specific wine designated “Chateau Yquem” produced in
France, when in fact it is made at the respondent’s plant at Lodi
from domestic grapes.
No. 2724. In a complaint issued against Gustave Goldstein,
trading as Humania Hair & Specialty Mfg. Co., 10-12 East 23rd
St., New York City, he is charged with unfair methods of com¬
petition in the sale and distribution of an extensive line of hair
goods, cosmetics and toilet preparations.
In his advertising matter, the respondent is alleged to have
represented that 17 or 18 different preparations he sells in inter¬
state commerce are effective treatments for either the hair, the
scalp, various skin diseases, or deafness, whereas, according to
the complaint, use of the respondent’s preparations does not pro¬
duce the beneficial effects claimed for them.
No. 2725. Charging unfair representations of medicine in ad¬
vertising and on the radio, a complaint has been issued against
John J. McC'loskey, 727 West Wisconsin Ave.. Milwaukee, trad¬
ing as H. B. Kimball Co., H. B. Kimball, and Kimball Labora¬
tories.
Selling a stomach remedy called “Kimball Tablets,” the re¬
spondent is alleged to have advertised that more than 100,000
chronic cases have been successfully treated, and that regardless
of how long a person has suffered, “we positively guarantee
results, or the treatment costs you nothing.” The complaint al¬
leges that these assertions are untrue.
No. 2726. Charging unfair competition in the sale of potato
chip machines, a complaint has been issued against Food Display
Machine Corp., 500 North Dearborn St., Chicago.
In its advertising matter, the respondent is said to have rep¬
resented to prospective purchasers that they can make from
$23.50 a day to $300 a week selling potato chips made by the
respondent’s machine; that “There is no way to tell whether
you’ll make $5,000 or $15,000 the first year,” and that “It is
possible for a live wire to make a net profit of $1,000 to $1,500
a month,” when, the complaint alleges, the actual earnings or
profits are, on the average, much less than the amounts set forth
in the respondent’s advertisements.
No. 2727. Nuway Printing Co., 12 South Clinton St., Chicago,
also trading as Professional Record Card Co., is named respond¬
ent in a complaint alleging unfair competition in the sale of dental
record cards which it prints.
Among the companies in competition with the respondent are
the Kohlhaas Co., Chicago, and the McCaskey Register Co.,
Alliance, O., both engaged in the printing and sale of record
forms for the use of dentists, the complaint sets forth, and who
in the course of their business have built up and now enjoy
valuable good will.
The respondent, the complaint charges, in selling its products
advertises by means of circulars in which, it is alleged, these state¬
ments appear: Kohlhass Type Dental Record Cards,” “McCasky
Type Dental Cards,” and “A Limited Supply of McCasky Type
Record Cards.”
No. 2728. American Character Doll Co., Inc., 200 Fifth Ave.,
New York City, is charged with unfair competition in the sale
of “Sally Jane” dolls, in a complaint.
In the sale of its product, also described as “Paratex” dolls, the
respondent is said to distribute among the retail doll trade cir¬
culars bearing pictures of two dolls, each immersed in a jar of
water, one doll appearing to show no ill effects from such im¬
mersion and the other appearing to be in a state of disintegration.
Stipulations
The Commission has issued the following cease and desist orders:
No. 01 102. C-T-C- Corporation, successor to Haley M-0 Co.,
15 Exchange Place, Jersey City, N. J., agrees, in the sale of
“Haley’s C-T-C” effervescent tablets offered as a treatment for
colds and other ailments, not to represent that the product will
keep the system alkaline and free from acidity, that it is a com¬
petent and complete remedy for colds, that it will prevent or
correct certain ailments caused by excessive acid in the blood or
by any condition other than gastric hyperacidity, or that reducing
diets cause acidity and that C-T-C tablets will counteract such
acid conditions.
According to the stipulation, the respondent asserts it has dis¬
continued advertising and selling “Haley’s M-O,” and that the
rights, title and interest in that product have been sold to the
Charles H. Phillips Chemical Co.
No. 01103. E. W. Craghill and W. E. Brunson, trading as
the Zulvar Co., 6513 Hollywood Boulevard, Hollywood, Calif.,
agree to cease advertising that “Zulvar,” offered as a remedy for
rheumatism, is, when used either externally or internally, a com¬
petent treatment for skin diseases, colds, and other ailments. Other
assertions to be discontinued are that the product contains no
drugs, is recommended by many physicians, and that the trial
offer of “Zulvar” is accepted at no risk to the purchaser, unless,
in returning the product, the purchaser receives from the re-
1223
spondents the total amount expended for the product, plus cost
of packing and postage.
No. 01104. Percalx, Inc., Burley, Idaho, selling “Percalx,”
recommended for treatment of hay fever, asthma, chronic colds,
and sinus infections, stipulates that it will refrain from making
assertions that persons deficient in calcium usually suffer from the
ailments enumerated, and that use of “Percalx” makes it possible
to multiply by four times the daily intake of calcium. Other
representations to be discontinued are that “Percalx” has re¬
lieved thousands of sufferers from asthma, sinus infections, chronic
colds and hay fever, or affords relief to nine out of ten who
suffer from these ailments, and that it will bring relief in cases
where other remedies have failed or where treatments by physi¬
cians have been unsuccessful.
No. 01105. J. George and Walter U. Hauser and James J.
Poole, doing business as Hauser Laboratory, 2924 Girard
Ave., Minneapolis, Minn., have entered into a stipulation to desist
from certain representations in the sale of “Liquid 02X,” a remedy
for athlete’s foot, ringworm, eczema and other skin disorders.
They agree to cease advertising that the product is a competent
remedy for all forms of fungus skin disorders, that it clears up
most skin diseases in a week, or that government reports show
a rapid spread of skin infections caused by an almost invisible
vegetable parasite. The respondents also stipulate that they will
discontinue use of the word “Laboratory” in their firm name
until they own and operate a laboratory.
No. 01106. Nelson E. Woolman and Lyle G. Jackson,
trading as Power Seal Co., 1601 South Broadway, Los An¬
geles, and selling a cylinder and valve compound designated
“Power Seal,” stipulate that they will cease and desist from ad¬
vertising that use of their product in engines will restore power
and efficiency, seal up leaky rings and valves, fill up valve pits,
or save oil and gas. Under the agreement, the respondents will
refrain from representing they operate a laboratory, until such is
a fact.
No. 01107. James Brown, Marshall, Mich., in business under
the trade name “Prostaid-National,” selling “Prostaid,” offered as
a treatment for prostate gland ailments, agrees to discontinue repre¬
sentations that the product is a 100 per cent effective, efficient and
harmless treatment in cases of weakened, inflamed, or enlarged
prostate gland.
No. 01122. Mark Laboratories, Inc., Homewood Station,
Pittsburgh, Pa., selling “Mark-4” as a remedy for athlete’s foot,
has signed a stipulation to cease and desist from representing that
its product is an effective remedy for athlete’s foot, ringworm,
poison ivy or other skin diseases, or that it will refresh tired, aching
feet immediately, irrespective of the cause of the condition.
No. 1610. Brown Shoe Co., 16th St. and Washington Ave.,
St. Louis, agrees in its stipulation to cease using the word “Doctor”
or abbreviation “Dr.” as part of a trade name for shoes not made
in accordance with the design of a doctor, and not containing special
orthopedic features resulting from medical advice and services.
No. 1611. Mrs. Evelyn Beveridge, 6724 Hollywood Boule¬
vard, Hollywood, Calif., trading as La Belle Laboratories in
the manufacture of a depilatory, agrees to discontinue advertise¬
ments to the effect that use of her product will destroy the hair
root so as to prevent regrowth of hair, or that it will permanently
remove hair, or will never irritate or inflame the most delicate skin,
when these are not the facts. The respondent also stipulates that
she will cease advertising a “Special Offer; Send $1.00 for $1.50
Size,” implying that the regular price of the article is $1.50 and
that the offer of sale for $1.00 is a “Special” offer, when this is not
true.
No. 1612. Royal Distilling Co., 2801 Blake St., Denver, will
cease using as a part of its corporate name the word “Distilling” or
derivatives thereof or other words of a similar meaning on labels
or in advertising, or in any manner tending to deceive buyers into
believing that the company is a distiller or actually owns and
operates a distillery, when this is not true.
No. 1613. Peter P. Stone, trading as Merit Manufacturing
Co., 2800 Newton Ave., Indianapolis, selling and distributing
automobile stop-light and tail-light lenses, agrees to discontinue
use in advertising of illustrations which do not accurately portray
the lenses, and of illustrations which may have a tendency to de¬
ceive purchasers into believing that the lenses sold by the respondent
are of the same design and reflecting properties as those illustrated
in the advertisements, when this is not true.
Stone also agrees to stop employing the word “Manufacturers”
as part of his trade name or in any way which may imply that he
manufactures the products he sells, or operates a factory in which
they are made.
No. 1615. Virginia Sheridan, Inc., 6500 South Oak Park
Ave., Chicago, manufacturer of cosmetics, including a preparation
designed for concealing birth-marks or skin blemishes, agrees to
stop using and assuming financial or other liability for certain
advertising copy used by stores purchasing its products, such adver¬
tising matter containing allegations to the effect and implying that
application of the respondent’s product will remove skin blemishes
or cause birth-marks, blemishes and scars to disappear, when this
is not true. Provision is made, however, that when such assertions
are used to describe the capability of the preparation to conceal
disfigurements, these assertions shall be immediately accompanied
by other statements indicating clearly that the effect of the appli¬
cation of the product is merely to conceal disfigurements and not
to cause their removal.
Virginia Sheridan, Inc., also agrees to cease using or assuming
liability for advertising matter employed by stores purchasing its
product and containing representations to the effect that it is the
only article on the market for concealing skin disfigurements.
No. 1616. Frank Gue, trading as Star Seed Co., Crawford,
Nebr., agrees, in soliciting the purchase of and in purchasing cream
or dairy products in interstate commerce, to cease the use in con¬
nection with advertisements of the phrase “Cream Producers’ Own
Organization,” or any words of equivalent meaning, alone or in
connection with the name “Star Seed Cream Club,” in a manner
implying or tending to deceive patrons having cream or other
dairy products for sale into the belief that Frank Gue is conducting
a cooperative creamery or organization, when this is not true. The
stipulation shows that Gue sent patrons a small “membership
card,” on which it was stated that the patron receiving such card
has been made a member of the “Star Seed Cream Club” and
would be entitled to all benefits of the club.
No. 1617. Russell L. Post and Herman Ricker, of 134 South
Market St., Galion, Ohio, trading as National Mailing Serv¬
ice, and as Reliable Products Co., selling advertising specialties,
including blankets, by mail order, agree to stop using the words
“Indian” or “Wyandotte 6” either independently or in connection
with the use of Indian heads and Indian patterns in the weaving
of blankets, and in advertising matter unless, in the latter case,
such words are accompanied by appropriate phrases clearly indi¬
cating that the blankets are not made by American Indians. The
respondents also agree to stop advertising “You pay no profit to
the jobber and traveling salesmen,” implying that they are manu¬
facturers.
No. 1618. Harry Cohen, of Des Moines, Iowa, trading as
British Woolen Mills, agrees to stop using the word “British”
as part of his trade name or in any other way having a tendency
to deceive buyers into the belief that his products, men’s suits and
overcoats, are of British or English origin and imported into the
LTnited States, when this is not true, and from the use of the word
“Mills,” independently or in connection with the word “British,”
implying that he manufactures his products or owns and operates
a mill in Great Britain or elsewhere, when this is not true.
No. 1619. Isadore N. Levy, Eva Levy and Louis Davidson,
of Philadelphia, trading as Perfection Products, agree to desist
from use in advertising or on labels of representations to the effect
that their product “Vigair,” will restore the original or natural
color and vitality of youth to the hair, or effectively rid the scalp
of dandruff and other similar troubles.
No. 2353. An order has been issued directing Best & Co., Fifth
Ave. at 35th St., New York City, to discontinue unfair methods
of competition in the sale of “Toyo” hats made from rice paper.
Respondent is ordered to cease representing in any manner that
its “Toyo” hats are “Panama” hats, and to desist from using the
word “Panama,” alone or in connection with other words, so as
to imply that such “Toyo” hats are Panamas.
No. 2414. O. F. Schoeck, doing business as the O. F. Schoeck
School, 1903 Park Ave., Alton, Ill., has been ordered to cease and
desist from the use of false and misleading advertising in connec¬
tion with the sale and distribution of correspondence courses of
study and instruction.
The respondent is ordered to discontinue representing through
advertisements in the classified advertising pages of newspapers
and magazines, or in any other manner, under such headings as
“Help Wanted,” “Men Wanted,” “Wanted — Male Help,” and “Em¬
ployment,” that he has positions or jobs at his disposal or that
employment is offered to persons answering the advertisements.
No. 2635. Max Kipperman and Samuel Orenstein, 36 West
32nd St., New York City, trading as Samac Knitting Mills,
have been ordered to cease and desist from unfair representations
of their business.
The respondents are directed to stop representing, through their
trade name and printed matter, by use of words such as “Mills,”
“Knitting,” or “Manufacturers,” that they own or control mills in
1224
which their products are knitted or manufactured. They are also
directed to stop asserting, by use of the term “100 Per Cent Pure
Spun,” or phrases of similar import, that the product which such
phrase is used to describe, is made of 100 per cent pure spun wool,
unless and until the articles so labeled are composed entirely of
wool.
No. 2664. McCambridge & McCambridge Co., Inc., of 12
L Street, S. E., Washington, D. C., trading as Everfresh Products
Co., has been ordered to stop misrepresentations in the sale of its
“Everfresh Aspirin.”
Advertisements by the respondent company in newspapers, sales
circulars and by radio that its aspirin gives better or quicker relief
than other forms of aspirin, are prohibited in the Commission’s
order to cease and desist.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, March 2
FURTHER HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Champaign News-Gazette, Inc., Champaign, Ill. — C. P.,
1370 kc., 100 watts, unlimited time.
Thursday, March 5
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-141:
NEW— Joplin Broadcasting Co., Pittsburg, Kans— C. P., 1200 kc.,
100 watts, daytime. ,
NEW— Pittsburg Publishing Co., Pittsburg, Kans.— C. P., 1500 kc.,
100 watts, unlimited time.
NEW — Harold F. Foraker and Ray D. Luzadder, d/b as The
Wichita Broadcasting Co., Wichita, Kans— C. P., 1500 kc.,
100 watts, unlimited time.
Examiner’s Report No. 1-142:
NEW — Black Hills Broadcast Co. (Robert Lee Dean), Rapid City,
S. Dak.— C. P., 1370 kc., 100 watts, unlimited time.
Examiner’s Report No. 1-146:
NEW— William S. Thellman, New Castle, Pa— C. P., 1420 kc., 100
watts, daytime.
Examiner’s Report No. 1-143:
KID— KID Broadcasting Co., Inc., Idaho Falls, Idaho.— C. P., 1320
kc., 500 watts, 1 KW LS, unlimited time. Present assign¬
ment: 1320 kc., 250 watts, 500 watts LS, unlimited time.
Examiner’s Report No. 1-147:
NEW— Arthur Westlund and Jules Cohn, Santa Rosa, Calif.— C. P.,
1310 kc., 100 watts, unlimited time.
Examiner’s Report No. 1-96:
NEW— Charles C. Theis, Wichita, Kans— C. P., 1210 kc., 100
watts, unlimited time.
Friday, March 6
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— C. G. Hill, Geo. D. Walker, Susan H. Walker, Winston-
Salem, N. C.— C. P., 1250 kc., 250 watts, daytime.
APPLICATIONS GRANTED
WFBR— The Baltimore Radio Show, Inc., Baltimore, Md.—
Granted license to cover C. P. (auxiliary transmitter) for
auxiliary purposes only ; 1270 kc., 500 watts. Also granted
modification of license to use present licensed transmitter
as an auxiliary and auxiliary transmitter as a main trans¬
mitter.
NEW — Dorrence D. Roderick, El Paso, Tex. — Granted C. P. for
new station, 1500 kc., 100 watts, unlimited time.
WHDH— Matheson Radio Co., Inc., Boston, Mass. — Granted C. P.
to make changes in equipment, on temporary basis only,
because of pending application requesting facilities of this
station.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Granted extension of
special experimental authority to operate with 1 KW day
and night for period ending September 1, 1936.
WREC — WREC, Inc., Memphis, Tenn. — Granted extension of
special experimental authority to operate with 1 KW night,
2 y2 KW day, from March 1 to September 1, 1936.
KMBC — Midland Broadcasting Co., Kansas City, Mo. — Granted
license for auxiliary transmitter to use old 2*4-KW trans¬
mitter for emergency purposes only, to operate with 1 KW
night, iy2 KW day.
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Granted
license to cover special authority to operate permanently
with 1 KW night, 2l/2 KW day, using directional antenna
at night, unlimited time, and approving transmitting equip¬
ment.
KGVO — Mosby’s, Inc., Missoula, Mont. — Granted license to cover
C. P. authorizing installation of new equipment, change in
frequency to 1260 kc., increase in power to 1 KW, and
change in transmitter site.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Granted
extension of special experimental authority to operate with
1 KW daytime.
KFBK — James McClatchy Co., Sacramento, Calif. — Granted license
to cover C. P., 1490 kc., 5 KW, unlimited time; also author¬
ity to determine operating power by direct measurement
of antenna input in compliance with Rule 137.
WOKO — WOKO, Inc., Albany, N. Y. — Granted license to cover
C. P., 1430 kc., 500 watts night, 1 KW day, unlimited time.
Also granted authority to determine operating power by
direct measurement of antenna input in compliance with
Rule 137.
KHBC — Honolulu Broadcasting Co., Ltd., Hilo, Hawaii. — Granted
modification of C. P. to install new equipment and antenna;
change frequency from 1420 kc. to 1400 kc.; increase power
from 100 watts to 250 watts; and extend commencement date
to 60 days after grant and completion date to 6 months
thereafter.
WINS — Hearst Radio, Inc., New York City. — Granted renewal of
license, 1180 kc., 1 KW, limited time.
WIBM — WIBM, Inc., Jackson, Mich. — Granted C. P. to make
changes in transmitting equipment and install vertical an¬
tenna.
WCAO — Monumental Radio Co., Baltimore, Md. — Granted modifi¬
cation of C. P. to move transmitter 60 feet from present
site, and make changes in present antenna.
WREC — WREC, Inc., Memphis, Tenn. — Granted modification of
C. P. to extend completion date to April 29, 1936.
WGBI — Scranton Broadcasters, Inc., Scranton, Pa. — Granted ex¬
tension of special experimental authority to operate with
power of 500 watts from March 1 to September 1, 1936.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Granted
extension of special experimental authority to operate with
power of 1 KW for period 3-1-36 to 9-1-36.
NEW — Pape Broadcasting Corp., Portable-Mobile (Mobile, Ala.).
— Granted C. P. (temporary broadcasting pickup) service,
1646, 2090, 2190, 2830 kc., 20 watts.
WIEK — Atlantic Broadcasting Corp., Portable-Mobile (New York
City). — Granted C. P. (temporary broadcast pickup) for
replacement transmitter and increase in power from 50 to
100 watts.
W8XWJ — The Evening News Assn., Detroit, Mich. (Portable-
Mobile).- — Granted license to cover C. P. for new general
experimental broadcast station, frequencies 31600, 35600,
38600 and 41000 kc., 100 watts.
W1XAV — Shepard Broadcasting Service, Inc., Quincy, Mass. —
Granted license (exp. spec, exp.), frequencies 61500 kc., 100
watts.
WlXER — Shepard Broadcasting Service, Inc., Quincy, Mass. —
Granted license to cover C. P. (exp. gen. exp.) for new fixed
general experimental broadcast station, frequencies 13600,
35600, 38600, 41000 kc., 500 watts.
KABE — National Battery Broadcast Co., Portable-Mobile (St.
Paul). — Granted license to cover C. P. (temporary broadcast
pickup), frequencies 1622, 2060, 2150, 2790 kc., 25 watts.
NEW — Radio Air Service Corp., Portable-Mobile (Cleveland,
Ohio). — Granted C. P., frequencies 31100, 34600, 37600,
40600 kc., 10 watts, to communicate as a broadcast pickup
station only in the temporary service on an experimental
basis.
KILU — Arkansas Radio & Equipment Co., Portable (Little Rock,
Ark.). — Granted modification of license to add frequencies
2060* 2790 kc. Also granted renewal of license in accord¬
ance with modification.
NEW — Racine Broadcasting Corp., Portable-Mobile. — Granted
C. P. for broadcast pickup station, frequencies 3100, 34600,
37600 and 40600 kc., 10 watts. Also granted license cover¬
ing same.
1225
NEW — National Broadcasting Co., Inc., New York City. — Granted
C. P. for special experimental station for relay visual broad¬
casting service, frequency 177000 kc., IS watts.
W2XF — National Broadcasting Co., Inc., New York City. — Granted
C. P. covering change in transmitting equipment and increase
in power from 5 to 12 KW.
W2XK — National Broadcasting Co., Inc., New York City. — Granted
C. P. for increase in power from 2J4 KW to IS KW.
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio — Granted
authority to determine operating power by direct measure¬
ment of antenna input in compliance with Rule 137.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted extension of present license for period of
one month.
KFDM — Sabine Broadcasting Co., Inc., Beaumont, Tex. — Granted
renewal of license; 560 ke., 500 watts, with additional S00
watts day. 7.7 amperes for 1 KW, antenna resistance 17
Ohms. Unlimited.
KFAB — KFAB Broadcasting Co., Lincoln, Nebr. — Granted re¬
newal of license; 770 kc., 10 KW. Simultaneous daytime
operation with station WBBM from 6 a. m. to 6:45 p. m.;
Sept., Oct., 5:45 p. m.; Nov. 5:15 p. m.; Dec., 5:00 p. m. ;
Jan., 5:30 p. m.; CST. Shares time at night with Station
WBBM as follows: WBBM 4-7 and KFAB 3-7 time.
WTAG — Worchester Telegraph Publishing Co., Inc., Worchester,
Mass. — Granted renewal of license; 580 kc., 500 watts,
unlimited time. Also granted renewal for auxiliary trans¬
mitter.
KGMB — Honolulu Broadcasting Co., Ltd., Honolulu, Hawaii —
Granted renewal of license, 1320 kc., 250 watts, unlimited
time.
KARK — Arkansas Radio & Equipment Co., Little Rock, Ark. —
Granted renewal of license; 890 kc., 250 watts, with addi¬
tional 250 watts from local sunrise to local sunset only,
unlimited time.
WIBW — Topeka Broadcasting Association, Inc., Topeka, Kans. —
Granted renewal of license ; 580 kc., 1 KW, with an addi¬
tional 4 KW from local sunrise to local sunset only. Shares
time with KSAC.
WJAR — The Outlet Co., Providence, R. I. — Granted extension of
special experimental authority to operate with a power of
500 watts nighttime to Sept. 1, 1936.
W2XIS — Standard Cahill Co., Inc., New York City- — Granted modi¬
fication of C. P. so as to delete the 10 general experimental
frequencies leaving 4 allocated to miscellaneous experimental
service: 31600, 35600, 38600 and 41000 kc., change equip¬
ment, increase power to 100 watts, and operate station in
broadcast service experimentally under special authority
contained in Rule 320.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KEHE, Los Angeles; KFNF, Shenandoah, la.; KGBU, Ketchi¬
kan, Alaska; KHQ, Spokane, Wash.; KSFO, San Francisco;
KTSA, San Antonio, Tex.; WFLA-WSUN, Clearwater, Fla.;
WJAY, Cleveland, Ohio; WMCA and auxiliary, New York City;
WMT, Cedar Rapids, la.; WOW, Omaha, Neb.; KFQD, Anchor¬
age, Alaska; KLX, Oakland, Cal.; WDEV, Waterbury, Vt.; WELI,
New Haven, Conn.; WIND, Gary, Ind.; WJAX, Jacksonville,
Fla.; WQAN, Scranton, Pa.; WWJ, Detroit, Mich.
WJR — WJR, The Goodwill Station, Detroit, Mich. — Granted re¬
newal of license for the period ending Aug. 1, 1936, for
auxiliary transmitter.
WIBG — Seaboard Radio Broadcasting Corp., Glenside, Pa. —
Granted renewal of license for the period ending Aug. 1,
1936, for auxiliary transmitter.
W6XO — The Crosley Radio Corp., Mason, Ohio — Granted renewal
of special experimental station license for experimental serv¬
ice, effective Feb. 21, to expire May 21, 1936, in exact con¬
formity with existing license.
The following stations were granted renewal of licenses on a tem¬
porary basis only subject to whatever action may be taken by the
Commission upon the pending applications for renewal of licenses
which were designated for hearing:
KELW, Burbank, Cal.; KFRC, San Francisco, Cal.; KFUO,
Clayton, Mo.; KMTR, Los Angeles; KSEI, Pocatello, Idaho;
KUSD, Vermillion, S. Dak.; WMMN, Fairmont, W. Va. ; WOS,
Jefferson City, Mo.; WPHR, Petersburg, Va.; WTMJ, Milwaukee,
Wis.
KFYR — Meyer Broadcasting Co., Bismarck, N. Dak. — Granted
renewal of license on a temporary basis only to conform to
Commission’s action of February 8th, with reference to
this station’s application for renewal of license.
KFKA — The Mid-Western Radio Corp., Greeley, Colo. — Granted
renewal of broadcast station license for the regular period.
KHJ — Don Lee Broadcasting System, Los Angeles, Cal. — Granted
renewal of broadcast station license for auxiliary trans¬
mitter for the regular period.
The following stations were granted renewal of licenses on a
temporary basis only, from March 1 to April 1, 1936, pending
receipt and/or action on applications for renewal:
KFPY, Spokane, Wash.; WFIL and auxiliary, Philadelphia, Pa.;
WLBL, Stevens Point, Wis.
WSAJ — Grove City College, Grove City, Pa. — Granted renewal of
license for the period ending June 1, 1936.
WWL — Loyola University, New Orleans, La. — Extended special
temporary experimental authorization heretofore issued
WWL, for the period March 1 to April 1, 1936, subject to
the same conditions as contained in existing authority, pend¬
ing consideration of pending petition of WLWL and peti¬
tions in opposition thereto.
WJBW — Chas. O. Carlson, New Orleans, La. — Extended present
license on a temporary basis only, from March 1 to April
1, 1936, subject to whatever action may be taken on appli¬
cation for renewal of license pending before the Commission.
W8XAR — Westinghouse E and M Co., Saxonburg, Pa. — Granted
renewal of special experimental license for the period March
23 to June 23, 1936, in exact conformity with existing
license.
WLEZ — The Norfolk Daily News, Portable — Granted renewal of
broadcast pickup station license for temporary service for
period ending Nov. 1, 1936.
KWKH — International Broadcasting Corp., Shreveport, La. —
Extended special temporary experimental authorization here¬
tofore issued KWKH, for the period March 1 to April 1,
1936, subject to same conditions as in existing authority,
pending consideration of pending petition of WLWL and
petitions in opposition thereto.
SET FOR HEARING
NEW — Ben S. McGlashan, San Diego, Cal. — Application for C. P.,
1210 kc., 100 watts, daytime. Site to be determined.
NEW — The Tribune, Great Falls, Mont. — Application for C. P.
for new station; 550 kc., 1 KW night, 5 KW day, unlimited
time. Site to be determined.
NEW — Lookout Broadcasting Corp., Chattanooga, Tenn. — Appli¬
cation for C. P. for new station ; 1420 kc., 100 watts. Day¬
time only. Site to be determined.
NEW — E. Anthony & Sons, Inc., Pawtucket, R. I. — Application for
C. P. for new station ; 1200 kc., 100 watts night, 250 watts
day. Unlimited time. Facilities WNRI. Site to be de¬
termined.
NEW — Albert Lea Broadcasting Corp., Albert Lea, Minn. — Appli¬
cation for C. P. for new station; 1200 kc., 100 watts, un¬
limited time. Site to be determined.
NEW — R. C. Goshorn & Lester E. Cox, d/b as Capitol Broadcasting
Co., Jefferson City, Mo. — Application for C. P. for new sta¬
tion ; 920 kc., 500 watts daytime. Site to be determined.
NEW — Power City Broadcasting Corp., Niagara Falls, N. Y. —
Application for C. P. for new station; 630 kc., 250 watts
daytime. Site to be determined.
NEW — The Steffen Ice & Ice Cream Co., Wichita, Kans. — Appli¬
cation for C. P. for new station; 1210 kc., 100 watts, un¬
limited time.
NEW — J. T. Bilben & N. G. Barnard Walker, Minn — Application
for C. P. for new station; 1310 kc., 100 watts, unlimited.
NEW — Peninsula Newspapers, Inc., Palo Alto, Cal. — Application
for C. P. for new station; 1160 kc., 250 watts, daytime.
WCBD — WCBD, Inc., Chicago, Ill. — Modification of license to
change location of studio from Karcher Hotel, Waukegan,
to 128 North Pulaski Road, Chicago.
NEW — W. E. Day, Creston, la. — Application for C. P. for new
station; 1500 kc., 100 watts, unlimited time. Site to be
determined.
NEW — Harold Johnson & Leland M. Perry, d/b as Johnson &
Perry, Cedar City, Utah — Application for C. P. for new
station; 1310 kc., 100 watts, unlimited time. Site to be
determined.
1226
NEW — State Capitol Broadcasting Assn. (R. B. Anderson, Pres.),
Austin, Tex. — Application for C. P. for new station; 1120
kc., 500 watts night, 1 KW day, S. H. (all hours not used
by WTAW) using directional antenna.
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio — Transfer
of control of the WGAR Broadcasting Co. (license of
WGAR), from the present four stockholders to WJR, the
Goodwill Station, a Michigan Corporation (1450 kc., 500
watts night, 1 KW day, unlimited).
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio — Appli¬
cation for C. P. to make changes in equipment and increase
day power to 5 KW, using conventional non-directional
antenna for day operation.
MISCELLANEOUS
KFPM — Dave Ablowich, t/r as The New Furniture Co., Green¬
ville, Tex. — Denied petition asking Commission to recon¬
sider action in designating for hearing applications for re¬
newal of license and assignment of license.
KFOX — Nichols & Warinner, Inc., Long Beach, Cal.— Denied peti¬
tion asking Commission to reconsider and grant application
to assign license to Hal Nichols, Inc. Designated for hear¬
ing on Jan. 10, 1936.
KFRU — KFRU, Inc., Columbia, Mo. — Granted permission to use
nighttime hours when relinquished by WOS, which has been
granted C. P. for a police frequency, subject to Rule 131.
W. T. Knight, Jr., Savannah, Ga. — Denied petition asking Com¬
mission to reconsider action in designating for hearing ap¬
plication for new station to operate on 1310 kc., 100 watts,
full time, and to grant same.
WWJ — The Evening News Assn., Inc., Detroit, Mich. — Retired to
closed files C. P. and modification of C. P., heretofore
granted for authority to move transmitter, for want of
prosecution.
WGBF — Evansville On the Air, Inc., Evansville, Ind. — Denied
special temporary authorization to operate simultaneously
with KFRU, and with reduced power of 250 watts, from
7 to 8 p. m. March 5; from 7 to 8:30 p. m. March 6; and
from 7 to 10 p. m. (CST) March 7, 14, 21 and 28, 1936,
in order to broadcast special programs.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — License
further extended on a temporary basis to April 1, 1936.
NEW — ABC Broadcasting Co., Big Spring, Tex. — Dismissed with
prejudice application for C. P. for new radio station to
operate on 1500 kc., 100 watts, daytime.
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Modi¬
fication of license; 890 kc., 500 watts, 1 KW LS, unlimited
time.
WCOL — WCOL, Inc., Columbus, Ohio — C. P., 1210 kc., 100 watts,
250 watts, LS, unlimited time.
NEW — M. M. Oppegard, Grand Forks, N. Dak. — C. P., 1310 kc.,
100 watts, 250 watts, LS, unlimited time.
NEW — Bismarck Tribune Co., Bismarck, N. Dak. — C. P., 500 kc.,
1 KW, 5 KW, LS. Unlimited time.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
C. P., 1370 kc., 100 watts, 250 watts, LS, shares with KCRC.
NEW — American Broadcasting Corp. of Ohio, Cleveland, Ohio —
C. P., 880 kc., 1 KW, unlimited time.
The following application, heretofore set for hearing, was dis¬
missed for failure of applicant to answer form letter, adopted by
Broadcast Division requiring applicants to signify their desire to be
heard within 10 days after receipt of said form letter:
NEW — A. E. Hughes, d/b as Valdosta Broadcasting Co., Valdosta,
Ga. — C. P., 1500 kc., 100 watts, unlimited.
The following application heretofore set for hearing, was dis¬
missed inasmuch as it has been superseded by an application
under the name of Smith, Keller & Cole:
NEW — Ralph E. Smith, San Diego, Cal. — C. P., 1200 kc., 100
watts, daytime.
APPLICATIONS DENIED
NEW — Eugene DeBogory, tr/as Dallas Radio Research Engrs.,
Dallas, Tex. — Application for C. P., 1570 kc., 1 KW, un¬
limited (exp. broadcast), heretofore set for hearing, was
denied as in cases of default for failure to file an appearance.
ORAL ARGUMENTS
NEW — Ex. Rept. 1-163: Paul R. Heitmeyer, Salt Lake City, Utah.
— Oral argument granted for April 23, 1936.
NEW — Ex. Rept. 1-173: Paul R. Heitmeyer, Cheyenne, Wyo. —
Oral argument granted for April 23, 1936.
NEW — Wyoming Radio Educational Assn., Cheyenne, Wyo. — Oral
argument granted for April 23, 1936.
WFEA — Ex. Rept. 1-180: New Hampshire Broadcasting Co., Man¬
chester, N. H. — Oral argument granted for April 23, 1936.
NEW — Ex. Rept. 1-184: W. H. Kindig, Hollywood, Calif. — Oral
argument granted for April 23, 1936.
KFAC — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
Oral argument granted for April 23, 1936.
WCAO — Ex. Rept. 1-187: The Monumental Radio Co., Baltimore,
Md. — Oral argument granted for April 30, 1936.
WICC — Ex. Rept. 1-187: Southern Connecticut Broadcasting
Corp., Bridgeport, Conn. — Oral argument granted for April
30, 1936.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Oral
argument granted for April 30, 1936.
APPLICATIONS RECEIVED
First Zone
WTAG — Worcester Telegram Publishing Co., Inc., Worcester.
580 Mass. — Construction permit to make changes in equipment.
WMAL — National Broadcasting Co., Inc., Washington, D. C. —
630 Modification of license to increase power from 250 watts, 500
watts day, to 500 watts day and night,
NEW — Elmira-Star-Gazette, Inc., Elmira, N. Y. — Construction per-
1200 mit for a new station to be operated on 1200 kc., 250 watts,
daytime.
NEW — The Ogdensburg Advance Co., Watertown, N. Y. — Con-
1270 struction permit for a new station to be operated on 1270
kc., 250 watts, unlimited time. Amended to make antenna
changes, give studio site as Public Square, Watertown, N. Y.,
and transmitter site to be determined, Watertown, N. Y.
WEVD — Debs Memorial Radio Fund, Inc., New York, N. Y. —
1400 Modification of license to change hours of operation from
share-WBBR, WFAB and WHAZ to unlimited time. Re¬
quests facilities of WBBC, WLTH, WARD and WVFW.
Amended to change frequency from 1300 kc. to 1400 kc.
Second Zone
WDBJ — Times-World Corp., Roanoke, Va. — Construction permit
930 to install new equipment; increase power from 1 KW to
1 KW night, 5 KW day; move transmitter from First and
Kirk Ave., S. W., Roanoke, Va., to Colonial Ave., Colonial
Heights, Roanoke, Va., and studio from American Theater
Bldg, (corner Kirk Ave. and Jefferson St.), Roanoke, Va., to
corner 2nd and Campbell Ave., S. W., Roanoke, Va.
NEW — Nolan S. Walker, Canton, Ohio. — Construction permit for
1200 a new station to be operated on 1200 kc., 100 watts, 250
watts day, unlimited time. Requests facilities of WHBC.
NEW — Radio Air Service Corp., Cleveland, Ohio. — Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 41000 kc., 50 watts.
NEW — Pittsburgh Radio Supply House, Portable-Mobile. — Con¬
struction permit for a new general experimental station to
be operated on 31100, 34600, 37600, 40600 kc., 5 watts.
Third Zone
NEW — The Birmingham News Co., Birmingham, Ala. — Construc-
590 tion permit for a new station to be operated on 590 kc., 500
watts, 1 KW, unlimited time.
NEW — Grover C. Maxwell, George A. Sancken and Herbert C.
610 Lorick, Augusta, Ga. — Construction permit for a new station
to be operated on 610 kc., 250 watts, 500 watts day, un¬
limited time.
NEW — Ben L. Taylor, Phil B. Whitaker and Mrs. Phil B. Whitaker,
1200 Chattanooga, Tenn.— Construction permit for a new station
to be operated on 1200 kc., 100 watts, daytime.
WDAE — Tampa Times Co., Tampa, Fla. — Extension of special ex-
1220 perimental authorization to operate with power of 2T/2 KW
day, with equipment changes, from 4-1-36 to 10-1-36.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
1300 Construction permit to make changes in equipment.
NEW — Red River Valley Broadcasting Corp., Sherman, Tex. —
1227
1310 Construction permit for a new station to be operated on
1310 kc., 100 watts, daytime. Consideration under Sec.
307 (b).
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — Construc-
1370 tion permit to make changes in equipment.
Fourth Zone
WWAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
1200 — Modification of license to change hours of operation from
S-WFAM to unlimited day to local sunset, share-WFAM
night.
NEW — Pemberton Gordon, d/b as Mid-Missouri Broadcasting
1310 Service, Jefferson City, Mo. — Construction permit for a new
station to be operated on 1310 kc., 100 watts, daytime.
KSO — Iowa Broadcasting Co., Des Moines, Iowa. — Construction
1430 permit to make changes in equipment and increase power
from 500 watts, 1 KW day, to 500 watts, 2x/2 KW day.
NEW — R. J. Laubengayer, Salina, Kans. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, un¬
limited time.
Fifth Zone
KDON — Richard Field Lewis, Del Monte, Calif. — Voluntary as-
1210 signment of license from Richard Field Lewis to Monterey
Peninsula Broadcasting Co.
KICA — The Southwest Broadcasting Co., Clovis, N. Mex. — Volun-
1370 tary assignment of license from The Southwest Broadcasting
Co. to Western Broadcasters, Inc.
KLO — Interstate Broadcasting Corp., Ogden, Utah. — Construction
1400 permit to make changes in equipment; increase power from
500 watts to 1 KW, 5 KW day; install directional antenna;
move transmitter from R. 4, Riverdale Rd., approximately
4 miles southwest of Ogden, Utah., to site to be determined.
Amended giving exact transmitter site as 3 miles southwest
of center of Kaysville, on Lake Shore, near Kaysville, Utah,
and make changes in antenna.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif.— Modification
1430 of construction permit (5-P-B-2837) as modified to move
transmitter locally; increase power; install new equipment;
move transmitter from 1000 S. Hope St. to 3100 S. Clover-
dale Ave., Los Angeles, Calif.; and extend commencement
and completion dates. Amended to change transmitter site
from 3100 S. Cloverdale Ave. to 82nd St. and Compton Ave.,
Los Angeles County, California.
NEW — Western Broadcast Co., Los Angeles, Calif. — Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 41000 kc., 100 watts.
Alaska
NEW — Edwin A. Kraft, Petersburg, Alaska. — Construction permit
1420 for a new station to be operated on 1420 kc., 100 watts,
unlimited time.
1228
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Mana ging Director
NAB REPORTS * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 12
MARCH 5, 1936
IN THIS ISSUE
Page
Duffy Bill Hearings Commence . 1229
Prall Reappointed Chairman . 1231
Couzens Asks Report . 1231
New Connecticut Station Recommended . 1231
Tel. & Tel. Accepts Decision . 1231
Newspaper Statistics Available . , . 1231
New Florida Station Recommended . 1231
Securities Act Registrations . 1231
Lotteries Discussed In Examiner’s Report . 1231
Broadcast Advertising in January . 1234
Federal Trade Commission Action . 1237
Federal Communications Commission Action 1238
DUFFY BILL HEARINGS COMMENCE
Broadcasters were characterized as “termites,” “racketeers” and
“pirates” by spokesmen for the American Society of Composers,
Authors and Publishers during hearings on the Duffy copyright
bill which commenced before the House Committee on Patents
on Tuesday, February 25.
Appearing for the Society, Gene Buck, president, stated that
his organization was opposed to removal of the $250.00 minimum
damages provision from the law and charged that the “power
trust” was behind the provisions of the Duffy bill under which
the two-cent royalty on phonograph records would be retained.
Mr. Buck, Nathan Burkan, attorney for the Society, and E. C.
Mills, general manager, testified for the Society. Mr. Buck in¬
troduced to the committee during the hearings Charles Wake¬
field Cadman, Irving Berlin, George Gershwin, Mrs. Nevin, widow
of the composer, Ethelbert Nevin, Billy Hill, and Rudy Vallee.
Vallee was the only one of this group to testify.
Early in his testimony, Buck admitted that “copyright is a
mystic maze” and argued that the composers of the nation
were not receiving adequate revenue from the use of their works
by broadcasters, hotels, taverns, motion picture exhibitors and
other public places where music is used.
“There is not a composer or author in these United States
getting 50 per cent of the income that he got before this tre¬
mendous mechanical invasion came upon us, Buck said.
Removal of the $250.00 damages clause from the law would
“legalize piracy.”
“Congressmen have frequently said to me, ‘If I buy that
sheet of music, why can’t I play it, why can’t I do anything
I want with it?’” said Buck. “It just so happens that that
sheet of music is bought by you for private use, like a phono¬
graph record; but the minute you take that piece of music, if
there is an admission charged at the door for commercial pur¬
poses, or if you are going to sell that piece of music over again,
either on a broadcasting station or in a theater or in a hotel,
that is the so-called public performing right that is involved here,
which these termites would like to eliminate.”
Buck stated that “never in the history of the Society has
a bootblack stand, a hot-dog stand, or a barber shop been ap¬
proached.”
In 22 years only $8,800 was collected by the Society in court
proceedings for infringement, Buck said.
During the time Buck was on the stand he gave some statistical
information about the Society’s licensing activities. He said
his salary was $35,000 a year. Broadcasters in 1935 paid more
than $2,500,000 to the Society; the hotels $190,000 and the movie
theaters nearly $860,000. The total collections last year were
about $4,000,000.
He said he favored the Sirovich bill as against the Duffy bill
and that the American Federation of Labor “stands with this
Society because they are in the same boat.”
NOTES TO SALES STAFF
The continued gain of radio advertising presages
increased time sales during the spring months, espe¬
cially in the regional network and national non¬
network fields. (See Total Broadcast Advertising,
page 1234).
The marked rise during the month in national
transcription volume also should be of interest, as
should be the continued strong showing of both na¬
tional and local live talent volume. (See Non-net-
work Advertising by Type of Rendition, page 1235).
The downward trend in announcement volume,
combined with the marked upswing in both talent
and transcriptions, shows what can be done in the
way of selling full radio broadcast advertising facili¬
ties (See same, page 1235).
ADVERTISING UNDER ATTACK
The American system of broadcasting came under attack while
Buck was on the stand. He said that American authors and com¬
posers receive less money than they receive in England or any
country in Europe where the nations do not permit advertising.
Discussing wired radio, which he said was controlled by the
“power trust” and had a hand in writing the Duffy bill, Buck
said:
“It is intensively interesting. It eliminates all static. It is
clear reception. There is no advertising ; you do not have to
listen to some of this ‘blah’ to get some of the fine stuff that
we get on the air.
“Do you believe that the members of your organization would
be better off financially if the Government were to take over the
broadcasting stations ?” asked Congressman Dunn of Pennsylvania.
“That is a very difficult question for me to answer, Mr. Dunn,”
said Buck. “I do not know enough about government owner¬
ship. I could not answer that question. It takes an exhaustive
study of its effects.”
“I am going to persist and continue, provided that you people
do not believe it is a detriment, to advocate that the Government
take over broadcasting,” Dunn said.
BROADCASTERS ARE BLAMED
The broadcasters were held responsible for the “false propa¬
ganda” in Congress and were said to have advocated the institu¬
tion of the suit against the Society by the Department of Justice,
according to Society witnesses. The broadcasters, too, were
blamed for the difficulties which are troubling the Society in the
State of Washington.
Broadcasters likewise were blamed for the trouble the Society
has found in Wisconsin. At one time during the questioning of
Burkan by Congressman O’Malley of Wisconsin, Burkan said:
“We have been having a lot of trouble in your state.”
“I know, and you are going to have some more,” O’Malley
retorted.
WHY THE GOVERNMENT CASE SAGGED
The Government suit against the Society came in for discus¬
sion during the hearings.
“This is the reason that the Government’s case sagged and
broke down, because the Government discovered that instead of
us being the ‘racketeers’ the ‘racketeers’ were the broadcasters,”
Burkan said.
1229
Burkan then proceeded to tell of his cross-examination of Gov¬
ernment witnesses at the adjourned trial and accused the Na¬
tional Broadcasting Company of “pirating” songs of non-members
of the Society.
“You do not say that the Department of Justice is guilty of
improper motives in bringing the suits?” O’Malley asked.
“I do not say that, but they (the broadcasters) stuck a gun
up against our bellies and said, ‘If you do not give us a re¬
newal of the contract for five years, we are going to retain
Newton D. Baker and Mr. Newton D. Baker is going to file a
case with the Department of Justice.”
“Is the Government to be called in for the purpose of seeing
to it that we give them a better contract or a worse contract?”
Burkan asked.
DEEMS TAYLOR TESTIFIES
Deems Taylor, nationally known composer, testified on behalf
of the Society. He opposed the compulsory license provisions in
the bill and objected to the elimination of the $250.00 statutory
damages.
“That is the rock upon which ASCAP rests,” he said.
Congressman O’Malley questioned Mr. Taylor, as he had pre¬
viously questioned both Buck and Burkan, about the qualifica¬
tions for membership in the Society. It was brought out that
usually a composer must have five songs published to be eligible
for membership; that the publisher must be a “recognized” pub¬
lisher; and that “recognition” means, almost in every case, that
the publisher be a member of ASCAP.
DIFFERENCES IN COMMITTEE
During the tense days of the hearings, members of the House
Patents Committee differed upon questions of procedure. Con¬
gressman Church of Illinois objected to the procedure under which
opponents of the bill were heard first and frequently there were
requests for rulings from the chair on the admissibility of docu¬
mentary evidence. In each instance, however, documentary evi¬
dence offered was admitted.
SIGMUND ROMBERG TAKES STAND
Sigmund Romberg, composer, member of ASCAP Board, and
president of the Songwriters Protective Association, also testified
against the Duffy bill. He spoke briefly, pointing out the possible
dangers to entering the International Convention at this time
when works of American authors were not receiving proper pro¬
tection in European countries. Mr. Romberg said his works had
been excluded from Germany.
WARNER BROTHERS DISCUSSED
The split between the Society and Warner Brothers was in¬
jected into the hearings by Congressman Deen while question¬
ing Buck.
Buck said that it was the contention of the Society that they
had the right to license the works of their composer members
and that they would defend NBC and CBS in the suits filed
by Warner Brothers against the network companies.
“Why did Warner Brothers break away from the Society,”
Deen asked.
“Because they wanted more money; human greed. Yes, plain
greed, g-r-e-e-d,” Buck explained.
LICENSING PRACTICES SCRUTINIZED
Congressman O’Malley of Wisconsin, and Congressman Deen
of Georgia, took a leading part in interrogating representatives of
the Society on its methods of fixing fees.
Buck explained the factors considered by the Society in fixing
license fees in the following language:
“The custom that we have in the society is to set what we
call a sustaining fee, which is based on first the hours granted to
them by the Government on their wave lengths. Some great
stations can operate twenty-four hours a day. Some stations will
have only six hours a day, and some four hours. There is a
limited number of wave lengths. So when we set a fee to give
this man accessibility to all our works, we take into consideration
first the number of hours he has allocated to him by the United
States Government ; second, the location of their broadcasting
station — and I will show you how important that is.
“You can have a broadcasting station of 50,000 watts broad¬
cast in New York City tonight and you will hit twenty-two million
listeners because it is a densely populated section of country.
“On the other hand, let us take Mr. Lanham’s country down
in Texas, the same operation, 50,000 watts, can not hit that radius
of listeners. They also possibly might have to have a lot of power
in that station to overcome a static condition that they may have
all the year around. So we take that into consideration.
“We take in the first place that the Government has given
them a free wave length or a limited wave length, and next the
location of the station, and then the very important thing, the
power of the station. Those are the three factors.”
UNWILLING TO LET COURTS DECIDE
Spokesmen for the Society said that they needed the $250.00
provision in the law for the purpose of protecting the composers
against piracy of their works. Throughout the hearing, these
spokesmen were careful to confine their remarks to the composer
and only incidentally did reference to publisher members creep
into their testimony.
Some members of the Committee were of the opinion that the
rights of composers would be adequately protected by permitting
courts to fix damages and believed courts would be lair about
it. Witnesses for the Society dodged each question on this issue.
The question of using the $250.00 damages as a bargaining
basis for rights came up time and again.
“Now will you tell me what restrictions there are under the
present law that would in any way curb this amount that you
set as the license value? Assuming, for the sake of argument, that
you were greedy, could you set any arbitrary figure without
any control whatever?” asked Congressman Barry.
“If I understand your question, sir - that they must take
what price we set?” said Buck.
“That is right,” explained Barry, “Must they take what price
you set?”
“True, true, true,” replied Buck.
RUDY. VALLEE SERVES WARNING
Rudy Vallee had his day on the stand on March 3. He said
he opposed the Duffy bill and favored the Sirovich bill although
he admitted he had read neither but depended upon a memoran¬
dum prepared by Burkan.
“I ask for the privilege of warning, more or less, the organiza¬
tions that are attacking this Society, among whom are many of
my friends in the radio, night club and hotel field, that are at¬
tacking the American Society, the creators of music, so vital to
their welfare and organizations, that it might be called digging
their own graves, throwing a boomerang that will react to our
own detriment and doing themselves irreparable damage,” Vallee
predicted.
“I feel especially that radio, more even than the motion picture
or the hotel, is going to kill the goose that lays the golden eggs,
if they persist in their refusal to pay the society the money that
the Society feels is due to the creators of music which furnish such
a tremendous part of each radio program,” he went on.
According to Vallee, composers write primarily for money.
“I do not think any man can be a bricklayer during the day
aijd come home and write great songs at night,” he opined.
“I do not see how anyone would want to write for the glory
of it,” he said.
Vallee said the present rates paid to ASCAP are a “joke.”
“I am putting myself in jeopardy with interests that I today
serve and will probably serve in the future,” said the bandsman.
“As most of you know, I am engaged in radio work today; in
fact, it is the greater part of my work. I hope some day to be
an executive in radio,” he said.
Vallee said he had written about 20 songs and was one of the
lowest paid members of the Society. He said he was appearing
for the “little fellow.”
HEARINGS ECHO IN HOUSE
On Wednesday. March 3, Chairman Sirovich addressed the House
on the pending Duffy copyright bill.
He said he opposed entering the International Union because of
restrictions imposed against American authors and motion picture
producers by European countries.
He vigorously defended the American Society, urged defeat of the
Duffy bill, and pleaded for retention of the $250.00 minimum dam¬
age clause.
He was followed by Congressman Zioncheck of Washington, who
spoke briefly in support of the Duffy bill and characterized the
copyright hearings as “somewhat in the nature of a circus.”
1230
PRALL REAPPOINTED CHAIRMAN
President Roosevelt has reappointed Commissioner Anning S.
Prall chairman of the Federal Communications Commission until
March 11, 1937. The Communications Act provides that the chair¬
man of the Commission shall be appointed by the President.
Examiner R. H. Hyde, in Report No. 1-203, has recommended
that the application be granted. “It is concluded from the evi¬
dence,” says the Examiner, “showing a lack of broadcast facilities
in the applicant’s area, either of transmission or dependable re¬
ception, and the showing of interest on the part of the public, that
there is a need for the station the applicant proposes to construct.”
COUZENS ASKS REPORTS
Senator Couzens of Michigan introduced a resolution (S. Res.
240) this week calling upon the Federal Communications Commis¬
sion to send full reports on its recent investigation to the Senate.
The resolution which is awaiting action and was not sent to any
committee is as follows:
“Whereas the Federal Communications Commission, on January
9, 1936, appointed a subcommittee from its membership to investi¬
gate what was known and described by the Commission as ‘The
Willard Hotel Incident’; and
“Whereas on February 14, 1936, the Commission issued a report
of its findings on that investigation ; and
“Whereas it would be helpful to the Committee on Interstate
Commerce of the United States Senate to have all memoranda,
statements, testimony, and reports made to or obtained by the
Commission and by the Department of Justice for the Commission
during the investigation herein referred to: Therefore be it
“ Resolved , That the Federal Communications Commission shall
forward to the United States Senate all of the memoranda, docu¬
ments, statements, testimony, reports made to or obtained by the
Commission and by the Department of Justice for the Commission
in relation to and as part of that investigation.”
NEW CONNECTICUT STATION RECOMMENDED
The Thames Broadcasting Corporation filed an application with
the Federal Communications Commission asking for a construction
permit for the erection of a new broadcasting station at New
London, Conn., to use 1S00 kilocycles, 100 watts power, and daytime
operation.
Examiner Ralph L. Walker, in Report No. 1-202, recommends
that the application be granted. He found that the applicant is in
all ways qualified to construct and operate the proposed station,
that there is need for daytime broadcast service in the area to be
served, and that the operation of the proposed station will not
adversely affect the interests of any existing station by reason of
interference.
TEL. & TEL. ACCEPTS DECISION
The American Telephone & Telegraph Company has notified the
Federal Communications Commission that it has accepted its deci¬
sion of February 26 in connection with the proposed construction
of the coaxial cable between New York and Philadelphia for ex¬
perimental television work.
In its decision the Commission found that it had jurisdiction over
the construction of the cable and that it is in the public interest
that it be constructed. A number of restrictions were put on its
construction, including a clause that there shall be no discrimination
between television experimenters who wish to make use of the cable
as agreed to by the telephone company.
NEWSPAPER STATISTICS AVAILABLE
Copies of Section D, Volume ]
Statistics,” and of “Totals of Citie:
the former and $1.00 each for the
tion of Advertising Agencies.
Cities included in Section D a:
Freeport-Lynbrook (New York)
Gary
Hartford
Long Beach
Lowell
Lynn
New Haven
V, of “Market and Newspaper
i,” are available at $2.00 each for
latter by the American Associa-
New Orleans
Staten Island (New York)
Paterson
Salt Lake City
San Antonio
Scranton
Utica
NEW FLORIDA STATION RECOMMENDED
The Fountain of Youth Properties, Inc., has filed an application
with the Federal Communications Commission asking for a con¬
struction permit for the erection of a new broadcasting station at
St. Augustine, Florida, to use 1210 kilocycles, 100 watts power, and
unlimited time on the air.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Campbell Transportation Company, Pittsburgh, Pa. (2-1910,
Form A-2)
Stuart Court Property Corp., New York Citv. (2-1911, Form
E-l)
Voting Trust for same, New York City. (2-1912, Form F-l)
Citizens Independent Telephone Co., Terre Haute, Ind. (2-1913,
Form A-2)
Indiana Associated Telephone Corp., Lafayette, Ind. (2-1914.
Form A-2)
Properties & Construction Co., New York City. (2-1915, Form
A-l)
Silvercote Products, Inc., Chicago, Ill. (2-1917, Form A-l)
Hepburn & McTavish, Inc., Los Angeles, Calif. (2-1918, Form
A-l)
H. R. Holtzman Corp., Detroit, Mich. (2-1919, Form A-l)
Lincoln Service Corp., Washington, D. C. (2-1920, Form A-2)
Bondholders Committee for Madison Ave. Offices, Inc., New York
City. (2-1922, Form D-l)
Arthur Fels Bond & Mortgage Co., Kansas City, Mo. (2-1923,
Form D-l)
I. F. Steinmeyer. St. Louis, Mo. (2-1924, Form E-l)
National Fund, Inc.. Jersey City, N. J. (2-1926. Form C-l)
Comstock Cedar Hill Gold Mines, Inc., Reno, Nev. (2-1927,
Form A-l)
Bondholders Committee for First Baptist Church, New Orleans,
La. (2-1928, Form D-l)
Coastland Oil Corporation, Houston, Tex. (2-1931, Form A-l)
Parker- Wolverine Company, Detroit, Mich. (2-1933, Form A-l)
Prudential Investing Corporation, Detroit, Mich. (2-1934, Form
A-l)
General Houses, Inc., Chicago, Ill. (2-1935, Form A-l)
Time Controlled Indicators, Inc., Wilmington, Del. (2-1936,
Form A-l)
Rochester Distilling Company, Inc., Rochester, N. Y. (2-1940.
Form A-l)
LOTTERIES DISCUSSED IN EXAMINER’S
REPORT
Of considerable significance is the Report of FCC Examiner
George H. Hill (Examiner’s Report 1-197) relating to the appli¬
cation for renewal of license of Station WRBL, Columbus, Geor¬
gia.
This report contains a discussion of lotteries and gift enter¬
prises, and in it the Examiner reaches the conclusion that certain
programs broadcast constitute violations of Section 316 of the
Communications Act of 1934. While the report is not final and
although the Examiner’s findings are subject to review by the
Commission, it is nevertheless significant of a trend in the reg¬
ulation programs which no broadcaster can afford to overlook.
The report is printed here in full:
The application of WRBL Radio Station, Inc., for renewal of
license was designated for hearing because of the filing of an
application by David Parmer for a construction permit request¬
ing the facilities of Station WRBL. These applications were heard
before an Examiner on June 28, 1935.
During the hearing the applicant, David Parmer, entered a
motion to withdraw his application for a construction permit
and the Examiner, on August 24, 1935, made his report (No.
1-95) recommending that the motion for withdrawal of the
application for a construction permit be granted, and that the
application of WRBL Radio Station, Inc., for renewal of license
also be granted.
Thereafter complaints were filed with the Commission con¬
cerning certain programs broadcast over Station WRBL by Mus¬
cogee Chevrolet Company, Burrus Motor Company, Better Hous¬
ing Exposition, Police Benefit Wrestling Matches, and Woodcrest
Hardware Company. The Commission reopened the case and
directed that a hearing be held at Columbus, Georgia, to deter¬
mine the following issues:
1231
(1) To determine the nature and character of the program
service rendered by Station WRBL;
(2) To determine whether or not Station WRBL has operated
in violation of Section 316 of the Communications Act of 1934;
(3) To determine whether the granting of this application
would serve the public interest, convenience and necessity.
The Facts
Station WRBL is licensed to operate at Columbus, Georgia, on
the 1200 kilocycle frequency with power of 100 watts, unlimited
time. The station is owned and operated by WRBL Radio Sta¬
tion, Inc., and prior to July 7, 1935, the stock of the licensee
corporation was owned by J. W. Woodruff, Sr., and David Parmer,
each owning fifty per cent of the stock. Mr. Woodruff was
President and Mr. Parmer Vice-President of the corporation. Mr.
Parmer was also Director and Program Manager of the station.
It was shown that serious dissension arose between Mr. Wood¬
ruff and Mr. Parmer prior to July 7, 1935, with the result that
proper supervision of the programs broadcast over Station WRBL
was not exercised. Mr. Roy Luttrell now owns the stock for¬
merly owned by Mr. Parmer. Mr. Parmer has not been con¬
nected with the station in any capacity since July 7, 1935. WRBL
is the only radio broadcast station located at Columbus, Georgia,
and is the only station rendering consistent service of a local nature
to the Columbus area.
A number of officials of local governmental, civic, religious, cul¬
tural and labor organizations testified that the station is render¬
ing a meritorious service and filling a real need in the community.
An improvement in the programs broadcast over Station WRBL
has been noted since the first hearing. More live talent has been
employed than formerly, more time is devoted to religious, edu¬
cational and civic programs, and recordings have been curtailed.
The facilities of the station are made available to all worth-while
civic and patriotic activities without cost.
A considerable portion of the evidence relates to broadcasts
made over Station WRBL by the Muscogee Chevrolet Company,
Burrus Motor Company, Better Housing Exposition and Police
Benefit Wrestling Matches. The following are excerpts from these
broadcasts:
MUSCOGEE CHEVROLET COMPANY
May 16, 1935.
“Would you like to win an automobile free without having to
buy anything or be obligated in any way?
“The Muscogee Chevrolet Company, 1501 First Avenue will
give away free one nice 1929 automobile to the one guessing the
nearest correct speedometer reading on this car that is on dis¬
play in their used car lot adjoining the Chevrolet Building.
“This car will be given to the lucky person Saturday noon,
June 8, 1935. Go down and join this guessing contest.
“Guessing will stop Friday, 6 p. m., June 7, 1935.”
BURRUS MOTOR COMPANY
May, 1935.
“A used car absolutely free! That is exactly right! On the first
day of June, 1935, at exactly 3:30 p. m., the Burrus Motor Com¬
pany, 1238 First Avenue, is going to give away a splendid used
car absolutely free. It may be a $200 used car or truck or it may
be a $500 used car or truck, it all depends on how lucky you are.
“Now here’s the proposition, every purchaser of a used car
from Burrus during the month of May will be given a chance
to draw this used car. If you are the lucky one, you will win
the used car you have bought from the Burrus Motor Company.
“Say for instance, you have bought a $400 or $500 used car from
Burrus, or whatever price you have bought, and the number of
your ticket is drawn, you will be refunded every penny you
have paid for the car you purchased. If you have paid cash
for the car, you will be refunded the cash, or if you have traded
in a used car as down payment, and made notes for the differ¬
ence, you will be given cash for the amount your used car was
traded in for, and your notes given back to you. In short, you
will keep the car you purchased and will be returned everything
you have paid for it.
“This is the most gigantic offer ever made on the part of the
Burrus Motor Company. You will have a chance out of about
75 or 100 to win your car free, or one chance out of the number
of used cars sold by Burrus during the month of May, as there
will be only one chance given to each purchaser of a used car
during this month.
“The radio special under the canopy at the Burrus used car de¬
partment for today is - . Take a look at the stock of used
cars at Burrus — 1238 First Avenue. Reconditioned and guaran¬
teed!”
THE CHANCELLOR COMPANY
June 16, 1935.
“The Chancellor Company offers a sensational gift absolutely
free! Here is your big opportunity to win a $225 miniature racing
car. Contest starts tomorrow, June 17, 1935, and ends Saturday
night, August 31, 1935. This contest is open to boys and girls in
Columbus, Fort Benning and nearby towns, between the ages of
nine and ninety-nine.
“Contest starts tomorrow, June 17th, and ends Saturday night,
August 31st.
“Everyone entering has an equal chance. Here’s how it works.
“For every dollar spent for cash or every dollar paid on account
during the months of June, July and August you will be given a
free ticket which will entitle you to the drawing Saturday night,
August 31st, 7:30 p. m.
“One ticket will win the car, but the more tickets you have
the better opportunity you have to win the car.
“Save every ticket on all cash purchases made or any money
paid on accounts between now and August 31st, and ride in a
fine Automobile FREE.
^“Be sure and call by and see this wonderful racing car on
display in front of Chancellor Company. It has a real motor;
is air cooled; gives sixty miles per gallon; has air balloon tires;
and runs eighteen miles per hour.
“Try your luck and win a very valuable prize or gift.”
BETTER HOUSING EXPOSITION
March 25, 1935.
“Ladies and Gentlemen — We now offer one of the most sensa¬
tional, interesting and important features to be broadcast from
the Federal Better Housing Exposition. We are going to interrupt
the musical program for a few minutes in order to present sev¬
eral gifts of baskets of groceries. These baskets are furnished
by King Grocery Company, with twelve stores in Columbus, to¬
gether with the cooperation of many firms whose products are
in the baskets.
“King Grocery Company is a consistent user of WRBL Radio
service and has a most attractive and informative booth here at
the Exposition, which is well worth your seeing.
“Before shaking the box and drawing the first lucky number,
let me explain how you win these baskets of groceries: Every
one holding a paid admission ticket is entitled to one free number
after entering the building. You drop the stub bearing a du¬
plicate number in the box and hold the duplicate until the num¬
bers are drawn. There will be many baskets given each night
and several numbers will be drawn and baskets given during this
broadcast period each night.
“I now have the big thrill ! LISTEN ! We shake the box and
draw the number, yes, sir and yes, maam ! It is the lucky number
- . Will the winner please step forward and receive his gift
of a large basket of groceries.”
POLICE BENEFIT WRESTLING MATCHES
August 23, 1935.
(By Ralph Rogers): “And here is the drawing for the sixty
bucks, and here is Jess, and he will tell you about it.”
(By Jess Swicegood) : “Here is the drawing, ladies and gentle¬
men. They are bringing the bread box up in the ring with Jimmy
Calloway and the second gentleman, I don’t know who he is.
This gentleman is Mr. Glenn of the Nehi Bottling Plant. Mr.
Glenn has one of the books, and his colleague has the other. You
know each number carries a name in the books. They are draw¬
ing out a number now. I registered myself tonight. My number
is 78. I believe Ralph’s is 127. And they have drawn a number.
What is that name? C. B. Bray, 833 First Avenue. He has got
something to bray about all right. I could bray if I was him.
And he isn’t here. He doesn’t answer and he doesn’t win. Be
sure to be down here Tuesday night. There will be seventy dol¬
lars in the jackpot. You don’t have to buy a ticket in order
to register and get your name in the pot. You can register
around town any place almost. All that is necessary for you to
do is to have your name in the book and be in hearing distance.
You don’t have to be a paid admission in order to win, but if
1232
you are on the outside of the gate and hear your name called you
can come in and take the money away. And here is the an¬
nouncement concerning the opponents for the next match.”
WOODCREST HARDWARE COMPANY
June 20 and 22, 1935.
“Woodcrest is on the air . . . As the music begins we hear Ted
Weems and his music in the recording - . How good a guesser
are you? If you want to try your luck at guessing and also
have a chance at winning a real prize that would cost you thirty-
five dollars if you tried to buy it, listen for the big announcement
at the end of this program.
“But now let’s listen to the recording by Ted Weems and his
orchestra as they play - .
“How is that lawn or garden of yours coming along? Are
you giving it the care you should? Are the weeds or grass grow¬
ing as well as the flowers, or is the garden clean and fresh?
Couldn’t you do a much better job if you had all the necessary
tools? Well at the prices these tools and garden equipment is
being sold at Woodcrest Hardware there is no reason why you
shouldn’t have everything that is necessary for the perfect garden.
You owe it to yourself to go by Woodcrest Hardware at 1242
Broadway and see all these garden supplies and get their prices.
Now for Ted Weems and his orchestra in the recording - .
“As the program of Woodcrest Hardware continues we want
to remind you that regardless of your hardware needs they can
be filled at Woodcrest Hardware at 1242 Broadway and you will
be surprised at the very low prices on all their merchandise. Every
article is of the highest grade and is made by the leading manu¬
facturers.
“And now as we listen to Ted Weems in the recording - get
ready for the big news which we will give you immediately after
this number.
“And now for that announcement you have been waiting for —
Woodcrest Hardware has just started the biggest guessing game
in the history of Columbus — and here are the details: Go by
Woodcrest Hardware at 1242 Broadway and look at the pile of
pocket knives in the show window. Then go just inside the
door and on a table you will see a box and guessing blanks.
All you have to do is put your name and address on the card
along with your guess as to how many knives are in the win¬
dow and drop the card in the box. Isn’t it simple? No obligation
whatsoever! In the event your guess is the nearest to the cor¬
rect number you will be given your choice as to the prize. You
may have your choice of a seventeen-jewel Elgin, thirty-five dol¬
lar men’s pocket watch or a twenty-six piece set of silverware
with a value of thirty-five dollars. How is that for real prizes?
Listen again! A thirty-five dollar Elgin pocket watch or a thirty-
five dollar set of silverware! And remember there is no obligation
whatsoever on your part. All you have to do is go by the Wood¬
crest Hardware at 1242 Broadway and guess the nearest number
to the correct number of pocket knives in their window.
“The contest will close Saturday, July 20th, at 5 o’clock and the
prizes will be awarded to the lucky person at 6 o’clock.
“Be sure and listen again Saturday evening at this same time
for more, news about the big guessing game. Until then Wood¬
crest Hardware leaves you with this thought — Make your hard¬
ware troubles Woodcrest problems.”
June 22, 1935.
“Woodcrest is on the air. Ted Weems and his orchestra open
the program with the recording - .
“Did you hear the sensational announcement made on this
program last Thursday evening concerning the big guessing con¬
test now being conducted by Woodcrest Hardware at 1242 Broad¬
way? If you did, you want to be sure and go by and make
your guess. If you did not hear the announcement, be sure and
listen for it at the end of this program.
“We continue the musical part of the program now as Ted
Weems and his orchestra are heard in the recording - .
“Are you in need of tools, hardware, jewelry or cooking uten¬
sils ? If you are, there is no need for you to do without them any
longer as you can get all these things at a very low cost at the
Woodcrest Hardware at prices that are unbelievably low, and
it is all the best merchandise that money can buy. Why not
go by and see for yourself?
“Now the recording by Ted Weems’ orchestra titled - .
“And now for the big announcement about the guessing game !
Here are the details.” (This was followed by same announcement
used on June 20, 1935.)
All of the foregoing programs were broadcast while the former
management was in control of the station, with the exception of
the Police Benefit Wrestling Matches and this program was ac¬
cepted on the assurance of the Columbus Police authorities that
the plan was legal and also on the opinion and with the approval
of counsel. However, these broadcasts were promptly discontinued
as soon as they were challenged and no program containing a
suggestion of the award of prizes has since been accepted by the
station. It is the policy of the present management to refuse
to broadcast any programs of a doubtful nature. It is con¬
ceded by the applicant that the programs broadcast by the Burrus
Motor Company, the Chancellor Company and the Better Housing
Exposition involve a violation of the lottery laws, but it is con¬
tended that the programs of the Muscogee Chevrolet Company
and the Police Benefit Wrestling Matches were legal.
By the weight of the authority of Federal and State Courts of
last resort and text writers, three elements must be present to
constitute a lottery, to wit, consideration, chance, and prize. From
a careful consideration of the continuity of the Muscogee Chevrolet
Company and the Police Benefit Wrestling Matches, it is doubtful
whether such programs involved a violation of Section 316 of
the Communications Act of 1934. Lotteries and gift enterprises
are defined in the following citations which appear to be sup¬
ported by the weight of authority:
“The three essential elements of a lottery are: First considera¬
tion; second, prize; and third, chance. To make a lottery, these
three elements or ingredients must be present ; chance alone will
not do so, nor will chance even when coupled with consideration
alone.” 17 R. C. L. p. 1222.
“In conformity with the definitions already stated, it is ob¬
vious, as has been repeatedly stated, that the three necessary ele¬
ments of a lottery are the offering of a prize, the awarding of the
prize by chance, and the giving of a consideration for an oppor¬
tunity to win a prize.” 38 C. J. p. 289.
“A lottery is any scheme for the disposal or distribution of
property by chance among persons who have paid, or promised
or agreed to pay, any valuable consideration for the chance of
obtaining such property, or a portion of it, or for any share
of or interest in such property, upon any agreement, understand¬
ing, or expectation that it is to be distributed or disposed of by
lot or chance, whether called a ‘lottery,’ a ‘raffle,’ or a ‘gift enter¬
prise,’ or by whatever name the same may be known.” Black’s
Law Dictionary, 3rd Ed., p. 1134.
“A lottery is a scheme by which, on one’s paying money or
some other thing of value, he obtains the contingent right to have
something of greater value, if an appeal to chance, by lot or
otherwise under the direction of the manager of the scheme, should
decide in his favor.” Bouvier’s Law Dictionary, Vol. 2, p. 281.
“In order to constitute a lottery, there must be a considera¬
tion, chance and prize. That is to say, a person must pay
something for the opportunity to try for a prize by chance or
lottery.” U. S. v. Purvis, 195 Fed. 618.
“To be like a lottery there must be something staked, a larger
possible winning, and the winning or losing must depend on
lot or chance and not on skill or judgment.” Boasberg v. U. S.,
60 Fed. (2d) 185.
“A ‘gift enterprise,’ in a broad sense, may be defined as a scheme
under which presents are given to purchasers of goods as an
inducement to buy, although in the sense in which the term is
commonly applied it is a scheme under which goods are sold for
their market value but by way of inducement each purchaser is
given a chance to win a present or prize.” 38 C. J. 296.
“A gift enterprise, moreover, has been defined as ‘a scheme for
the division or distribution of certain articles of property, to be
determined by chance, among those who have taken share in the
scheme; and as a sporting artifice by which, for example, a mer¬
chant or tradesman sells his wares for their market value, but
by way of inducement gives to each purchaser a ticket which
entitles him to a chance to win certain prizes, to be determined
after the manner of a lottery.’” 17 R. C. L. 1211; citing Matter
of Gregory, 219 U. S. 210 and Russell v. Equitable Loan, etc.,
129 Ga. 154.
“A gift enterprise is usually considered in the books as a species
of lottery, and a lottery, according to a recognized authority, has
these three essential elements: consideration, prize, and chance.”
Corporate Organization & Audit Co. v. Hodges, 47 A. pp. D. C.
460; L. R. A. 1918 E, 491.
“Scheme by the Chamber of Commerce and certain merchants,
whereby merchants purchased tickets from the Chamber of Com¬
merce, which they gave to their customers entitling them to a
chance or prize offered by the Chamber of Commerce, held not
to constitute a lottery or gambling device * * * in that it
lacked one essential element, in that customers paid nothing for
1233
tickets and stood no chance to lose, since, in order to constitute
gambling, winner must either pay consideration for a chance to
win, or without paying anything in advance, stand chance to lose
or win.” R. J. Williams Furniture Company v. McComb Chamber
of Commerce, 147 Miss. 649; 57 A. L. R. 421.
Conclusions
Total Broadcast Advertising
Total broadcast advertising over stations and networks during
the month under review is set forth in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
1. The programs broadcast over Station WRBL by Burrus Mo¬
tor Company, the Chancellor Company and other programs of a
like nature did not serve public interest, convenience or neces¬
sity and involved a violation of Section 316 of the Communica¬
tions Act of 1934. However, other programs broadcast over the
station were generally meritorious and served public interest, con¬
venience and necessity.
2. The applicant has assured the Commission that programs
involving lottery or gift enterprises will not in the future be
broadcast over the station and that the station will in all re¬
spects be operated in accordance with the Rules and Regulations
of the Commission.
3. The entire record considered, the Examiner is of the opinion
that the granting of the application of WRBL Radio Station, Inc.,
for renewal of license would serve public interest, convenience and
necessity.
Recommendations
It is accordingly recommended that the application of WRBL
Radio Station, Inc., for renewal of license be granted.
George H. Hill,
Examiner.
BROADCAST ADVERTISING IN JANUARY
Developments of the Month
Total broadcast advertising volume in January amounted
to $8,035,160. The usual seasonal declines occurred dur¬
ing the month, gross time sales decreasing 7.5% as com¬
pared to December. National network volume declined
slightly more than the usual seasonal amount as did local
broadcast advertising. National non-network business, on
the other hand, showed less than seasonal declines.
Broadcast advertising volume during the month ex¬
ceeded that of January 1935 by 8.7%. The heaviest in¬
creases continued to be in the regional network and
national non-network fields. National network volume
was approximately the same as during the corresponding
month of last year.
Local station advertising continued its growth of recent
months. Volume over local stations was the only portion
of the non-network field to increase as compared to De¬
cember. January local station advertising was 23.1%
greater than during the corresponding month of 1935.
Declines in non-network advertising were general through¬
out all portions of the country. Non-network volume in
the South and the North Central States experienced the
greatest gain as against last year.
National non-network transcription volume was the only
portion of the rendition field to gain as compared to De¬
cember, and also showed the greatest increase over last
January. Compared to January of the previous year, an¬
nouncement volume was down in both the national non¬
network and local fields.
In the national network field, gasoline and accessory,
beverage and miscellaneous advertising showed the
greatest gains as compared to the corresponding month
of 1935. Trends as a whole were spotty. Increases were
prevalent throughout most of the regional network field,
with drug, cosmetic, and confectionery advertising taking
the lead. Gains also were general in national non-network
advertising, the most important increases taking place in
beverage, confectionery, soap and kitchen supply and
tobacco advertising. The only declines of importance
were with regard to gasoline and accessories, and finan¬
cial sponsorship.
Gains were well distributed throughout the local broad¬
cast advertising field, though most of them were minor
ones. Automotive, gasoline and accessories, clothing and
household equipment advertising showed the greatest in¬
creases as compared to January 1935. Retail broadcast
advertising declined 29.4% as compared to December and
showed a gain of 5.1% as against January of the preceding
year.
Gross Time Sales
Class of Business
Dec., 1935
Jan., 1936
National networks .
Regional networks .
National non-network .
Local .
. $4,944,445
. 127,174
. 1,707,140
. 1,907,600
$4,740,560
95,340
1,626,500
1,572,760
Total .
$8,035,160
Gross time sales of the medium declined 7.5 % as compared
to December. National network volume decreased 4.1%; na¬
tional non-network advertising dropped 4.7% and regional net¬
work volume decreased 25.1%. Local broadcast advertising de¬
clined 21.3% as compared to the December level.
National network volume and local broadcast advertising de¬
clined slightly more than the usual seasonal amount, while the
drop in the national non-network field was slightly less than
normal for January.
Compared to January of the preceding year, total broadcast ad¬
vertising volume rose 8.7%. Gains throughout the medium were
as follows: National networks, 0.6%; regional networks, 64.5%;
national non-network advertising, 32.3%; local broadcast adver¬
tising, 13.1%. The gains in the regional network and national
non-network fields were continuations of the trends which have
been noticeable for the past year.
Comparison with Other Media
Advertising volume placed in major media during January is
found in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting . .
National magazines 1 .
National farm papers.
Newspapers2 .
Gross Time and Space Sales
Dec., 1935
$8,686,359
9,681,025
452,976
49,170,000
Jan., 1936
$8,035,160
8,256,125
421,999
39,280,000
Total . $67,990,360 $55,993,284
1 Publishers’ Information Bureau.
2 Estimated.
National magazine volume declined 17.1% as compared to De¬
cember and was 9.3% below the January 1935 level. National
magazines have been making a comparatively poor showing as
against preceding periods for some time.
National farm paper advertising decreased 7.3% as compared
to the previous month but exceeded the January 1935 level by
37.4%. This was the greatest gain experienced by any medium
during the month under review.
Newspaper advertising decreased 20.2% as against December
but remained 7.6% above last January. Automotive advertising
was 39.5% below January 1935. Total display advertising, on
the other hand, gained 5.6%, while department store volume rose
5.1%. Newspaper retail advertising rose 6.9%, while general
advertising increased 18.0%.
Non-network Advertising
General non-network advertising declined 11.4% as compared
to December and showed a gain of 22.2% as against the corre¬
sponding month of last year. Local stations continued to show
the most pronounced relative growth of non-network volume.
Local station volume in January alone exceeded that of the pre¬
ceding month, rising 0.9% as against December. Volume for
this class of transmitter was 39.1% greater than during the pre¬
ceding January.
Clear channel and high-powered regional station volume de¬
clined 11.5% during the month, while regional station advertising
dropped 15.5%. Clear channel and regional non-network busi¬
ness during January exceeded that of the corresponding month
of the previous year by 23.8%, while regional station non-network
volume rose 18.4%.
Greatest advertising by power of station is found in Table III.
1234
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
Gross
Time Sales
Power of Station
Dec., 1935
Jan., 1936
Over 1,000 watts .
. $1,683,850
$1,489,900
250-1,000 watts .
. 1,446,490
1,221,120
100 watts .
. 484,400
488,240
Total .
. $3,614,740
$3,199,260
Declines in non-network volume as compared to December were
general throughout the country with the exception of the
Mountain and Pacific Coast region, where non-network adver¬
tising dropped 16.5%. The average decrease was approximately
10%.
Compared to the preceding January, non-network advertising
experienced its principal gains in the North Central and in the
South Atlantic-South Central States. Non-network volume rose
57.5% in the former area and 36.8% in the latter. There was
a decline of 1.0% in the New England-Middle Atlantic area
and an increase of 1.6% in the Pacific and Mountain States. Non¬
network advertising by geographical areas is set forth in Table
IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
Gross Time Sales
Geographical District
Dec., 1935
Jan., 1936
New England-Middle Atlantic Area . .
$765,000
$686,350
South Atlantic-South Central Area . . .
715,530
631,410
North Central Area .
1,420,650
1,286,400
Pacific and Mountain Area .
713,560
595,100
Total .
$3,614,740
$3,199,260
Non-network Volume by Type of Rendition
Electrical transcription volume was the only portion of the
national non-network field to experience an increase as compared
to the preceding month. National transcription volume rose
13.0%. National live talent business declined 17.4% as compared
to December, while announcement volume decreased 2.2%.
National transcription advertising showed the greatest gains as
against the previous January, rising 71.8%. National live talent
volume increased 22.5% as against the corresponding month of
last year, while announcement volume declined 4.8%. Trends
in national non-network rendition continued to be the same as
in recent months with the exception of the pronounced rise in
electrical transcription volume, which is comparatively new.
Declines as compared to December were general in the local
broadcast advertising field and were as follows: Electrical tran¬
scriptions, 31.3%; live talent, 10.1%; records, 17.2%; announce¬
ments, 22.3%. The marked decline in local transcription spon¬
sorship seems to indicate that it has been the middle-sized retail
establishment which for the most part has sponsored transcrip¬
tion library programs during recent months; since it is this type
of retail organization which makes the most pronounced cur¬
tailment in its advertising following the Christmas period.
Local transcription and live talent advertising showed approxi¬
mately the same increase over January of last year, the former
rising 22.8% and the latter 23.4%. Record sponsorship in¬
creased 20.1%, while announcement volume declined 5.5%.
Transcription volume in the non-network field as a whole,
national and local combined, rose 1.1% as against the preceding
month and 61.0% as against the previous January. Live talent
volume declined 13.1% during the month and gained 22.3% as
compared to the corresponding period of 1935. Announcement
volume decreased 20.5% as against December and was 4.4% be¬
low January of last year.
National non-network and local broadcast advertising volume
by type of rendition employed is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
Gross Time Sales
National Non-network Local Total
Type of Rendition
Electrical transcriptions .
Live talent programs .
Records .
Announcements .
Dec., 1935
. $574,550
. 877,520
. 10,130
. 244,940
Jan., 1936
$649,280
732,970
4,720
239,530
Dec., 1935
$206,080
995,380
75.640
630,500
Jan., 1936
$140,180
894,000
52,470
486,110
Dec., 1935
$780,630
1,872,900
85,770
875,440
Jan., 1936
$789,460
1,626,970
57,190
725,640
Total .
. $1,707,140
$1,626,500
$1,907,600
$1,572,760
$3,614,740
$3,199,260
Sponsor Trends in January
Declines were general throughout the national network field as
compared to the preceding month. The heaviest declines occurred
in clothing, which dropped 24.9%; financial advertising which
decreased 23.0% ; and radio set advertising which dropped 16.8%.
Two gains were listed, confectionery advertising, which rose
3.6% and household equipment volume which increased 12.0%.
Declines were fairly general throughout the entire regional
network field. Two gains of importance are to be noted, the
first of these was a four-fold increase in drug and pharmaceutical
advertising and a 28.8% rise in household equipment volume.
The principal gain of importance during the month in the na¬
tional non-network field was a 38.4% increase in automotive
volume. Household equipment advertising rose 15.0%, while
minor increases occurred in the financial and kitchen supply fields.
The heaviest decreases of the month occurred in the radio set,
tobacco and beverage fields.
Declines were also general in local broadcast advertising, the
most important ones occurring in the clothing, cosmetic, household
equipment and miscellaneous fields. Marked gains occurred in
local drug and pharmaceutical advertising and in confectionery
volume.
Comparison with January 1935
Compared to January of the preceding year, national network
advertising exhibited conflicting trends. Principal gains were as
follows: Gasoline and accessories, 44.6%; beverages,; 19.7%
household equipment, 148.7%; and miscellaneous, 107.0%. Drug
advertising continued its decline of recent months and was 18.2%
below the level of last January.
Principal gains in the regional network field were as follows:
Drugs and pharmaceuticals, 120.6%; cosmetics, 300%; household
equipment, 46.8%. Confectionery advertising over regional net¬
works rose from $250 in January 1935 to $6,778 during the
corresponding month of the current year.
The principal gain in the national non-network field was a
200.0% rise in automotive advertising. A similar gain was re¬
corded in the radio set field. Other important gains in national
non-network volume were as follows: Drugs and pharmaceuticals,
29.0%; food stuffs, 59.2%; beverages, 28.1%; confectionery,
33.5%; soaps and kitchen supplies, 39.6% and tobacco, 44.9%.
The principal decline of importance was a 16.6% drop in gaso¬
line and accessories volume.
Principal increases in the local broadcast advertising field were
as follows: Clothing, 28.0%; food stuffs, 22.2%; beverages,
42.0%; confectionery, 158.2%. There were no declines of major
importance.
Broadcast advertising during January by major product and
service groups is found in Table VI.
1235
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(January 1936)
Gross Time Sales
Type of Sponsoring Business
National
Networks
Regional
Networks
National
Non-network
Local
Total
la. Amusements .
. —
—
$8,570
$30,130
$38,700
1-2. Automobiles and accessories:
(1) Automobiles .
$338,406
—
216,040
72,880
627,326
(2) Accessories, gas and oil .
. 415,364
$11,886
87,740
70,920
585,910
3. Clothing and apparel .
. 28,781
884
33,810
224,160
287,635
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
507,927
13,876
443,700
89,600
1,055,103
(5) Toilet goods .
938,413
4,060
70,430
23,020
1,035,923
6-8. Food products:
(6) Foodstuffs .
909,743
28,847
333,160
214,250
1,486,000
( 7 ) Beverages .
. 357,873
4,906
43,320
89,380
17,500
495,479
(8) Confections .
. 126,085
6,778
36,200
186,563
9-10. Household goods:
(9) Household equipment and furnishings .
38,460
7,195
48,940
130,250
224,845
(10) Soap and kitchen supplies .
243,996
894
44,040
7,240
296,170
11. Insurance and financial .
. 35,390
1,258
10,810
70,500
117,958
12. Radios .
92,823
—
14,450
11,150
118,423
13. Retail establishments .
—
—
10,880
123,440
134,320
14. Tobacco products .
358,948
6,510
22,980
4,780
393,218
15. Miscellaneous .
- 348,351
8,246
201,430
393,560
951,587
Total .
$95,340
$1,626,500
$1,572,760
$8,035,160
Details as to Sponsor Trends
Details as to trends in broadcast advertising volume in various
sponsoring groups are as follows:
la. Amusements. National non-network volume up 289.9%
compared to December. Local up 4.8%. Total rise 25.2%. Na¬
tional non-network down 11.7% as against same month of pre¬
ceding year. Local down 24.2%. Total down 23.8%.
1. Automotive. Compared to December, national network
volume down 11.0% and local 2.8%. National non-network
volume up 38.4%. National non-network up 200.0% compared to
January 1935, and local up 1.4%. National network down 8.9%.
2. Accessories and gasoline. Declines during month as fol¬
lows: National networks 1.4%, regional networks 9.3%, national
non-network 17.2%, and local 3.9%. Compared to January of
previous year, gains as follows: National networks 44.6%, regional
networks 26.6%, local 2.9%. National non-network down 16.6%.
3. Clothing. Declines compared to December as follows: Na¬
tional networks 24.9%, regional networks 59.3%, national non¬
network 19.3%, and local 31.0%. National network volume un¬
changed from last January. Regional network business down
74.6%. National non-network advertising up 39.0% and local up
28.0%.
4. Drugs and pharmaceuticals. National networks down
4.0% and national non-network 1.6% as compared to December.
Regional networks up 432.0% and local 62.8%. Compared to
corresponding month of 1935, national networks down 18.2% and
local unchanged. Regional networks up 120.6% and national
non-network 29.0%.
5. Toilet goods. Declines from preceding month as follows:
National networks 3.4%, regional networks 63.4%, national non¬
network 18.5%, and local 33.8%. National network volume 2.8%
above last January and regional network triple that month’s level.
National non-network down 11.8% and local up 16.8%.
6. Foodstuffs. National network volume 10.5% below last
January. Regional network business up 24.1%, national non¬
network 59.2%, and local 20.2%. Compared to preceding month,
declines as follows: National networks 5.2%, regional networks
14.9%, national non-network 9.5%, and local 2.2%.
7. Beverages. Declines as compared to December as follows:
National networks 11.2%, regional networks 18.5%, national non¬
network 23.8%, and local 15.4%. Gains compared to January 1935
as follows: National networks 19.7%, national non-network 28.1%,
and local 42.0%.
8. Confectionery. National network volume 3.6% above De¬
cember and local advertising up 19.6%. Regional network volume
down 68.4% and national non-network 17.5%. Regional network
volume up materially as against last January. National non-net¬
work up 33.5% and local 158.2%. National network down 35.3%.
9. Household equipment. National network volume 12.0%
ahead of December. Regional networks up 28.8% and national
non-network up 15.0%. Local down 29.3%. Compared to corre¬
sponding month of 1935 gains were as follows: National networks
148.7%, regional networks 46.8%, national non-network 6.8%, and
local 10.0%.
10. Soaps and kitchen supplies. National network volume
1.3% below previous month. Regional networks down 80.3% and
local down 38.6%. National non-network up 8.7%. National non¬
network up 39.6% as against previous January and local up 173.0%.
National network down 4.5%.
11. Financial and insurance. National network volume down
23.0% as against preceding month and local 8.0%. National non¬
network up 3.9%. National network business 17.2% under Jan¬
uary 1935 level. National non-network down 53.7% and local up
24.7%.
12. Radios. Declines from previous month as follows: National
networks 16.8%, national non-network 45.0%, and local 60.4%.
National non-network volume double that of January of preceding
year. National network volume down 4.0% and local 32.8%.
13. Department and general stores. National non-network
volume declined 38.8% as against December, and local 20.2%.
National non-network business 50.5% above corresponding month
of preceding year. Local business down 12.7%.
14. Tobacco products. Declines as compared to preceding
month as follows: National networks 4.8%, regional networks
38.0%, national non-network 41.7%, and local 45.7%. Gains as
against January 1935 as follows: National networks 9.8%, national
non-network 44.9%, and local 236.9%.
15. Miscellaneous. Declines from December as follows: Na¬
tional networks 5.2%, regional networks 42.0%, national non-net¬
work 7.9%, and local 23.3%. Gains as compared to the correspond¬
ing month of last year as follows: National networks 107.0%, re¬
gional networks 64.1%, national non-network 32.1%, and local
13.1%.
Retail Broadcast Advertising
Broadcast advertising sponsored by retail establishments of va¬
rious kinds decreased 29.4% as compared to the preceding month.
This seems to be more than the usual seasonal downward swing.
Retail broadcast advertising, however, showed a gain of 5.1%
as compared to January of last year. This is the smallest gain
to have been recorded in recent months. Declines were fairly
general as compared to December throughout the various retail
groups. Principal gains as against January 1935 were as follows:
gasoline and accessories, 53.5%; clothing, 33.0%; groceries and
delicatessens, 82.0%; beverage retailers, 27.8%, and hardware
stores, 45.8%. There were no declines of major importance with
the exception of a 9.6% decrease in department store volume.
Retail broadcast advertising during the month is found in
Table VII.
1236
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
Gross Time Sales
Type of Sponsoring Business Dec. 1935 Jan. 1936
Automobiles and accessories:
Automobile agencies and used car dealers $78,510 $75,930
Gasoline stations, garages, etc . 37,450 27,785
Clothing and apparel shops . 340,000 236,550
Drugs and toilet goods:
Drug stores . 28,050 21,375
Beauty parlors . 12,200 8,880
Food products:
Grocery stores, meat markets, etc. . 77,530 60,590
Restaurants and eating places . 22,800 18,390
Beverage retailers . 5,840 12,800
Confectionery stores . 7,140 8,930
Household goods:
Household equipment dealers . 46,745 32,000
Furniture stores . 107,668 74,080
Hardware stores . 11,330 6,390
Radio retailers . 22,885 11,380
Department and general stores . 172,125 134,320
Tobacco shops . 1,370 2,340
Miscellaneous . 171,430 75,320
Total . $1,143,073 $807,060
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The respond¬
ents will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued against them.
No. 2729. A complaint has been issued against E. F. Agee,
Hillcrest Building, Omaha, Nebr., alleging unfair methods of
competition in selling correspondence school courses in secretarial
work and business administration.
Operating as “Commercial Extension University,” “Commercial
Extension of Omaha,” and “Commercial Extension College,” the
respondent, through sales agents designated as “registrars,” is al¬
leged to inform prospective students that they have been specially
selected for an offer of enrollment in his courses because of their
high scholastic standing; that his “registrars” are empowered to
offer an exceptionally low price, which represents the cost of
materials only, that tuition is given free to those who become
students; and that the regular price for the identical courses
offered is much higher than the alleged exceptional price.
The complaint charges that students are not selected on the
basis of scholastic ability; that the purported exceptional price is
the only price quoted any prospect, and is, in fact, the regular
price, and that the representation that any regular price is much
higher than the quoted price is untrue.
No. 2730. Trading as Marajah & Co. and as Kala Products
Co., W. H. Charleston, 5930 South Parkway, Chicago, engaged
in the sale of cosmetics and medicinal preparations, is named re¬
spondent in a complaint alleging unfair methods of competition.
In newspapers, magazines and advertising literature, the re¬
spondent represents, the complaint alleges, that “Five Finger
Grass” is a rare herb possessing magical qualities; that “Kala’s
Specific Hair Grower” is an absolute remedy for falling hair,
itching scalp and dandruff, and that it promotes a fabulous growth
of hair; that “Kala’s Specific Bleaching Creme and Skin Whitener”
bleaches and whitens the skin and relieves sunburn and skin erup¬
tions, and that “Kala’s Facial Creme” penetrates and is absorbed
by the skin.
No. 2731. In a complaint issued against T. G. Cooke, 1920
Sunnyside Ave., Chicago, trading as Institute of Applied Science,
he is charged with unfair competition in the sale of a corre¬
spondence school course in finger printing, which is represented
as including instruction in the science of ballistics.
In the conduct of his business the respondent is alleged to have
advertised the use of a textbook entitled “Forensic Ballistics, The
Science of Examining Guns and Ammunition in Crimes,” and,
in connection with the sale of this course, represented and adver¬
tised that “Low Tuition Rates Still in Effect, Include Secret
Service, Bertillon, Photography and Ballistics Courses.”
No. 2732. Garten Table Pad Co., Inc., 131 Market St., Phila¬
delphia, is charged in a complaint with unfair competition through
misrepresenting the nature of the materials in certain table pads
it manufactures and sells in interstate commerce.
By means of circulars distributed among the retail trade, the
respondent represents, according to the complaint, that the table
pads it offers for sale and sells have “a soft back covering that
will not harm the polished surface of a table,” and that they
"can be had in a felted or genuine felt back, depending on the
quality of the pad.”
Stipulations
The Commission has issued the following cease and desist
orders:
No. 1820. F. H. Lawson Co., Evans and Whateley Sts.,
Ciucimiati, is engaged in selling bathroom and medicine cabinets
equipped with mirrors manufactured and sold to it by the Mid-
West Glass Co., 2235 Buck Street, Cincinnati. The Lawson
company agrees to discontinue use in advertising matter of the
words “copper-backed,” or words of similar meaning, to de¬
scribe the mirrors attached to its cabinets, so as to imply that
such mirrors are made by electrolytically applying a protective
coating or a continuous layer of solid copper to the silver nitrate
reflecting surfaces of the mirrors, when such is not the fact.
No. 1621. Mid-West Glass Co., referred to in the stipulation
signed by F. H. Lawson Co. (1620), entered into a similar stip¬
ulation, agreeing not to use the words “copper-back,” or similar
words, in branding or labeling its mirrors, so as to imply that
the mirrors are made by an electrolytic coating process. Ac¬
cording to the stipulation, the respondent manufactures its mir¬
rors under license of and by a process developed by Peacock Lab¬
oratories, Inc., Philadelphia.
No. 1622. Hayes Reding, 2 N. W. 9th St., Oklahoma City,
Okla., doing business as Hayes Candy Manufacturer, formerly
known as H. & H. Candy Co., agrees to discontinue, in selling
or promoting the sale of his candy products, use of any method
of sale involving a lottery or scheme of chance, whereby an article
is given as a prize in consideration of the purchase of any other
article.
No. 1623. Newbarre Granite Co., Inc., South Ryegate, Vt.,
stipulates it will desist from use of the word “Newbarre” as part
of its corporate name in selling the granite it quarries, and also
agrees to discontinue use of the word "Barre” in connection with
the prefix “New,” or in any way which may tend to mislead
purchasers into the belief that the respondent’s product is pro¬
duced from a quarry in the Barre district of Vermont, when
such is not the fact.
No. 1624. Rhode Island Textile Co., 211 Prairie Ave., Paw¬
tucket, R. I., is engaged in manufacturing and selling narrow
fabrics, including corset laces. It agrees to discontinue use of the
words “silk finish” or “silk” on labels affixed to its products, so
as to imply or tend to lead purchasers into the belief that its
products are silk-finished or are composed of or contain silk,
when such representation is untrue; unless, when the words “silk
finish” are used merely to describe the sheen of the product, such
words shall be accompanied by other words printed in equally
conspicuous type, to indicate clearly that the laces are not com¬
posed of and do not contain silk, but are made of some other
product.
No. 1625. Better Hearing, Inc., 1 West 34th St., New York
City, dealer in hearing aid devices called “Aurophone” and in ac¬
cessories. Agrees to stop using in its circulars in connection with
its corporate name, the phrase “America’s Oldest Organization
Specializing Exclusively in Scientific Hearing Aids,” or similar
assertions which may have a tendency to mislead buyers into
believing that Better Hearing, Inc., has been in existence longer
than any of its competitors or is the oldest organization of its
particular kind, when this is not true. The respondent also
agrees to stop using in its circulars in this connection the repre¬
sentation “Founded in 1904.”
No. 1626. Burton Bros. C’o., Inc., 7 South 15th St., Rich¬
mond, Va., deals in flavoring extracts, hair dressing, pharma¬
ceuticals. aspirin and other products, some of which, according to
the stipulation, it makes or compounds, and others, including
aspirin, it purchases in bulk from manufacturers. The respondent
agrees to cease using the word “Manufacturing,” either alone or in
connection with “Chemists,” or with other words affixed to its
aspirin products, implying that the company manufactures such
aspirin or tending to deceive buyers into believing that it owns and
operates the plant or factory in which this aspirin is made.
No. 1627. Gibbs & Co., 21 South Wabash Ave., Chicago,
manufacturer of barber shop and beauty parlor supplies, is said
to have advertised in its “Hand Book of Beauty Shop Equipment
1237
and Supplies, No. 35,” the “Gibbs Chrome Checker Back Booth
Mirror,” described as a plate mirror 8 inches in diameter, when in
fact, according to the stipulation, this article was not made of plate
glass, but of a glass inferior thereto. The respondent, in its stipu¬
lation, agrees to stop using the word “plate” when describing for
sale products not made from plate glass.
No. 1628. Benrose Silk Manufacturing Corporation, 1450
Broadway, New York City, converter of silk and rayon goods,
will cease use of the word “manufacturing” in connection with its
corporate name, and the word “mills” on letterheads or in adver¬
tising matter, or in connection with the city names “Allentown, Pa.,”
or “Easton, Pa.,” or in any way which may tend to deceive buyers
into believing that the company manufactures its products and
operates mills in the cities indicated, when this is not true.
No. 1629. Kelement, Inc., 11 West 42nd St., New York
City, selling dehydrated kelp in tablet form for medicinal use under
the name “Kelement,” agrees to stop advertising that “Kelement”
will keep the human body well, or supply it with an adequate
mineral reserve, or that kelp products are naturally rich in calcium,
phosphorus, copper and iron, or otherwise exaggerating the mineral
content of kelp. The respondent also agrees to cease representing
that “Kelement” is not a drug; that it contains an adequate supply
of food-iodine and all the organic mineral elements necessary to
keep the body healthy and free from disease, or that the product
is a complete substitute for other medicinal preparations.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, March 9
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — A. Staneart Graham, K. V. Baxter, Norman Baxter, d/b as
Pittsburg Broadcasting Co., Pittsburg, Kans. — C. P., 790 kc.,
1 KW daytime.
Wednesday, March 11
HEARING BEFORE AN EXAMINER
(Broadcast)
KLO — Interstate Broadcasting Corp., Ogden, Utah. — C. P., 1400
kc., 1 KW, 5 KW LS, unlimited time. Present assignment:
1400 kc., 500 watts, unlimited time.
Thursday, March 12
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-149:
NEW — Reporter Broadcasting Co., Abilene, Tex. — C. P., 1420 kc.,
100 watts, 100 watts LS, unlimited time.
NEW — Wm. O. Ansley, Jr., d/b as Guilford Broadcasting Co..
Abilene, Tex. — C. P., 1420 kc., 100 watts, 100 watts LS, un¬
limited time.
Examiner’s Report No. 1-153:
NEW — Roberts MacNab Co., Arthur L. Roberts, R. B. MacNab,
A. J. Breitbach, Gen. Mgr., Jamestown, N. Dak. — C. P.,
1310 kc., 100 watts, 100 watts LS, unlimited time.
Examiner’s Report No. 1-138:
NEW — Chicago Broadcasting Association, Limited Partnership,
Kleofas Jurgelonis, general partner; Jos. F. Budrik, Laurent
V. Radkins and Vladas G. Jurgelonis, limited partners, Chi¬
cago, Ill.— C. P., 1300 kc., 100 watts, 100 watts LS, unlimited
time.
NEW — Big Spring Herald, Inc., Big Spring, Tex.— C. P., 1500 kc.,
100 watts, unlimited time.
NEW — Plainview Broadcasting Co., Plainview, Tex. — C. P., 1500
kc., 100 watts, daytime.
NEW — The North Texas Broadcasting Co., Paris, Tex. — C. P., 1500
kc., 100 watts, daytime.
HEARING BEFORE AN EXAMINER
(Broadcast)
WIRE — Indianapolis Broadcasting, Inc., Indianapolis, Ind. — C. P.,
1400 kc., 1 KW, 5 KW LS, unlimited time. Present assign¬
ment: 1400 kc., 500 watts, 1 KW LS, unlimited time.
WGBF — Evansville on the Air, Inc., Evansville, Ind. — C. P., 630
kc., 500 watts, 1 KW LS, simultaneous day, sharing night
with WOS and KFRU. Present assignment: 630 kc., 500
watts, simultaneous day, sharing night with WOS and KFRU.
APPLICATIONS GRANTED
WMFJ — W. Wright Esch, Daytona Beach, Fla. — Granted C. P. to
install new transmitter and vertical radiator at present loca¬
tion.
KPDN — Pampa Daily News, Inc., Pampa, Tex. — Granted modifica¬
tion of C. P. approving transmitter site east of city limits of
Pampa (studio at 212 N. Ballard St., Pampa), and approving
equipment.
KFSG — Echo Park Evangelistic Assn., Los Angeles, Calif. — Granted
modification of license to increase day power from 1 KW
to iy2 KW and use transmitter of station KRKD.
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Granted au¬
thority to determine operating power by direct measurement
of antenna input in compliance with terms of Rule 137.
KMJ — James McClatchy Co., Fresno, Calif. — Granted authority to
determine operating power by direct measurement of antenna
input in compliance with terms of Rule 137.
KGBX — KGBX, Inc., Springfield, Mo. — ’Granted consent to volun¬
tary assignment of license to Springfield Broadcasting Com¬
pany.
KOOS — H. H. Hanseth, Inc., Marshfield, Ore. — Granted modifica¬
tion of license to change name from H. H. Hanseth, Inc., to
Pacific Radio Corporation (1200 kc., 250 watts, daytime
only).
WQAM — Miami Broadcasting Co., Miami, Fla. — Granted C. P. to
install new equipment.
KWKH — International Broadcasting Corp., Shreveport, La.—
Granted authority to install new automatic frequency control
equipment.
KSCJ — Perkins Bros. Co. (The Sioux City Journal), Sioux City,
Iowa. — Granted amended C. P. as follows: Move transmitter
site, make changes in antenna and radiating system, and in¬
crease hours of operation from simultaneous day WTAQ,
S.H. -night, to unlimited time. Application for special tem¬
porary authority to cover this grant was retired to the files.
WSVA — Shenandoah Valley Broadcasting Corp., Harrisonburg, Va.
— Granted special temporary authority to operate with power
of 250 watts from 8 p. m. to 9:30 p. m., EST, March 5, 1936,
in order to broadcast the 15th anniversary banquet of Rion-
Bowman Post No. 632, Veterans of Foreign Wars.
W3XEN — Havens & Martin, Inc., Portable-Mobile. — Granted
modification of C. P. (temporary broadcast pickup) to make
changes in equipment and increase power from 20 to 40
watts.
WIEF — Miami Broadcasting Co., Portable-Mobile. — Granted
license to cover C. P. (temporary broadcast pickup), 1646,
2090, 2190, 2830 kc., 50 watts.
W9XAA— Chicago Federation of Labor, York Township, Ill. —
Granted license to cover C. P. (experimental relay broadcast¬
ing) authorizing moving of transmitter to present site of
broadcast station WCFL.
W5XAQ — East Texas Broadcasting Co., Portable-Mobile. — Granted
license to cover C. P. (general experimental), frequencies
31100, 34600, 37600, 40600 kc., 30 watts.
NEW — WBNS, Inc., Portable (Columbus, Ohio). — Granted C. P.
(temporary broadcast pickup), frequencies 1646, 2090, 2190,
2830 kc., 3 watts.
NEW — Onondaga Radio Broadcasting Corp., Portable-Mobile
(Syracuse, N. Y.).- — Granted C. P. (temporary broadcast
pickup), frequencies 1646, 2090, 2190, 2830 kc., 45 watts.
SET FOR HEARING
KRNT — Iowa Broadcasting Co., Des Moines, Iowa. — Application
for C. P. to install new equipment, increase power from 500
watts night, 1 KW day, to 1 KW night, 5 KW day, and install
directional antenna.
WAWZ — Pillar of Fire, Zarephath, N. J. — Application for modifica¬
tion of license to increase power from 500 watts night, 1 KW
day, to 1 KW day and night.
WOL— American Broadcasting Co., Washington, D. C. — Applica¬
tion for C. P. to make changes in equipment; move trans¬
mitter from 1111 H St., N. W., to about mile east Riggs
and lager Roads, Md., and studio site to be determined in
Washington, D. C.; change frequency from 1310 kc. to 1230
kc. and power from 100 watts to 1 KW.
NEW — Auburn Publishing Co., Auburn, N. Y. — Application for
1238
C. P. for new station, 1420 kc., 100 watts, unlimited time,
site to be determined.
NEW — Jefferson Broadcasting Co., Ormond 0. Black, Pres., Bir¬
mingham, Ala. — Application for C. P. for new station, 1200
kc., 100 watts night, 250 watts day, unlimited time.
NEW — Amended to read: W. I. S. E. Broadcasting Co., St. Paul,
Minn. — Application for C. P. for new station, 630 kc., 250
watts, unlimited time, facilities of KGDE; site to be deter¬
mined.
NEW — Saginaw Broadcasting Co., Saginaw, Mich. — C. P., already
in hearing docket, amended to read: 1200 kc., 100 watts
night, 250 watts day, specified hours; site to be determined.
KUJ — KUJ, Inc., Walla Walla, Wash. — C. P., already in hearing
docket, amended to read: Move station locally to site to be
determined; install new equipment; change frequency from
1370 kc. to 1250 kc.; increase power from 100 watts to
250 watts.
NEW — C. W. Snider, Wichita Falls, Tex. — C. P., already in hearing
docket, amended to read: 1500 kc., 100 watts, unlimited
time; site to be determined.
MISCELLANEOUS
KSL — Radio Service Corp., Salt Lake City, Utah. — Granted peti¬
tion to intervene in re application of KLO for C. P. to
operate on 1400 kc., 1 KW day, 5 KW night, at Ogden. Utah.
KGU — Advertiser Pub. Co., Ltd., Honolulu, T. H. — Denied petition
asking Commission to reconsider action of February 11, 1936,
in granting application of KGMB for license to cover C. P.
Chas. C. Theis, Wichita, Kans. — Oral argument set for March 5,
1936, on Examiner’s Report No. 1-96, recommending grant
of application for new station to operate on 12101 kc., 100
watts, unlimited time, continued until March 19, 1936.
Springfield Newspapers, Inc., Springfield, Mo. — Permitted to file
answer as respondent in re the application of A. Staneart
Graham, d/b as Pittsburg Broadcasting Co., for new station
at Pittsburg, Kans.
Kidd Brothers, Taft, Calif. — Appearance and statement of facts
accepted in re application for new radio broadcasting station.
WEEI — Edison Electric Illuminating Co. (Respondent), Boston,
Mass. — Denied motion to strike the notice of desire to be
heard and statement of facts to be proved at hearing on
March 17, 1936, filed by J. R. Maddox and Dr. W. B. Hair,
d/b as Chattanooga Broadcasting Co., for a new station at
Chattanooga. Respondent permitted to file answer any time
prior to March 5, 1936.
Tulare-Kings Counties Radio Associates, Visalia, Calif. — Denied re¬
quest that Commission schedule its application for new
station for hearing this week. Application is for 1190 kc.,
250 watts, daytime.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla.-
Denied petition that Commission reconsider and grant appli¬
cation to modify license so as to change hours of operation
from sharing with KCRC to full time. Designated for hear¬
ing January 30, 1936.
WAAW — Omaha Grain Exchange, Omaha, Nebr. — Granted regular
renewal of license.
Charleston Broadcasting Corp., Charleston, W. Va. — Answer to ap¬
pearance of WDBO accepted.
KHSL— -Golden Empire Braodcasting Co., Chico, Calif. — Denied
petition asking Commission to reconsider and grant applica¬
tion for modification of license to change frequency from
950 kc. to 630 kc., and increase hours of operation from
daytime only with 250 watts to unlimited with 250 watts.
E. Anthony & Sons, Inc., Pawtucket, R. I. — Granted protest re¬
questing Commission reconsider action of January 21, 1936,
in granting extension of the completion date of station
WNRI to June 4, 1936, and directed that the application be
designated for hearing, upon the protest of E. Anthony &
Sons, Inc., against such grant and that said authorization
be suspended and heard upon the issues contained in said
protest.
REMANDED TO DOCKET
Valley Broadcasting Co., Pomona, Calif. — Remanded to docket
application for C. P. to erect new station at Pomona to
operate on 1160 kc., 250 watts, LS.
APPLICATIONS DISMISSED
The following applications, heretofore designated for hearing,
were dismissed at request of applicants:
WTMV — Miss. Valley Broadcasting Co., Inc., E. St. Louis, Ill. —
Applied for C. P., 1500 kc., 100 watts, 250 watts LS, un¬
limited time.
NEW — Alex F. Suss, Maryville, Calif. — Applied for C. P., 1210 kc.*
100 watts, unlimited time.
NEW — Alex F. Suss, Sacramento, Calif. — Applied for C. P., 1310
kc., 100 watts, unlimited time.
ACTION ON EXAMINERS’ REPORTS
WILL — Ex. Rep. No. 1-111: University of Ill., Urbana, Ill.
granted modification of license to change frequency from
890 kc. to 580 kc. ; change hours of operation from shar¬
ing with KUSD and KFNF to daytime, 1 KW. Examiner
P. W. Seward sustained. Other effective May 5, 1936.
NEW — Ex. Rep. No. 1-123: Hammond-Calumet Broadcasting
Corp., Hammond, Ind. — Denied C. P. for new station to
operate on 1480 kc., 5 KW, daytime. Examiner R. L.
Walker sustained. Order effective May 12, 1936.
KADA — Ex. Rep. No. 1-182: C. C. Morris, Ada, Okla. — Denied
special experimental authorization to operate unlimited time ;
1200 kc., 100 watts. Examiner P. W. Seward reversed.
Order effective May 5, 1936.
KGCX — Ex. Rep. No. 1-164: E. E. Krebsbach, Wolf Point, Mont.
— Denied C. P. to move transmitter; make changes in equip¬
ment; change frequency from 1310 kc. to 1450 kc.; increase
power from 100 watts night, 250 watts day, to 1 KW ;
change hours of operation from specified hours to unlimited
time. Examiner J. P. Bramhall reversed. Order effective
April 7, 1936.
WEDC — Ex. Rep. No. 1-169: Emil Denemark, Inc., Chicago, Ill. —
Granted renewal of license, 1210 kc., 100 watts, specified
hours. Examiner R. H. Hyde sustained. Order effective
April 14, 1936.
NEW — Ex. Rep. No. 1-175: Golden Empire Broadcasting Co.,
Redding, Calif. — Granted C. P. for new broadcast station to
operate on 1200 kc., 100 watts, unlimited time. Examiner
M. H. Dalberg sustained. Order effective April 21, 1936.
KFPY — Ex. Rep. No. 1-176: Symons Broadcasting Co., Spokane,
Wash. — Granted C. P. to install new equipment; change
transmitter site; increase power from 1 KW to 1 KW night,
5 KW day, 890 kc., unlimited time Examiner Geo. H. Hill
sustained. Order effective April 28, 1936.
WSPD — Ex. Rep. No. 1-179: Toledo Broadcasting Co., Toledo,
Ohio. — Granted C. P. to make changes in equipment and
increase power from 1 KW, 2 KW LS, to 1 KW, 5 KW LS ;
1340 kc., unlimited time. Examiner P. W. Seward sus¬
tained. Order effective April 28, 1936.
WJBC — Ex. Rep. No. 1-181: Wayne Hummer and Harry Dee, d/b
as Kaskaskia Broadcasting Co., Bloomington, Ill. — Granted
C. P. to make changes in equipment and increase power from
100 watts to 100 watts night, 250 watts day; 1200 kc., share
time with WJBL. Examiner John P. Bramhall sustained.
Order effective April 28, 1936.
WHBU — Ex. Rep. No. 1-183: Anderson Broadcasting Corp., An¬
derson, Ind. — Granted C. P. to make changes in equipment
and increase power from 100 watts to 100 watts night, 250
watts day; 1210 kc., unlimited time. Order effective May 5,
1936.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind.-
Granted C. P. to install new equipment; move transmitter
and studio ; increase power from 1 KW to 1 KW night, 5
KW day; 1250 kc., unlimited time. Examiner R. L. Walker
sustained.
APPLICATIONS RECEIVED
First Zone
WORL — Broadcasting Service Organization, Inc., Needham, Mass.
920 — Modification of license to increase power from 500 watts
to 1 KW.
NEW — Rensselaer Polytechnic Institute, Troy, N. Y. — Construc¬
tion permit for a new general experimental station to be
operated on 31600, 35800, 38600, 41000 kc., no power speci¬
fied. Amended giving power as 1 KW.
NEW — Onondaga Radio Broadcasting Corp., Portable-Mobile. —
Construction permit for a new broadcast pickup station to
be operated on 2090, 2790, 2830 and 2760 kc., 45 watts.
Amended to change frequencies to 1646, 2090, 2190 and
2830 kc.
1239
Second Zone
NEW — Harold F. Gross and Edmund C. Shields, Saginaw, Mich. —
950 Construction permit for a new station to be operated on
1210 kc., 100 watts, 250 watts day, unlimited time. Requests
facilities of WJIM if WJIM’s application for 1010 kc. is
granted. Amended to make changes in equipment, change
frequency from 1210 kc. to 950 kc., power from 100 watts,
250 watts day, to 500 watts, hours of operation from un¬
limited to daytime. Omit request^ for WJIM’s facilities.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Modification of
1500 construction permit to make changes in equipment; move
transmitter from 12897 Woodward Avenue, Highland Park,
Mich., to site to be determined, Detroit, Mich.; install verti¬
cal antenna; extend commencement date from 9-30-35 to
date of grant and completion date from 3-30-36 for six
months.
Third Zone
NEW— Jonas Weiland, Kinston, N. C. — Construction permit for a
1200 new station to be operated on 1210 kc., 100 watts, 250 watts
day, unlimited time. Amended to change frequency from
1210 kc. to 1200 kc.
WJNO — Hazlewood, Inc., West Palm Beach, Fla. — Modification of
1200 construction permit (B3-P-159) for equipment changes (an¬
tenna) and change transmitter site from El Varano Hotel.
West Palm Beach, Fla., to near West Palm Beach, Fla.
KFPM — Voice of Greenville, Greenville, Tex. — Construction permit
1310 to make changes in equipment; increase power from 15 watts
to 100 watts; change hours of operation from specified hours
to daytime. Amended to change transmitter site from 2109
Park Street (rear) to site to be determined, Greenville, Tex.
WNBR — Memphis Broadcasting Co., Memphis, Tenn. — Consent to
1430 transfer control of corporation from Francis S. Chamberlin.
Mallory Chamberlin, Charles W. Brunner and Ceylon B.
Frazer to Memphis Commercial Appeal, Inc., 224 shares of
stock.
Fourth Zone
NEW — I. T. U. Radio Station, Inc., Indianapolis, Ind. — Construc-
560 tion permit for a new station to be operated on 560 kc., 1
KW, 5 KW day, unlimited time, facilities of WIND, Gary,
Ind. Amended to change name from International Typo¬
graphical Union of N. A. to I. T. U. Radio Station, Inc.;
change studio site from 28th and Meridian Sts. to 2820 N.
Meridian St., Indianapolis, Ind.; and make changes in an¬
tenna.
NEW— Glenn Van Auken, Indianapolis, Ind. — Construction permit
600 for a new station to be operated on 600 kc., 1 KW, daytime.
WEMP — Milwaukee Broadcasting Co., Milwaukee, Wis. — Con-
1010 struction permit to install new equipment ; change frequency
from 1310 kc. to 1010 kc., 100 watts to 250 watts, 500 watts
day, hours of operation from daytime to unlimited.
NEW — The Courier-Post Publishing Co., Hannibal, Mo. — Con-
1310 struction permit for a new station to be operated on 1310 kc.,
100 watts, unlimited time.
KFJM — University of North Dakota, Grand Forks, N. Dak. —
1370 Special experimental authorization to operate on 250 watts
day for period ending 1-1-36. Amended to change ending
date to 7-1-36.
Fifth Zone
KVL— KVL, Inc., Seattle, Wash. — Construction permit to make
1070 changes in equipment; change frequency from 1370 kc. to
1070 kc., power from 100 watts to 250 watts, and hours of
operation from share-KRKO to daytime only. Amended to
make changes in antenna system.
KFJI — KFJI Broadcasters, Inc., Klamath Falls, Ore. — Construc-
1210 tion permit to make changes in equipment.
NEW — Luther E. Gibson, d/b as Times-Herald Publishing Co.,
13201 Vallejo, Calif. — Construction permit for a new station to
be operated on 1320 kc., 250 watts, daytime. Amended
giving exact transmitter site as in the vicinity of Mare Island
Navy Yard, between Vallejo and South Vallejo, Calif.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
1410 Construction permit for a new station to be operated on
1450 kc., 500 watts, unlimited time. Amended to change
frequency from 1450 kc. to 1410 kc.
1240
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, IS38. Tho National Association of Broadcasters
Vol. 4 - - No. 13
MARCH 12, 1936
IN THIS ISSUE
Page
Duffy Bill Hearings . 1241
Pioneer Radio Tax Case . 1241
More Stations Sign With Warner Bros . 1241
Watch for This . 1241
CBS Files Answer to Music Suit . 1241
Telephone Hearings Called . 1241
Securities Act Registrations . 1241
Prall Comments on FCC Work . 1241
Suits Begun by Warner Brothers . 1242
Federal Trade Commission Action . 1243
Federal Communications Commission Action . 1244
DUFFY BILL HEARINGS
Hearings on the Duffy Copyright Bill S. 3047 which were com¬
menced before the House Patents Committee on February 25 are
continuing. Witnesses for the ASCAP were heard during the
first six days. The hearings are confined to two hours per day
and to three days per week. Senator Duffy, author of the Bill,
and Dr. McClure of the Department of State who, as chairman
of an Inter-Departmental Committee, assisted in drafting the bill
were heard Tuesday (10) and Wednesday (11) and are sched¬
uled to appear for further questioning Thursday (12). The NAB
expects to appear before the Committee next Tuesday (17).
PIONEER RADIO TAX CASE
Oral argument was held Monday before the United States
Supreme Court on the question of the right of a state to levy
a privilege tax on radio broadcasting.
This question came up for the first time in the Supreme Court
in the case of Fisher’s Blend, Inc., vs. The Tax Commission of
the State of Washington. The case came direct from the Supreme
Court of the State of Washington. Several cases in other states
are awaiting a decision in this case.
MORE STATIONS SIGN WITH WARNER BROS.
The following additional stations have signed the Warner
Brothers contract: W2XR, New York City; KGEZ, Kalispell,
Mont.; KADA, Ada, Okla.; KGW, Portland, Ore.; KEX, Port¬
land, Ore.
WATCH FOR THIS
A NAB member has informed headquarters of an experience
he has had with “the man who brings you health through color
rays.”
According to this information the man, for the purpose of the
broadcast program, sits on a 300-pound cake of ice and has ice
water dashed over him and then eats ice cream. He protects
himself from the effect of this exposure with his color ray.
“In all the talks,” states the communication, “prior to the
broadcast he swears by everything that is holy that all he is
doing is going to make a broadcast and says his machine helps
to prevent common colds. After the broadcast folders are mailed
to everybody in the phone book.” NAB members will want to
watch for this.
CBS FILES ANSWER TO MUSIC SUIT
In its answer filed February 28, in the Federal Court in reply
to the complaint of Harms, Inc., Columbia Broadcasting System
reiterated its claim that Columbia stations are still licensed to
broadcast music published by the Warner group. Columbia, how¬
ever, is continuing its policy of not broadcasting any Warner
music.
The suit brought by Harms, Inc., contended that a performance
of “I Get a Kick Out of You” shortly after midnight on New
Year’s Eve over WABC constituted a copyright infringement.
Columbia denies that it is guilty of infringement, and sets forth
in addition the grounds on which it contends that WABC was
entitled to perform the number.
The answer points out that both Harms and Cole Porter, the
composer, were members of ASCAP at the time WABC obtained
from ASCAP the license which grants performing rivhts in the
Warner Bros, compositions up to 1941. Cole Porter, the an¬
swer further asserts, remains a member of ASCAP and has spe¬
cifically assigned his rights to ASCAP for this period.
Not only does Columbia continue to claim that the performance
is licensed, but it also claims that Harms, by reason of its actions
and representations, is barred from asserting any infringement
claim.
TELEPHONE HEARINGS CALLED
The Federal Communications Commission has announced that
the Telephone Division will begin hearings in its telephone in¬
vestigation on March 17 in this city.
The hearings are in connection with the general telephone in¬
vestigation called for by Congressional resolution directing a spe¬
cial investigation of all telephone companies engaged directly or
indirectly in telephone communications in interstate commerce,
and certain other kinds of companies.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
International Commodities Corporation, New York City (2-
1943, Form A-l)
Springfield City Water Co., Springfield, Mo. (2-1944, Form
A-2)
Spencer Chain Stores, Inc., Boston, Mass. (2-1945, Form A-2)
The Famise Corp., Philadelphia, Pa. (2-1947, Form A-l)
Southeastern Indiana Corp., Indianapolis, Ind. (2-1948, Form
E-l)
American Midland Co., Detroit, Mich. (2-1949, Form A-l)
Barnett Petroleum Co., Houston, Texas (2-1950, Form A-l)
Lednew Corp., Jersey City, N. J. (2-1951, Form A-l)
Kingston Products Corp., Kokomo, Ind. (2-1953, Form A-2)
S. F. Bowser & Co., Fort Wayne, Ind. (2-1954, Form E-l)
Mansul Chemical Co., Jacksonville, Florida (2-1955, Form A-l)
Essex Brewing Co., Haverhill, Mass. (2-1956, Form A-l)
Burry Biscuit Corp., Linden, N. J. (2-1958, Form A-l)
PRALL COMMENTS ON FCC WORK
The Federal Communications Commission on Wednesday made
public the following statement in connection with the reappoint¬
ment of Mr. Prall as chairman of the Commission:
Anning S. Prall of New York today began his second year as
Chairman of the Federal Communications Commission. He was
reappointed for another year by President Roosevelt in an order
to become effective March 11.
Mr. Prall, as Chairman, serves as a member of each of the three
divisions of the Commission — Broadcast, Telephone and Tele¬
graph. Last July he was appointed by President Roosevelt for
a seven-year term, after having served a six-month tenure under
his original appointment. He is a native of Staten Island, New
York, and represented that district in Congress for twelve years
as a Democratic member prior to joining the Commission.
Upon beginning his second year as Chairman of the Commis¬
sion, Mr. Prall said today:
“Naturally, I am gratified over my reappointment by Presi¬
dent Roosevelt to serve as Chairman of the Commission for an-
1241
other year. It will be my constant effort to justify his trust in
me by acquitting my office in the best interests of the people of
the United States.
“In appraising the work of the Federal Communications Com¬
mission it should be kept in mind that, except for radio, the Com¬
mission has undertaken an entirely new work. It is breaking new
ground in the regulation of telephones and telegraphs. Of neces¬
sity, this work has been slow and arduous. The Commission was
desirous of avoiding mistakes that might result from undue haste.
“The Commission has not been infallible. It may have made
errors of judgment but, I am confident, if it has made any they
are inherent in the functioning of any new organization and it
will profit by them in its future work.”
SUITS BEGUN BY WARNER BROTHERS
Warner Brothers have announced officially that they have begun
the following suits against radio stations and hotels, etc., based
on alleged infringement of song copyrights owned by them:
M. Witmark & Sons vs. Associated Broadcasters, Inc., operators
of Station WEST, for the alleged infringement of “Sweethearts
Forever” on February 27th, 1936. Damages sought: $250.
Remick Music Corp. vs. Associated Broadcasters, Inc., operators
of Station WEST, for the alleged infringement of “Sweet Georgia
Brown” on February 26th, 1936. Damages sought: $250.
Harms, Inc. vs. WGAL, Inc., operators of Station WGAL, for the
alleged infringements of “Sleepy Valley” on February 20th and
21st, 1936. Damages sought: $500.
Harms, Inc. vs. Southern Broadcasting Stations, Inc., operators
of Station WGST, for the alleged infringement of “That Old
Fashioned Mother of Mine” on January 23rd, 1936. Damages
sought: $5,000.
Harms, Inc. vs. W. D. R. C., Inc., operators of Station WDRC,
for the alleged infringement of “That Old Fashioned Mother of
Mine” on January 23rd, 1936. Damages sought: $5,000.
Harms, Inc. vs. Maine Broadcasting Co., operators of Station
WLBZ, for the alleged infringement of “That Old Fashioned
Mother of Mine” on January 23rd, 1936. Damages sought:
$5,000.
Harms, Inc. vs. Buffalo Broadcasting Corp., operators of Station
WKBW, for the alleged infringement of “That Old Fashioned
Mother of Mine” on January 23rd, 1936. Damages sought: $5,000.
Harms, Inc. vs. W. H. E. C., Inc., operators of Station WHEC,
for the alleged infringement of “That Old Fashioned Mother of
Mine” on January 23rd, 1936. Damages sought, $5,000.
Harms, Inc. vs. WOKO, Inc., operators of Station WOKO, for
the alleged infringement of “That Old Fashioned Mother of Mine”
on January 23rd, 1936. Damages sought: $5,000.
Harms, Inc. vs. Pittsburgh Radio Supply House, Inc., operators
of Station WJAS, for the alleged infringement of “That Old
Fashioned Mother of Mine” on January 23rd, 1936. Damages
sought: $5,000.
Harms, Inc. vs. Station WESG for the alleged infringement of
“That Old Fashioned Mother of Mine” on January 23rd, 1936.
Damages sought: $5,000.
Remick Music Corp. vs. Southern Broadcasting Stations, Inc.,
operators of Station WGST, for the alleged infringement of “Put
On Your Old Grey Bonnet.” Damages sought: $5,000.
Harms, Inc. vs. Southern Broadcasting Stations, Inc., operators
of Station WGST, for the alleged infringement of “London On
a Rainy Night.” Damages sought: $5,000.
Remick Music Corp. vs. York Broadcasting Co., operators of
Station WORK, for the alleged infringement of “Sweet Georgia
Brown.” Damages sought: $5,000.
M. Witmark & Sons vs. York Broadcasting Co., operators of
Station WORK, for the alleged infringement of “Where the River
Shannon Flows.” Damages sought: $5,000.
Harms, Inc. vs. Howell Broadcasting Co., Inc., operators of
Station WEBR, for the alleged infringement of “Gringola.” Dam¬
ages sought: $500.
Harms, Inc. vs. Associated Broadcasters, Inc., operators of Sta¬
tion KSFO, for the alleged infringement of “Continental” and
“You Let Me Down.” Damages sought: $600.
Remick Music Corp. vs. WSJS for the alleged infringement of
“Sweet Georgia Brown.” Damages sought: $250.
Harms, Inc. vs. Durham Radio Corporation, operators of Sta¬
tion WDNC, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. North Carolina Broadcasting Co., operators of
Station WBIG, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. Florida Broadcasting Co., operators of Station
WMBR, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. Station WDAE for the alleged infringement of
“That Old Fashioned Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. Orlando Broadcasting Co., operators of Station
WDBO, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. W. L. A. C., Incorporated, operators of Station
WLAC, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
Harms, Inc. vs. Voice of St. Louis, Inc., operators of Station
KMOX, for the alleged infringement of “That Old Fashioned
Mother of Mine.” Damages sought: $5,000.
T. B. Harms vs. WVO Broadcasting Company (WNEW) for the
alleged infringement of the song “Every Now and Then”; and M.
Witmark & Sons vs. Marcus Loew Booking Agency (WHN) for
the alleged infringement (two times) of the song “Where the
River Shannon Flows.” In each case $5,000 damages and an ac¬
counting of the profits are sought.
M. Witmark & Sons vs. Don Lee Broadcasting System (KHJ,
Los Angeles) for the alleged infringement of the song “Mine
Alone,” seeking $5,000 damages and an accounting of the profits.
Remick Music Corp. vs. Don Lee Broadcasting System (KHJ,
Los Angeles) for the alleged infringement of the song “Whistle
and Blow Your Blues Away,” seeking $5,000 damages and an
accounting of the profits.
M. Witmark & Sons vs. Northern Corporation (WMEX, Boston)
for the alleged infringement of the song “Gypsy Love Song,” seek¬
ing $5,000 damages and an accounting of the profits.
Remick Music Corp. vs. Onondaga Radio Broadcasting Corp.
(WFBL, Syracuse) for the infringement of the song “Get Happy,”
seeking $5,000 damages and an accounting of the profits.
M. Witmark & Sons vs. Central New York Broadcasting Cor¬
poration (WSYR, Syracuse) for the alleged infringement of the
song “The Words Are In My Heart,” seeking $5,000 damages and
an infringement of the profits.
Remick Music Corp. vs. WCFL Cooperative System, Inc.
(WCFL, Chicago) for the alleged infringement of the song “Put
On Your Old Grey Bonnet,” seeking $250 damages and an ac¬
counting of the profits.
M. Witmark & Sons vs. WWL Development Company, Inc.
(WWL, New Orleans) for the alleged infringement of the song
“Let’s Have Breakfast in Bed,” seeking $5,000 damages and an
accounting of the profits.
M. Witmark & Sons vs. WCFL Cooperative System, Inc.
(WCFL, Chicago) for the alleged infringement of the songs “That
Old Irish Mother of Mine,” “Lulu’s Back In Town” and “Sun¬
rise and You,” seeking $750 damages and an accounting of the
profits.
Remick Music Corp. vs. Associated Broadcasters, Inc. (KSFO,
Los Angeles) for the alleged infringement of the song “Sweet
Georgia Brown,” seeking $300 damages and an accounting of the
profits.
Harms, Inc. vs. 1 Fifth Avenue for the alleged infringement of
four numbers, “Dancing in the Dark,” “As Time Goes By,”
“Night and Day” and “April in Paris,” for which $1,000 Damages
and an accounting of the profits are demanded.
M. Witmark & Sons vs. A. & U. Restaurant, Inc., operators
of the Hollywood Restaurant, for the alleged infringement of
“Lullaby of Broadway” and “Forty-Second Street,” for which
$500 damages and an accounting of the profits are sought.
Harms, Inc. vs. Plaza Operating Co., operators of the Hotel
Plaza, for the alleged infringement of “Dancing in the Dark,”
for which $250 damages and an accounting of the profits are
sought.
Harms, Inc. vs. Waitt Operating Co., operators of the Hotel
Weylin, for the alleged infringement of “A Picture of Me With¬
out You,” “April in Paris,” “Night and Day,” “Miss Otis Re¬
grets,” and “Why Shouldn’t I,” for which $1,250 damages and
an accounting of the profits are sought.
Harms, Inc. vs. St. Moritz-On-The-Park, Inc., operators of the
St. Moritz Hotel, for the alleged infringement of “Where Am I”
and “Begin the Beguine,” for which $500 damages and an ac¬
counting of the profits are sought.
Remick Corp. vs. Village Grove Amusement, Ltd., operators
of The Nut Club, for the alleged infringement of “Moonlight
Bay,” “Would You Like To Take A Walk” and “Nagasaki,” for
which $1,000 damages and an accounting of the profits are sought.
New World Music Corp. vs. Paradise Catering Corp., operators
of the Paradise Restaurant, for the alleged infringement of “I
1242
Got Rhythm,” for which $250 damages and an accounting of the
profits are sought.
Harms, Inc. vs. Vincent Astor, operator of the Hotel St. Regis,
for the alleged infringement of “I Get A Kick Out of You” and
“Why Shouldn’t I,” for which $500 damages and an accounting
of the profits are sought.
M. Witmark & Sons vs. New Yorker Hotel Corp., operator of
the Hotel New Yorker, for the alleged infringement of “Rose In
Her Hair” and “Ah, Sweet Mystery of Life,” for which $500
damages and an accounting of the profits are sought.
Remick Music Corp. vs. The Village Farm Barn for the alleged
infringement of “Put On Your Old Grey Bonnet,” “Memories,”
“Sweet Georgia Brown” and “Would You Like To Take A Walk,”
for which $1,000 damages and an accounting of the profits are
sought.
Other new Harms actions against broadcasters include nine for
the alleged infringement of “That Old Fashion Mother of Mine”
on January 23rd, 1936. Damages of $5,000 each are sought from
radio stations WFEA, WCAU, KOMA, WKRC, WBNS, WSMK,
WSPD, WADC and WMBG. The tenth suit is against Station
WORK for the alleged infringement of “L’Amour Toujours
L’Amour” on February 24th. Damages of $5,000 are sought from
that station also.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2733. Charging unfair representations in radio programs,
newspapers and other printed matter concerning washing machines
sold in interstate commerce, a complaint has been issued against
Taylor Washing Machine Co., 2921 West Madison St., Chicago.
The complaint charges the company, through its sales repre¬
sentatives, with procuring sales contracts by fraud and false
pretenses and with false and misleading assertions which “lull
the public and prospective purchasers into a false sense of se¬
curity and trust in dealing with respondent.”
The company is charged with a lack of good faith in soliciting
customers by advertising a “free home trial” and a “free home
demonstration” of its $49.50 Taylor washing machine. In this
connection, it is alleged that the respondent procures signatures
to instruments in writing and in blank by falsely representing such
paper to be a “receipt,” “insurance policy” or evidence of the
signer’s “willingness to accept a demonstration” covering the
washing machine delivered or to be delivered and represented as
on trial or demonstration, when in fact, according to the com¬
plaint, the respondent’s undisclosed intention is to use such instru¬
ments as contracts, or to convert them into contracts of sale for
merchandise.
Threats of suits and harassment in employment are among the
methods assertedly used by the respondent to impose on pros¬
pective purchasers the provisions of contracts to which they were
not legally bound, and it is charged that the respondent, without
authority of State laws, exercised powers of attorney to assign
wages and salaries under purchase contracts.
These practices are alleged to constitute unfair methods of com¬
petition in violation of the Federal Trade Commission Act.
No. 2734. A complaint has been issued charging H. E. Martin-
dale, trading as Federal Institute of Meats & Marketing, 805*4
Sheridan Road, Menominee, Mich., with representations to the
effect that his correspondence school business is a branch of or
connected with the United States Government.
Martindale, who sells courses in butchery and meat packing, is
alleged to have advertised his business as the “Central States
Division, Federal Institute-Meats-Marketing, Washington, D. C.
H. E. Martindale, Divisional Director. Central States Office, Me¬
nominee, Mich.”
No. 2735. Unfair methods of competition in connection with
the sale of silver-plated ware is alleged in a complaint issued against
International Silver Co., having its principal place of business at
Meriden, Conn., with sales offices at Chicago, New York, San
Francisco, St. Louis and Toronto, and factories at Meriden, Wal¬
lingford, Norwich and Waterbury, Conn., and Hamilton and
Niagara Falls, Canada.
According to the complaint, the respondent features the word
“Rogers” in the trade names of various brands of silver-plated
ware it manufactures and sells to customers, including retail de¬
partment stores and jewelry stores, and further described two of
its brands, “Anchor Rogers Anchor” and “Star Rogers & Bros.
A-l,” as “Original Rogers Silver-Plate” and “Genuine Rogers
Silver-Plate.”
These two particular brands were for many years sold to the
purchasing public at $50 for a set of 50 pieces, it is alleged, and
to retail dealers at a discount of 50 per cent, but for the last two
or three years, the complaint charges, the respondent has allowed
retailers an additional trade discount of 40 per cent on the pur¬
chase price of the two brands. This 50 plus 40 per cent discount
makes the net purchasing price to retailers $15 a set, the complaint
points out, and permits them to make a corresponding reduction
in the retail price at which they resell the sets.
In connection with the sale of “Anchor” and “Star” products,
International Silver Co., it is charged, furnishes retailers with
booklets and price lists which describe its “half-price sales plan”
and which booklets contain samples of advertising for the use
of retailers in promoting the sales plan, and, according to the
complaint, many retailers have made use of the suggested news¬
paper advertisements, v/hich represent that sales of such sets are
“half-price sales,” and tha± the normal value and the usual and
customary retail and selling price of each set is $50, or approxi¬
mately that sum. In many instances, the complaint sets forth, the
respondent pays a portion of the cost of the newspaper advertising.
The complaint alleges, however, that the price the respondent
represents as the customary sales price does not reflect the true
customary sales price, but is fictitious and exaggerated, and fur¬
ther alleges that the respondent’s practice of falsely advertising
its products for sale at half of the represented regular retail price
tends to deceive purchasers as to the quality, value, grade and
price of its silver-plated ware.
Such alleged misrepresentations, it is charged, enable retailers
to increase their sales of the respondent’s ware, lessen the market
for the products of manufacturers who honestly represent the
true retail value of their silver-plated ware, and tend to divert
trade to the respondent from competitors who truthfully advertise
and sell their products at half-price, or who do not misrepresent
the actual value of such products.
No. 2736. Capon Water Co., Capon Springs Mineral Water,
Inc., and Louis Austin, president of and majority stockholder in
both companies, located at 1712 Walnut St., Philadelphia, are
named respondents in a complaint alleging unfair competition in
the sale and distribution of a mineral water designated “Capon
Springs Water.” Austin also operates a branch office at Capon
Springs, West Virginia.
The complaint charges that the respondents, in promoting the
sale of their product, circulate booklets and leaflets which con¬
tain assertions, many made by doctors and laymen, representing
that their mineral water will cure or is beneficial in the treatment
of a wide variety of afflictions and diseases, including kidney,
bladder and liver disorders, rheumatism, acid conditions, diabetes,
and high blood pressure, when, in fact, the complaint alleges, use
of the water, whether by drinking or by external application, is
not a cure or a beneficial treatment for the diseases and afflictions
enumerated.
No. 2738. Misbranding of the porcelain ware and china ware
it sells in interstate commerce is alleged in a complaint issued against
Atlas China Co., Inc., 710 Wythe Ave., Brooklyn, N. Y.
The complaint charges that the respondent company purchases
supplies of foreign and domestic-made porcelain ware and china-
ware, undecorated and known as “blanks,” which it causes to be
processed, decorated and branded with the words “Limoges,”
“French Decoration” and “Hand Painted.”
Stipulations
The Commission has issued the following cease and desist
orders:
No. 1830. Strem Studios, Inc., 429 Penn Ave., Pittsburgh,
having branches in Boston, Washington, Detroit, Columbus, O.,
and Richmond, Va., dealer in photographic portraits, agrees to
stop advertising that its work is “Photography’s Latest Creation,”
“Distinctive Portraiture,” or that its “Gold-O-Graf” photographs
are made in natural colors, are oil paintings or made on motion
picture film, when, in fact, according to the stipulation, the pic¬
tures are produced by application of transparent oil colors and
are not oil paintings, and are not made on motion picture film.
The respondent also stipulates that it will not misrepresent its
prices.
Orders for “Gold-O-Graf” photographs, according to the stip¬
ulation, were obtained by salesmen, who gave purchasers coupons
entitling them to the portraits at alleged reduced prices. These
visits were followed up by cameramen who took the pictures
and collected the balances due, forwarding the negatives to the
Pittsburgh studio. Proofs were then delivered to the customers
1243
by so-called “proof men” and additional orders solicited. The
price of $1.95 and other prices advertised as special or reduced,
were in fact the regular and usual prices, according to the stipu¬
lation.
No. 1631. La Mode Garment Co., 711 West Lake St., Chi¬
cago, manufacturing women’s dresses, underwear, pajamas, and
uniforms for waitresses, agrees to stop using the word “Linene,”
simulating the word linen, implying that certain of its products
are made of the fiber of the flax plant, when this is not true.
No. 1632. J. H. Smith Veneers, Inc., 433 East Erie St.,
Chicago, engaged in importing, processing and veneering of woods,
will no longer use phrases such as “African Walnut,” or “Oriental
Walnut,” implying that the products are made of wood derived
from trees of the walnut family, when this is not true.
No. 1633. Samuel and Isadore Sobel, trading as Sobel
Brothers, 150 Duane St., New York City, wholesalers of shoes,
will discontinue employing the word “Doctor” or the abbreviation
“Dr.,” or any imitation thereof in connection with the trade
name or brand for their products, in any way tending to mislead
buyers into believing that the shoes are made in accordance with
the design or under supervision of a doctor, or contain special
orthopedic features resulting from medical advice and services,
when this is not true. The stipulation says that recently the
respondents caused the designation “Dr.” to be changed to “De,”
so that certain of their trade names read “De Benedict’s,” “De
Cushman’s” and “De Bell.”
No. 1634. M. Burton Aronson, Harrison & Dearborn Sts.,
Chicago, trading as M. Burton & Co., jobbers and wholesalers
of jewelry, will cease using in printed matter the word “gold,”
alone or in connection with the word “solid,” implying that
rings so described are made wholly of gold. The stipulation pro¬
vides that when initials affixed to such rings are composed in part
of gold, the word “gold,” if used as descriptive only of the initials,
shall be conspicuously accompanied by suitable markings to clearly
indicate the actual carat or fineness of the gold used, and to show
that only the initials are thus described.
No. 1635. Elliott E. Goldman, 1566 Vyse Ave., Bronx, New
York City, trading as The London Pipe Co., selling smoking
pipes by mail order, agrees to stop using the phrase “The London
Pipe Company” in any manner tending to deceive buyers into
believing that the respondent is associated with The London
Pipe Co., Ltd., of London, England, established in 1837. The re¬
spondent’s products are not made or manufactured in London,
England, or by The London Pipe Co., Ltd., of that city, according
to the stipulation, but are made by a concern in the United States.
The respondent also agrees to desist in advertising his products
for sale “For a limited time only, $1.00,” when this price is not a
special price for a limited time only.
Nos. 1636-1637. Troy Blanket Mills, of Troy, N. H., agrees,
in selling its blankets and automobile robes, either directly or
through a sales agency, to forego use on labels attached to its
goods of the words “All Wool,” implying that they are composed
wholly of wool, when, according to the stipulation, they are made
in part of material other than wool. The respondent sold its
products branded “All Wool,” through its sales agency, L. C.
Chase & Co., Inc., of Sanford, Me., according to the stipulation.
L. C. Chase & Co. entered into a similar stipulation with the
Commission.
No. 1638. Moses B. Nierenberg, 43 West 33rd St., New York
City, trading as Dundee Knitting Co., manufacturing knitted
outerwear, consisting of sweater coats, ribbed coats, bathing suits
and other articles, will cease using the words “Jersey City, N. J.,”
and “Newark, N. J.,” in connection with the word “Mills,” im¬
plying that the respondent has a factory in either of these cities,
when this is not true. The stipulation points out that the re¬
spondent’s products are made in Brooklyn.
No. 1639. Trading as The Church Merchant Laboratories,
1619 North Bailey St., Philadelphia, Eddie Adair and Cornelius
Henney, co-partners, selling a product called “Lady-Luck,” agree
to discontinue representing that use of this article will prevent
runs, snags and breaks in hosiery, rayons, silk, chiffon and lingerie,
or that its use makes the fabrics treated therewith proof against
all spot-producing materials or makes the colors fast. The re¬
spondents agree to ban use of the word “Laboratories” as part
of their trade name, when, in fact, they do not own, control or
operate a laboratory.
No. 1640. Dextora Company, 600 North White River Park¬
way, Indianapolis, manufacturing malt and health food products,
agrees not to employ on labels or other advertisements, the words
“Malt Syrup,” to designate products not made entirely from
malted barley. The respondent also will discontinue describing
a product not composed wholly of barley malt flavored with
hops, by means of the following assertions: “100% Pure,” “Un¬
adulterated,” “Made from selected barley malt and choicest
Oregon hops,” and “Wizard Malt Syrup is a concentrated extract
of pure barley malt flavored from the juice of the choicest selected
Oregon hops.” The expression “Triple Strength” will not be em¬
ployed in representing malt products not of triple strength.
No. 2116. The Goodyear Tire and Rubber Company, of
Akron, Ohio, its subsidiaries and their officers, agents, etc., are
directed to cease and desist from discriminating in price between
Sears, Roebuck & Co., and the respondent Goodyear’s retail
dealer customers by selling automobile tires to the said Sears,
Roebuck & Co. at net realized prices which are lower than the
net realized prices at which the said respondent sells the same
sizes of tires of comparable grade and quality to individual tire
dealers or other purchasers.
In arriving at the said net realized prices, the order requires
the respondent to “take into account and make due allowance,
and only due allowance, for differences in the cost of transportation
and selling tires to individual tire dealers on the one hand and
Sears, Roebuck & Co. on the other.” The order concludes by
stating that nothing therein “shall restrict the respondent’s lib¬
erty to remove the discrimination either by increasing its price
to Sears, Roebuck & Co., or by lowering its price to its other
customers.”
No. 2474. United Distilling Co., 216 East Pearl St., Cin¬
cinnati, has been ordered to discontinue representing that it is a
distiller of the whiskies, gins and other spirituous beverages it
sells in interstate commerce.
Under the order, the respondent is directed to cease and desist
from representing, through use of its corporate name on sta¬
tionery, in advertising, on labels of bottles, or in any other way,
that its beverages are manufactured through the process of dis¬
tillation, or that it owns or operates a plant where such beverages
are distilled, until it actually does own and operate a plant for
such purposes.
No. 2682. Sessions Clock Co., Forestville, Conn., has been
ordered to discontinue certain unfair methods of competition in
the sale of its products.
The company is directed to stop representing directly or by
implication in catalogues, advertising matter, or on labels, that
the cases of clocks made and sold by it are mahogany, when
not made from wood derived from trees of the mahogany family.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, March 16
HEARING BEFORE AN EXAMINER
(Broadcast)
WSMB — WSMB, Inc., New Orleans, La. — Renewal of license,
1320 kc., 500 watts, 1 KW LS, unlimited time.
Tuesday, March 17
HEARING BEFORE AN EXAMINER
(Broadcast)
WAIM — Wilton H. Hall, Anderson, S. C. — C. P., 590 kc., 250 watts,
1 KW LS, unlimited time. Present assignment: 1200 kc.,
100 watts, unlimited time.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Modifica¬
tion of license, 580 kc., 1 KW, unlimited time. Present as¬
signment: 580 kc., 250 watts, unlimited time.
Wednesday, March 18
HEARING BEFORE AN EXAMINER
(Broadcast)
WHBI — May Radio Broadcast Corp., Newark, N. J. — Modification
of license, 1250 kc., 1 KW, 5 KW LS, share with WNEW.
Present assignment: 1250 kc., 1 KW, 2 y2 KW LS, shares
with WNEW.
NEW — Carl S. Taylor, Dubois, Pa. — C. P., 780 kc., 250 watts,
daytime.
Thursday, March 19
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Eugene DeBogory, tr/as Dallas Radio Research Engineers,
Dallas, Tex. — C. P., 1570 kc., 1 KW, unlimited time.
1244
NEW — Gulf Coast Broadcasting Co., Corpus Christi, Tex. — C. P.,
1330 kc., 250 watts, 500 watts LS, unlimited time.
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-159:
NEW— Robert E. Cole, d/b as Washington Broadcasting Co.,
Washington, Pa. — C. P., 1330 kc., 250 watts LS, daytime
(facilities of WNBO).
Examiner’s Report No. 1-160:
WADC — Allen T. Simmons, Tallmadge, Ohio. — C. P., 1320 kc.,
1 KW, 5 KW LS, unlimited time. Present assignment: 1320
kc., 1 KW, lYz KW LS, unlimited time.
Examiner’s Report No. 1-150
NEW— Clark Standiford, Visalia, Calif.— C. P., 1310 kc., 100 watts,
unlimited time.
Examiner’s Report No. 1-96:
NEW— Charles C. Theis, Wichita, Kans.— C. P., 1210 kc., 100 watts,
unlimited time.
APPLICATIONS GRANTED
WDBJ — Times-World Corp., Roanoke, Va. — Granted C. P. to in¬
stall new equipment, increase day power from 1 to 5 KW,
move transmitter and studio locally in Roanoke.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
Granted C. P. to install new equipment.
WRJN — Racine Broadcasting Corp., Racine, Wis. — Granted modifi¬
cation of C. P. covering changes in equipment, approval of
antenna and transmitter site from Racine to Mt. Pleasant,
Wis.
KBIX— Oklahoma Press Pub. Co., Muskogee, Okla— Granted
modification of C. P. approving transmitter site and studio
in Muskogee, and proposed antenna system.
KWBG — W. B. Greenwald, Hutchinson, Kans. — Granted consent
to voluntary assignment of license to The Nation’s Center
Broadcasting Co., Inc.
WMBR — Florida Broadcasting Co., Jacksonville, Fla.- — Granted
C. P. to make changes in equipment.
WHBL — Press Publishing Co., Sheboygan, Wis. — Granted C. P. to
move station locally and make changes in equipment and
antenna system.
KYA — Pacific Broadcasting Corp., San Francisco, Calif. — Granted
consent to voluntary assignment of license to Hearst Radio,
Inc.
NEW — Ben S. McGlashan, Portable-Mobile and aboard Aircraft
NC-351Y (Los Angeles). — Granted C. P. for general experi¬
mental broadcast pickup service, frequencies 31100, 34600,
37600 and 40600 kc., 10 watts.
NEW — Miss. Valley Broadcasting Co., Inc., Portable-Mobile, East
St. Louis, Ill. — Granted C. P. for general experimental broad¬
cast pickup service, frequencies 31100, 34600, 37600 and
40600 kc., 5 watts.
NEW — Atlantic Broadcasting Corp., Portable-Mobile, New York
City. — Granted C. P. for general experimental broadcast
pickup service, frequencies 31100, 34600, 37600, 40600,
86000-400000, 401000 and above, 50 watts.
NEW — Nichols & Warinner, Inc., Portable-Mobile, Long Beach,
Calif.- — Granted C. P., general experimental broadcast pickup
service, frequencies 3100, 34600, 37600 and 40600 kc., 2
watts.
NEW — WBNS, Inc., Portable, Columbus, Ohio. — Granted C. P. for
broadcast pickup station in temporary service, frequencies
1646, 2090, 2190 and 2830 kc., 20 watts.
NEW — Voice of Longview, Texas, Portable-Mobile. — Granted C. P.,
broadcast pickup, temporary service, frequencies 1622, 2060,
2150 and 2790 kc., 40 watts.
SET FOR HEARING
NEW — Donald A. Wike and H. E. Studebaker, d/b as Wike and
Studebaker, Baker, Ore. — Application for C. P. for new
station, 1370 kc., 100 watts night, 250 watts day, unlimited
time, site to be determined.
KLO — Interstate Broadcasting Corp., Ogden, Utah. — C. P., already
in hearing docket, amended to read: Make changes in equip¬
ment; move transmitter to 3 miles southwest of center of
Kaysville, on Lake Shore near Kaysville, Utah; install direc¬
tional antenna; increase power from 500 watts night and
day to 1 KW night, 5 KW day; extend commencement date
to within 15 days after grant and completion date to within
60 days thereafter.
KWBG — The Nation’s Center Broadcasting Co., Inc., Hutchinson,
Kans. — Application for C. P. to install new equipment; move
transmitter locally, approximately 3 miles; change frequency
from 1420 kc. to 1120 kc.; increase power from 100 watts
to 1 KW.
WJBO — Baton Rouge Broadcasting Co., Inc., Baton Rouge, La. —
Application for C. P. to make changes in equipment; install
approved antenna system; increase night and day power
from 100 to 500 watts, hours of operation from unlimited
to specified hours, requesting facilities of WGCM.
WJAC — WJAC, Inc., Johnstown, Pa. — Application for C. P. to
make changes in equipment; increase day power from 100
watts to 250 watts; move transmitter site locally.
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Application for
C. P. to make changes in equipment; move transmitter from
Augusta, Ga., to Satcher Estate, on edge of the city, North
Augusta, S. C.; increase power from 100 watts night and day
to 250 watts night, 500 watts day; change frequency from
1500 kc. to 1240 kc.
NEW — Foreign Lands Corp., Honolulu, T. H. — Application for
C. P. for new station, 600 kc., 1 KW, unlimited time, site to
be determined.
NEW — The Brockway Co., Watertown, N. Y. — Application for
C. P. for new station, 1270 kc., 250 watts, daytime, site to
be determined.
NEW — Black Hawk Broadcasting Co., Waterloo, Iowa. — Applica¬
tion for C. P. for new station, 1370 kc., 100 watts, un¬
limited time, site to be determined.
NEW — WKY Radiophone Co., Oklahoma City, Okla. — Application
for C. P. for new experimental relay station, frequencies
6020, 9510, 11810, 15170, 17760, 21480 kc., 5 KW night
and day.
NEW — The Farmers & Bankers Life Ins. Co., Wichita, Kans.—
Application for C. P. for new station, 1210 kc., 100 watts,
unlimited time.
NEW — Frank M. Dunham, Fort Dodge, Iowa. — Application for
C. P. for new station, 1210 kc., 100 watts, unlimited.
NEW — Theodore E. Johnson, Houston, Tex. — Application for C. P.
for new station, 1210 kc., 100 watts, unlimited.
KGMB — Honolulu Broadcasting Co., Ltd., Honolulu, T. H. — Con¬
sent to the transfer of control of the Honolulu Broadcasting
Co., Ltd. (a Hawaiian corporation, licensee of station KGMB
and permittee station KHBC), to the Pacific Theatres &
Supply Co., Ltd. (also a Hawaiian corporation).
NEW — Winona Radio Service, a partnership, Winona, Minn. —
Application for C. P. for new station, transmitter and studio
site to be determined with Commission’s approval; 1200 kc.,
100 watts, unlimited.
NEW — Earl Weir, St. Petersburg, Fla. — Application for C. P. for
new station, 1370 kc., 100 watts, unlimited.
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. No. 1-189: Golden Empire Broadcasting Co.,
Sacramento, Calif. — Oral argument granted to be held April
30, 1936.
NEW — Royal Miller, Sacramento, Calif. — Oral argument granted
to be held April 30, 1936.
WTFI — Ex. Rep. No. 1-195: Liberty Broadcasting Co., Athens,
Ga. — Oral argument granted to be held April 16, 1936.
NEW — Ex. Rep. No. 1-196: V. H. Lake and H. E. Stanford, L & S
Broadcasting Co., Atlanta, Ga. — Oral argument granted to
be held April 16, 1936.
ACTION ON EXAMINERS’ REPORTS
KID — Ex. Rep. No. 1-143: KID Broadcasting Co., Inc., Idaho Falls,
Idaho. — Granted C. P. to move transmitter, and increase
power from 250 watts night, 500 watts day, to 500 watts
night, 1 KW day; 1320 kc., unlimited time. Examiner R. L.
Walker sustained in part. Order effective May 19, 1936.
NEW — Ex. Rep. No. 1-146: William S. Thellman, New Castle, Pa. —
Denied C. P. for new station to operate on 1420 kc., 100
watts, daytime. Examiner M. H. Dalberg sustained. Order
effective May 26, 1936.
NEW — Ex. Rep. No. 1-178: E. L. Clifford, Pottsville, Pa. — Denied
C. P. for new broadcast station to operate on 580 kc., 250
watts, daytime. Examiner M. H. Dalberg sustained. Order
effective May 26, 1936.
1245
WJAS— Ex. Rep. No. 1-190: Pittsburgh Radio Supply House,
Pittsburgh, Pa. — Granted modification of C. P. to increase
day power from 2l/2 KW to 5 KW, 129(1 kc.; 1 KW night,
5 KW day, unlimited time. Examiner R. L. Walker sus¬
tained. Order effective May 19, 1936.
NEW — Ex. Rep. No. 1-194: Geo. E. Carter, Homer G. Wolfe and
Clara I. Knight, d/b as Carter & Wolfe, Mansfield, Ohio.- — ■
Denied C. P. for new broadcast station to operate on 1370
kc., SO watts night, 100 watts day, unlimited time (site to
be determined). Examiner R. L. Walker sustained. Order
effective May 19, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KDYL, Salt Lake City; KFBB, Great Falls, Mont.; KFIO,
Spokane, Wash.; KFKU, Lawrence, Kans.; KFOX, Long Beach,
Calif.; KFSG and auxiliary, Los Angeles; KGCA, Decorah, Iowa;
KGGF, Coffeyville, Kans.; KGHL, Billings, Mont.; KHSL, Chico,
Calif.; KLCN, Blytheville, Ark.; KOIN, Portland. Ore.; KOL,
Seattle, Wash.; KPAC, Port Arthur, Tex.; KQW, San Jose, Calif.;
KRGV, Weslaco, Tex.; KRKD and auxiliary, Los Angeles; KROW,
Oakland, Calif.; KRSC, Seattle, Wash.; KWLC, Decorah, Iowa;
WBRC, Birmingham, Ala.; WCAD, Canton, N. Y. ; WCAL, North-
field, Minn.; WCSH, Portland, Maine; WDAE, Tampa, Fla.;
WDEL, Wilmington, Del.; WDOD, Chattanooga, Tenn. ; WDSU,
New Orleans, La.; WPBM, Indianapolis, Ind. ; WHA, Madison,
Wis.; WIS, Columbia, S. C.; WKAQ, San Juan, P. R.; WLB,
Minneapolis, Minn.; WMAC, Boston, Mass.; WNBZ, Saranac Lake,
N. Y.; WORC, Worcester, Mass.; WREN, Lawrence, Kans.; WRR,
Dallas, Tex.; WTAW, College Station, Tex.; WTCN, Minneapolis,
Minn.; WXYZ, Detroit, Mich.
MISCELLANEOUS
KXL — KXL Broadcasters, Portland, Ore. — Granted order to take
depositions in re application for renewal of license.
WBNX — Standard Cahill Co., Inc., New York City. — Granted oral
argument on April 16, 1936, on application for C. P. to install
new equipment, move transmitter, and increase power from
250 watts to 1 KW.
NEW — Plain Dealer Pub. Co., and Monroe F. Rubin and Ruth
Rubin. — Denied petition requesting Broadcast Division to
hear application for transfer of control of WHK and WJAY
to the U. B. Company instead of to an examiner.
WHBI — May Radio Broadcast Corp., Newark, N. J. — Granted con¬
tinuance of hearing, set for March 18, 1936, on application
for increased daytime power from 2J4 to 5 KW.
WAAW — Omaha Grain Exchange, Omaha, Nebr. — Denied motion
to reconsider and grant application to assign license to
Nebraska Broadcasting Co. Case to proceed to hearing as
heretofore ordered.
L & S Broadcasting Co., Atlanta, Ga. — Granted request that oral
argument on its application for a C. P. to erect new radio
station at Atlanta be consolidated with oral argument on
application of WTFI to move station from Athens to Atlanta.
KDYL— Intermountain Broadcasting Corp., Salt Lake City. — Sus¬
pended grant made February 13 to install new equipment,
to make local move, and increase day power to 5 KW, and
set application for hearing on protest of KLO, Ogden, Utah.
Metro Broadcasting Co., Los Angeles, Calif. — Remanded to docket
for purpose of receiving certain documentary evidence and
for taking further testimony.
G. D. Goff, Tampa, Fla. — Granted oral argument, before Broadcast
Division on March 26, 1936, on application for C. P. to erect
new radio station at Tampa to operate on 1500 kc., 100
watts, unlimited.
Dorrence D. Roderick, El Paso, Tex. — In this case concerning the
application for C. P. for new station to operate on 1500 kc.,
100 watts, unlimited time, the Broadcast Division, upon its
own motion, reconsidered its action of February 21, 1936, in
granting the application and designated the same for hearing.
(Action taken March 3, 1936.)
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
NEW — Springfield Newspapers, Inc., Springfield, Mo. — Applied for
C. P., 790 kc., 1 KW, daytime.
NEW — Voice of Black Hills, Rapid City, S. Dak. — Applied for
C. P. for new station, 1200 kc., 100 watts, specified hours.
WWRL — Long Island Broadcasting Corp., Woodside, L. I., N. Y. — ■
Applied for modification of license, 1500 kc., 100 watts, 250
watts LS, specified hours (to change specified hours).
KFOX — Nichols & Warinner, Inc., Long Beach, Calif. — Applied foi
voluntary assignment of license, 1250 kc., 1 KW, unlimited
WEST — Associated Broadcasters, Inc., Easton, Pa. — Applied for
modification of C. P., 1200 kc., 100 watts, 250 watts LS,
unlimited day, shares WKBO night.
NEW — R. C. Coshorn and Lester E. Cox, d/b as Capitol Broad¬
casting Co., Jefferson City, Mo. — Applied for C. P., 920 kcn
500 watts, daytime.
APPLICATION DENIED
The Ohio Broadcasting Co., Canton, Ohio. — Denied special tempo¬
rary authority to operate station WHBC pending action on
application for assignment of license and C. P. from Edward
P. Graham to the Ohio Broadcasting Co., but for a period not
to exceed 30 days.
APPLICATIONS RECEIVED
First Zone
WMCA — Knickerbocker Broadcasting Co., Inc., New York, N. Y. — -
570 Modification of license to increase power from 500 watts to
1 KW day and night.
WHN — Marcus Loew Booking Agency, New York, N. Y. — License
1010 to cover construction permit (Bl-P-336) for changes in equip¬
ment and increase in day power.
WHN — Marcus Loew Booking Agency, New York, N. Y. — License
1010 to use old W.E. 304-A (1-KW) transmitter as an auxiliary
transmitter.
WHN — Marcus Loew Booking Agency, New York, N. Y. — Author-
1010 ity to determine operating power by direct measurement of
antenna.
WEVD — Debs Memorial Radio Fund, Inc., New York, N. Y. —
1300 Modification of license to change frequency from 1300 kc.
to 1400 kc. and hours of operation from share-WBBR,
WFAB and WHAZ to unlimited time, facilities of WBBC,
WLTH, WARD and WVFW. Amended to install directional
antenna.
WBNY — Roy L. Albertson, Buffalo, N. Y. — License to cover con-
1370 struction permit (Bl-P-402) as modified for new station to
be operated on 1370 kc., 100 watts, 250 watts day, all hours
except those assigned to WSVS.
WILH — Merrimac Broadcasting Co., Inc., Lowell, Mass. — Special
1370 experimental authorization for a “satellite” station to be
operated on 1370 kc., 10 to 100 watts day and night, un¬
limited time, site to be determined, Lawrence, Mass., to be
operated in addition to WLLH in Lowell, Mass., and syn¬
chronously with WLLH, for period to 7-1-36.
WBBC — Brooklyn Broadcasting Corp., Brooklyn, N. Y. — Modifica-
1400 tion of license to change hours of operation from share-
WLTH, WCGU and WFOX to share-WITH. Requests
facilities of WARD and WFOX. Amended to change hours
of operation from share- WLTH to unlimited time. Requests
facilities of WARD, WLTH and WVFW.
WHEC — WHEC, Inc., Rochester, N. Y. — Modification of construc-
1430 tion permit (Bl-P-819) for new equipment and move of
transmitter to further request move of transmitter from 183
Main Street, E. Rochester, N. Y., to Mt. Read Blvd., y2 mile
north of Lyell Avenue, Rochester, N. Y., and antenna
changes. Also extend commencement and completion dates
60 days and 6 months, respectively.
NEW — The Ogdensburg Publishing Co., Inc., Ogdensburg, N. Y. —
1500 Construction permit for a new station to be operated on
1500 kc., 100 watts, unlimited time.
Second Zone
NEW — W. H. Marolf, Escanaba, Mich. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, un¬
limited time.
Third Zone
NEW- — J. R. Maddox and Dr. W. B. Hair, d/b as Chattanooga
590 Broadcasting Co., Chattanooga, Tenn. — Construction permit
for a new station to be operated on 590 kc., 1 KW, unlimited
time. Amended to make changes in directional antenna.
WKY — WKY Radiophone Co., Oklahoma City, Okla. — Construc-
900 tion permit to install new equipment; increase power from
1 KW to 5 KW ; move transmitter from West 39th Street
1246
(highway 8 miles west of), Oklahoma City, Okla., to site
to be determined, near Oklahoma City, Okla. Amended to
make antenna changes, change power from 1 KW to 1 KW,
5 KW day, and omit request for move of transmitter.
NEW — Bayou Broadcasting Co., Houston, Tex. — Construction per-
1200 mit for a new station to be operated on 1200 kc., 100 watts,
unlimited time.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — License
1300 to cover construction permit (B3-P-220) as modified to in¬
stall new equipment, increase power, and move transmitter.
W4XH — Virgil V. Evans, d/b as The Voice of South Carolina,
Spartanburg, S. C. — Modification of license to include fre¬
quencies 31600, 35600, 38600 and 41000 kc., and increase
power to SO watts.
Fourth Zone
NEW — Glenn Van Auken, Indianapolis, Ind. — Construction permit
1050 for a new station to be operated on 600 kc., 1 KW, daytime.
Amended to change frequency from 600 kc. to 1050 kc.
NEW — Fred A. Baxter, Superior, Wis. — Construction permit for a
1200 new station to be operated on 1370 kc., 100 watts, unlimited
time. Amended to change frequency from 1370 kc. to
1200 kc.
WCRW — Clinton R. White, Chicago, Ill. — Modification of license
1210 to change specified hours.
NEW — Tribune Printing Co., Jefferson City, Mo. — Construction
1310 permit for a new station to be operated on 1310 kc., 100
watts, daytime.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
1310 Consent to transfer control of corporation from Anna H.
McConnell and Hugh R. Brown to Clark Standiford and
Kate S. Fisher, 548 shares of common stock.
NEW — Stanley Reid and Charles Withnell Boegel, Jr., d/b as The
1310 Rapids Broadcast Co., Cedar Rapids, Iowa. — Construction
permit for a new station to be operated on 1310 kc., 100
watts, unlimited time. Amended to add to name, d/b as
The Rapids Broadcast Co.
NEW — Albert Lea Broadcasting Corp., Albert Lea, Minn. — Con-
1370 struction permit for a new station to be operated on 1370 kc.,
100 watts, unlimited time. Amended to change frequency to
1200 kc.
NEW — Albert Lea Broadcasting Corp., Albert Lea, Minn. — Con-
1370 struction permit for a new station to be operated on 1200 kc.,
100 watts, unlimited time. Amended to change frequency
from 1200 kc. to 1370 kc.
WIBC — Donald A. Burton, Muncie, Ind. — Modification of con¬
struction permit (B4-P-248) for equipment changes and in¬
crease in power, to further request changes in transmitting
equipment and antenna.
W9XHC — Kansas State College of Agriculture and Applied Science,
Portable-Mobile. — License to cover construction permit for
a new general experimental station.
Fifth Zone
KFKA — The Mid-Western Radio Corp., Greeley, Colo. — Modifica-
880 tion of license to increase power from 500 watts, 1 KW day,
to 1 KW night and day.
KFBB — Buttrey Broadcast, Inc., Great Falls, Mont. — Construction
900 permit to make changes in equipment ; increase power from
1 KW, 2)4 KW day, to 1 KW, 5 KW day; change frequency
from 1280 kc. to 900 kc.; and move transmitter from 5
miles south of town on 13th St., Great Falls, Mont., to site
to be determined, south of Great Falls, Great Falls, Mont.
Requests facilities of KSEI and suggests that KSEI be as¬
signed 1280 kc.
NEW— W. C. Miner, Rock Springs, Wyo. — Construction permit
1310 for a new station to be operated on 950 kc., 500 watts,
limited time. Amended to change frequency from 950 kc.
to 1310 kc., power from 500 watts to 100 watts, hours of
operation from limited to daytime, giving studio site as 600
block Dewar Drive, Rock Springs, Wyo., and transmitter
site as South West, below town, Rock Springs, Wyo.
NEW — H. L. Corley, Trinidad, Colo. — Construction permit for a
1370 new station to be operated on 1370 kc., 100 watts, unlimited
time.
KVOE — The Voice of The Orange Empire, Inc., Ltd., Santa Ana,
1500 Calif. — Consent to transfer control of corporation from Estate
of J. S. Edwards, deceased, to J. S. Edwards, Inc., 300 shares
common stock.
NEW — Ellwood W. Lippincott, Pendleton, Ore. — Construction per-
1500 mit for a new station to be operated on 1500 kc., 100 watts,
daytime. Amended to change hours of operation from day¬
time to unlimited, using 100 watts.
NEW — J. W. Plame, Huntington Park, Calif. — Construction permit
1500 for a new station to be operated on 850 kc., 100 watts, un¬
limited time. Requests frequency of KIEV. Amended to
change frequency from 850 kc. to 1500 kc., omit request for
KIEV’S frequency and request frequency of KVOE, give
studio site as 6221 Pacific Blvd, Huntington Park, Calif.
KABF — James McClatchy Co., Portable. — License to cover con¬
struction permit for a new broadcast pickup station.
W6XKF — Ben S. McGlashan, Portable-Mobile. — License to cover
construction permit for a new general experimental station.
1247
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The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright, 1936. Tha National Association of Broadcasters
Vol. 4 - - No. 14
MARCH 19, 1936
IN THIS ISSUE
Page
Duffy Bill Hearings . 1249
Warner Brothers Licenses . 1249
Recommends New Illinois Station . 1249
Brooklyn Cases Again Postponed . 1249
Increase Power Recommended for KVSO . 1249
Sign with Warner Brothers . 1249
Ads Not Taxable by States . 1249
Denial Recommended for Power Increase . 1250
New Alabama Station Recommended . 1250
Recommends New California Station . 1250
More Warner Brothers Suits . 1250
New Quota Facilities Assigned . 1250
Federal Trade Commission Action . 1252
Federal Communications Commission Action . 1255
DUFFY BILL HEARINGS
Hearings on the Duffy Copyright Bill S. 3047 before the House
Patents Committee continue. The NAB appeared before the Com¬
mittee Tuesday (17) and had not completed its testimony when
this Report went to press. A report covering testimony offered
in support of the Bill will Ibe furnished for the information of
members.
WARNER BROTHERS LICENSES
The Managing Director next week will confer with Herman
Starr of Warner Brothers with reference to the expiration of the
MPHC licenses March 31st.
Delayed by hearings on the Duffy Copyright Bill in personally
participating in earlier negotiations Mr. Baldwin requested an
Advisory Committee consisting of H. K. Carpenter, Walter Damm,
John Gillin, Jr., broadcasters, and Philip G. Loucks, attorney, to
confer with Mr. Starr last week. This Committee reported that
Warner Brothers have been unable so far, from data submitted to
stations, to arrive at any basis upon which to predicate a per-
piece plan of licensing stations on and after April 1, 1936. Mr.
'Starr advised the Committee that the present method (based on
the highest quarter hour rate) was not working out satisfactorily,
since a number of inequalities had been discovered as a result of
the practice of many stations publishing national or general rates
much higher than those at which time is generally sold. The
basis for future licenses, Mr. Starr said, should be the local or
retail quarter-hour rate which might result in a higher multiplier
being applied.
Mr. Starr also advised the Committee that pending the receipt
of complete local or retail rate information on NAB stations from
the Association it would be impossible to commit Warner Brothers
to any material change in the present method of figuring station
license fees.
Regarding per-piece, Mr. Starr advised the Committee that as
long as stations bought a large amount of music on the flat fee
system Warner Brothers would never consent to a per-piece plan
which did not include a minimum guarantee, or minimum use which
would yield a total amount commensurate with their estimate of
the value of Warner Brothers catalogues.
In the event he is unable to establish a revised basis for li¬
censing, before April 1, Mr. Starr said he would offer stations an
extension of probably one month, on the terms now in force.
In a telephone conversation with Mr. Starr since the Advisory
Committee made their report the Managing Director was informed
that the Warner Brothers had no intention whatever of returning
to the ASCAP.
The Managing Director is endeavoring to furnish complete in¬
formation to Warner Brothers with respect to local or retail rates
and will pursue the negotiations to determine the best terms avail¬
able after April 1.
RECOMMENDS NEW ILLINOIS STATION
Champaign News-Gazette, Inc., filed an application with the
Federal Communications Commission asking for a construction
permit for a new broadcasting station to be located at Champaign,
Ill., to use 1370 kilocycles, 100 watts power and unlimited time.
Examiner George H. Hill in Report No. 1-207 recommends that
the application be granted in part, “authorizing the applicant to
operate said station during daytime hours only, and that the re¬
quest for nighttime hours of operation be denied.”
The Examiner states that granting the application for daytime
hours would not cause any interference but nighttime hours would
cause objectionable interference. “There is a need in the Cham¬
paign area for the services of a radio station broadcasting local
programs, and there is adequate local talent in the area to supply
the needs of such a station.”
BROOKLYN CASES AGAIN POSTPONED
The Federal Communications Commission has announced that
hearings in the so-called Brooklyn cases has been postponed until
May 7. There have been several changes in the program for hear¬
ing these cases.
INCREASE POWER RECOMMENDED FOR KVSO
Broadcasting Station KVSO, Ardmore, Okla., has filed an appli¬
cation with the Federal Communications Commission asking that
its power be increased from 100 watts to 100 watts and 250 watts
LS. Also that its hours of operation be increased from daytime
to unlimited. The station now operates on a frequency of 1210
kilocycles and no change is asked.
Examiner R. H. Hyde, in Report No. 1-206, recommends that
the power increase be granted but that the increase in hours of
operation be denied. The Examiner found that there is need in
the Ardmore area for such improvement as would be made by
increasing the station’s power and this would not increase inter¬
ference. It was found, however, that operation of the station
during the nighttime hours would cause objectionable interference.
SIGN WITH WARNERS
The following broadcasting stations have signed Warner
Brothers contracts in addition to those already announced:
WAGM, WCBM, WSIX, KROW, KPDN, KMTR, WGPC,
WRBL, and WATL.
ADS NOT TAXABLE BY STATES
National advertising is interstate commerce and is not subject
to a state sales tax, State District Judge M. A. Otero, Jr., ruled
in a decision given at Santa Fe, New Mexico, February 15.
The decision came as the result of a suit filed by Western Live
Stock, a monthly live stock magazine published at Albuquerque,
against the New Mexico Bureau of Revenue. Attorney General
Frank Patton filed notice of appeal to the State Supreme Court.
Although Western Live Stock was the only publication appear¬
ing in the suit, several daily and weekly newspapers were support¬
ing the suit financially, and only the day before the decision the
New Mexico Press Association had officially endorsed the stand
taken by the magazine and had assessed members of the organi¬
zation for funds with which to carry on the contest.
The tax is generally regarded as a sales tax, although it was
enacted as an excise tax for support of the state’s schools. Sev¬
eral publications have contended that the state has in effect recog¬
nized it as a sales tax by issuing tax tokens, which are given in
1249
exchange by consumers for the amount of tax on purchases. Re¬
tail establishments have thus been able to pass the tax on to con¬
sumers. Newspapers have collected from local and state adver¬
tisers the amount of the tax, but have had to absorb the tax on
national advertising. Many of the state’s publishers have paid
the latter under protest, some contending that it was not only
unconstitutional but that it amounted to a tax on gross income.
DENIAL RECOMMENDED FOR POWER
INCREASE
Broadcasting Station WEAN, Providence, R. I., applied to the
Federal Communications Commission for a power increase from
500 to 100 watts, that it be allowed to move its transmitter, and
asked for authority to install new equipment. It operates on a
frequency of 780 kilocycles.
Examiner John P. Bramhall in Report No. 1-205 has recom¬
mended that the application be denied. The Examiner found that
the area proposed to be served by the changed location is already
receiving ample radio service and some slight interference might
be caused.
NEW ALABAMA STATION RECOMMENDED
James R. Doss, Jr., applied to the Federal Communications
Commission for a construction permit for a new broadcasting
station to be located at Tuscaloosa, Ala., using 1200 kilocycles,
100 watts power and daytime operation only.
Examiner John P. Bramhall in Report No. 1-208 recommended
that the application be granted. The Examiner states that there
is need for additional daytime service in the area proposed to be
served and that therefore granting of the application would be
in the public interest.
RECOMMENDS NEW CALIFORNIA STATION
The Valley Electric Company filed an application with the
Federal Communications Commission asking for a construction
permit for a new station to be located at San Luis Obispo, Cal.,
to use 1200 kilocycles, 250 watts power and daytime operation.
Also the E. E. Long Piano Company filed an application with
the Commission asking for a construction permit for the same
place to use the same frequency with 100 watts power and un¬
limited time.
Examiner George H. Hill in Report No. 1-204 recommended
that the application of the Valley Electric Company be granted
and that of the E. E. Long Piano Company be denied. He found
that there is need for local broadcasting at San Luis Obispo and
that granting of the application of the electric company for
daytime service would not cause any objectionable interference
with any existing or proposed station. On the other hand the
Examiner found that granting of the piano company’s application
would cause nighttime interference to the service area of Station
KGFJ, Los Angeles. He therefore recommends that the applica¬
tion of the electric company be granted and the piano company
be denied.
MORE WARNER BROTHERS SUITS
Official announcement has been made by Warner Brothers that
they have begun additional suits against radio stations, hotels,
night clubs and restaurants based on alleged infringement of song
copyrights owned by them.
The twenty-one latest suits filed include seventeen against radio
stations KSCJ, KTRH, WHAS, KVOR, WBRC, WALA, KLRA,
WSBT, WREC, WCAO, WBT, KWKH, WQAM, WFBL, WSJS.
WWL and WJR for the alleged infringement on January 23rd
of “That Old Fashioned Mother of Mine.” The suits are being
brought by Harms, Inc., publishers of the song, and damages of
$5,000 are being sought from each of the seventeen stations.
Harms is also seeking $5,000 damages from Station KWKH for
alleged infringement on February 17th of the song entitled “Three
Little Words.” Remick Music Corp., another Warner music pub¬
lishing subsidiary, is bringing suit against Station WOCL, James¬
town, N. Y., for the alleged infringement on February 26th of
“Whistle and Blow Your Blues Away,” demanding $250 damages
therefor. M. Witmark & Sons is also bringing suit against WOCL,
for the alleged infringement of “The Words Are In My Heart”
on February 26th, for which also $250 damages are sought. Wit-
marks have also filed an action against WSOC, Charlotte, N. C.,
for the alleged infringement on February 23rd of Victor Herbert’s
“Gypsy Love Song.” Damages of $250 are sought from WSOC.
Actions have also been filed in the following cases:
Harms, Inc., vs. 34th St. Hotel Corporation (Hotel McAlpin)
on the number “Sleepy Valley.”
Harms, Inc. vs. Realty Hotels, Inc. (Hotel Biltmore) on the
numbers “April in Paris,” “The Continental,” “Blow Gabriel
Blow,” “Why Shouldn’t I” and “The Blue Room.”
Harms, Inc. vs. 870 Seventh Ave. Corp. (Hotel Park Central)
on the numbers “Why Shouldn’t I,” “Dancing in the Dark” and
“I Get A Kick Out of You.”
Harms, Inc. vs. Milnag Leasing Corp. (Hotel Edison) on the
songs “I Get A Kick Out of You” and “Anything Goes.”
Harms, Inc. vs. MacFayne Corp. (Leon & Eddie’s) on the song
“Where Am I.”
Harms, Inc. vs. The Famous Door on the song “Why
Shouldn’t I.”
M. Witmark & Sons vs. 151 East 50th Street Restaurant Corp.
on the song “When Irish Eyes Are Smiling.”
Remick Music Corp. vs. Hotel St. George Corp. on the song
“Chinatown My Chinatown.”
Remick Music Corp. vs. Connie’s Management Corp. (Connie’s
Inn) on the song “Nagasaki.”
Remick Music Corp. vs. Chin Restaurant Corp. (Chin’s Chinese
Restaurant) on the song “Sweet Georgia Brown.”
An injunction and $250 damages, plus an accounting of profits,
are sought on each song.
1. Harms, Inc. vs. 58-59 Realty Corporation (Hotel Essex
House) for the use of the song “Suddenly.”
2. Harms, Inc. vs. Hotel Astor, Inc. for the use of the song
“The Blue Room.”
3. Harms, Inc. vs. Roosevelt Hotel, Inc., for .the use of the
songs “Dancing in the Dark” and “Night and Day.”
4. Harms, Inc. vs. Childs Company, Inc., for the use of the
song “Where Am I?”
5. Harms, Inc. vs. New York Ambassador, Inc. (Ambassador
Hotel) for the use of the songs “The Continental,” “Night and
Day” and “Begin the Beguine.”
In all of the restaurant and hotel actions damages of $250 for
the alleged infringing use of each song and an accounting of the
profits are demanded.
In addition to the suits filed against hotels and restaurants,
Remick Music Corp., M. Witmark & Sons and Harms, all Warner
music subsidiaries, have filed through correspondent attorneys the
following suits:
Harms, Inc. vs. Central Texas Broadcasting Co., operating
Station WACO; Harms, Inc. vs. Wichita Falls Broadcasting Co.,
operating Station KGKO; Harms, Inc. vs. WDOD Broadcasting
Corp., operating Station WDOD; and Harms, Inc. vs. Savannah
Broadcasting Corp., operating Station WTOC, all of whom are
alleged to have infringed on the song “That Old Fashioned Mother
of Mine” and from each of whom $5,000 damages are demanded.
Remick Music Corp. vs. May Radio Broadcasting Corp., op¬
erating Station WHBI, for the alleged infringement of “Kentucky
Days,” for which $250 damages are demanded.
M. Witmark & Sons vs. WWL Development Company, Inc.,
operating Station WWL, for the alleged infringement of “Let’s
Have Breakfast in Bed,” for which $5,000 damages are demanded.
Harms, Inc. vs. Charles C. Carlson, operating Station WJBW,
demanding $1,750 damages for the alleged infringement of “Three
Little Words,” “Let’s Put Out The Lights,” “I’m One of God’s
Children,” and “Lost My Rhythm, Lost My Music, Lost My
Man.”
Harms, Inc. vs. WWL Development Company, Inc., operating
Station WWL, for the alleged infringement of “Let’s Put Out
The Lights,” for which $5,000 damages are demanded.
Remick Music Corp. vs. Main Auto Supply Co., operating Sta¬
tion WOWO, for the alleged infringement of “It Had To Be
You,” “The Japanese Sandman” and “Breezin’ Along With The
Breeze,” for which $15,000 damages are demanded.
Harms, Inc. vs. W. D. S. U., Inc., operating Station WDSU,
for four alleged infringements of “I’m Just An Ordinary Hu¬
man,” for which $5,000 damages are demanded.
Harms, Inc. vs. Adelphia Hotel Co., Philadelphia, operating
Cafe Marguery, for the alleged infringements of “The Girl Friend”
and “Night and Day,” for each of which $250 damages are de¬
manded.
NEW QUOTA FACILITIES ASSIGNED
The Federal Communications Commission has announced the
following quota facilities due and assigned to broadcast stations
as of March 14.
1250
First Zone — Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Conn .
.. 2.13
1.92
— 0.21
— 10
Del .
. . 0.32
0.20
— 0.12
— 38
D. C .
. . 0.64
0.60
— 0.04
— 6
Maine . . .
. . 1.06
0.99
— 0.07
— 7
Md .
. . 2.16
1.98
— 0.18
— 8
Mass. . . .
. 5.63
5.51
— 0.12
— 2
N. H. ...
. . 0.62
0.43
— 0.19
— 31
N. J .
. . 5.36
4.105
— 1.255
— 23
N. Y .
. . 16.69
18.53
+ 1.84
+ 11
R. I .
. . 0.91
1.10
+ 0.19
+ 21
Vt .
. . 0.48
0.56
4 0.08
4 17
Total
36.00
35.925
— 0.075
— 0
First Zone-
— Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Conn .
. . 3.85
3.44
— 0.41
— 11
Del .
.. 0.57
0.33
— 0.24
— 42
D. C. ...
.. 1.16
0.90
— 0.26
— 22
Maine . . .
.. 1.91
1.42
— 0.49
— 26
Md .
. . 3.91
4.10
+ 0.19
+ 5
Mass .
. . 10.17
7.35
— 2.82
— 28
N. H. ...
. . 1.11
0.80
— 0.31
— 28
N. J .
. . 9.67
5.055
— 4.615
— 48
N. Y .
. . 30.14
21.81
— 8.33
— 28
R. I .
. . 1.65
1.20
— 0.45
— 27
Vt .
. . 0.86
0.86
— 0.00
— 0
Total
65.00
47.265
—17.735
— 27
Second Zone-
— Night
State
Due
Assigned
Units
Over or Under
Percent
Over or Under
Ky .
. . 3.38
3.95
+ 0.57
4 17
Mich. . . .
.. 6.25
5.25
— 1.00
— 16
Ohio ....
. . 8.58
9.83
+ 1.25
+ 15
Pa .
. . 12.43
12.38
— 0.05
— 0
Va .
. . 3.13
4.65
+ 1.52
+ 49
W. Va. . .
. . 2.23
2.19
— 0.04
— 2
Total
36.00
38.25
+ 2.25
+ 6
Second Zone — Day
State
Due
Assigned
Units
Over or Under
Percent
Over or Under
Ky .
. . 6.10
4.25
— 1.85
— 30
Mich. . . .
.. 11.28
7.09
— 4.19
— 37
Ohio ....
. . 15.50
12.41
— 3.09
— 20
Pa .
. . 22.45
14.95
— 7.50
— 33
Va .
. . 5.64
6.54
+ 0.90
+ 16
W. Va. . .
. . 4.03
4.30
+ 0.27
+ 7
Total
65.00
49.54
—15.46
— 24
Third Zone-
—Night
State
Due
Assigned
Units
Over or Under
Percent
Over or Under
Ala .
. . 3.32
2.65
— 0.67
— 20
Ark .
. . 2.32
2.77
+ 0.45
+- 19
Fla .
1 .84
3.65
4 1.81
+- 98
Ga .
. . 3.64
4.46
+ 0.82
4 22
La .
. . 2.63
5.40
4 2.77
+105
Miss .
. . 2.52
1.32
— 1.20
— 48
N. Car. . .
. . 3.97
4.45
+ 0.48
+ 12
Okla .
. . 3.00
3.51
+ 0.51
+ 17
S. Car. . .
.. 2.18
1.30
— 0.88
— 40
Tenn .
. . 3.28
6.05
4 2.77
+ 84
Texas . . . .
7.30
11.14
+ 3.84
+ 53
Total
36.00
46.70
+ 10.70
+ 30
Third Zone — Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ala .
5.99
4.60
— 1.39
— 23
Ark .
4.19
4.95
+ 0.76
+ 18
Fla .
3.32
5.30
+ 1.98
+ 60
Ga .
6.58
5.20
— 1.38
— 21
La .
4.75
5.60
+ 0.85
+ 18
Miss .
4.55
2.42
— 2.13
— 47
N. Car .
7.17
4.85
— 2.32
— 32
Okla .
5.42
5.30
— 0.12
— 2
S. Car .
3.93
2.70
— 1.23
— 31
Tenn .
5.92
7.75
+ 1.83
4 31
Texas .
13.18
14.02
+ 0.84
4 6
Total
65.00
62.69
— 2.31
— 4
Fourth Zone-
— Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
in .
10.14
11.41
+ 1.27
4 13
Ind .
4.30
3.64
— 0.66
— 15
Iowa .
3.28
5.50
+ 2.22
4 68
Kansas ....
2.50
2.49
— 0.01
— 0
Minn .
3.41
4.18
+ 0.77
4 23
Mo .
4.82
5.24
+ 0.42
4 9
Nebr .
1.83
2.21
+ 0.38
4 21
N. Dak. . . .
0.90
1.40
4 0.50
+ 56
S. Dak .
0.92
0.86
— 0.06
— 7
Wise .
3.90
3.47
— 0.43
— 11
Total
36.00
40.40
4 4.40
4 12
Fourth Zone — Day
Units
Percent
State
Due
Assigned
Over or U nder
Over or Under
Ill .
18.30
16.77
— 1.53
— 8
Ind .
7.77
6.54
— 1.23
— 16
Iowa .
5.93
8.26
4 2.33
4 39
Kansas ....
4.51
3.77
— 0.74
— 16
Minn .
6.15
5.77
— 0.38
— 6
Mo .
8.70
9.74
4 1.04
4 12
Nebr .
3.30
6.02
4 2.72
+ 82
N. Dak .
1.63
2.10
— 0.47
4 29
S. Dak .
1.66
2.13
+ 0.47
4 28
Wise .
7.05
6.46
— 0.59
— 8
Total
65.00
67.56
+ 2.56
4 4
Fifth Zone-
-Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
1.32
1.37
+ 0.05
4 4
Calif .
17.18
19.67
+ 2.49
4 14
Colo .
3.13
4.16
+ 1.48
4 47
Idaho .
1.35
1.60
+ 0.25
+ 18
Mont .
1.62
2.15
+ 0.52
4 32
Nev .
0.27
0.30
+ 0.03
4 11
N. Mex. . . .
1.28
1.13
— 0.15
— 12
Ore .
2.89
4.12
+ 1.23
4 42
Utah .
1.54
3.30
4 1.76
+ 114
Wash .
4.73
7.53
+ 2.80
4 S9
Wyo .
0.68
0.40
— 0.28
— 41
Total
36.00
46.18
+ 10.18
+ 28
Fifth Zone
— Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
2.38
1.69
— 0.69
— 29
Calif .
31.02
23.65
— 7.37
— 24
Colo .
5.66
5.25
— 0.41
— 7
Idaho .
2.43
2.25
— 0.18
— 7
Mont .
2.94
2.95
+ 0.01
+ o
Nev .
0.49
0.30
— 0.19
— 39
N. Mex. . . .
2.31
2.95
4- 0.64
+ 28
Ore .
5.21
6.19
+ 0.98
4 19
Utah .
2.78
3.30
+ 0.52
4 19
Wash .
8.54
9.65
+ 1.11
4 10
Wyo .
1.24
0.40
— 0.84
— 68
Total
65.00
58.58
— 6.42
— 10
1251
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition,
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued against them.
No. 2737. A complaint alleging unfair competition in connection
with the sale of paint, varnish, enamel and allied products, has been
issued against Davis Paint Co., Inc., 14th and Iron Sts., Kansas
City, Mo., and eight of its subsidiaries.
Berry J. Davis, who is also named as a respondent, according
to the complaint, is president of the Davis Paint Co., Inc., and
is principal stockholder in and directs the policies and operations
of this company and of its subsidiaries, namely, Burlington Paint
Co., W. H. Beard Paint Co., Farm & Home Paint Co., Man¬
chester Paint Corp., New Method Paint Co., Painter’s Paint Co.,
World Star Paint Co., all of Kansas City, Mo., and Robertson
Products Co., Cleveland, Ohio.
The Davis Paint Co., the complaint alleges, manufactures all
the products sold by it and its subsidiaries, but conceals the
fact that it has the controlling interest in the other respondent
corporations, and causes such subsidiaries to be advertised as
manufacturers, when such is not the fact, by using labels on con¬
tainers bearing the corporate name of the particular subsidiary
making the sale, in connection with phrases such as “Direct From
Factory to You.”
No. 2739. Sutton Laboratories, Inc., Chapel Hill, N. C., is
charged in a complaint with unfair competition in the sale of
“Linoil,” offered as a remedy for treating diseases of the feet.
The respondent’s representations, allegedly made in radio broad¬
casts and in advertising matter, to the effect that “Linoil” will
cure eczema, that it is effective in the treatment of athlete’s foot,
ringworm, or other fungus infections of the feet, in all cases, and
that it is an adequate and safe treatment for toe itch of all forms,
are untrue, according to the complaint.
Use of such representations, the complaint alleges, tends to lead
purchasers to believe they can diagnose the foot ailments from
which they suffer, and to purchase the respondent’s products in
such erroneous belief, whereas, the complaint sets forth, only by
a diagnosis by a competent physician can the causes of such
diseases be ascertained and successfully treated.
In advertising matter, the complaint charges, the respondent
represents through use of the word “Laboratories” in its corporate
name that it maintains a laboratory at Durham, N. C., where
“Linoil” is compounded, when the respondent does not operate
a laboratory, but has a post office lock box at Durham and actually
prepares its product in its drug store at Chapel Hill.
Use of the term “Linoil,” it is alleged, implies that linseed oil
is used in the manufacture of the product, when linseed oil is
not present in the preparation.
These misrepresentations, says the complaint, tend to deceive
the purchasing public and divert trade to the respondent from
competitors who truthfully advertise their products.
No. 2740. W. H. Bonifield, Warren, Ind., trading as Chico-
pee Medicine Co., is named respondent in a complaint alleging
unfair competition in connection with the sale of “Chicopee
Native Indian Herbs,” offered as a medicinal preparation.
On coupons, circulars and cartons, the respondent allegedly rep¬
resents that his product relieves liver, stomach and kidney dis¬
orders, lumbago, rheumatism, and other ailments, when, according
to the complaint, the medicine is not a remedy for the ailments
enumerated, and its therapeutic value does not warrant assertions
that it “is a wonderful remedy of nature”; that it “works surely,
safely and quickly”; that it is “the oldest and most reliable
medicine known” and “will improve your health 100 per cent
in a few weeks’ time.” The complaint also alleges that the prod¬
uct contains drugs and is not composed of “Native Indian Herbs.”
No. 2742. Louis Fabrikant, trading as Louis Fabrikant Co.,
450 Seventh Ave., New York City, is charged in a complaint with
unfair methods of competition in the sale of textile fabrics used
in the manufacture of dress goods.
Fabrikant is said to have invented and perfected a fabric made
of brushed tricot knitted rayon and silk having a velvety appear¬
ance, and resembling fabrics made from camel’s hair, for which
he adopted the trademark “Camel Suede.”
Distributing his product to wholesalers and retailers, the re¬
spondent is alleged to have assisted them in phrasing advertise¬
ments which conspicuously displayed the name “Camel Suede,”
so as to serve as a representation to the public that the fabric
was made from camel wool. In many advertisements appeared
the assertion that “Camel Suede is a very soft wool and rayon
mixture with a velvety finish,” according to the complaint.
No. 2743. False representations in advertising are alleged in a
complaint against Justin Haynes & Co., Inc., 347 Fifth Ave.,
New York City, engaged in the sale of “Aspirub,” an ointment
said to contain, among other ingredients, one and one-half per¬
cent of aspirin.
In newspaper advertisements and on labels on jars and cartons,
the respondent allegedly represents that such ointment, due to
its aspirin content, has great therapeutic value; that its use will
accomplish all the beneficial effects of aspirin, and that its external
application is the new way of taking aspirin.
Stipulations
The Commission has issued the following cease and desist
orders:
No. 01097. Trading as Drexel Service Co., Chicago, E. W.
Berry and O. G. Krai, co-partners, selling confections, salted nuts
and other counter display products, agree to stop making un¬
modified representations of earnings in excess of the average earn¬
ings of regular sales-persons under normal conditions.
No. 01100. An individual described as Yogi Kahn, with head¬
quarters in Chicago, trading as Yogi Brothers, engaged in the
sale of cosmetics, incense and other items said to be connected
with Yogi, Hindu, or Eastern mysticism, agrees to stop repre¬
senting that any of his products are imported from either India,
the Holy Land or anywhere in the Orient, or are genuine Hindu
products. The respondent agrees to stop using as part of his
name the terms “Hindu,” “India,” “Yogi,” and other words
tending to mislead prospective purchasers into believing these com¬
modities are compounded or made by a Yogi, or imported from
or composed of ingredients imported from India, the Holy Land,
or the Orient, until such time as this shall be true in fact.
No. 91130. Lewyn Drug, Inc., Hollywood, Calif., selling a
preparation for the relief of certain women’s ailments, agrees to
stop representing that it will safely, quickly and dependably end
these troubles, and that it complies with the Federal Food and
Drug Act. According to medical opinion given the Commission,
the preparation will not accomplish the things claimed for it in
a majority of cases, and would be dangerous to use.
No. 01174. Clark-Wright, Inc., Boston, selling “Thymo Foot
Cream,” agrees to cease advertising that the preparation will
banish or eliminate all foot troubles, and give complete comfort
in cases of aching, painful, burning, itching and swelling feet.
No. 01181. Paul’s Inc., Minneapolis, vendor of “Tarola,”
offered as a combination shampoo and scalp treatment and dan¬
druff preventative, stipulates that it will discontinue representing
the article as a competent treatment or effective remedy for itchy
scalp; that its use will prevent hair from falling; that it is a
competent treatment for dandruff, and other similar allegations.
No. 01191. Burrell-Dugger Co., of Indianapolis, selling
“Group-Over,” a poultry remedy agrees to cease alleging that this
preparation will stop cold epidemics overnight, or end colds in
poultry, or stop wheezing, choking, sneezing, or every sign of a
cold overnight. The respondent, under the stipulation, will cease
representing that it “guarantees” satisfaction.
No. 01101. The Anacin Co., 8134 McCormick Building,
Chicago, selling “Anacin,” agrees to cease advertising that its
preparation is a competent treatment for colds, periodic pains
or headaches and is considered tremendously effective by doctors
and dentists, unless it limits its representations to assertions that
“Anacin” relieves symptoms and pains due to such ailments. The
respondent stipulates it will discontinue representing that “Anacin
contains four pain-relieving agents and that the formula of the
preparation is recognized throughout the world as safe, reliable
and prompt in relieving pain.”
No. 01109. L. B. Ford, York, Nebr., engaged in the sale of
“Van-Nae Herb Tea,” offered as a weight reducer, stipulates he
will discontinue representing that his product is more than a mere
laxative and diuretic; that it acts as a fat reducer without diet¬
ing or strenuous exercise; that it corrects any body ailment caus¬
ing excess fat; that it is non-habit forming, and that the drink¬
ing of such tea is a sensible, safe and sane method of reducing
fat. The respondent also will desist from using the title “Doctor.”
No. 01239. J. L. Prescott Co., Passaic, N. J., agrees to cease
representing that “Oxol,” a cleaning compound, destroys odors
or kills germs, unless it is clearly indicated in connection with
such claims that the product does not destroy all odors or all
germs. The respondent stipulates it will not represent that the
product “cleanses all it touches”; that disease germs cannot live
in the presence of “Oxol,” unless the specific germs “Oxol” is
1252
known to kill are named, and that the product’s bacteria-de-
stroying properties are stronger than carbolic acid, unless such
representation is established by competent evidence.
No. 2213. Under an order issued against Hubert J., William
M., and Mary M. McQuestion, trading as Northshore Cement
Burial Vault Co., 2503 Buchanan Road, Kenosha, Wis., are
directed to discontinue false representations in connection with
the offering for sale and sale of cement or concrete burial vaults.
The respondents are required to cease representing in purported
guarantees in advertising, or in any other manner, that their
product is a “Vault Eternal,” of enduring strength, hermetically
sealed, impervious to moisture, an impregnable barrier to every
destructive element of the ground, and that it assures undisturbed,
peaceful rest.
No. 2519. Under an order entered against Miles L. Finch,
trading as Associate British Manufacturers, at 200 Fifth Ave.,
New York City, that respondent is directed to cease and desist
from certain misrepresentations in the sale of woolen cloth.
It was found that the respondent is engaged in the sale of
genuine Harris Tweed, a hand-woven product made in the Outer
Hebrides, Scotland, and also in the sale of certain power-loomed
woolen fabrics made in imitation of the genuine Harris Tweed;
that in the sale of the imitation product, the respondent so adver¬
tised and otherwise represented the imitation woolen goods as to
lead the purchasing public to believe that the imitation product
it was buying was the genuine Harris Tweed.
No. 2715. Milton Toch, 1847 68th St., Brooklyn, trading as
Universal Ink Co. and engaged in the sale of liquid and powdered
ink, has been ordered to discontinue representing that his business
was established prior to 1934, or that he is a manufacturer of
powdered ink. The respondent admitted the material allegations
of the complaint to be true and did not contest the proceeding.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, March 24
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Central Broadcasting Co., Eau Claire, Wis. — C. P., 1050 kc.,
250 watts, daytime.
Wednesday, March 25
HEARING BEFORE AN EXAMINER
(Broadcast)
KOS — New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, N. Mex. — Renewal of license, 1180 kc., 10
KW, simultaneous day, share night with KEX.
Thursday, March 26
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-161:
KFRO — Voice of Longview, Longview, Tex. — C. P., 1210 kc., 100
watts, 250 watts LS, unlimited time (facilities of KWEA).
Present assignment: 1370 kc., 100 watts LS, daytime.
NEW — Oil Capital Broadcasting Assn., James G. Ulmer, Pres.,
Kilgore, Tex. — C. P., 1210 kc., 100 watts, 100 watts LS,
unlimited time (facilities of KWEA).
KWEA — International Broadcasting Corp., Shreveport, La.— Re¬
newal of license, 1210 kc., 100 watts, 100 watts LS, un¬
limited time.
Examiner’s Report No. 1-165:
NEW — Florida West Coast Broadcasting Co., Inc., Tampa, Fla.—
C. P., 1370 kc., 100 watts, 100 watts LS, unlimited time
(request facilities of WPAT).
Examiner’s Report No. 1-171:
NEW — Herbert Lee Blye, Lima, Ohio. — C. P., 1210 kc., 100 watts
LS, daytime.
Examiner’s Report No. 1-77 :
NEW—G. D. Goff, Tampa, Fla.— C. P., 1500 kc., 100 watts, un¬
limited time.
APPLICATIONS GRANTED
WTAG — Worcester Telg. Pub. Co., Inc., Worcester, Mass. — Granted
C. P. to make changes in equipment.
KFJI — KFJI Broadcasters, Inc., Klamath Falls, Ore. — Granted
>C. P. to make changes in equipment.
WEW — The St. Louis University, St. Louis, Mo. — Granted C. P.
to make changes in equipment.
WDAE — Tampa Times Company, Tampa, Fla. — Granted extension
of special experimental authority to operate with 2)4 KW
day from April 1 to Oct. 1, 1936.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — Granted
license to cover C. P. authorizing local move of transmitter,
changes in equipment, and increase in day power to 250
watts; 1370 kc., 100 watts night, unlimited time.
WCFL — Chicago Federation of Labor, Chicago, Ill. — Granted
license to cover C. P. for auxiliary equipment.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Granted license
to cover C. P. approving studio location at 561 Northampton
St., Easton, Pa.
KREG — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
Calif. — Granted renewal of license for period January 1 to
July 1, 1936.
KABF — James McClatchy Co., Sacramento, Calif. (Portable-
Mobile). — Granted license to cover C. P. (temporary broad¬
cast pickup), frequencies 1646, 2090, 2190, 2830 kc., 50
watts.
W6XKF — Ben S. McGlashan, Portable-Mobile (Los Angeles). —
Granted license to cover C. P. (general experimental), fre¬
quencies 31100, 34600, 37600, 40600 kc., 100 watts.
W4XH — Virgil V. Evans, d/b as The Voice of South Carolina,
Portable-Mobile (Spartanburg, S. C.). — Granted modifica¬
tion of license authorizing four general experimental frequen¬
cies assigned to miscellaneous services in addition to fre¬
quencies already assigned, and increase in power from 15
to 50 watts; 31600, 35600, 38600, 41000 and 86000-400000
kc.
W8XKA — Westinghouse Electric and Manufacturing Co., Portable-
Mobile (Chicopee Falls, Mass.). — Granted renewal of special
experimental license for period April 30 to July 30, 1936.
W3XEY- — The Baltimore Radio Show, Inc., Baltimore, Md. —
Granted modification of C. P. approving proposed trans¬
mitter site at Belvedere Hotel, southeast corner Chase and
Charles Sts., Baltimore, Md.
SET FOR HEARING
WWAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— Application for modification of license to change hours of
operation from S-WFAM to unlimited day to LS, S-WFAM
night.
NEW — The Waterloo Times-Tribune Pub. Co., Waterloo, Iowa. —
Application for C. P. for new experimental broadcast station,
1550 kc., 1 KW, unlimited -time, using antenna array of
special design.
NEW — The Times Publishing Co., St. Cloud, Minn. — Application
for C. P. for new station, 1420 kc., 100 watts, unlimited,
transmitter and studio site to be determined subject to Com¬
mission’s approval.
WORL — Broadcasting Service Org., Inc., Needham, Mass. — Appli¬
cation for modification of license to increase day power from
500 watts to 1 KW.
KGEK — Elmer G. Beehler, Sterling, Colo. — Application for modifi¬
cation of license to change specified hours to include an
additional 30 minutes on Saturdays.
KSO — Iowa Broadcasting Co., Des Moines, Iowa.- — Application for
C. P. to make changes in equipment and increase daytime
power from 1 KW to 2)4 KW.
KWKC — Charlotte Duncan, Admin., Lester E. Cox, Thomas L.
Evans, Kansas City, Mo.- — Application for C. P. to install
new equipment; move station locally from 3912 Main St.
to Commerce Bldg., northwest corner 10th and Walnut Sts.,
Kansas City, Mo.
WJAX — City of Jacksonville, Jacksonville, Fla. — Application for
modification of license to increase night power from 1 KW
to 5 KW. To be heard before the Broadcast Division, date
to be determined.
KFWB — Warner Bros. Broadcasting Corp., Hollywood, Calif. —
Application for modification of license to increase power
from 1 KW night, 2)4 KW day, to 5 KW night and day.
To be heard before the Broadcast Division, date to be de¬
termined.
1253
WWJ — The Evening News Assn., Inc., Detroit, Mich. — Applica¬
tion for modification of C. P. to increase nighttime power
from 1 KW to 5 KW. To be heard before the Broadcast
Division, date to be determined.
WDAY — WDAY, Inc., Fargo, N. Dak. — Application for modifica¬
tion of license to increase night power from 1 to 5 KW.
To be heard before the Broadcast Division, date to be de¬
termined.
WAVE — WAVE, Inc., Louisville, Ky. — Application for C. P. to
make changes in equipment, move transmitter locally to site
to be determined, and increase power from 1 to 5 KW. To
be heard before the Broadcast Division, date to be deter¬
mined.
KOIN — KOIN, Inc., Portland, Ore. — Application for modification
of license to increase night power from 1 to 5 KW.
KHJ — Don Lee Broadcasting System, Los Angeles, Calif. — Appli¬
cation for modification of license to increase power from
1 to S KW. To be heard before the Broadcast Division, date
to be determined.
WEEI — Edison Electric Illuminating Co. of Boston, Mass. — C. P.,
already in hearing docket, amended to read: Install new
equipment, use directional antenna, increase power from 1 to
S KW. To be heard before the Broadcast Division, date to
be determined.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — Modification
of C. P., already in hearing docket, amended to read: Install
new equipment, increase night power from 1 to 5 KW. To
be heard before the Broadcast Division, date to be deter¬
mined.
WRC — National Broadcasting Co., Inc., Washington, D. C. — C. P.,
already in hearing docket, amended to read: Install new
equipment, increase power from 1 KW day, 500 watts night,
to 5 KW day and night, move transmitter locally to site to
be determined. To be heard before the Broadcast Division,
date to be determined.
WCSH— Congress Square Hotel Co., Portland, Me— Modification
of license, already in hearing docket, amended to read: In¬
crease power from 1 KW night, 2J^ KW day, to 5 KW day
and night. To be heard before the Broadcast Division, date
to be determined.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — C. P., already in
hearing docket, amended to read: Make changes in equip¬
ment, increase power from 1 KW night, 2 KW day, to 5 KW
night and day. To be heard before the Broadcast Division,
date to be determined.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
C. P., already in hearing docket, amended to read: Change
frequency from 1300 kc. to 970' kc.; increase power from
1 KW to 5 KW, unlimited time; and install new equipment.
To be heard before the Broadcast Division, date to be de¬
termined.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KLPM, Minot, N. Dak.; KTRH, Houston, Tex.; KUOA,
Fayetteville, Ark.; KWSC, Pullman, Wash.; WAVE, Louisville,
Ky.; WCAM, Camden, N. J.; WCAP, Asbury Park, N. J.; WCOP,
Boston; WDAY, Fargo, N. Dak.; WHN, New York City; WIBA,
Madison, Wis.; WJAS, Pittsburgh, Pa.; WJDX, Jackson, Miss.;
WNAD, Norman, Okla.; WNBX, Springfield, Vt. ; WNEW,
Newark, N. J.; WNOX, Knoxville, Tenn.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted re¬
newal of license for the period ending September 1, 1936.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Same for
auxiliary. ,
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. No. 1-170: Ralph Perez Perry, Santurce, P. R. —
Oral argument granted to be heard June 4, 1936.
NEW — Ex. Rep. No. 1-191: E. W. Atkinson, Watsonville, Calif. —
Oral argument granted to be heard June 4, 1936.
KFJM — Ex. Rep. No. 1-199: University of North Dakota, Grand
Forks, N. Dak. — Oral argument granted to be heard June 4,
1936.
APPLICATIONS DENIED
NEW — Harry H. Culver, Beverly Hills, Calif. — Application for
C. P., 710 kc., 500 watts, limited time, heretofore set for
hearing, was denied as in cases of default for failure to file
an appearance and statement of facts in accordance with
Rule 104.6 (e) .
KFRO — Voice of Longview, Longview, Tex. — Denied special au¬
thority to operate from 6:30 to 10 p. m., CST, March 26,
in order to broadcast 10th Anniversary of East Texas Cham¬
ber of Commerce.
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
NEW — Ruth W. Adcock and S. E. Adcock, d/b as General Broad¬
casters, Johnson City, Tenn.— Applied for C. P., 880 kc., 250
watts LS, daytime.
NEW — Ruth W. Adcock and S. E. Adcock, d/b as General Broad¬
casters, Rossville, Ga. — Applied for C. P., 1120 kc., 250
watts LS, daytime.
WROK — Rockford Broadcasters, Inc., Rockford, Ill. — Applied for
authority to transfer control of corporation.
NEW — Herbert Hollister, Emporia, Kans. — Applied for C. P., 1500
kc., 100 watts night, 100 watts LS, unlimited time.
NEW — O. K. Broadcasting Co., Cleveland, Ohio. — Applied for
C. P., 1500 kc., 100 watts night, 100 watts LS, unlimited
time.
NEW — O. K. Broadcasting Co., Louisville, Ky. — Applied for C. P.,
1200 kc., 100 watts night, 100 watts LS, unlimited time.
NEW — Herbert Hollister, Waterloo, Iowa. — Applied for C. P.,
1420 kc., 100 watts night, 100 watts LS, unlimited time.
MISCELLANEOUS
WLAK — Lake Region Broadcasting Co., Lakeland, Fla. — The
Broadcast Division directed that C. P. for new station to
operate on 1310 kc., 100 watts, unlimited time, be issued in
conformity with its action of November 19, 1935, inasmuch
as applicants have now complied with Rule 131.
W9XAL — The First National Television Corp., Kansas City, Mo. —
Granted consent to voluntary assignment of license from The
First National Television Corp., a Kansas corporation, to
the First National Television, Inc., a Missouri corporation.
WlXEH — Travelers Broadcasting Service Corp., Avon, Conn. —
Granted modification of C. P. of special experimental station
to delete frequency 63000 kc. and substitute in lieu thereof
the frequency 63500 kc., and to communicate as a broadcast
station in the broadcast service on an experimental basis.
KFUO — Evangelical Synod of Missouri, St. Louis, Mo. — Granted
motion for continuance of hearing on application for re¬
newal of license set for April 7, 1936, because KSD has ap¬
plied for its facilities.
Centennial Broadcasting Corp., Dallas, Tex. — Denied petition ask¬
ing Commission to reconsider action of January 10, 1936, in
denying application for new station to operate on 1200 kc.,
100 watts, unlimited, and to grant the same.
Ogdensburg Pub. Co., Inc., Ogdensburg, N. Y. — Granted petition
to intervene at hearing of application of Ogdensburg Ad¬
vance Co., Inc., for authority to maintain a studio in Ogdens¬
burg for the production of programs to be transmitter by
land wire to the N. Y. Tel. Co. and of the Bell Tel. Co. of
Canada to station CFLC at Preston, Ontario.
Bell Broadcasting Co., Temple, Tex. — Granted petition to inter¬
vene at hearing of application of Eugene DeBogory for new
station at Temple, Tex., which has been designated for hear¬
ing on May 5, 1936.
WJBW — Charles C. Carlson, New Orleans, La. — Granted regular
renewal of license.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho. — Granted
continuance of hearing on application for extension of special
experimental authorization until decision has been rendered
on application to change frequency from 1240 kc. to 630 kc.
WNBX — WNBX Broadcasting Corp., Springfield, Vt. — Granted
special temporary authority to operate with 1 KW until sun¬
set at Dayton, Ohio, 500 watts night, pending approval of
design and erection of directional antenna.
WREC — WREC, Inc., Memphis, Tenn. — Accepted answer to ex¬
ceptions of WCAO to Examiner’s Report No. 1-187, and
granted request for oral argument.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. — Recon¬
sidered and granted application to increase daytime power
from 1 to 5 KW.
1254
ACTION ON EXAMINER’S REPORT
NEW— Ex. Rep. No. 1-188: North Side Broadcasting Corp., New
Albany, Ind. — Granted C. P. for new broadcast station to
operate on 1370 kc., 250 watts, day, subject to Rule 131;
site to be determined subject to Commission’s approval.
Order effective May 12, 1936. Examiner R. Ii. Hyde sus¬
tained. (Action taken March 10, 1936.)
APPLICATIONS RECEIVED
First Zone
WHDH — Matheson Radio Co., Inc., Boston, Mass. — License to
830 cover construction permit (Bl-P-933) to make changes in
equipment.
WHDH — Matheson Radio Co., Inc., Boston, Mass. — Authority to
830 determine operating power by direct measurement of an¬
tenna power.
NEW — George F. Bissell, Pittsfield, Mass. — Construction permit
1300 for a new station to be operated on 1200 kc., 100 watts,
daytime.
WHBI — May Radio Broadcast Corp., Newark, N. J.— Modifica-
1250 tion of license to use auxiliary transmitter as a main trans¬
mitter.
NEW — WDRC, Inc., Hartford, Conn. — Construction permit for a
new general experimental station to be operated on 31000,
35600, 38600, 41000, 86000-400000, 401000 kc., 50 watts,
Al, A2, A3 and special emission.
NEW — Juan Piza, Portable. — ■Construction permit for a new broad¬
cast pickup station to be operated on 1622, 2060, 2150, 2790
kc., 50 watts, A3 emission.
NEW — WODAAM Corp., Mobile — in airplane.— Construction per¬
mit for a new broadcast pickup (T) station to be operated
on 1622, 2080, 2150, 2790 kc., A3 and special emission, 7)4
watts.
Second Zone
WEST — Associated Broadcasters, Inc., Easton, Pa. — License to
1200 cover construction permit B2 -P-472 as modified to move
station from Lancaster, Pa., to Easton, Pa., and antenna
changes.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Modification of
1500 construction permit (B2-P-637) for changes in equipment,
move of transmitter, and installation of directional antenna,
requesting extension of commencement date from 9-30-35 to
date of approval and completion date from 3-30-36 to
9-30-36.
NEW — Old Dominion Broadcasting Co., Washington, D. C. — Con¬
struction permit for a new general experimental station to be
operated on 31600, 35600, 38600, 41000, 86009-400000,
401000 kc. and above, 100 watts, A3 and special emission.
Third Zone
KTSA — Southwest Broadcasting Co., San Antonio, Tex. — Volun-
550 tary assignment of license from Southwest Broadcasting Co.
to KTSA Broadcasting Co.
WSIX — Jack M. Draughon and Louis R. Draughon, d/b as 638
1210 Tire & Vulcanizing Co., Springfield, Tenn. — Modification of
construction permit (B3-P-227) for approval of transmitter
site at northeast corner Boscobel and 3rd St., Nashville, and
extend commencement date two days after grant and com¬
pletion date 100 days thereafter, and approval of antenna.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — Au-
1300 thority to determine operating power by direct measurement
of antenna.
NEW- — H. A. Hamilton, Asheville, N. C. — Construction permit for
1370 a new station to be operated on 1370 kc., 100 watts, day¬
time. Amended re antenna.
KFJZ — Fort Worth Broadcasters, Inc., Fort Worth, Tex. — Con-
1370 struction permit to install new equipment and increase power
from 100 watts to 100 watts, 250 watts day.
NEW — John S. Braun, Waco, Tex. — Construction permit for a new
1500 station to be operated on 1500 kc., 100 watts, daytime.
KGKB — East Texas Broadcasting Co., Tyler, Tex. — Construction
1500 permit to make changes in equipment and move transmitter
from Tyler Commercial College, 115 South College Street,
Tyler, Tex., to 1)4 miles from Court House on North Dixie
Highway, Tyler, Tex.
NEW — Dr. F. P. Cerniglia, Monroe, La. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, un¬
limited time.
KNOW — KUT Broadcasting Co., Austin, Tex. — Authority to trans-
1500 fer control of corporation from Southwest Broadcasting Co.
to Hearst Radio, Inc., 10,000 shares of common stock.
W5XAU — WKY Radiophone Co., Oklahoma City, Okla. — License
to cover new general experimental station.
Fourth Zone
WMT — Iowa Broadcasting Co., Des Moines, Iowa. — Construction
600 permit to make equipment changes and increase power from
1 KW night, 2)4 KW day, to 1 KW night, 5 KW day (con¬
sideration under Rule 6(g)).
WDZ — WDZ Broadcasting Co., Tuscola, Ill. — License to cover
1070 construction permit (B4-P-8) as modified for change in
frequency, equipment, and move of transmitter.
WSBC — WSBC, Inc., Chicago, Ill. — Construction permit to make
1210 changes in antenna and move transmitter from Hotel Crillon,
1258 S. Michigan Avenue, Chicago, Ill., to West Town Office
Bldg., 2400 Madison Street, Chicago, Ill.
WTAQ— WHBY, Inc., Green Bay, Wis. — License to cover construc-
1330 tion permit (B4-P-369) as modified to install new equip¬
ment, move transmitter and studio, and change hours of
operation.
KWKC — Charlotte Duncan, Administratrix, Lester E. Cox and
1370 Thomas L. Evans, Kansas City, Mo.- — Construction permit
to install new equipment; move studio from Werby Bldg.,
39th and Main St., Kansas City, Mo., to Commerce Bldg.,
northwest corner 10th and Walnut, Kansas City, Mo.; and
transmitter from 3912 Main Street, Kansas City, Mo., to
Commerce Bldg., northwest corner 10th and Walnut Streets,
Kansas City, Mo.
KWKC — Wilson Duncan, tr. as Wilson Duncan Broadcasting Co.,
1370 Kansas City, Mo. — Voluntary assignment of license from
Wilson Duncan, tr. as Wilson Duncan Broadcasting Co., to
Tom Cleveland. Amended: Assign to Lester E. Cox and
Thomas L. Evans instead of Tom Cleveland.
NEW — The Voice of St. Louis, Inc., St. Louis, Mo.— Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 41000, 88000-400000, 401000 kc.
and above, 100 watts, A3 and special emission.
Fifth Zone
KGO — National Broadcasting Co., Inc., San Francisco, Calif. —
790 Construction permit to install new equipment, increase power
from 7)4 KW to 50 KW, and move transmitter from 5555
East Fourteenth Street, Oakland, Calif., to near Belmont,
Calif.
NEW — The Tribune, Great Falls, Mont. — Construction permit to
950 erect a new broadcast station at Great Falls, Mont., to be
operated on 550 kc., 1 KW night, 5 KW day, unlimited time
(facilities KFYR) . Amended to change frequency to 950 kc.
NEW — Golden Empire Broadcasting Co., Marysville, Calif. — Con-
1140 struction permit for a new station to be operated on 1140 kc.,
250 watts, daytime.
NEW — James H. Hardy and L. D. Marr, copartners, Pasadena,
1160 Calif. — Construction permit for a new station to be operated
on 1160 kc., 250 watts, daytime.
NEW — E. N. and S. W. Warner, d/b as Warner Bros., Oakland,
Calif. — Construction permit for a new general experimental
station to be operated on 31600, 35600, 38600, 41000 kc.,
200 watts, A3 emission.
1255
'
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.■ . ■ ■
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ ★ * * ★ WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright. 1936. Tho National Association of Broadcasters
Vol. 4 - - No. 15
MARCH 26, 1936
IN THIS ISSUE
Page
Warner Bros. Music . 1257
Copyright Hearing Dates . 1257
New Jersey Station Denial Recommended . 12S7
FCC Changes Procedure on Violation Notices . 1257
Princess Pat . 1257
Power Increase Recommended for Daytime . 1257
Securities Act Registrations . 1258
Recommends Denial for Increased Power . 1258
Additional Warners Brother Suits . 1258
Federal Trade Commission Act . 1258
Federal Communications Commission Action . 1260
WARNER BROS. MUSIC
The managing director this week addressed to those stations
licensed to use Warner Brothers music, a memorandum which reads
as follows:
“This is in reference to the expiration on March 31st of the
Music Publishers Holding Corporation licenses.
“As reported in NAB REPORTS dated March 19th an Ad¬
visory Committee selected by me met with Mr. Herman Starr
during the week ended March 14th and I was to resume
where they left off.
“I visited with Mr. Starr this week. His position con¬
cerning per-piece remains unchanged from that expressed to
the Advisory Committee namely; that so long as the broad¬
casters continue to pay for music on the basis of a flat fee
such as is dose with the ASCAP he cannot find a formula
which will insure to him the minimum amount of money which
he considers he is entitled to receive for the use of MPHC
music. In further explanation of his position he says that
the broadcasting industry has not cooperated with him, that
generally the industry has endeavored to avoid using his music
and that, therefore, he cannot expect any better cooperation
should he adopt a per-piece plan.
“A number of other reasons were assigned by Mr. Starr
including the claim that when the broadcasters signed new
five-year blanket contracts with ASCAP on January 15th the
■ problem of working out a per-piece plan for his music was
made extremely difficult.
“He advised me that the best he can do under all existing
circumstances is to offer an extension of present licensing
agreements with these exceptions:
1. He will use as a base the local or retail rate where
such a rate exists.
2. He will require reports covering only Warner Brothers
music.
3. He will change the favored nation clause so as to allow
the MPHC sufficient latitude to avoid inequalities.
4. He will incorporate in the new agreement a provision
which will permit cancellation in the event a per-piece plan
can be found which is acceptable to 75 per cent of the
copyright agencies and broadcasters.
5. He will offer the agreement for a period of five years.
“It is plain that a situation exists which must be evaluated
by each broadcaster in the light of his own requirement.”
COPYRIGHT HEARING DATES
Following an executive meeting of the House Committee on
Patents on Monday it was announced that copyright bill hearings
will be continued until April 15. Hearings are being held this week
when the authors and dramatists are being given a chance to pre¬
sent their side of the case. In the future each week, until the
hearings are concluded, the committee will sit on Tuesday, Wednes¬
days, Thursdays and Fridays.
NEW JERSEY STATION DENIAL
RECOMMENDED
Alfred C. Matthews, applied to the Federal Communications
Commission for a construction permit for the erection of a new
broadcasting station at Cape May, N. J., to use 1420 kilocycles,
100 watts power and specified hours of operation.
Examiner John P. Bramhall in Report No. 1-211 recommends
that the application be denied. The Examiner found that the ap¬
plicant is not financially qualified to operate the proposed station
and that the area proposed to be served is now receiving ample
radio service “and in addition to this, it is believed that the
revenue of a station in Cape May would be insufficient to ade¬
quately sustain a station.”
FCC CHANGES PROCEDURE ON VIOLATION
NOTICES
The Federal Communications Commission has issued the follow¬
ing statement in which it calls the attention of all licensees to the
change of procedure in replying to notices of violation:
Rule 105.23 of the Practice and Procedure of the Federal Com¬
munications Commission, which supersedes Rule 24 of the Rules
and Regulations of the Federal Radio Commission, requires the
licensee of a station to forward within three days after receipt of
a notice of violation, a reply to the Commission at Washington,
D. C., with a copy to the office originating the complaint when
that office is other than the Commission at Washington. This
procedure will afford the inspector citing the station for violation
an opportunity to review the licensee’s reply and present to the
Commission for consideration, along with the reply, any facts and
observations which are pertinent to the proper handling of the
case.
PRINCESS PAT SEEKS FREE TIME
The letter sent out last week (16th) by Princess Pat, Ltd., seek¬
ing to bait certain independent stations on a “you-furnish-the-time
we furnish the program basis” will meet with the contempt which
it justly deserves. With a sticker attached to the letter advertising
an NBC program on Monday night at 9:30 P. M., EST, and com¬
menting on this weekly program on the Blue Network, C. J.
Klowden says: These dramas have been reproduced electrically
and will be available to a limited number of independent stations
who are looking for a real human interest program for their local
audiences. Members owning and operating independent stations
will not overlook this opportunity of inquiring of Mr. Klowden
whether the National Broadcasting Company furnishes time in
return for the talent on the Princess Pat programs, and informing
him that the independent stations also have a valuable listening
audience and produce excellent results for advertisers at minimum
costs.
POWER INCREASES RECOMMENDED FOR
DAYTIME
Broadcasting stations WFBR, Baltimore, Md., WOOD and
WASH, Grand Rapids, Mich., all operating on a frequency of
1270 kilocycles and all now assigned 500 watts applied to the
Federal Communications Commission to increase their power to
1,000 watts.
Examiner Melvin H. Dalberg in Report No. 1-209 recommends
that this increase be granted as to daytime operation but that it
be denied as to nighttime. The Examiner found that in these
cases the extra daytime power would not cause any interference
with existing facilities but nighttime power increase would cause
interference.
1257
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities and Exchange Commission under the Securities Act:
F. L. Jacobs Company, Detroit, Mich. (2-1959, Form A-2).
Davidson Biscuit Company, Mt. Vernon, Ill. (2-1961, Form A-2).
Canadian Capital Corp., Ltd., Montreal, Canada (2-1962, Form
A-l).
Gotham Silk Hosiery Company, New York City (2-1964, Form
A-2).
Keystone Custodian Funds, Inc., Philadelphia, Pa. (2-1967,
Form C-l).
Administrative Corporation, Jersey City, N. J. (2-1968, Form
C-l).
American Business Shares, Inc., Jersey City, N. J. (2-1969,
Form A-l).
Zem Zem Corporation, New York City (2-1970, Form A-l).
Peter Fox Brewing Company, Chicago, Ill. (2-1971, Form A-l).
Blue Lake Gold Mines, Inc., Buffalo, N. Y. (2-1972, Form A-l).
R. G. Letourneau, Inc., Stockton, Cal. (2-1973, Form A-2).
Edwin Carewe Productions, Inc., Los Angeles, Cal. (2-1974,
Form A-l).
Knudsen Creamery Co. of California, Los Angeles, Cal. (2-1975,
Form A-l).
Rogue River Company, Klamath Falls, Ore. (2-1977, Form E-l).
Melville Shoe Corporation, New York City (2-1978, Form A-2).
Frederick Stearns & Co., Detroit, Mich. (2-1979, Form A-2).
Marlowe Products, Inc., Clifton, N. J. (2-1980, Form A-l).
United Telephone Protective Committee, Omaha, Nebr. (2-1981,
Form D-l).
S. S. Stafford, Inc., New York City (2-1982, Form E-l).
S. S. Stafford, Inc., New York City (2-1983, Form D-l).
McKale’s Inc., Seattle, Wash. (2-1984, Form A-2).
Southwest Investment Co., Inc., Shreveport, La. (2-1985, Form
A-l).
Standard Utilities, Inc., Jersey City, N. J. (2-1986, Form A-l).
RECOMMENDS DENIAL FOR INCREASED
POWER
Broadcasting Station KVI, Tacoma, Wash., applied to the Fed¬
eral Communications Commission to increase its daytime power
from 1,000 to 5,000 watts. The station operates unlimited time
on 570 kilocycles.
Examiner Ralph L. Walker in Report No. 1-210 recommends
that the application be denied. It is pointed out by the Examiner
that “the state of Washington is now assigned approximately 13
per cent more than its equitable share of broadcast facilities for
daytime operation. The granting of the present application would
result in increasing this over quota condition.”
ADDITIONAL WARNERS BROTHER SUITS
Official announcement has been made by Warner Brothers that
they have begun additional suits based on alleged infringement of
song copyrights owned by them, as follows:
It is alleged that Victor Herbert’s “Gypsy Love Song” was in¬
fringed by Dempsey’s restaurant on March 6th between the hours
of 7:30 and 7:40 p. m. Damages of $250 and an accounting of the
profits are demanded for that infringement. M. Whitmark & Sons
are the copyright owners.
The Libertino establishment is alleged to have infringed “Mother
Machree” on March 6th between 12:45 and 1:30 a. m., and “When
Irish Eyes Are Smiling” on March 7th between 12:45 and 1:30
a. m. Both of those songs are also copyrights held by Whitmarks.
Five hundred dollars and a profit accounting are demanded.
Harms, Inc., alleges that the Greenwich Village, Inc., night club,
infringed on three of its copyrights in the thirty-five minutes be¬
tween 2:05 and 2.40 a. m. the morning of March 7th. The three
tunes were “The Blue Room,” “Night and Day” and “Anything
Goes.” Damages of $750 and an accounting of the profits are
demanded.
Other suits include the following:
Remick Music Corp. vs. Radio Broadcasting Corporation of
Idaho, operating station KTFI in Twin Falls, on the song “The
Little Old Church in the Valley.” $250.00 damages are demanded.
Harms, Inc. vs. WDSU, Inc., operating station WDSU, New
Orleans, on the songs “Where Am I,” “Let’s Swing It” and “I’m
Just an Ordinary Human.” $1500.00 damages are demanded.
T. B. Harms Co. vs. Main Auto Supply Co., operating station
WOWO, Fort Wayne, on the song “Two Hearts Carved On A
Lonesome Pine.” $5,000.00 damages are demanded.
Remick Music Corp. vs. Savannah Broadcasting Co., Inc., op¬
erating station WTOC, Savannah, on the song “Quicker Than You
Can Say Jack Robinson.” $500.00 damages are demanded.
M. Witmark & Sons vs. Savannah Broadcasting Co. on the song
“When A Great Love Comes Along.” $500.00 damages are de¬
manded.
T. B. Harms Co. vs. Savannah Broadcasting Co. on “Little
Man, You’ve Had A Busy Day.” $250.00 damages are demanded.
M. Whitmark & Sons vs. Florida Capitol Broadcasters, Inc.,
operating station WTAL, Tallahassee, on the song “You’re the
Flower of My Heart, Sweet Adeline.” $250.00 damages are de¬
manded.
Harms, Inc. vs. Toledo Broadcasting Co. operating Station
WSPD, Toledo, on the song “Flowers for Madame.” $5,000.00
damages are demanded.
M. Whitmark & Sons vs. Miami Valley Broadcasting Co., operat¬
ing station WHIO, Dayton, Ohio, on the song “Why Can’t This
Night Go On Forever.” $5,000.00 damages are demanded.
FEDERAL TRADE COMMISSION ACTION
COMPLAINTS
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2744. Charging unfair competition in the sale of “Nu-
Nail,” a widely advertised toilet preparation, a complaint has been
issued against Berenice Cohn, of 270 South Windsor Boulevard,
Los Angeles, trading as Bergo Laboratories.
The respondent is alleged to have advertised in newspapers,
magazines, circulars, counter displays and other media, that “Nu-
Nail” is a nail food, effective conditioner and rejuvenator, and
that it eliminates brittleness, breaking of the nails, splitting, peeling,
and ingrown toe nails. These assertions are untrue, according to
the complaint.
No. 2745. Complaint has been issued against Kalo Inoculant
Co., of Quincy, Ill., charging unfair competition in the sale of
nitrogen-fixing bacteria with a humus base used to extract and
transfer nitrogen from the air to leguminous plants.
Purchasing the humus containing the bacteria in bulk from a
New Jersey corporation, the respondent, according to the com¬
plaint, sells its product in tin cans under the name “Humogerm,”
to wholesalers, retailers and jobbers of seed.
The unfair competition is alleged to consist of representations in
farm magazines and other advertising media to the effect that the
containers are packed with a definite, ascertainable, minimum
number of nitrogen-fixing bacteria, and that each can of the
product contains a specified definite minimum number of living
legume bacteria throughout the entire course of the distribution
period, when, according to the complaint, these are not the facts,
and such data cannot be accurately ascertained.
No. 2746. Unfair competition in connection with the sale of
silver-plated hollow ware is alleged in a complaint issued against
Friedman Silver Co. Inc., 1226 Flushing Ave., Brooklyn, N. Y.
For many years, according to the complaint, certain letters
stamped upon hollow ware products have signified to the pur¬
chasing public and to the trade that such products are electro¬
plated nickel silver, and that the embossed decorations thereon
consist of white metal.
The complaint charges the respondent company stamps certain
of its hollow ware products with the same letters, but that such
products do not have the qualities and do not contain the materials
which the purchasing public and the trade have come to expect
in products so stamped.
No. 2747. York Caramel Co., College Ave. and Oak Lane,
York, Pa., engaged in the manufacture and sale of candy, is
charged in a complaint with unfair methods of competition in vio¬
lation of Section 5 of the Federal Trade Commission Act.
The complaint alleges that the respondent packs its candy in
assortments so as to involve the use of a lottery scheme, whereby
ultimate purchasers of a small piece of such candy may win, with¬
out additional cost, a larger piece.
No. 2748. False representations concerning “Ortosan,” a facial
treatment, are alleged in a complaint against Arpaul Co. Inc.,
333 West 52nd St., New York City, charging violation of Section
5 of the Federal Trade Commission Act.
The complaint alleges that the respondent, in connection with
the sale of “Ortosan,” represents by radio broadcasts and in ad¬
vertising matter that the preparation is five creams in one, per¬
fected during a period of twenty-five years and endorsed by lead¬
ing medical authorities and beauty specialists; that it restores
1258
contours of the face, chin and neck, and eliminates sagging lines,
wrinkles and skin blemishes ; that it combines in one cream every¬
thing that is needed to give a woman a beautiful skin, and that it
is different from any facial cream on the market.
No. 2749. Complaint has been issued against Eugene D. Petry,
doing business as Warner Studios, 1317 F St., Washington,
D. C., alleging unfair methods of competition in offering for sale
and in the sale of photographs and portraits. The respondent, who
also has studios in other cities, is charged with violation of Sec¬
tion S of the Federal Trade Commission Act.
Salesmen employed by Petry, the complaint alleges, contact
prospective purchasers, and, to induce them to visit the respon¬
dent’s studio to have photographs made, offer and sell coupons at
purported “special prices” ranging from SO cents to $1.50, which
coupons are represented as having a “regular value” of from $3.50
to $7.50 when used at the respondent’s studio.
It is charged the respondent represents that the “regular value”
of his photographs is far in excess of the prices at which such
photographs ordinarily sell in Washington, when, according to the
complaint, such photographs are actually of the same type and
quality ordinarily selling for from $1 to $2.
No. 2750. The L. D. Caulk Co., Milford, Del., is named re¬
spondent in a complaint alleging false representations in connection
with the sale of a dental amalgam alloy, used as a dental filling
and sold under the trade name “The Twentieth Century Alloy
Improved (Caulk).”
The complaint charges that the respondent solicits the business
of dentists and dental supply houses by advertising in trade papers
and magazines and in circulars that its product has a certain crush¬
ing strength average which is higher than that found in dental
amalgam alloys sold by competitors ; and that its “Twentieth Cen¬
tury Alloy” assures greater durability and has other qualities not
found in the products of competitors.
Stipulations
The Commission has issued the following cease and desist orders:
No. 91344. M. J. Breitenbach Co., New York City, dis¬
tributor of Gude’s Pepto-Mangan, agrees to cease representing that
this product restores health by enriching the blood, revives weak¬
ened blood cells, or creates new energy, and that the product has
any healing value beyond that of a simple tonic, in the treatment
of anemic, run down, or overworked persons, or of invalids, con¬
valescents and the aged. Other similar representations also will be
discontinued.
No. 01192. Nova Sal Laboratories, Inc., Brooklyn, will dis¬
continue representing that its product is a prescription used by
thousands of doctors; that it tends to reduce fever, or is less de¬
pressant than most other compounds, and other assertions of like
import.
No. 01343. Vita Ray Coloration, Lowell, Mass., engaged
in selling facial creams and lotions, agrees to cease and desist from
representing that any of its products correct “goose flesh,” make
the skin grow young, and “revitalize” withering cells; that Vita-
Ray Cream “restores” youth to the complexion, and is the only
cream containing vitamin D, and the only cream capable of pene¬
trating the skin.
No. 01173. Siroil Laboratories, Inc., Detroit, agrees to ban
the representation that Siroil is a competent treatment or effective
remedy for psoriasis or dandruff, that any definite proportion of
cases treated with the preparation have been relieved, unless this
assertion is supported by reliable medical evidence ; that the prepay-
ration represents a tremendous advance over any other treatment
for psoriasis, and that complete elimination of either psoriasis or
dandruff has been effected in hundreds of cases through use of only
one bottle of this substance, and other similar representations.
No. 2588. R. H. Sharot, trading as Modex Mills Co., 15
Moore St., New York City, a jobber in the export business, has
been ordered to stop advertising that he is a manufacturer, mill
operator, or owner. Sharot sells hosiery, underwear, raincoats and
other articles of apparel.
Findings are that the respondent’s representations on letterheads
and in advertising matter that he is a manufacturer or mill op¬
erator, tend to deceive buyers into believing that they are dealing
with a manufacturer of established business standing, and thereby
gaining an advantage by saving a middleman’s profit, when this
is not a fact.
No. 2599. Under an order the Diamond Match Co., 30 Church
St., New York City, is directed to discontinue use of the word
“Safety” in the brand name of certain matches it manufactures
and sells in interstate commerce.
The company is ordered to cease the use of the word “Safety”
as part of any brand name it uses in labeling matches which are
the type commonly known as “strike-anywhere” matches.
No. 2617. T. O. Loveland and J. L. Records, of Iowa City,
Iowa, trading as Commercial Manufacturing Co. and Brenard
Manufacturing Co., have been ordered to discontinue certain
unfair trade practices in the sale and distribution of radios.
Use of the word “Manufacturing” as a part of the respondents’
trade name, or in advertising literature, as descriptive of their busi¬
ness, is prohibited in the order unless and until the respondents own
and control a complete factory in which they manufacture the
radios so represented.
The order directs the respondents to cease and desist representing
through advertising literature, distributors’ agency agreements, or
through representations by traveling salesmen, that retail dealers,
upon execution of agency agreements to sell the respondents’ radios,
will obtain certain advantages such as an exclusive franchise for a
particular territory, and a guarantee by the respondent of a certain
number of sales at a specified profit.
No. 2680. Consolidated Trading Corporation, 15 Moore St.,
New York City, trading as Modex Mills, has been ordered to
cease and desist from representing through its trade name, or in
any other manner, that it is a manufacturer or the owner or
operator of a mill at which are manufactured the commodities
which it sells.
In the complaint against this respondent, it was set out that
the respondent is engaged in selling hosiery, underwear, raincoats,
dresses, and general wearing apparel, and cosmetics to purchasers
in foreign countries, but that is not a manufacturer or a mill
operator.
No. 2700. Julius Abrahams, 942 Market St., Philadelphia,
trading as Philadelphia Badge Co., has been ordered to cease
representing that the stamp photos he manufactures and sells are
purchased, used or endorsed by the United States Government or
any of its agencies.
The respondent is directed to discontinue making such represen¬
tation regarding his product through newspaper and magazine ad¬
vertisements, by radio broadcasting, or in any other manner.
The Commission found that the respondent’s assertion that the
Government is among the nationally known users of his photo
stamps causes the purchasing public to buy such products in the
erroneous belief that they are purchased in large quantities by the
Government, and, by inference, that they are endorsed by the
Government.
No. 2713. Roma Wine Co., Inc., 405 Montgomery St., San
Francisco, has been ordered to discontinue representing that any
wine it sells is genuine “Chateau Yquem,” unless the wine it so
designates is produced from grapes grown upon the estate of the
Marquis de Lur-Saluce, located in the Province of Bordeaux,
France, and manufactured, aged, processed and bottled at the
Chateau Yquem situated upon that estate.
Under the order, the respondent is prohibited from using the
name “Chateau Yquem” on stationery, labels, invoices, in adver¬
tising matter, or in any other manner.
The Commission found that the respondent company sells wine
it manufactures from California-grown grapes and, in representing
it as “Chateau Yquem,” misleads and deceives the purchasing
public.
Complaints Dismissed
The Commission has dismissed the following complaints:
No. 2279. A complaint charging Mead Johnson & Co., Inc., of
Evansville, Ind., with unfair competition in maintenance of a
resale price policy for infant diet and nutrition products, has been
dismissed.
Dismissal was ordered on the ground that use of the methods
and practices charged in the complaint was employed for only a
brief period and to a limited extent and without the knowledge
and consent of the responsible officials of the respondent company ;
that as soon as such officials learned of their use they were dis¬
continued, such discontinuance being prior to complaint, and upon
the assurance of the attorney for the respondent in open hearing
before the Commission that such methods and practices would not
be resumed.
No. 2689. The Commission has also entered an order closing its
case against Jung & Schade Laboratories, 1418 Somer St., Mil¬
waukee, Wis., because the respondent corporation is no longer in
business. The case was closed without prejudice to the right of
the Commission to reopen it should the facts warrant such action.
1259
The complaint in this case alleged that the respondent, in adver¬
tising matter, made false representations concerning “Vi-Vo,” which
had been offered for sale as an effective treatment for alcoholic
excesses.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
The usual Tuesday meeting of the Broadcast Division of the
Commission was not held because members of the Division are
sitting in on the hearings in connection with the telephone investi¬
gation. It is expected that the Broadcast Division will meet later
this week.
HEARING CALENDAR
Thursday, April 2
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-167
KMED — Mrs. W. J. Virgin, Medford, Oregon — Modification of
license; 1410 kc., 250 watts, specified hours (6 a. m. to 9
p. m.)
Friday, April 3
HEARING BEFORE THE TELEPHONE DIVISION
WCOA — The Pensacola Broadcasting Co., Complainant v. Amer-
can Telephone and Telegraph Company, Defendant — Com¬
plaint: with reference to rates over circuits from Mobile
via Flomaton to Pensacola.
APPLICATIONS RECEIVED
First Zone
WFAB — Fifth Avenue Broadcasting Corp., New York, N. Y. —
1300 Modification of license to change hours of operation from
shares: WHAZ, WEVD, WBBR, to shares: WHAZ, WBBR
(present hours, plus those now used by WEVD, contingent
upon WEVD’s change in frequency, l-ML-B-1304).
NEW — Arthur E. Seagrave, Lewiston, Maine — Construction permit
1420 to erect a new broadcast station, to be operated on 1420 ke.,
100 watts, 250 watts-day, time not given. Amended: to
give time as unlimited.
W9XBS — National Broadcasting Co., Inc., Chicago, Ill. — Modifi¬
cation of license to operate transmitter by remote control
from 222 North Bank Drive, Chicago.
Second Zone
WSAI — The Crosley Radio Corp., Cincinnati, Ohio- — License to
1330 cover construction permit (B2-P-890) to make equipment
changes and move transmitter.
Third Zone
WDBO — Orlando Broadcasting Company, Inc., Orlando, Fla. —
580 Construction permit to make changes in antenna, move
transmitter from Ft. Gatlin Hotel, 545 N. Orange Ave.,
Orlando, Fla., to Dubsdread Country Club Area near Or¬
lando, Fla., and increase power from 250 watts to 1 KW.
NEW — Charles T. Copeland, Jr., & W. H. May, d/b as Broadcast
1210 Service Co., Troy, Ala. — Construction permit to erect a new
broadcast station to be operated on 1210 ltc., 100 watts
power, daytime operation. Amended: for equipment
changes, change name by adding d/b as Broadcast Service
Co., and give transmitter site as V/2 miles S. Court Square
on Troy-Elba Highway, Troy, Alabama.
NEW — Jack E. Brantley, Mrs.; Jack E. Brantley, & Jack E.
1310 Brantley, Jr., Savannah, Ga. — Construction permit for new
broadcast station to be operated on 1310 kc., 100 watts,
unlimited time. Amended: by adding names of Mrs. Jack
E. Brantley, & Jack E. Brantley, Jr.
NEW — H. Wimpy, Albany, Ga. — Construction permit for a new
1420 broadcast station to be operated on 1420 kc., 100 watts,
250 watts-day, unlimited time. Requests facilities of WGPC.
WHBB — Dr. Wm. J. Reynolds, & Wm. J. Reynolds, Jr., Selma,
1500 Ala., voluntary assignment of license from Dr. Wm. J.
Reynolds, & Wm. J. Reynolds, Jr., to W. J. Reynolds, Jr.,
J. C. Hughes, & J. S. Allen, d/b as Selma Broadcasting Co.
Fourth Zone
KFDM — Sabine Broadcasting Co., Inc., Beaumont, Texas — Con-
560 sent to transfer control of corporation from Mrs. Virginia
B. Gilliam to J. M. Gilliam, 32)4 shares common stock.
NEW — Harry J. Grant, Milwaukee, Wise.— Construction permit
1010 for a new station to be operated on 1010 kc., 1 KW, un¬
limited time. Amended: To change type of equipment,
change power from 1 KW to 250 watts, 500 watts-day and
change directional antenna to vertical antenna.
NEW — KMJB Broadcasting Co., by Myron J. Bennett, Pres.,
1300 Minot, N. D. — Construction permit for a new broadcast
station to be operated on 1300 kc., 1 KW power, unlimited
time, requesting facilities of KLPM.
WMBH— Joplin Broadcast Co., Joplin, Mo. — Consent to transfer
1420 of control of corporation from W. M. Robertson, and W. H.
Spurgeon to Joplin Globe Publishing Co., 90 shares of
common stock.
Fifth Zone
NEW — Ben S. McGlashan, San Diego, Calif. — Construction permit
550 for a new station to be operated on 1210 kc., 100 watts,
daytime. Amended: To change frequency from 1210 kc. to
550 kc., and power from 100 watts to 250 watts.
KIRO — Queen City Broadcasting Co., Seattle, Wash — Authority
650 to install automatic frequency control.
KGHL — Northwestern Auto Supply Company, Inc.. Billings, Mont.
789 — Extension of special experimental authorization to operate
on 780 kc., for a period from 4-1-36 to 7-1-36.
NEW- — The Tribune, Great Falls, Mont. — Construction permit for
050 a new broadcast station to be operated on 950 kc., 1 KW ;
5 KW-day, unlimited time. Amended: To omit request for
facilities of KFYR.
NEW — Ed Klies, Helena, Mont. — -Construction permit to erect a
1210 new broadcast station to be operated on 1210 kc., 100 watts-
250 watts day, unlimited time. Amended: Re; Equipment.
NEW — Albuquerque Publishing Co., Albuquerque, N. M. — Con-
1370 struction permit for a new station to be operated on 1370
kc., ICO watts, unlimited time.
NEW — D. Reginald Tibbetts, Berkeley, Calif. — Construction per¬
mit to change frequency from 31100 kc., to 31600, 35600,
38600, 41000 kc., using 200 watts.
Standard Radio Inc., Hollywood, Calif. — Authority to transmit
programs (Electrical Transcription) to foreign countries.
(CHWC, Regina Sask, Canada, and CFRB, Toronto, Ont.,
Canada).
1260
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS *
Copyright, 1936. The National Attooiation of Broadcasters
Vol. 4 - - No. 16
APRIL 2, 1936
IN THIS ISSUE
Page
Pettey Resigns . 1261
Copyright Hearings Continue . 1261
Recommends New Watertown Station . 1261
Securities Act Registrations . 1261
Notes to Sales Staff . 1261
New Alaskan Station Recommended . 1261
C. C. I. R. Committee Organization . 1261
Warner Brothers Suits . 1262
Station Wins Radio Tax Case . 1263
Broadcast Advertising in February . 1264
Federal Trade Commission Action . 1267
Federal Communications Commission Action . 1267
PETTEY RESIGNS
Herbert L. Pettey, secretary of the Federal Communications
Commission since March 31, 1933, when he succeeded James W.
Baldwin, has resigned effective May 1. Mr. Pettey will become
associated with broadcasting station WHN, New York City, as
associate manager.
COPYRIGHT HEARINGS CONTINUE
Copyright hearings before the House Committee on Patents
continued on Monday, Tuesday and Wednesday of this week and
will be continued through Friday. Hearings will be held next week
on the same days and will be concluded on April IS under the
present arrangements.
On Wednesday the National Performing Artists Association ap¬
peared in support of the Daly bill and opposing the Duffey bill.
RECOMMENDS NEW WATERTOWN STATION
A. W. Hayes filed an application with the Federal Communica¬
tions Commission asking for a construction permit for a new
station to be erected at Erie, Pa., to use 1270 kilocycles, 500 watts
and 1,000 watts LS, unlimited time. At the same time the Water-
town Broadcasting Corporation filed an application with the Com¬
mission asking for a construction permit for a new station at
Watertown, N. Y., to use 1270 kilocycles, 2S0 watts and daytime
operation.
Examiner Melvin H. Dalberg in Report No. 1-212 recommended
that the Watertown application be granted but that the Erie appli¬
cation be denied. The Examiner states that the Pennsylvania area
is overquota while the Watertown area is under quota. He found
also that interference would be caused by granting the Erie appli¬
cation while the Watertown application if granted would not cause
interference. He states also that the Watertown area “has a definite
need for additional daytime service.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Wyoming Valley Colleries Co., Scranton, Pa. (2-1987, Form A-l)
United States Casualty Co., New York City (2-1988, Form A-2)
Citizens Mortgage & Securities Co., Inc., Springfield, Mo. (2-1990,
Form A-2)
The Temblor Oil Co., Boston, Mass. (2-1991, Form A-l)
San-Nap-Pak Manufacturing Co., New York City (2-1992,
Form A-2)
United Endowment Foundation, Inc., New York City (2-1993,
Form C-l)
Phillips Packing Co., Inc., Cambridge, Md. (2-1994, Form A-2)
Bonded Commodity Corp., Boston, Mass. (2-1996, Form A-l)
William Jacob Hildebrandt, Jacksonville, Florida (2-1997, Form
E-l)
NOTES TO SALES STAFF
The marked gain in radio advertising on the part
of the automotive industry should be of interest to
all portions of the medium. (See Comparison with
February 1935, see page 1266.)
The further gains experienced by regional net¬
work and national non-network advertising indicate
additional sales opportunities in these fields. (See
Total Broadcast Advertising, see page 1264.)
The 13.0% gain in general broadcast advertising
volume should be encouraging; but the fact that for
the first time in months, radio broadcasting should
have gained at a rate less than several other media
should constitute a challenge to sales staffs. (See
Comparison with Other Media, see page 1265.)
International Investors Fund System, Inc., Scranton, Pa. (2-1998,
Form C-l)
Wentworth Manufacturing Co., Chicago, Ill. (2-1999, Form A-2)
Morgan Industries, Inc., Philadelphia, Pa. (2-2000, Form A-l)
NEW ALASKAN STATION RECOMMENDED
Edwin A. Kraft applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new broad¬
casting station at Fairbanks, Alaska, to use 950 kilocycles, 250
watts power and unlimited time on the air. Abo John A. Stump
applied for a construction permit for a station to be erected in the
same city using 1210 kilocycles, 100 watts, 250 watts LS and un¬
limited time on the air.
Examiner George H. Hill, in Report No. 1-213, recommended
that the Kraft application be denied but that the Stump application
be granted. The Examiner found that there is need for additional
radio service at Fairbanks and that there is adequate local talent
available there. No interference would result from the erection
of either of the proposed stations.
Mr. Hill states that Mr. Kraft, while well able to construct and
operate such a station as proposed by him, now owns a station at
Juneau and is not a resident of Fairbanks. On the other hand Mr.
Stump is a resident of Fairbanks and his associates in the corpora¬
tion proposing to operate the new station are “also residents of
Fairbanks.” The Examiner states therefore that public interest
“would be served by the granting of the application of John A.
Stump for a construction permit.”
C. C. I. R. COMMITTEE ORGANIZATION
The outline of committee organization for the Cairo radio con¬
ference is given by the International Section of the Federal Com¬
munications Commission as follows:
I. Committee on Technical Matters
Chairman: Dr. J. H. Dellinger
Vice Chairman: Lt. Col. D. M. Crawford
Articles:
1. Definitions
5. Classification of Emissions
6. Quality of Emissions
Appendix 1. Table of Frequency Tolerances and of In¬
stabilities
Appendix 2. Table of Frequency-Band Widths Occupied
by the Emissions
1261
II. Committee on Traffic Matters
Chairman: Captain S. C. Hooper
Vice Chairman: Mr. E. M. Webster
Articles:
16. General Radiotelegraph Procedure in the Mobile
Service
17. General Call “to all”
18. Calling
19. Use of Waves in the Mobile Service
22. Distress Traffic and Distress Signals — Alarm, Emer¬
gency, and Safety Signals
24. Order of Priority of Communications in the Mobile
Service
25. Indication of the Station of Origin of Radiotelegrams
26. Routing of Radiotelegrams
29. Service of Low-power Mobile Radiotelephone Sta¬
tions
30. Special Services
Appendix 9. List of Abbreviations to be Used in Radio
Communication
Appendix 10. Scale Used to Express Strength of Signals
Appendix 12. Procedure in the Service of Low-Power
Mobile Radiotelephone Stations
Appendix 13. Procedure to Obtain Radio Direction-
Finding Bearings
Articles
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
of Additional Radio Regulations:
Order of Priority of Communications in the Mobile
Service
Time of Filing of Radiotelegrams
Address of Radiotelegrams
Doubtful Reception — Transmission by “Ampliation”
— Long-Distance Radio Communication
Retransmission by Stations of the Mobile Service
Notice of Nondelivery
Period of Retention of Radiotelegrams at Land Sta¬
tions
Radiotelegrams to be Forwarded by Ordinary Mail
or by Air Mail.
Special Radiotelegrams
Radio Communications for Multiple Destinations
III. Committee on Allocation
Chairman: Mr. T. A. M. Craven
Vice Chairman: Mr. E. K. Jett
Articles:
7. Allocation and Use of Frequencies (Wavelengths)
and of Types of Emission
IV. Committee on Administration
Chairman: Comdr. F. A. Zeusler
Vice Chairman: Mr. Gerald C. Gross
Articles:
4. Choice of Apparatus
8. Amateur Stations and Private Experimental Stations
9. Conditions to be Observed by Mobile Stations
10. Operators’ Certificates
11. Authority of the Master
12. Inspection of Stations
13. Reporting of Violations
14. Call Signals
15. Service Documents
20. Interference
21. Emergency Installations
23. Working Hours of Stations of the Mobile Service
27. Accounting for Radiotelegrams
28. Aeronautical Radio Service of Public Correspondence
31. International Radio Consulting Committee (C.C.I.R.)
32. Expenses of the Bureau of the Union
33. Effective Date of the General Regulations
Appendix 3. Report of a Violation of the Telecommuni-
tion Convention or of the Radio Regu¬
lations
Appendix 4. Hours of Service for Ship Stations in the
Second Category
Appendix 5. Hours of Service for Ship Stations in the
Second Category
Appendix 6. Service Documents
Appendix 7. Service Symbols
Appendix 8. Documents with which Mobile Stations
Must be Provided
Appendix 11. Statement of Radiotelegrams exchanged
with Mobile Stations
Appendix 14. Internal Regulations of the International
Radio Consulting Committee (C.C.I.R.)
Articles of Additional Radio Regulations:
1. Application of the Telegraph and Telephone Regu¬
lations to Radio Communication
2. Charges
WARNER BROTHERS SUITS
Warner Brothers have made official announcement that they
have begun more suits based on the alleged infringement of song
copyrights owned by them as follows:
Harms, Inc., vs. Knickerbocker Broadcasting Co., operating
station WMCA, for the alleged infringement of “The Continental”
and “Deep In the Arms of Love,” for which $10,000 damages are
demanded.
M. Witmark & Sons vs. Two East Sixty-First Street Corporation,
operating the Hotel Pierre, on the number “A Kiss in the Dark,”
for which $250 damages are demanded.
Harms, Inc. vs. Restaurant La Rue Co., Inc., operating the La
Rue Restaurant, on the numbers “Where Am I,” “Anything Goes”
and “Tea For Two,” for which $750 damages are demanded.
New World Music Corp. vs. Roosevelt Hotel on the number “I
Got Rhythm” for which $250 damages are demanded.
New World Music Corp. vs. Famous Door, Inc., on the number
“I Got Rhythm,” for which $250 damages are demanded.
Harms, Inc. vs. Anthony Libertino, operating Jimmy Kelly’s, on
the numbers “Where Am I” and “Let’s Swing It,” for which $500
damages are demanded.
M. Witmark & Sons vs. MacFayne Corp., operating Leon and
Eddie’s, on the numbers “Lulu’s Back In Town,” for which $250
damages are demanded.
T. B. Harms, Inc. vs. Roosevelt Hotel on the numbers “Make
Believe” and “Who ?”, for which $500 damages are demanded.
Harms, Inc. vs. Stork Restaurant, Inc., operating the Stork Club,
on the numbers “Let’s Swing It” and “Night and Day,” for which
$500 damages are demanded.
T. B. Harm Co. vs. 151 East 50th Street Restaurant Corporation,
operating the Versailles Restaurant, on the numbers “Who?” and
“Why Do I Love You,” for which $500 damages are demanded.
Restaurants, hotels and night clubs out of New York are made
the defendants in the following actions:
Remick Music Corp. vs. Kamehameha (Royal Hawaiian Club),
San Francisco, on the number “Sweet Georgia Brown,” for which
$250 damages are demanded.
Harms, Inc. vs. Kamehameha on the number “Night and Day,”
for which $250 damages are demanded.
Remick Music Corp. vs. The Hotels Statler Company, Inc.,
Detroit, on the number “My Buddy,” for which $250 damages
are demanded.
Harms, Inc. vs. The Hotels Statler Company, Inc., Detroit, on
the number “You Took Advantage of Me,” for which $250 damages
are demanded.
Remick Music Corp. vs. Gardiner Becker Restaurant Co., ope¬
rating the Oriole Terrace, Detroit, on the number “Don’t Give Up
the Ship,” for which $250 damages are demanded.
Harms, Inc. vs. Gardiner Becker Restaurant Co., operating the
Oriole Terrace, Detroit, on the number “April in Paris,” for which
$250 damages are demanded.
M. Witmark & Sons vs. Associated Ballrooms, Inc., operating
The Trianon, Cleveland, on the song “My Wild Irish Rose,” for
which $250 damages are demanded.
M. Witmark & Sons vs. Philip Gordon, operating the Ambassador
Cafe, on the number “My Wild Irish Rose,” for which $250 dam¬
ages are demanded.
Harms, Inc. vs. The Hotels Statler Company, Inc., operating the
Hotel Statler, Cleveland, on the number “Where Am I,” for which
$250 damages are demanded.
M. Witmark & Sons vs. The Hotels Statler Company, Inc., ope¬
rating the Hotel Statler, St. Louis, on the number “My Wild Irish
Rose,” for which $250 damages are demanded.
M. Witmark & Sons vs. Bosmor Corp., operating the Morrison
Hotel, Chicago, on the number “My Wild Irish Rose,” for which
$250 damages are demanded.
Suits filed against radio stations comprise:
Remick Music Corp. vs. Station WOOA, Pensacola, Fla., on the
numbers “I’m Looking for a Four Leaf Clover” and “Whistle and
1262
Blow Your Blues Away,” for which $500 damages are demanded.
Remick Music Corp. vs. Station WBIG, Greensboro, N. C., on
the number “Whistle and Blow Your Blues Away,” for which $250
damages are demanded.
Harms, Inc. vs. Station WGBB, Freeport, N. Y., on the number
“I’m Just An Ordinary Human,” for which $250 damages are
demanded.
Remick Music Corp. vs. Station WIBA, Madison, Wis., on the
number “Put On Your Old Grey Bonnet,” for whch $5,000 damages
are demanded.
Remick Music Corp. vs. Station KGU, Honolulu, Territory of
Hawaii, on the number “Put On Your Old Grey Bonnet,” for which
$5,000 damages are demanded.
M. Witmark & Sons vs. Station WIXBS, Waterbury, Conn., on
the numbers “That Old Irish Mother Of Mine” and “In a Shanty
in Old Shanty Town,” for which $500 damages are demanded.
Remick Music Corp. vs. Station WIXBS, Waterbury, on the
number “Avalon,” for which $250 damages are demanded.
M. Witmark & Sons vs. Station WSMB, New Orleans, on the
number “Lulu’s Back In Town,” for which $5,000 damages are
demanded.
Remick Music Corp. vs. Station WGST, Atlanta, Ga., on the
number “Whistle and Blow Your Blues Away,” for which $5,000
damages are demanded.
Remick Music Corp. vs. Station WOWO, Fort Wayne, Ind., on
the number “My Isle of Golden Dreams,” for which $5,000 damages
are demanded.
Harms, Inc. vs. Station KTFI, Twin Falls, Idaho, on the numbers
“Toddlin’ Along With You,” for which $250 damages are demanded.
Remick Music Corp. vs. Station KPO, San Francisco, Cal., on
the number “Put On Your Old Grey Bonnet,” for which $5,000
damages are demanded.
Remick Music Corp. vs. Station KOA, Denver, Colo., on the
number “Put On Your Old Grey Bonnet,” for which $5,000 dam¬
ages are demanded.
Remick Music Corp. vs. Station KTAR, Phoenix, Ariz., on the
number “Put On Your Old Grey Bonnet,” for which $5,000 dam¬
ages are demanded.
Remick Music Corp. vs. Station WDAY, Fargo, N. D., on the
number “Put On Your Old Grey Bonnet,” for which $5,000 dam¬
ages are demanded.
Remick Music Corp. vs. Station KFYR, Dismarck, N. D., on
the number “Put On Your Old Grey Bonnet,” for which $5,000
damages are demanded.
Remick Music Corp. vs. Station KSOO, Sioux Falls, S. D., on the
number “When The Pussywillow Whispers To The Catnip,” for
which $250 damages are demanded.
Remick Music Corp. vs. Station WCHS, Charleston, W. Va., on
the numbers “To Call You My Own,” “I Need Lovin’,” “I Can’t
Go On Like This” and “Put On Your Old Grey Bonnet,” for which
$1,000 damages are demanded.
STATION WINS RADIO TAX CASE
The United States Supreme Court on Monday handed down a
most important radio tax decision in the case of Fisher’s Blend
Station, Inc., against the Tax Commission of the State of Washing¬
ton. The station won its case although the Supreme Court of the
State of Washington had previously ruled against it. Because of
the importance of the case we print the decision in full as follows:
SUPREME COURT OF THE UNITED STATES
No. 628. — October Term, 1935
Fisher’s Blend Station, Inc., Appellant,
vs.
The Tax Commission of the State of Washington, et al.
Appeal from the Supreme Court of the State of
Washington
[March 30, 1936.]
Mr. Justice Stone delivered the opinion of the Court.
This appeal from a judgment of the Supreme Court of the State
of Washington, Judicial Code, § 237, presents the question whether
a state occupation tax, measured by the gross receipts from radio
broadcasting from stations within the state, is an unconstitutional
burden on interstate commerce.
Appellant brought suit to enjoin appellees, the State Tax Com¬
mission, from collecting the tax, laid by § 2 of Chapter 191 of the
Washington Laws of 1933, as an infringement of the commerce
clause of the federal Constitution. On demurrer to the bill of
complaint, and on stipulation of the parties that the cause might
be decided upon the facts there alleged, the state Supreme Court
gave final judgment for the appellees. — Wash. — .
Appellant maintains, within the state, two broadcasting stations
licensed by the Federal Radio Commission (now the Federal Com¬
munications Commission ) . One is licensed to operate with power
and a radio frequency enabling it to broadcast throughout the “fifth
zone,” which comprises eleven western and northwestern states, in¬
cluding Washington, and the Territories of Alaska and Hawaii.
The other is licensed to operate as a “clear channel” station, that
is to say, a station to which the Commission has assigned a radio
frequency to be used at such times and with such power as will
enable it to broadcast throughout the United States without inter¬
ference by other stations. § § 2, 4, 5, Federal Radio Act of 1927, 1
44 Stat. 1162; Regulations, Federal Radio Commission, File No.
5-R-B-63 and Official No. 63 ; File No. 5-R-B-67 and Official No.
67, Nos. 70-75, No. Ill, Nos. 116-124. These stations broadcast
over the areas for which they are licensed, and the adjacent high
seas and a part of Canada.
Broadcasting, according to the allegations of the complaint, is
accomplished by the generation, at the broadcasting station, of
electro-magnetic waves, which pass through space to receiving in¬
struments which amplify them and translate them into audible
sound waves. The essential elements in the broadcasting operation
are a supply of electrical energy, a transmitter, the connecting
medium or “ether” between the transmission and receiving instru¬
ments, and the receiving mechanism.
Appellant’s entire income consists of payments to it by other
broadcasting companies or by advertisers for broadcasting, from
its Washington stations, advertising programs originating there or
transmitted to them from other states by wire. Appellant “sells
time” to its customers at stipulated rates, during which it broad¬
casts from its stations such advertising programs as may be agreed
upon. During such time as is not sold, it broadcasts, at its own ex¬
pense, “sustaining” programs, as required by the regulations of the
Federal Radio Commission. The customers desire the broadcasts
to reach the listening public in the areas which appellant serves,
and a large number of persons, many of them in other states, listen
to the broadcasts from appellant’s stations.
The state Supreme Court recognized that state taxation of gross
income derived from interstate commerce is forbidden by the com¬
merce clause. But it upheld the tax on the ground that the busi¬
ness from which appellant receives its income is not interstate
commerce. It conceded, as it had previously held, Van Dusen v.
Department of Labor and Industries, 158 Wash. 414, that broad¬
casting is commerce, and that the broadcasting by appellant of its
own programs for which it does not receive pay is interstate com¬
merce. But it concluded that appellant’s remunerative business is
not interstate commerce because it consists of furnishing, within
the state, the facilities of its stations to customers who use them for
broadcasting their programs, and the business of providing such
facilities, like that of providing a bridge for the use of others in
crossing state lines, is not commerce. See Detroit International
Bridge Co. v. Corporation Tax Appeal Board, 294 U. S. 83;
Henderson Bridge v. Kentucky, 166 U. S. 550.
We may assume, although it is not alleged, that appellant’s cus¬
tomers produce the sounds which are broadcasted. But it suf¬
ficiently appears, although the complaint does not specifically so
state, that appellant, and not the customer, generates the electric
current and controls the apparatus (generator, transmitter and
their controls) by which the sounds are broadcasted. The com¬
plaint states that appellant operates its stations and conducts the
business of broadcasting in the manner already described, and that
the license to operate them is granted to appellant by the Federal
Radio Commission under the Federal Radio Act. These allega¬
tions, read in the light of the statute, which forbids any save
licensees to operate broadcasting apparatus, § 1, Federal Radio
Act of 1927, 44 Stat. 1162, and of the facts of which we have
judicial knowledge, see Buck v. Jewel-LaSalle Realty Co., 283 U. S.
191, 200; DeForest Radio Co. v. General Electric Co., 283 U. S.
664, 670, et seq., must be taken to state that the broadcasting of
radio emanations, as distinguished from the production of the
sounds broadcasted, is affected by appellant and not by its cus¬
tomers.
The sounds broadcasted are not transmitted from the micro¬
phone to the ears of listeners in other states. They do not pass
1 This Act has been superseded by the Act of June 19, 1934,
48 Stat. 1081. 47 U. S. C. § 30 Iff.
1263
as sound waves to the receiving mechanisms. They serve only to
enable the broadcaster, by the use of appropriate apparatus, to
modulate the radio emanations which he generates. These emana¬
tions as modulated, are projected through space to the receiving
sets. There, by a reverse process, they so actuate the receiving
mechanisms as to produce a new set of sound waves, of frequencies
identical with those produced at the microphone. On the argument
it was conceded that, in broadcasting for its customers, appellant,
by generating the necessary electric power and controlling the trans¬
mitter, produces the radio emanations which actuate the receiving
mechanisms located in other states. Upon the facts alleged, we see
no more basis for saying that appellant’s customers do the broad¬
casting than for saying that a patron of a railroad or a telephone
company alone conducts the commerce involved in his railroad
journey or telephone conversation.
Appellant is thus engaged in the business of transmitting adver¬
tising programs from its stations in Washington to those persons in
other states who “listen in” through the use of receiving sets. In
all essentials its procedure does not differ from that employed in
sending telegraph or telephone messages across state lines, which
is interstate commerce. Western Union Telegraph Co. v. Speight,
254 U. S. 17; New Jersey Bell Tel. Co. v. State Board of Taxes,
280 U. S. 338; Cooney v. Mountain States Tel. & Tel. Co., 294
U. S. 384; No. 593, Pacific Tel. & Tel. Co. v. Washington, decided
March 2, 1936. In each, transmission is effected by means of energy
manifestations produced at the point of reception in one state
which are generated and controlled at the sending point in another.
Whether the transmission is effected by the aid of wires, or through
a perhaps less well understood medium, “the ether”, is immaterial,
in the light of those practical considerations which have dictated
the conclusion that the transmission of information interstate is a
form of “intercourse”, which is commerce. See Gibbons v. Ogden,
9 Wheat. 1, 189.
Similarly, we perceive no basis for the distinction urged by ap¬
pellee, that appellant does not own or control the receiving mech¬
anisms. The communications broadcasted are no less complete
and effective, nor any the less effected by appellant, because it does
not own or command the apparatus by which they are received.
The essential purpose and indispensible effect of all broadcasting
is the transmission of intelligence from the broadcasting station
to distant listeners. It is that for which the customer pays. By
its very nature broadcasting transcends state lines and is national
in its scope and importance — characteristics which bring it within
the purpose and protection, and subject it to the control, of the
commerce clause. See Federal Radio Commission v. Nelson Bond
& Mortgage Co., 289 U. S. 266, 279.
It is unnecessary to determine whether, as the court below sug¬
gested and appellee argues, like considerations would require us to
hold that the exposure of a sign board, in one state, to the view of
dwellers in another, is likewise interstate commerce. Whether the
practical and scientific aspects of such an operation bring it within
the range of those factors which we deem controlling here, may
well be left for decision when such a case is presented. See
Pantomimic Corporation v. Malone, 238 Fed. 135.
As appellant’s income is derived from interstate commerce, the
tax, measured by appellant’s gross income, is of a type which has
long been held to be an unconstitutional burden on interstate com¬
merce. Philadelphia & So. Mail S. S. Co. v. Pennsylvania, 122
U. S. 326; Leloup v. Port of Mobile, 127 U. S. 640; Galveston, H.
& S. A. R. Co. v. Texas, 210 U. S. 217; Crew-Levick Co. v. Penn¬
sylvania, 245 U. S. 292. But appellee further contends, as the state
court thought, that, even though broadcasting involves interstate
commerce, the maintenance and operation of appellant’s stations
includes intrastate activities which may be subjected to state taxa¬
tion, as was the generation of electricity, transmitted to points out¬
side the state, in Utah Light & Power Co. v. Pfost, 286 U. S. 165.
There the tax was measured by the amount of current generated at
the taxpayer’s hydro-electric plant, from which electric power was
supplied to consumers in other states. This Court held that the
operation of generating electrical power, although virtually simul¬
taneous with its transmission, is so distinct and separable from
the operation of transmission, in interstate commerce, as to be
the appropriate subject of a state tax. The argument now made
overlooks the fact that the present tax is not levied upon or meas¬
ured by appellant’s generation of electro-magnetic waves, but by
its gross receipts for the service it performs, which includes both
the generation of the energy and its transmission as a means of
communication interstate.
Whether the state could tax the generation of such energy, or
other local activity of appellant, as distinguished from the gross
income derived from its business, it is unnecessary to decide.
See City of Atlanta v. Oglethorpe University, 178 Ga. 379. It is
enough that the present is not such a tax, but is levied on gross re¬
ceipts from appellant’s entire operations, which include interstate
commerce. As it does not appear that any of the taxed income
is allocable to intrastate commerce, the tax as a whole must
failj Cooney v. Mountain States Tel. & Tel. Co., supra; cf. Pacific
Tel. & Tel. Co. v. Washington, supra, and the judgment of the state
court must be reversed and the case remanded for further pro¬
ceedings not inconsistent with this opinion.
Reversed.
BROADCAST ADVERTISING IN FEBRUARY
Developments of the Month
Broadcast advertising in February experienced a gain
of 1.3% over the preceding month’s level and registered
an increase of 13.0% as compared to the corresponding
month of 1935. Gross time sales of the medium in Feb¬
ruary amounted to $4,785,804.
A marked increase occurred in national non-network
advertising as compared to the previous month, gross
revenues rising 19.7%. The usual seasonal trends were
evident in other portions of the medium, declines occur¬
ring in the regional network and local fields.
Regional network and national non-network advertising
continued to experience the heaviest increases as com¬
pared to corresponding periods of the preceding year.
The February gains in these fields were respectively
59.3% and 45.6%. Local broadcast advertising dropped
below the preceding year’s level for the first time in a
year and a half.
Non-network advertising gained 2.0% over January and
21.8% over the preceding February. Regional and local
stations experienced the greatest increase in non-net¬
work volume as compared to the same month of 1935.
The South-South Central area showed the heaviest gain
of any geographical district both as against January and
as compared to last year.
Transcription volume gained markedly in both the na¬
tional and local fields. National non-network live talent
volume continued to show important increase over the
corresponding period of previous seasons.
Trends as to radio sponsorship were spotty during the
month. The heaviest gains as compared to the preceding
year were in the automotive field where national non-net¬
work advertising rose 349.0%, local broadcast advertising
75.5% and national network volume 10.7%.
Retail broadcast advertising experienced the usual sea¬
sonal decline from the January level but remained 5.5%
above the volume of the corresponding month of 1935.
Total Broadcast Advertising
Total broadcast advertising over stations and networks during
the month under review is set forth in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
1936 Gross Time Sales
Cumulative
Class of business January February Jan.-Feb.
National networks . $4,740,560 $4,785,804 $9,526,364
Regional networks 95,340 92,432 187,772
National non-networks . . . . 1,626,500 1,946,650 3,573,150
Local . 1,572,760 1,316,950 2,889,710
Total . $8,035,160 $8,141,836 $16,176,996
Total broadcast advertising volume increased 1.3% as compared
to January. National non-network volume showed the greatest
gain rising 19.7% over the preceding month’s level. National net¬
work volume remained comparatively unchanged while regional
network advertising and local radio advertising declined 3.1% and
16.3% respectively.
•Compared to February, 1935, gross time sales of the medium
increased 13.0%. The heaviest gains occurred in regional network
and national non-network volume, which rose 59.3% and 45.6%
respectively.
National network advertising rose 7.0%, while local broadcast
advertising volume fell below the level of the corresponding period
of the preceding season for the first time in approximately a year
and a half. Local broadcast advertising was 1.7% below that of
February, 1935.
1264
Comparison with Other Media
For the first time in some months several other media showed
greater gains than did radio broadcasting. Compared to the 1.3%
increase in radio volume as against January, national magazine
advertising rose 36.1% and national farm paper volume increased
35.8%. Newspaper lineage experienced the usual seasonal decline,
dropping 7.1%.
National magazine advertising rose 17.1% as compared to the
preceding February, while national farm paper volume gained
34.0%. Newspaper lineage rose 3.2% as against the previous year.
Advertising volume placed in national media during February is
found in Table II.
The South Atlantic — South Central area experienced the greatest
gain in non-network volume as compared either to the preceding
month or to the corresponding period of 1935. Non-network ad¬
vertising in this area rose 7.2% over the January level and 61.5%
over that of February of last year. Non-network advertising in
the New England — Middle Atlantic area dropped 3.9% as against
the previous month and remained unchanged from last February.
North Central non-network advertising rose 2.9% as compared
to the preceding month and 26.0% as against last year. Advertis¬
ing in the Pacific and Mountain area increased 1.4% over January
and 10.8% over February, 1935. Non-network advertising by
geographical areas as set forth in Table IV.
TABLE II
ADVERTISING BY MAJOR MEDIA
1936 Gross Time and Space Sales
Cumulative
Advertising Medium January February Jan.-Feb.
Radio broadcasting . $8,035,160 $8,141,836 $16,176,996
National magazines 1 . 8,256,125 11,240,096 19,496,221
National farm papers 1 ... 421,999 657,717 1,079,716
Newspapers2 . 39,280,000 36,511,000 75,791,000
Total . $55,993,284 $56,550,649 $112,543,933
1 Publishers’ Information Bureau.
2 Estimated.
Non-Network Advertising
Non-network advertising as a whole gained 2.0% over January
and increased 21.8% as compared to February of the preceding
year.
Regional station volume alone declined as compared to the prev¬
ious month, non-network advertising over this class of station
dropping 2.9%. Clear channel station non-network advertising
rose 6.1% while local station volume increased 2.0%.
Regional and local station volume experienced the greatest gains
as compared to the corresponding month of last year. Regional
non-network advertising rose 28.8%, while local volume increased
42.9%. Clear channel station advertising gained 12.3%. Broad¬
cast advertising by power of station is found in Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
Power of Station
Over 1,000 watts . .
250-1,000 watts . . .
100 watts .
1936 Gross Time Sales
January
$1,489,900
1.221,120
488,240
February
$1,580,270
1,185. ISO
498,150
Cumulative
Jan.-Feb.
$3,070,170
2,406,300
986,390
Total
$3,199,260 $3,263,600 $6,462,860
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1936 Gross Time Sales
Geographical District
January
February
Cumulative
Jan.-Feb.
New England-Middle At-
lantic Area .
$686,350
$659,400
$1,345,750
South Atlantic-South Cen-
tral Area .
631,410
676,600
1,308.010
North Central Area .
1,286,400
1,324,000
2,610,400
Pacific and Mountain Area
595,100
603,600
1,198,700
Total .
$3,199,260
$3,263,600
$6,462,860
Non-Network Volume by Type of Rendition
The principal development in the rendition field was the marked
strength exhibited by transcription business. Transcription volume
rose 3.1% as against January and 54.5% as compared to Feb¬
ruary, 1935. In the national non-network field, transcription
volume showed a gain of 7.0% over the preceding month and
65.4% as compared to the previous year. Local transcription ad¬
vertising declined 15.1% from the January level in keeping with
the usual seasonal trend. However, it remained 13.3% above the
previous year’s level.
In the national non-network field live talent business continued
to show considerable strength rising 3.6% above January and show¬
ing a gain of 61.0% over last February. Local live talent volume
declined 19.9% over the month and remained unchanged from the
previous year’s level.
Announcements declined in both the national and local fields as
compared to February of the preceding year. The national de¬
crease was 13.1%, while the local decline amounted to 5.5%. Na¬
tional announcement volume rose 6.3% as against January while
local announcements declined 11.8%.
National non-network and local broadcast advertising by type
of rendition is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
National Non-network
Type of Rendition
January
February
Electrical transcriptions .
. $649,280
$694,775
Live talent programs .
. 732,970
994,530
Records .
. 4,720
2.670
Announcements .
. 239,530
254.675
Total .
. $1,626,500
$1,946,650
Sponsor Trends in February
Trends during the month as a whole were spotty with numerous
declines offsetting gains except in the national non-network field
where only one significant decrease occurred. The decrease in ques¬
tion was a 31.0% drop in national non-network amusement volume.
This comprises a comparatively unimportant group in the non-net-
work field.
Principal gains of importance in non-network advertising as com¬
pared to January were as follows: gasoline and accessories 52.0%;
Local
1936 Gross
Time Sales
Total
Cumulative
January
February
January
February
Jan.-Feb.
$140,180
$118,995
$789,460
$813,770
$1,603,230
894,000
715,770
1,626,970
1,710.300
3.337,270
52,470
53,430
57,190
56,100
113,290
486,110
428,755
725,640
683,430
1,409.070
$1,572,760
$1,316,950
$3,199,260
$3,263,600
$6,462,860
cosmetics 69.4%; beverage 73.4%; financial 173.9% and tobacco
53.7%.
Important increases in national network advertising during the
month were as follows: automotive 9.3%; clothing 18.4%; finan¬
cial advertising 37.1%, and miscellaneous 9.5%. Confectionery and
tobacco advertising declined slightly.
In the regional network field soap and kitchen supply advertis¬
ing increased markedly with general declines throughout the major
portion of the remaining product groups. Local declines also were
general with the exception of a 15.7% rise in amusement adver¬
tising and one of 17.1% in automotive volume.
1265
Comparison with February, 1935
Trends in the national network field were rather uncertain with
both marked increases and decreases. The most important gains
as against the corresponding month of last year were a 10.7% rise
in automotive volume, an increase of 55.6% in gasoline and acces¬
sory advertising, a rise of 43.0% in beverage volume, and a gain
of 66.2% on the part of the miscellaneous group. The last-men¬
tioned rise was due largely to the office equipment classification
within that group.
National network drug advertising dropped 27.8%, confectionery
advertising declined 39.6% and household equipment volume 49.4%.
The principal gain in the regional network field was a 98.7%
rise in food volume. AH branches of national non-network adver¬
tising showed an increase as compared to February of the preceding
year. The principal gains were a rise of 349.0% in automotive
volume, an increase of 198.6% in beverage advertising, and an in¬
crease of 91.6% in tobacco advertising.
In the local field automotive volume rose 75.7%, while slight
increases were experienced in the clothing, food, household equip¬
ment and miscellaneous groups. The principal decline of import¬
ance occurred in the gasoline and accessory group where a drop
of 24.7% was experienced. Broadcast advertising volume during
February bv national product and service group is found in Table
VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oil .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
(7) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
(February, 1936)
National Regional
Gross Time Sales
National
Networks
Networks
Non-networks
Local
Total
—
—
$5,910
$34,850
$40,760
$369,972
_
232,650
85,375
687,997
411,330
$9,032
133,360
49,585
603,307
34,082
616
40,220
153,420
228,338
502,149
13,481
452,500
64,870
1,033,000
976,074
3,360
119,330
18,610
1,117,374
842,355
29,817
365.140
191,930
1,429,242
373,580
4,226
75,100
62,140
515,046
106,492
4,560
45,250
4,220
160,522
36,623
4.515
64,375
121,755
227,268
267,416
5,254
36,190
2,570
311,430
48,516
731
39,610
60,980
139,837
96,808
—
16,390
10,800
123,998
—
—
19,115
97,980
117,095
338,850
6,090
35,330
6,195
386,465
381,557
10,750
276,180
351,670
1,020,157
$4,785,804
$92,432
$1,946,650
$1,316,950
$8,141,836
Details as to Sponsor Trends
Details as to trends in broadcast advertising volume in various
sponsoring groups are as follows:
la. Amusements. National non-network 31.0% below January.
Local up 15.7%. Compared to February last year national non¬
network more than tripled and local unchanged. Total up 8.5%.
1. Automotive. National network volume 9.3% over January.
National non-network up 7.7% and local 17.1%. Compared to
last February gains as follows: national network 10.7%; national
non-network 349.0%; local 75.5%.
2. Accessories and gasoline. National networks 1.0% below Jan¬
uary and regional networks down 24.0%. Local down 30.1% and
national non-network up 52.0% compared to February, 1935 gains
as follows: national networks 55.6%; regional networks 27.0%;
and national non-network 38.8%. Local volume down 24.7%.
3. Clothing. National network advertising 18.4% above January
and national non-network up 18.9%. Regional volume down 30.3%
and local 31.6%. Compared to last February national network
volume down 13.7% and regional advertising 87.0%. National
non-network business up 57.6% and local advertising 4.0%.
4. Drugs and pharmaceuticals. Declines from January as follows:
national network 1.1%, regional network 2.8% and local 27.6%.
National non-network advertising up 2.0%. Regional network
volume 80.0% above February of preceding year. National non¬
network volume up 23.1%, national network advertising down
27.8 % and local down 31.0%.
5. Toilet goods. National network volume unchanged from Jan¬
uary. National non-network advertising up 69.4%. Regional net¬
work volume down 17.2% and local 19.2%. Gains compared to
corresponding month of previous year as follows: national net¬
works 9.6% ; regional networks 295.0% ; national non-network
37.8%. Local down 37.7%.
6. Foodstuffs. National network volume unchanged from prev¬
ious month. Regional networks up 3.4% and national non-net¬
work 9.6%. Local down 10.4%. National network advertising
7.2% below same month of last year. Other gains as follows:
regional networks 98.7%; national non-network 37.5% and local
9.5%.
7. Beverages. National network volume 4.4% ahead of previous
month. National non-network up 73.4%. Regional networks
down 13.9% and local 30.5%. National network advertising 43.0%
ahead of corresponding month of 1935. National non-network up
198.6%. Regional networks down 22.2% and local 13.9%.
8. Confectionery. Declines from January as follows: national
networks 15.5%; regional networks 32.7%; local 75.9%. National
non-network up 25.0%. Declines as compared to preceding Feb¬
ruary as follows: national networks 39.6%; national non-network
22.2% and local 50.0%. Regional network volume up 94.0%.
9. Household equipment. Declines from previous month as fol¬
lows: national networks 4.8%; regional networks 37.2% and local
6.5%. National non-network up 31.5%. National network volume
down 49.4% from corresponding month of 1935. Regional volume
unchanged. National non-network up 19.0% and local 3.4%.
10. Soaps and kitchen supplies. National network volume 9.6%
above January. Regional volume up 487.7%. National non-net¬
work down 17.8% and local 64.5%. National network advertis¬
ing 9.1% above previous February and regional volume up mate¬
rially. Others unchanged.
11. Financial and insurance. National networks 37.1% above
January and national non-network 173.9%. Regionals down
41.9% and local 13.5%. Compared to February of last year gains
as follows: national networks 9.5%; national non-network 8.0%
and local 19.8%.
12. Radios. National network advertising 4.3% greater than
January. National non-network 13.4% above previous month and
local down 3.4%. Compared to corresponding month of 1935
national network volume up 6.3%; national non-network volume
increased from $785 to $16,390; and local increased 26.8%.
13. Department and general stores. National non-network ad¬
vertising 75.7% over preceding month and local down 20.6%.
National non-network advertising $19,115 as against $2,190 in pre¬
ceding February. Local down 25.5%.
14. Tobacco products. National network volume 5.6% below
January and regional network advertising down 6.5%. National
non-network up 53.7% and local 29.6%. Compared to previous
year gains as follows: national networks 11.6%; regional networks
more than fivefold; national non-network 91.6% and local tripled.
1266
IS. Miscellaneous. National network advertising 9.5% over previ¬
ous month. Regional network volume up 30.4% and national
non-network 37.1%. Local down 10.6%. National network volume
66.2% above previous February. Other gains as follows regional
networks 34.2%; national non-network 25.7% and local 7.8%.
Retail Broadcast Advertising
Broadcast advertising by retail establishments experienced the
usual seasonal decline during the month. Total volume dropped
10.2% as compared to January but remained 5.5% above the
February 1935 level. Declines were general from the previous
month’s level with the exception of a 33.3% increase in automo¬
tive volume, a rise of 26.6% in restaurant advertising and an in¬
crease of 3.9% in grocery store volume.
Principal increases of importance as against February of the
previous year were as follows: automotive 78.8%; clothing and
apparel 3.5%; grocery stores 46.5%; restaurants 52.8%; house
furnishings 8.0%. The principal decline of the month was in the
department store field where advertising volume dropped 13.3%
below the February 1935 level.
Retail broadcast advertising during the month is found in Table
VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business January February
Automobiles and accessories:
Automobile agencies and used car dealers. $75,930 $101,170
Gasoline stations, garages, etc . 27,785 22,995
Clothing and apparel shops . 236,550 167,900
Drugs and toilet goods:
Drug stores . 21,375 21,020
Beauty parlors . 8,880 5,280
Food products:
Grocery stores, meat markets, etc . 60,590 62,920
Restaurants and eating places . 18,390 23,280
Beverage retailers . 12,800 5,320
Confectionery stores . 8,930 1,700
Household goods:
Household equipment dealers . 32,000 31,710
Furniture stores . 74,080 70,810
Hardware stores . 6,390 6,750
Radio retailers . 11,380 7,580
Department and general stores . 134,320 117,095
Tobacco shops . 2,340 625
Miscellaneous . 75,320 78.920
Total . $807,060 $725,075
FEDERAL TRADE COMMISSION ACTION
STIPULATIONS
The Commission has issued the following cease and desist orders:
No. 01123. E. A. Rush, 154-156 Edgewood Ave., Atlanta,
operating as Reeman’s Laboratories, and engaged in the sale
of “B. G. O.”, agrees to cease representing that his product is
a competent remedy for all forms of skin diseases, that it will
give instant relief for any form of suffering, and that it is a grease¬
less ointment.
No. 01141. Gracon Manufacturing Co., 2119-23 Gravois St.,
St. Louis, signed a stipulation to discontinue assertions that its
product, “Co-Lubes”, offered as a graphite lubricant for motors,
increases speed of automobile 20 per cent and assures 20 per cent
to 75 per cent savings in gas and oil mileage; that it will save
repair bills and improve motors, and that it will cause motors to
have good lubrication after running 4,000 miles without a change
of oil.
The respondent will cease representing that agents selling “Co-
Lubes” can earn “up to $40 daily”, or other exaggerated amounts.
No. 01342. Misleading advertising practices will be discontinued
by A. F. Duverger, operating as National Distributors and In¬
come Audit Service, Washington, D. C., under a stipulation.
Selling an “income audit service” and accounting and income
tax service, the respondent is said to have advertised that pros¬
pective salesmen could make up to $150 weekly by getting in on a
fast selling service required by law, in which business there would
be no competition, and more than ten million prospects.
In his stipulation, the respondent agrees to cease representing
that the income audit service is required by law ; that sales persons
in this business have no competition, or have any specific number
of prospects, and that every business or professional man or woman
is required by law to keep a book of records.
No. 2413. Use of the word “distilled” by Federal Distilled
Products, 425 North Water St., Milwaukee, so as to represent
that it is a distiller of alcoholic beverages or owner of a distillery,
has been ordered discontinued.
While the Commission, in its findings, expressed the opinion that
the words “Distilled Products” alone would not constitute a mis¬
representation, inasmuch as the respondent handles distilled pro¬
ducts, it found that the respondent, by representing that such
products are “prepared by” it and are “Federal Distilled”, had
made use of such parts of its corporate name in a manner which
tended to deceive dealers and the purchasing public into the belief
that the respondent was a distiller and that the spirituous liquors
which it sold were distilled by it.
No. 2579. Misleading advertising of a cosmetic in newspapers,
over the radio, and through other media, by Lur-Eye Products,
Inc., 1501 Broadway, New York City, and W. R. Robinson Co.,
Kankakee, Ill., is prohibited by an order to cease and desist,
issued against those respondents.
Producing and distributing “Lur-Eye Lash Developer” to the
wholesale and retail trade, the respondents are directed to stop
advertising that “Lur-Eye” will grow, promote the growth of, in¬
crease the length of, or change the texture of the eyelashes, and
that it is a competent treatment for inflamed or bloodshot eyes,
or granulated eyelids.
The respondents also are ordered to cease representing that the
preparation will penetrate to or reach the follicles or papillae or
inner shafts of the eyelashes, will have any beneficial effect upon
the sebaceous glands or inner membranes, or will relieve eye strain.
Findings are that the respondents’ product does not have me¬
dicinal ingredients claimed in such quantities as to produce the
results represented.
The respondents admitted the material allegations of the Com¬
mission’s complaint against them to be true, and consented, without
intervening procedure, to issuance by the Commission of an order
to cease and desists from the methods of competition alleged in
the complaint.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
Wednesday, April 8
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Pacific Acceptance Corp., San Diego, Calif. — C. P., 1200
kc., 100 watts, daytime.
NEW — California Sales Contract Co., San Francisco, Calif. — C. P.,
1280 kc., 500 watts, 1 KW LS, unlimited time.
KMTR — KMTR Radio Corporation, Los Angeles, Calif.— Renewal
of license, 570 kc., 1 KW, unlimited time.
Thursday, April 9
HEARING BEFORE AN EXAMINER
(Broadcast)
WHB — WHB Broadcasting Co., Kansas City, Mo— C. P., 1120
kc., 500 watts, 1 KW LS, unlimited time. Present assign¬
ment: 860 kc., 1 KW, daytime.
WISN — Hearst Radio, Inc., Milwaukee, Wise. — C. P., 1120 kc.,
1 KW, unlimited time. Present assignment: 1120 kc., 250
watts, 1 KW LS, unlimited time.
Friday, April 10
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Star-Chronicle Publishing Co., St. Louis, Mo. — C. P.. 1250
kc., 1 KW, unlimited time.
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — C. P., 1250
kc., 1 KW, unlimited time.
APPLICATIONS GRANTED
WHA — University of Wisconsin, Madison, Wise. — Granted C. P.
to make changes in equipment increase power from I'/i
KW daytime to 5 KW daytime.
1267
WJNO — Hazlewood, Inc., West Palm Beach, Fla. — Granted modi¬
fication of C. P. to make changes in equipment ; move trans¬
mitter from El Varano Hotel, W. Palm Beach, to a site 1)4
mile from center of business district of W. Palm Beach,
and approving studio location at Hotel George Washington.
KGB — Don Lee Broadcasting System, San Diego, Cal. — Granted
modification of C. P. extending commencement date from
5-1-3S to 30 days after grant and completion date to 180
days after grant.
WLBC — Donald A. Burton, Muncie, Ind. — Granted modification
of C. P. to install new equipment.
WHN — Marcus Loew Booking Agency, New York City — Granted
license to cover C. P. authorizing changes in equipment and
increase in day power to 5 KW ; 1010 kc., 1 KW night,
unlimited time. Also granted license to use old 1 KW
transmitter as an auxiliary, and granted authority to de¬
termine operating power by direct measurement of antenna.
WDZ — WDZ Broadcasting Co., Tuscola, Ill. — Granted license to
cover C. P. authorizing changes in equipment, change in
frequency to 1020 kc., and removal of transmitter site
locally; increase in day power to 250 watts.
WFAM — The South Bend Tribune, South Bend, Ind. — Granted
modification of license to change hours of operation from
sharing with WWAE to unlimited day, and sharing at
night with WWAE.
WWAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— The Commission on its own motion, reconsidered its ac¬
tion of March 17, 1936, in designating for hearing appli¬
cation for modification of license to change hours of opera¬
tion from S-WFAM to unlimited, day to LS, S-WFAM
night, and granted same.
KCMC — North Miss. Broadcasting, Texarkana, Ark. — Granted
consent to voluntary assignment of license to KCMC, Inc,
KTW — First Presbyterian Church, Seattle, Wash. — Granted au¬
thority to install automatic frequency control.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Granted modi¬
fication of C. P. to extend commencement date from 9-30-35
to date of approval and completion date from 3-30-36 to
9-30-36.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — Granted
license to cover C. P. authorizing installation of new equip¬
ment and increase in day power from 1 to 5 KW, unlimited
time, 1 KW night, 1300 kc.
WTAQ — WHBY, Inc., Green Bay, Wise. — Granted license to cover
C. P. covering move of transmitter from Eau Claire to De
Pere, Wise., and studio location to Green Bay; install new
equipment, change hours of operation from sharing KSCJ
night to unlimited, and installation of directional antenna
for nighttime operation; 1330 kc., 1 KW night, 1 KW day,
unlimited time.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. — Granted
authority to determine operating power by direct measure¬
ment of antenna.
WMMN — A. M. Rowe, Inc., Jefferson, W. Va. — Granted renewal
of license; 890 ltc., 250 watts night, 500 watts day, un¬
limited.
WNBC — William J. Sanders, New Britain, Conn. — Granted special
temporary authority to operate unlimited time on night of
March 28, 1936, in order to broadcast dinner party spon¬
sored by Democratic State Central Committee of Conn., in
honor of Postmaster General James A. Farley.
WHBB — Dr. Wm. J. Reynolds & Wm. J. Reynolds, Jr., Selma,
Ala. — Granted special temporary authority to operate from
LS to 11 p. m., CST, on April 4, 1936, in order to broad¬
cast special program sponsored by merchants of the city.
WELI — Patrick J. Goode, New Haven, Conn. — Granted special
temporary authority to operate from 8 p. m. to 12 mid¬
night EST, March 28, 1936, in order to broadcast testi¬
monial dinner given by Democratic State Central Committee
of Conn, in honor of Postmaster Gen. James A. Farley,
and from 8 p. m. to 12 midnight EST, April 18, in order
to broadcast testimonial dinner in honor of Patrick J. Goode
upon his appointment to the postmastership of the city of
New Haven.
WEBC — Head of the Lakes Broadcasting Co., Superior, Wise. —
Granted renewal of license; 1290 kc., 1 KW night, 5 KW
day, unlimited time to expire Oct. 1, 1936. Also granted
renewal for auxiliary transmitter for the same period.
KGGM— New Mexico Broadcasting Co., Albuquerque, N. Mex. —
Granted renewal of license; 1230 kc., 250 watts night, 500
watts day, unlimited time, to expire Oct. 1, 1936.
WHBI — May Radio Broadcast Corp., Newark, N. J. — Granted
renewal of license; 1250 kc., 1 KW night, 2.5 KW day,
sharing WNEW, to expire Oct. 1, 1936.
WHBI — May Radio Broadcast Corp., Newark, N. J. — Granted
renewal of license for auxiliary; 1250 kc., 1 KW night, 2.5
KW day for auxiliary purposes only, to expire Oct. 1, 1936.
WNEL — Juan Piza, San Juan, P. R. — Granted renewal of license;
1290 kc., 500 watts, unlimited time, to expire Oct. 1, 1936.
WAML — Southland Radio Corp., Laurel, Miss. — Granted renewal
of license on a temporary basis for 3 months; 1310 kc.,
100 watts, specified hours.
WTNJ — WOAX, Inc., Trenton, N. J. — Granted renewal of license
for period from April 1 to Oct. 1, 1936. 1280 kc., 500 watts,
shares with stations WCAM and WCAP.
KFPY — Symons Broadcasting Co., Spokane, Wash. — Granted re¬
newal of license for period from April 1 to Sept. 1, 1936; 890
kc., 1 KW, unlimited time.
WTOC — Savannah Broadcasting Co., Inc., Savannah, Ga. — Granted
renewal of license for period from April 1 to Oct. 1, 1936;
1260 kc., 1 KW, unlimited time.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted renewal of license for period from March 1
to Sept. 1, 1936; 570 kc., 250 watts, unlimited time.
W5XAU — WKY Radiophone Co., Oklahoma City, Okla. — Granted
license to cover C. P. ; 31600, 35600, 38600, 41000 kc., 100
watts, unlimited time.
KGHL — Northwestern Auto Supply Co., Inc., Billings, Mont. —
Granted extension of special experimental authority to op¬
erate on 780 kc. for period from April 1 to July 1, 1936.
KECA — Earle C. Anthony, Inc., Los Angeles, Cal. — Granted modi¬
fication of C. P. approving new equipment and transmitter
site at 82nd St. and Compton Ave., Los Angeles County,
and extend commencement date to 3-1-36, and completion
date to 90 days thereafter.
NEW — Woodam Corp., Mobile — in Airplane — Granted C. P.
(Temp, broadcast pickup) ; frequencies 1622, 2060, 2150,
2790 kc., 7)4 watts.
NEW — Ben S. McGlashan, Portable-Mobile (Los Angeles, Calif.) —
Granted C. P. (Exp. Gen. Exp.) ; frequencies 88000»400000
kc., 100 watts.
NEW — Radio Station WSOC, Inc., Portable (Charlotte, N. C.) —
Granted C. P. (Exp. Gen. Exp.) ; frequencies 31100, 34600,
37600, 40600 kc., 7 watts.
NEW — Pittsburgh Radio Supply House, Portable-Mobile (Pitts¬
burgh, Pa.) — Granted C. P. (Exp. Gen. Exp.) ; frequencies
31100, 34600, 37600, 40600 kc., 5 watts.
W9XHC — Kansas State College of Agr. and Applied Science, Port¬
able-Mobile (Manhattan, Kans.) — Granted license to cover
C. P. (Gen. Exp.) ; frequencies 31100, 34600, 37600, 40600
kc., 4 watts.
W2XEI — Paul J. Gollhofer, Portable-Mobile (Brooklyn, N. Y.) —
Granted consent to voluntary assignment of license from
Paul J. Gollhofer to Metropolitan Broadcasting Corp., a
New York Corp.
WDBJ — Times-World Corp., Roanoke, Va. — Granted renewal of
license for period from April 1 to Oct. 1, 1936; 930 kc., 1
KW, unlimited time.
SET FOR HEARING
NEW — Southland Broadcasting Corp., Chattanooga, Tenn. — Ap¬
plication for C. P., 1200 kc., 100 watts, daytime. Site to
be determined.
NEW — Jonas Weiland, Kinston, N. C. — Application for C. P. for
new station, 1200 kc., 100 watts night, 250 watts day, un¬
limited time. Site to be determined.
NEW — R. J. Laubengayer, Salina, Kans. — Application for C. P.
for new station, 1500 kc., 100 watts, unlimited time. Site
to be determined.
NEW- — Pemberton Gordon d/ as Mid-Missouri Broadcasting Serv¬
ice, Jefferson City, Mo. — Application for C. P. for new
station, 1310 kc., 100 watts daytime.
NEW — Harold F. Gross & Edmund C. Shields, Saginaw, Mich. —
Application for C. P., 950 kc., 500 watts daytime. Site to
be determined.
NEW — Grover C. Maxwell, Geo. A. Sancken & Herbert C. Lorick,
Augusta, Ga.- — Application for C. P. for new station, 610 kc.,
250 watts night, 500 watts day. Site to be determined.
NEW— The Niagara Falls Gazette Publishing Co., Niagara Falls,
N. Y. — Application for C. P., 630 kc., 250 watts daytime.
Site to be determined.
1268
NEW — I. L. G. W. Radio Corp., New York City, N. Y. — Applica¬
tion for C. P. for new station, 970 kc., 1 KW, unlimited
time. Site to be determined.
NEW — Ben L. Taylor, Phil B. Whitaker & Mrs. B. Whitaker,
Chattanooga, Tenn. — Application for C. P., 1200 kc., 100
watts daytime. Site to be determined.
NEW — Nolan S. Walker, Canton, Ohio. — Application for C. P.,
1200 kc., 100 watts night, 250 watts day, unlimited time.
Site to be determined.
NEW — W. H. Marolf, Escanaba, Mich. — Application for C. P.,
1500 kc., 100 watts, unlimited time. Site to be determined.
NEW — WRBC, Inc., Cleveland, Ohio — Application for C. P., 780
kc., 1 KW, unlimited time. Site to be determined.
NEW — WRBC, Inc., Youngstown, Ohio — Application for C. P.,
890 kc., 1 KW, unlimited time. Site to be determined.
WEMP- — Milwaukee Broadcasting Co., Milwaukee, Wise. — Appli¬
cation for C. P. to install new equipment, change frequency
from 1310 kc. to 1010 kc., power from 100 watts to 250
watts night, 500 watts day, and time from daytime to un¬
limited.
KFKA— The Mid-Western Radio Corp., Greeley, Colo. — Applica¬
tion for modification of license to increase night power from
500 watts to 1 KW, operates on 880 kc., 1 KW day;
S-KPOF.
KRE — First Congregational Church, Berkeley, Calif. — Application
for consent to voluntary assignment of license from First
Cong. Church of Berkeley to Central Calif. Broadcasters,
Inc., a Calif, corporation.
WCBD — WCBD, Inc., Waukegan, Ill. — Application for consent to
transfer of control of WCBD, Inc., an Ill. Corp. from
Wilbur Glenn Veliva, E. E. Harwood and M. J. Minturn to
L. E. Moulds, W. F. Moss, Gene T. Dyer and E. M. Ring-
wald.
NEW — Isadore Goldwasser, Tuscaloosa, Ala. — Application for C. P.
for new station, 1370 kc., 100 watts, unlimited time.
NEW — Saint Cloud Broadcasting Co., by Emmons L. Abeles,
Secy., St. Cloud, Minn.- — C. P. already in hearing docket,
amended to read: 1310 kc., 50 watts night, 100 watts day,
unlimited time. Site to be determined.
NEW — H. H. Hanseth, Fresno, Calif. — C. P. already in hearing
docket, amended to read: 1410 kc., 1 KW, unlimited time.
NEW — Midway Broadcast Co., by Emmons L. Abeles, Secy.. Eau
Claire, Wise. — C. P. already in hearing docket, amended to
read: 1210 kc., 100 watts daytime. Site to be determined.
NEW — W. P. Stuart, Prescott, Ariz. — Application for C. P., 1500
kc., 100 watts, unlimited time.
KWKC — Wilson Duncan, tr. as Wilson Duncan Broadcasting Co-
Kansas City, Mo. — Consent to voluntary assignment of
license to Lester E. Cox and Thomas L. Evans, a partnership.
NEW — Evans Broadcasting Co., Kansas City, Mo. — Application
for C. P., 1370 kc., 100 watts, unlimited time. Site to be
determined.
NEW — Fred A. Baxter, Superior, Wise. — Application for C. P.
already in hearing docket, amended to read: 1200 kc., 100
watts, unlimited time.
RENEWAL OF LICENSES
The following station were granted renewal of licenses for the
regular period:
KFWB, Hollywood, Cal.; KVOA, Tucson. Ariz.; KYA, San
Francisco; WAAT, Jersey City, N. J.; WASH, Grand Rapids,
Mich.; WFBR and auxiliary, Baltimore. Md. ; WOOD, Grand
Rapids, Mich.; KTW, Seattle, Wash.; WISN, Milwaukee, Wis.,
and auxiliary; WRC and auxiliary, Washington, D. C.; KGVO,
Missoula, Mont.; KMBC and auxiliary, Kansas City, Mo.; KOIL,
Council Bluffs, la.; KTAT, Fort Worth, Tex.; KVOR, Colorado
Springs, Colo.; WCAE, Pittsburgh, Pa., and auxiliary; WHIO,
Dayton, Ohio.
WLBI^— State of Wise. Dept, of Agr. and Markets, Stevens Point,
Wis. — Granted renewal of license for the period ending
Sept. 1, 1936.
KUJ — KUJ, Inc., Walla Walla, Wash. — Present license extended on
a temporary basis from April 1 to May 1, 1936, subject to
such action as may be taken upon pending application for
renewal.
WATL — J. W. Woodruff and S. A. Cisler. Jr., d/b as Atlanta
Broadcasting Co., Atlanta, Ga. — Present license extended on
a temporary basis from April 1 to May 1, 1936, subject to
such action as may be taken upon pending application for
renewal.
WWL — Loyola University, New Orleans, La., and
KWKH — International Broadcasting Corp., Shreveport, La.- —
Special temporary experimental authority extended from
March 1 to April 1, 1936, subject to the same conditions as
contained in the existing authority to said stations, pending
consideration of pending petition of station WLWL and
petitions in opposition thereto.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Present
license extended on a temporary basis for the period April
1 to May 1, 1936, subject to such action as may be taken
on pending application for renewal.
KGCU — Mandan Radio Assn., Mandan, N. Dak. — Granted re¬
newal of license on a temporary basis only subject to what¬
ever action may be taken by the Commission upon pending
application for renewal.
KMA — May Seed and Nursery Co., Shenandoah, la. — Granted re¬
newal of license on a temporary basis only subject to what¬
ever action may be taken by the Commission upon pending
application for renewal.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Granted re¬
newal of license on a temporary basis only subject to what¬
ever action may be taken by the Commission upon pending
application for renewal.
KGBZ — KGBZ Broadcasting Co., York, Nebr. — Granted renewal
of license upon a temporary basis only and subject to what¬
ever action may be taken by the Commission upon the re¬
newal application now pending before it and upon the ap¬
plication of the May Seed & Nursery Co. (KMA).
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Granted
extension of special experimental authority on a temporary-
basis only, subject to a hearing and decision by the Com¬
mission. Extension granted for the period from April 1
to Oct. 1, 1936.
MISCELLANEOUS
Paul R. Heitmeyer, Salt Lake City, Utah — Denied motion that
action be deferred on applications pending from Utah and
that same be considered in connection with his application.
A. Steneart Graham, E. V. Baxter, Norman Baxter, d/b Pittsburg
Broadcasting Co., Pittsburg, Kans. — Denied motion to con¬
sider its application in conjunction with application of
Joplin Broadcasting Co., and Pittsburg Publishing Co.
WISE — WISE Broadcasting Co., Inc., St. Paul, Minn. — Denied
motion asking Commission to reconsider action of Feb. 8,
1936, in granting Edward Hoffman a C. P. to erect new
broadcasting station at St. Paul to operate on 1370 kc., 100
watts, unlimited.
KROW — Educational Broadcasting Corp., Oakland, Cal. — Granted
petition to intervene at hearing of application of Jos. G.
Morrow, for C. P. for new broadcast station at Oakland, to
operate on 1150 kc., 250 watts daytime.
WFEA — New Hampshire Broadcasting Co., Manchester, N. H. —
Granted renewal of license on condition applicant complete
and place in operation the new antenna and ground system
now being constructed, and that the signal strength of new
radiating system meet the requirements of Commission.
WJJD — WJJD, Inc., Chicago, Ill. — The Broadcast Division di¬
rected that C. P. to move transmitter to Des Plaines, Ill.,
be issued to applicant in conformity with its action of Jan.
10, 1936, inasmuch as applicant has complied with the pro¬
viso contained therein.
KFRU — KFRU, Inc., Columbia, Mo. — The Broadcast Division di¬
rected that a modification of license to change hours of
operation to sharing with radio station WGBF, simultaneous
day with WGBF (contingent upon the release of the hours
by WOS), be issued to applicant in conformity with its
action of Feb. 21, 1936. The Broadcast Division also di¬
rected that station WOS, State of Mo., Mo. State Highway
Patrol, Jefferson City, be deleted.
NEW — Fresno Broadcasting Co., Fresno, Calif. — Granted request
to amend order to take depositions in re application for new
broadcasting station at Fresno, Calif.
WSPA — Virgil V. Evans, Spartanburg, S. C. — Denied petition ask¬
ing special temporary authority to operate with 500 watts
from LS to 12 midnight for 30 days.
Times Dispatch Publishing Co., Richmond, Va. — Granted request to
take depositions in re application for new station at Rich¬
mond, Va.
KMJ — James McClatchy Co., Fresno, Cal. — Granted petition to
intervene at hearing of application of Fresno Broadcasting
Co., for new station at Fresno.
1269
Evans Broadcasting Co., Kansas City, Mo. — Overruled motion that
Commission revoke and rescind special temporary license
granted Charlotta Duncan, Adm., to operate KWKC, but
granted application to be heard before Commission renews
license in question.
George B. Bairey, Valley City, N. Dak. — Denied petition and its
supplement, requesting Commission to grant his application
for a new station at Valley City to operate on 1500 kc., 100
watts, unlimited time.
WIND — Johnson-Kennedy Radio Corp., Gary, Ind. — Denied spe¬
cial temporary authority to operate with power of 5 KW
from S to 6 a. m., CST, during the time that Eastern Stand¬
ard Time is recognized as official time in Gary.
APPLICATION DENIED
NEW — The Herald Publishing Co., Denison, Tex. — Denied as in
cases of default, application for C. P., 1200 kc., 100 watts,
unlimited time, heretofore set for hearing, for failure to file
an appearance and statement of facts in accordance with
Rule 104.6(c).
APPLICATIONS DISMISSED
KIUN — Jack W. Hawkins & Barney H. Hubbs, Pecos, Tex. — Modi¬
fication of license, 1310 kc., 100 watts, unlimited time, here¬
tofore set for hearing, was dismissed for failure to answer
form letter, adopted by Broadcast Division requiring appli¬
cants to signify their desire to be heard within 10 days after
receipt of said form letter.
The following application was dismissed from the hearing docket
and retired to the files inasmuch as the time requested for trans¬
mittal of programs, specified therein, has expired.
Plain Talk Magazine, Inc., Washington, D. C. — For authority to
transmit proceedings of the convention of Jefferson Demo¬
crats on Jan. 29, 1936, from Macon, Ga., through facilities
of A. T. & T. to station XEAW, Reynosa, Tamps, Mex.
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
NEW — Albert E. Davis, Brownwood, Tex. — Applied for C. P.,
1420 kc., 100 watts, daytime.
NEW — George H. Adams and Henry D. Bratter, St. Paul, Minn. —
Applied for C. P., 1370 kc., 100 watts, unlimited time.
WAWZ — Pillar of Fire, Zaraphath, N. J. — Applied for modifica¬
tion of license, 1350 kc., 1 KW, shares with WBNX.
APPLICATIONS RECEIVED
First Zone
WCAO — Monumental Radio Co., Baltimore, Md. — License to use
600 W. E.,’ 106-B transmitter as an auxiliary transmitter.
WCAO — Monumental Radio Co., Baltimore, Md. — License to cover
600 construction permit (Bl-P-824) as modified for equipment
changes and move of transmitter.
NEW — Hildreth & Rogers Co., Lawrence, Mass. — Construction
680 permit for a new station to be operated on 680 kc., 1 KW,
daytime.
WNYC — City of New York — Department of Plant & Structures,
810 New York, N. Y. — License to cover construction permit
(Bl-P-798) to use W. E. 106-B transmitter as an auxiliary
transmitter and move transmitter.
WJAR— The Outlet Co., Providence, R. I. — Modification of con-
890 struction permit (Bl-P-333) for changes in equipment, in¬
crease in power, move of transmitter and directional antenna,
requesting further changes in equipment.
WELI — City Broadcasting Corp., New Haven, Conn. — Voluntary
900 assignment of license from Patrick J. Goode, to City Broad¬
casting Corporation.
WORL — Broadcasting Service Organization, Inc., Needham, Mass.
920 Modification of license to move studio from Great Plain
Avenue, Needham, Mass., to 610 Beacon St., Boston, Mass.
NEW — E. Anthony & Sons, Inc., Pawtucket, R. I. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, 250 watts-day, unlimited time. Requests facilities of
WNRI. Amended: To make changes in antenna.
NEW — Twin City Broadcasting Co., Inc., Lewiston, Me. — Con-
1210 struction permit for a new station to be operated on 1210
kc., 100 watts, unlimited time.
NEW — Edward E. Huddleson & Robert A. Howe, d/b as Huddle-
1210 son & Howe, Honolulu, T. of Hawaii — Construction permit
for a new station to be operated on 1210 kc., 100 watts, 250
watts-day, unlimited time.
WNBC — William J. Sanders, New Britain, Conn. — Construction
1380 permit to make changes in equipment and increase power
from 250 watts to 1 KW.
NEW — Auburn Publishing Co., Auburn, N. Y. — Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
unlimited time. Amended: Giving exact transmitter site as
West Lake Road, Fleming, New York.
WMBQ — Metropolitan Broadcasting Corp., Brooklyn, N. Y. — Con-
1500 struction permit to install new equipment.
NEW — Lillian E. Kiefer, Brooklyn, N. Y. — Construction permit
1500 for a new station to be operated on 1500 kc., 100 watts,
specified hours. Requests facilities of WMBQ.
NEW — Central New York Broadcasting Corp., Portable-Mobile —
Construction permit for a new general experimental station
to be operated on 31100, 34600, 37600, 40600 kc., 1 watt.
NEW — Central New York Broadcasting Corp., Portable-Mobile—
License to cover above.
W10XDX — National Broadcasting Company, Inc., Portable-Mo¬
bile — Modification of license to utilize a frequency in the
band of 200-400 megacycles for broadcast pickup purposes,
in addition to present authorization.
Second Zone
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
1160 Construction permit to install a new transmitter, erect a
vertical antenna and increase power from 5 KW to 25 KW
night, 10 KW day.
WEED — William Avera Wynne, Rocky Mount, N. C. — Construc-
1420 tion permit to make changes in equipment, increase power
from 100 watts to 100 watts, 250 watts-day.
NEW — Lynchburg Broadcasting Corp., Portable-Mobile — Con¬
struction permit for a new General experimental station for
31100, 34600, 37600, 40600 kc., 40 watts.
NEW — The Evening News Assn., Inc., Mobile — Construction per¬
mit for a new general experimental station to be operated on
31100, 34600, 37600, 40600 kc., 5 watts.
Third Zone
NEW — Seaboard Investment Co., Inc., Montgomery, Ala. — Con-
610 struction permit for a new station to be operated on 610 kc.,
500 watts, 1 KW-day, unlimited time.
WAIM — Wilton E. Hall, Anderson, S. C. — Construction permit to
630 change frequency from 1200 kc. to 590 kc., install new
equipment, increase power from 100 watts to 250 watts, 1
KW-day and move transmitter from Anderson College,
Anderson, South Carolina to site to be determined, Ander¬
son, South Carolina. Amended: To change requested fre¬
quency from 590 kc. to 630 kc., requested power from 250
watts, 1 KW-day to 1 KW daytime operation only.
NEW — Voice of Corsicana Assn., Corsicana, Tex. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, daytime. Amended: To change frequency from 1200
kc. to 1310 kc.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
1300 License to cover construction permit (B3-P-1003) for changes
in equipment.
KFPM — Voice of Greenville, Greenville, Tex. — Construction permit
1310 to make changes in equipment, increase power from 15 watts
to 100 watts, change hours of operation from specified hours
to daytime, move transmitter from 2109 Park Street (rear)
to site to be determined, Greenville, Texas and change call
letters from KFPM to KVOG. (Filed in name of Voice of
Greenville). Amended: To change frequency from 1310 kc.
to 1420 kc.
KGFI — Eagle Broadcasting Co., Inc., Corpus Christi, Tex. — Con-
1330 struction permit to install new equipment, increase power
from 100 watts, 250 watts-day to 250 watts, 500 watts-day,
change frequency from 1500 kc. to 1330 kc., move trans¬
mitter from Broadway & Leopard Street, Corpus Christi,
Texas to Ocean Drive, orpus Christi, Texas.
W4XCA — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Modification of construction permit to increase power to
250 watts.
Fourth Zone
KMMJ — The M. M. Johnson Co., Clay Center, Nebr. — Voluntary
740 assignment of license from the M. M. Johnson Co. to
KMMJ, Incorporated.
WHO— Central Broadcasting Co., Des Moines, la. — Special ex-
1000 perimental authorization to install new equipment and in¬
crease power from 50 KW to 500 KW for period to 8-1-36.
1270
WJJD — WJJD, Inc., Chicago, III. — Modification of license to
1130 change hours of operation from 6 a. m. CST, to local sunset
at Salt Lake City, Utah to 6 a. m. EST, to local sunset at
Salt Lake City, Utah.
KFJB — Marshall Electric Co., Inc., Marshalltown, Iowa — Con-
1200 struction permit to make changes in equipment.
WCLS — WCLS, Inc., Joliet, Ill. — Modification of license to change
1310 hours of operation from specified hours to unlimited time.
W9XOK — The Star-Chronicle Publishing Co., St. Louis, Mo. —
License to cover construction permit for a new general ex¬
perimental station.
NEW — WBBM Broadcasting Corp., Chicago, Ill. — Construction
permit for a new general experimental station for 31600,
35600, 38600, 41000 kc., SO watts, special emission.
NEW — Central States Broadcasting Co., Omaha, Nebr. — Construc¬
tion permit for a new general experimental station to be
operated on 31600, 35600, 38600, 41000 kc., 100 watts.
NEW — The University of Minnesota, Minneapolis, Minn. — Con¬
struction permit for a new general experimental station to be
operated on 31600, 35600, 38600, 41000, 86000-400000,
401000 kc., and above, 100 watts. Amended: A3 emission
specified.
Fifth Zone
KFVD — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
1000 Voluntary assignment of license from Los Angeles Broad¬
casting Co., Inc., to Standard Broadcasting Co.
KUJ — KUJ, Inc., Walla Walla, Wash. — Consent to transfer con-
1370 trol of corporation from Louis Wasmer to H. E. Studebaker.
100 shares common stock.
KIEM — Redwood Broadcasting Co., Inc., Eureka, Calif. — License
1450 to cover construction permit (B5-P-206) for new equipment.
change in frequency and power and move transmitter.
NEW — Jay E. Tapp, Long Beach, Calif. — Construction permit for
a new general experimental station to be operated on 31600,
35600, 38600, 41,000 kc., 100 watts.
Puerto Rican Zone
WKAQ — Radio Corporation of Porto Rico, San Juan, Puerto Rico
1240 — Modification of license to change hours of operation from
one-half time to unlimited time.
1271
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W, BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, 1936. Tho National Association of Broadcasters
Vol. 4 - - No. 17
APRIL 9, 1936
IN THIS ISSUE
Page
Copyright Hearings . 1273
Daily News Files Appeals . 1273
Telephone Hearing Postponed . 1273
Wylie Out For Himself . 1273
FCC Schedules Far Reaching Inquiry . 1273
Indicating Instruments . 1274
Recommends Denial of Nine Applications . 1274
Field Intensity Measurements . 1274
Recommends Against Power Increase . 1275
Federal Trade Commission Action . 1275
FTC Case Closed . 1276
Federal Communications Commission Action 1276
COPYRIGHT HEARINGS
Unless some change is made in the present program of the
House Committee on Patents all hearings will be concluded by
April 15. On Monday and Tuesday of next week motion pic¬
ture exhibitors and producers will be heard. During the present
week manufacturers of mechanical devices, representatives of de¬
signers appeared both for and against a copyright bill.
DAILY NEWS FILES APPEAL
The Daily News Corporation of St. Paul, Minn., has filed an
appeal in the United States Court of Appeals of the District of
Columbia against an order of the Federal Communications Com¬
mission of March 19 granting a construction permit for the erec¬
tion of a new station at St. Paul to use 1370 kilocycles, 100 watts
power and unlimited time on the air.
The news corporation contends that it had an application pend¬
ing for the same assignment since August 14. 1935, while it is
contended at the Commission that the application was filed after
the Hoffman hearing before an Examiner.
The news corporation contends, in its appeal that it was de¬
prived of an opportunity for a hearing on its application for the
facilities granted Hoffman.
TELEPHONE HEARING POSTPONED
Further hearings in connection with the telephone investigation
of the Federal Communications Commission have been post¬
poned from April 14 to April 20 at the request of the American
Telephone & Telegraph Company because of the annual meeting
of the corporation to be held next week.
WYLIE OUT FOR HIMSELF
C. Ellsworth (Dick) Wylie, one of the best known executives
on the Pacific Coast, general manager and sales manager of the
Don Lee Broadcasting Company for several years, has opened
his own advertising agency under the firm name of C. Ellsworth
Wylie Company with offices in the Beaux Arts Building, Los
Angeles. Mr. Wylie resigned from the Don Lee organization on
the first of March.
FCC SCHEDULES FAR REACHING INQUIRY
INTO ALL TECHNICAL PHASES OF RADIO
The FCC this week announced there would be an informal engi¬
neering hearing before the Commission en banc on June 15 to
obtain information concerning the problems involved in the allo¬
cation of frequencies to the various classes of service.
The general hearing probably will be followed by other hear¬
ings concerning specific regulatory problems.
The full text of the FCC release follows:
At a meeting on Friday, April 3, 1936, the Commission ap¬
proved a recommendation of the Chief Engineer for an informal
engineering hearing before the Commission en banc on June 1 5th
for the general purpose of obtaining information concerning the
problems involved in the allocation of frequencies to the various
classes of service.
In this memorandum the Engineering Department reported
that radio, by reason of recent technical progress, has arrived at
a cross-roads in its application to the service of the public and
as a result thereof the Federal Communications Commission is
confronted with some pressing problems of basic importance, the
successful solution of which will constitute another milestone in
the history of communications.
The Engineering Department states that in its opinion the fore¬
most important technical radio problems requiring the attention
of the Commission are as follows:
“1. Providing new radio frequency channels for public services
in classes of communication other than broadcasting, as well as
providing for all classes of radio service in the interest of safety
of life and property.
“2. Frequency allocation improvements to the existing broad¬
cast structure — 550 to 1600 kc.
“3. Visual broadcasting (television and facsimile).
“4. Aural broadcasting on frequencies above 1600 kc.
“Peculiarly, the solution of these four broad problems is so in¬
trinsically interrelated that not one of them should be decided
upon without consideration of the other three.”
The Chief Engineer stated that of the problems confronting
the Commission, visual broadcasting perhaps most complicates the
situation by reason of two factors, namely:
“1. The technical requirement for an extremely large portion
of the limited ether spectrum, thus restricting the amount which
would be available for services other than broadcasting.
“2. The economics of visual broadcasting, including the pos¬
sible economic effect it may have upon existing aural broadcast¬
ing and the existing receiver manufacturing industry, as well as
the newspaper and motion picture industries.
“If more data were available with respect to these two factors
of visual broadcasting, the Federal Communications Commission
might have sufficient detailed information to warrant its proceed¬
ing immediately with confidence in the solution of the other three
radio problems on a more permanent basis; but visual broadcast¬
ing is still deep in the experimental status from both technical and
economic standpoints.
“The other three problems are not quite so complex as visual
broadcasting, and while there is still insufficient data regarding
wave propagation in large portions of the spectrum, there is
enough information relative to propagation in certain portions of
the spectrum to permit more definite progress along specific lines,
and in this connection at present there appears to be a need for
opening new portions of the spectrum in the service of the public.
Furthermore, the possible intrenchment of various developed serv¬
ices, particularly those of the Government, by vast expenditures
of money, is a factor of compelling importance.”
The Engineering Department stated that of the various courses
of action available to the Commission, it believed that the most
sound course for the Commission to pursue in its solution of the
pressing radio problems was “to proceed upon the doctrine of ‘evo¬
lution and experimentation’ by encouraging development and use
of frequencies along definite lines as may be indicated from time
to time from accumulated data, and by holding informal hear¬
ings as necessary to facilitate progress in detail.”
The more important specific recommendations of the Engi¬
neering Department were as follows:
“1. In new allocations or in reallocations of radio frequencies
to services or to stations within services, proceed on the basis of
‘evolution, experimentation and voluntary action’ rather than by
radical and enforced costly changes. Modifications which do not
1273
involve large expenditures or are necessary requirements to keep
abreast of the technical art should be accomplished.
“2. Encourage communication development along specific lines
as may be indicated from time to time from accumulated data
and from evidence secured from such informal engineering meet¬
ings as may be necessary to facilitate progress in detail.
“3. At a date in 1936, preferably in May or June, to be deter¬
mined later, hold an informal engineering hearing before the Com¬
mission en banc for the purpose of:
“(1) Determining in a preliminary manner the most probable
future needs of the various services for frequencies above 30,000 kc.
“(2) Securing for the public and the Commission a keener in¬
sight of the conflicting problems which confront the industry and
the regulatory body in the application of the new frequencies to
the service of the public.
“(3) Guiding experimentation along more definite lines as may
be justified from the evidence presented at the hearing.
“(4) Reviewing frequency allocations to services in the radio
spectrum below 30,000 kc.
“(5) Assisting the Government in its preparation for the Inter¬
national Telecommunications Conference at Cairo in 1938.
“The Interdepartment Radio Advisory Committee should be
invited to attend this hearing.
“4. Delay permanent allocation of frequencies above 30,000 kc
to various classes of service until after the hearing mentioned in
3 above, and also until after an executive order on the allocation
of these frequencies to Government services has been decided
upon.
“5. In the meantime the Engineering and other interested De¬
partments should prepare minor modifications of existing regu¬
lations for experimental operation above 30,000 kc, to be effective
immediately, and so designed as to encourage progress and at the
same time avoid illogical “intrenchment” pending final determina¬
tion of the allocation of these frequencies to various commercial
services.
“6. Encourage standardization of visual broadcast transmis¬
sion performance by authorizing the Engineering Department to
cooperate with the Radio Manufacturers Association and licensees
of experimental television stations in forming a committee of the
industry to endeavor to arrive at a recommendation with re¬
spect to ultimate standardization.
“7. Encourage the development of coaxial cables for the pur¬
pose of transmitting visual broacast programs between tele¬
vision broadcast stations which will be ultimately licensed by the
Commission.
“8. Continue the policy of granting visual broadcast station
licenses on an experimental basis only and making more stringent
requirements as to active work on the part of licensees.
“9. At the proper time in the future, if there is sufficient ac¬
cumulated data with respect to visual broadcasting, and after it
has been decided what the allocation of frequencies above 30,000
kc should be, promulgate visual broadcast transmission perform¬
ance standards, provided the Radio Manufacturers Association’s
recommendations are satisfactory. If they are not satisfactory,
hold a public hearing to determine what standards should be
adopted.
“10. After standards have been adopted, continue the policy of
keeping visual broadcasting on an experimental basis until suf¬
ficient data has been accumulated with respect to the economic
factors of visual broadcasting, as well as the possible economic
effect on other broadcast services and upon other industries such
as newspaper and motion picture.
“11. Continue to encourage aural broadcasting on an experi¬
mental basis on frequencies above 30,000 kc until such time when
sufficient data is accumulated with respect to this particular
service, as well as television and other services. When data as
to the technique of this type of broadcasting is understood, and
when the needs of other services, including television and fac¬
simile, are known to a sufficient extent, the Commission should
consider the desirability of commercial aural broadcasting on
frequencies above 30,000 kc.”
The Chief Engineer stated that the general hearing for June
15th was for the purpose of guiding the Commission and the com¬
munications industry in the next progressive steps that may be
necessary in the development of communications and in order
that the Commission and the industry might avoid pitfalls that
might be involved in premature intrenchment resulting from large
investments, which might serve as a handicap in making an
orderly allocation of frequencies to various commercial and gov¬
ernment services in the future.
INDICATING INSTRUMENTS
A statement has been sent to all manufacturers of broadcast
equipment regarding indicating instruments by the Federal Com¬
munications Commission as follows:
It has come to the attention of the Commission that in sev¬
eral cases the instruments supplied with broadcast transmitters
for indicating the plate current and plate voltage of the last radio
stage and the antenna current, have such scale divisions that
where indication^, fall between divisions, it is impossible to esti¬
mate the reading within plus or minus 2%, which is the accuracy
required for these instruments.
The scale divisions should be as small as practical and of such
value as to permit accurate interpolation at a glance.
Attention is also invited to the requirement that the full scale
readings of the direct current instrument shall not exceed five
times and the full scale reading of the antenna ammeter shall not
exceed three times the minimum normal indications.
The function of each instrument shall be permanently and
plainly marked thereon or on the panel immediately adjacent
thereto.
All future equipments should be supplied with instruments in
accordance with the above. Broadcast stations employing in¬
struments which do not meet these requirements will be cited
for violation of Rule 143. In the case of equipment of approved
manufacture, the question of the cost of replacement must be
settled between the vendor and vendee.
RECOMMENDS DENIAL OF NINE
APPLICATIONS
Applications were filed with the Federal Communications Com¬
mission for nine stations in Minnesota, Iowa, Nebraska and Wis¬
consin. The applications were as follows, all of which were taken
up at one hearing: Winona Broadcasting Company, new station
at Winona, Minn., to use 1500 kilocycles, 100 watts unlimited
time; Mankato Broadcasting Company, new station at Mankato,
Minn., to use 1210 kilocycles, 100 watts and unlimited time; Fort
Dodge Broadcasting Company, new station at Fort Dodge, Iowa,
to use 1210 kilocycles, 100 watts power and unlimited time;
Clinton Broadcasting Company, to erect new station at Clinton,
Iowa, to use 1310 kilocycles, 100 watts and unlimited time; Hast¬
ings Broadcasting Company, to erect new station at Hastings,
Nebr., to use 1420 kilocycles, 100 watts and unlimited time;
Grand Island Broadcasting Company, to erect new station at
Grand Island, Nebr., to use 1370 kilocycles, 100 watts and un¬
limited time; Appleton Broadcasting Company to erect new sta¬
tion at Appleton, Wis., to use 1500 kilocycles, 100 watts power and
unlimited time; Wausau Broadcasting Company, new station at
Wausau, Wis., to use 1310 kilocycles, 100 watts power and un¬
limited time, and Northern Broadcasting Company, to erect sta¬
tion at Wausau, Wis., to use 1370 kilocycles, 100 watts power and
unlimited time.
Examiner P. W. Seward in Report No. 1-214 recommends that
all of the applications be denied. In the case of eight of the ap¬
plications the Examiner states that a certain group of men pro¬
pose to associate themselves together as a partnership. The
Examiner found that no substantial need is shown for additional
radio service in the several areas proposed to be served, and
granting of the applications would cause objectionable interfer¬
ence.
FIELD INTENSITY MEASUREMENTS
The Federal Communications Commission has issued the fol¬
lowing statement in connection with field intensity measure¬
ments pursuant to Rule 131:
Rule 131 provides that certain minimum field intensities are
acceptable in lieu of the required minimum physical vertical
heights of the antennas proper. The following requirements shall
govern the taking and submission of data on the field intensity
produced:
Beginning as near to the antenna as possible without including
the induction field, measurements should be made on eight or
more radials, at intervals of one-quarter mile or less up to two
miles, at intervals of one-half mile or less from two miles to six
miles and a few additional measurements at greater distances
from the antenna. Where the antenna is rurally located and un¬
obstructed measurements can be made, there should be as many
as eighteen or twenty measurements on each radial. However,
where the antenna is located in a city or where unobstructed
measurements are difficult to make, measurements should be made
on each radial at much closer intervals, particularly within two
miles of the antenna.
1274
A curve for each radial is plotted from these data on semi-log¬
arithmic co-ordinate paper with the field intensity times distance
as ordinate, and distance as abscissa. From the curve so plotted,
the unattenuated field intensity at one mile on each radial is
determined.
When all radials have been analyzed in this manner, a curve
is plotted on polar co-ordinate paper from the unattenuated
values obtained, which gives the unattenuated field pattern at one
mile. The radius of a circle, the area of which is equal to the
area bounded by this pattern, is the effective unattenuated field
intensity at one mile.
While making the field intensity survey, the output power of
the station must be maintained at the licensed power as deter¬
mined by the direct method. To do this it is necessary to deter¬
mine accurately the total antenna resistance (the resistance varia¬
tion method or the substitution method is acceptable) and to
measure the antenna current by means of an ammeter of accept¬
able accuracy. . .
An accurate value of the antenna resistance can be determined
only by making a series of measurements, each for a different fre¬
quency. From ten to twelve resistance measurements covering a
band of SO to 60 kilocycles wide with the operating frequency
near the middle of the band, must be made to give data from
which accurate results may be obtained. The values measured
should be plotted with frequency as abscissa and resistance in ohms
as ordinate and a smooth curve drawn. The point on the ordi¬
nate where this curve intersects the operating frequency, gives
the value of the antenna resistance.
The following data should be submitted to the Commission in
affidavit form:
1. Complete data taken for field intensity measurement, in¬
cluding a map showing each point of measurement numbered to
agree with the tabulated data and for the antenna resistance
measurement. _
2. The graphs drawn for each radial, the unattenuated field
pattern and the antenna resistance curve.
3. Description of methods used to take readings for field in¬
tensity and antenna resistance measurements.
4. Manufacturer’s name of each calibrated instrument used,
and manufacturer’s rated accuracy.
5. Accuracy, date and by whom each instrument was last cali¬
brated.
6. Name and qualifications of engineer making measurements.
Herbert L. Pettey,
Secretary.
RECOMMENDS AGAINST POWER INCREASE
Broadcasting Station WPAR, Parkersburg, W. Va.,. applied to
the Federal Communications Commission to increase its daytime
power from 100 to 250 watts. The station operates full time on
1420 kilocycles.
Examiner John P. Bramhall in Report No. 1-215 recommended
that the application be denied. He found that the station has
not established a need for additional daytime service in the area
proposed to be served, and that granting of the application would
cause interference with Station WBNS, at Columbus, Ohio.
FEDERAL TRADE COMMISSION ACTION
COMPLAINTS
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respond¬
ents will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued against them:
No. 2751. Alleging unfair competition in connection with the
sale of Analgesique “Baume Bengue,” offered as a treatment for
relief of pain, a complaint has been issued against Thomas Leem-
ing & Co., Inc., 101 West 31st St., New York City.
The respondent company, the complaint charges, represents in
advertisements, pamphlets, labels and other printed matter, ttjat
its product penetrates the skin through muscles and into the
joints, and kills the pains of neuralgia, rheumatism, headache,
neuritis, lumbago, and sciatica, no matter how deep-seated the
pains.
No. 2752. In a complaint, M. F. Foley Co., of Friend and
Union Sts., Boston, is charged with unfair representations in the
sale of sea foods.
Engaged as a wholesaler of sea foods, the respondent company
is alleged to have advertised its products by means of price lists
or bulletins, in which certain species of fish were variously desig¬
nated “Deep Sea Whitefish Fillets,” “Fresh Cusk Fillets (Deep
Sea Whitefish),” or “Deep Sea Whitefish Fillets (Cusk).” In¬
voices are said to have referred to such species as “D. S. White-
fish Fillet,” when, in fact, these types of fish were not “white-
fish,” as known to the trade and consuming public.
No. 2753. Charging unfair representations in aid of the sale of
“Sunlife Chlorophyllian Oil,” advertised by radio and other media
as “captured sunlight” for treatment of certain diseases, a com¬
plaint has been issued against Sunlife Chlorophyllian Labora¬
tories, Ltd., 2702 South Hill St., Los Angeles, distributors of the
preparation. The complaint also names as respondents the follow¬
ing members of the firm: C. C. Miller, W. B. Mather, W. M.
Louisson, D. A. Lester, L. D. Marr and H. M. Young.
Among the ailments for which the respondent company recom¬
mended the use of ‘Sunlife Chlorophyllian Oil” were nervous irri¬
tation, muscular rheumatism, lumbago, gouty conditions, simple
coughs and colds, and insomnia.
“Every mother will appreciate it for the children, as it relieves
the so-called ‘growing pains’ and many minor injuries, such as
sprains, cuts, bruises, and burns,” read an advertisement.
However, according to the complaint, chlorophyll, although pro¬
duced by the aid of sunlight, is not absorbed through the skin and
its application has no effect on rheumatic and gouty conditions
and other ailments named, nor does it possess the same bene¬
ficial ingredients or produce the same beneficial effects as sunlight.
Use of the word “Sunlife” in the respondent’s trade name is al¬
leged to be false and misleading.
The respondent’s representations are alleged to have been in
violation of the Federal Trade Commission Act, tending to de¬
ceive the purchasing public and unfairly to divert trade to the
respondent company from competitors.
No. 2754. Alleged to have gained control of a competing com¬
pany by acquiring its total shares of outstanding capital stock, in
violation of Section 7 of the Clayton Act, Laird & Co., Scobey-
ville, N. J., engaged in the manufacture and sale of applejack
brandy, is named respondent in a complaint issued.
In February, 1936, the complaint charges, the respondent com¬
pany acquired the outstanding capital stock of the Hyland Dis¬
tilling Corporation, Haskell, N. J., also engaged in the manufac¬
ture and sale of appplejack brandy, with the result that competi¬
tion between the two companies has been substantially lessened,
and the respondent has increased its total volume of sales.
Acquisition of the stock of its competitor, it is alleged, also
tends to create a monopoly in favor of the respondent company
in the manufacture and sale of its product in interstate com¬
merce.
No. 2755. Eight manufacturers dealing in sportswear, in Bos¬
ton, Brockton, and Dorchester, Mass., have been named respond¬
ents in a complaint alleging an agreement and combination to re¬
strict and eliminate competition in the sale and distribution of
flannel skirts.
The respondents are: Boston Sportswear Co., 72 Kneeland St.;
Robert Hamilt, 75 Kneeland St., trading as Bobby Sportswear
Co.; Gordon Maid Skirt Co., Inc., 75 Kneeland St.; Louis Wad-
man Co., 715 Kneeland St., trading as Oxford Sportswear Co.;
Louis Maltzman, 75 Kneeland St., trading as Simmons Sports¬
wear Co.; Schwartz Sportswear Co., Inc., 75 Kneeland St., all of
Boston; Weatherproof Clothing Mfg. Co., 146 Court St., Brock¬
ton, Mass., and David A. Sallop, trading as Peerless Sportswear
Co., 1394 Dorchester Ave., Dorchester, Mass.
In October, 1935, according to the complaint, the respondents
entered into an agreement, combination or conspiracy among them¬
selves to suppress and eliminate competition in the sale of flan¬
nel skirts in interstate commerce, by agreeing to quote and sell
them at a uniform price of $16.50 a dozen. The respondents are
alleged to have distributed to their respective customers identical
written notice of this uniform price, and pursuant to this, it is
alleged, the sales were made at $16.50 a dozen.
These practices are alleged to have unduly tended to lessen and
restrict competition in the sale of flannel skirts throughout the
United States, and particularly in New England, where the
respondents constitute practically all of the manufacturers of flan¬
nel skirts.
No. 2756. Misrepresentation of a general mercantile business as
an Army and Navy supply store is alleged as an unfair method of
competition, in a complaint issued against Sternheimer Bros.
Inc., operating in Richmond, Va., as Army and Navy Supply
Co., and in Washington, D. C., as Army Goods Store.
The complaint charges that through use of the respondent's
trade names containing the words “Army” and “Navy,” purchasers
are led to believe that the respondent’s merchandise was made
for or bought from the United States War or Navy Depart¬
ments.
1275
According to the complaint, virtually none of this material
was purchased at Army or Navy surplus or refuse goods sales and
the small amount of actual Army or Navy goods carried by the
respondent, if any, is bought from jobbers, wholesalers and others
who purchase at Army or Navy reject or refuse goods sales.
STIPULATIONS
The Commission has issued the following cease and desist or¬
ders:
No. 2514. Johnson Manufacturing Co., 1656 Lee Ave.,
Birmingham, Ala., and its president, John C. Johnson, have
been ordered to cease and desist representing, through use of their
corporate or trade name, or in advertising, that the company is a
manufacturer of kitchen utensils.
Findings are that the respondent company is not a manufacturer
owning a factory or foundry, but rather contracts with factories
or foundries to make the products it sells.
No. 2660. Discontinuance of agreements entered into by eleven
corporations to fix, maintain and enforce uniform prices, terms
and discounts at which zinc and copper plaite are to be sold to
photo engraving customers, has been ordered.
The order to cease and desist also is directed against the Photo
Engravers Copper and Zinc Grinders Association, 101 Fair-
mount Ave., Jersey City, N. J., of which the respondent cor¬
porations are members, and against the association’s officers, Oliver
L. Edes, Plymouth, Mass., Harold M. Pitman, Cicero, Ill., Wal¬
ter Pitman, Jersey City, N. J., and J. Peter Lally, Pittsburgh.
The respondent corporations, said to manufacture and sell more
than 90 per cent of the total volume of zinc and copper plates
used for engraving purposes in the United States, are:
Edes Manufacturing Co., Plymouth, Mass.; American Steel &
Copper Plate Co., 101 Fairmount Ave., Jersey City, N. J.; New
York Steel & Copper Plate Co., 61 Clymer St., Brooklyn; Rolled
Plate Metal Co., 196-210 Van Brunt St., Brooklyn; National Steel
& Copper Plate Co., 720 South Dearborn St., Chicago; Harold
M. Pitman Co., South 51st St., and 133rd St., Cicero, Ill.; Pacific
Steel & Copper Plate Co., 416 Jackson St., San Francicso; Ameri¬
can Zinc Products Co., Greencastle, Ind.; American Nickeloid
Co., 1501 Second St., Peru, Ill.; C. G. Hussey & Co., 2850 Second
Ave., Pittsburgh, and Bridgeport Engravers Supply Co., 774
East Main St., Bridgeport, Conn.
Under the order, the respondent corporations are prohibited
from exchanging information, through their trade association, as
to the prices, terms and discounts at which they are to sell their
products, and the association is required to discontinue cooperat¬
ing with the corporations and the individual respondents by hold¬
ing meetings at which they enter into price fixing agreements and
at which the trade association acts as a clearing house for ex¬
change of information submitted by the corporations, including
reports as to the sales of their products, together with prices, dis¬
counts and terms thereof.
FTC CASE CLOSED
No. 2408. The Federal Trade Commission has closed its case
against Merchants Distillers Products, formerly a wholesaler of
liquors at Louisville, Ky., because this respondent company has
been adjudged a bankrupt and its entire assets have been sold at
auction.
Unfair competition in the misuse of the word “Distillers” in
the respondent’s corporate name was alleged in the complaint,
which was brought under Section 5 of the Federal Trade Com¬
mission Act.
Neither glass nor labels bearing the name or license number of
the respondent corporation were sold at the auction, and its basic
permits have been cancelled by the Federal Alcohol Administra¬
tion.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
Thursday, April 16
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Harold H. Hanseth, Fresno, Calif. — C. P., 1410 kc., 1 KW,
unlimited time.
NEW — Fresno Broadcasting Co., Fresno, Calif. — C. P., 1410 kc.,
500 watts, 1 KW LS, unlimited time.
NEW — Kidd Brothers, Taft, Calif. — C. P., 1420 kc., 100 watts,
daytime.
NEW — Tulare-Kings Counties Radio Associates, Visalia, Calif. —
C. P., 1190 kc., 250 watts, daytime.
NEW — Ventura County Star, Inc., Ventura, Calif. — C. P., 1170
kc., 250 watts, daytime.
KHSL — Golden Empire Broadcasting Co., Chico, Calif. — Modifi¬
cation of license, 630 kc., 250 watts, unlimited time. Present
assignment: 950 kc., 250 watts, daytime.
NEW — Wm. B. Smullin, Sacramento, Calif. — C. P., 1310 kc., 100
watts, 250 watts LS, unlimited time.
NEW — Howard N. Mitchell, Sacramento, Calif. — C. P., 1310 kc.,
100 watts, unlimited time.
NEW — B. A. Thompson, Santa Cruz, Calif. — C. P., 1310 kc., 100
watts, 250 watts LS, unlimited time.
KGDM — E. F. Peffer, Stockton, Calif. — Modification of license,
1100 kc., 1 KW, limited time.
NEW — Union-Tribune Publishing Co., San Diego, Calif. — C. P.,
1420 kc., 100 watts, 250 watts LS, unlimited time.
NEW — Marysville- Yuba City Publishers, Inc., Marysville, Calif. —
C. P., 1140 kc., 250 watts, daytime.
KMPC — Beverly Hills Broadcasting Corp., Beverly Hills, Calif.—
Renewal of license, 710 kc., 500 watts, limited time.
KFOX — Nichols & Warinner, Inc., Long Beach, Calif. — C. P., 1250
kc., 1 KW, 5 KW LS, unlimited time.
NEW — The Press Democrat Publishing Co., Santa Rosa, Calif. —
C. P., 1310 kc., 250 watts, daytime.
KFOX — Nichols & Warinner, Inc., Long Beach, Calif. — Voluntary
assignment of license to Han Nichols, Inc., 1250 kc., 1 KW,
unlimited time.
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-134
WBNX— Standard Cahill Co., Inc., New York, N. Y.— C. P.,
1350 kc., 1 KW, shares with WAWZ. Present assignment:
1350 kc., 250 watts, shares with WAWZ.
Examiner’s Report No. 1-195
WTFI — Liberty Broadcasting Co., Athens, Ga. — C. P. to move to
Atlanta, Ga., 1450 kc., 500 watts, unlimited time.
Examiner’s Report No. 1-196
NEW — V. H. Lake & H. E. Stanford, doing business as L & S
Broadcasting Co., Atlanta, Ga. — C. P., 1210 kc., 100 watts,
daytime.
APPLICATIONS GRANTED
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. — Granted
C. P. to install auxiliary transmitter to operate with 500
watts for auxiliary purposes.
KWSC — ’State College of Wash., Pullman, Wash. — Granted C. P.
to make changes in equipment and increase day power from
2 to 5 KW, subject to Rules 131, 132 and 139.
KFJB — Marshall Electric Co., Inc., Marshalltown, la. — Granted
C. P. to make changes in equipment.
WCLO — Gazette Printing Co., Janesville, Wise. — Granted C. P. to
make changes in equipment, erect new radiating system,
increase day power from 100 watts to 250 watts, and move
transmitter to site to be determined in Janesville.
WSBC — WSBC, Inc., Chicago, Ill. — Granted C. P. to move trans¬
mitter approximately 3)fj miles to West Town Office Bldg.,
2400 Madison St., Chicago, and erect vertical radiator.
WJAR — The Outlet Co., Providence, R. I. — Granted modification
of C. P. to make changes in equipment.
WHDH — Matheson Radio Co., Inc., Boston, Mass. — Granted tem¬
porary license to cover C. P. authorizing changes in equip¬
ment ; also authority to determine operating power by direct
measurement of antenna input in accordance with terms
of Rule 137.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted modification of C. P. to move transmitter
from Nedrow, N. Y., to Syracuse, extend commencement
date to one month after grant and completion date to six
months thereafter.
KIEM — Redwood Broadcasting Co., Inc., Eureka, Cal. — Granted
license to cover C. P. authorizing installation of new equip¬
ment; change in frequency from local to regional channel
and power from 100 to 500 watts, also move of transmitter;
1450 kc., unlimited time.
1276
WIEK— Atlantic Broadcasting Corp., Portable-Mobile (N. Y. City)
— Granted license to cover C. P. (temporary broadcast
pickup) ; frequencies 1646, 2090, 2190, 2830 kc., 100 watts.
WSAI — The Crosley Radio Corp., Cincinnati, Ohio— Granted
license to cover C. P. authorizing move of transmitter and
changes in equipment; 1330 kc., 1 KW night, 2)4 KW day,
unlimited time.
WCRW — Clinton R. White, Chicago, Ill. — Granted modification of
license to change specified hours deleting from 12 midnight
to 1 a. m. operating time.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted
authority to install automatic frequency control.
KFYO — T. E. Kirksey, tr. as Kirksey Bros., Lubbock, Tex. —
Granted consent to voluntary assignment of license to the
Plains Radio Broadcasting Co., a Texas Corp.
W9XOK— The Star Chronicle Pub. Co., St. Louis, Mo. — Granted
license to cover C. P.; frequencies 31600, 35600, 38600,
41000 kc., 100 watts.
WEED — William Avera Wynne, Rocky Mount, N. C. — Granted
C. P. to make changes in equipment and increase day power
from 100 to 250 watts.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted
modification of special experimental authority to increase
power from 500 watts to 1 KW on 710 kc., unlimited time
for period ending Aug. 1, 1936.
WORL — Broadcasting Service Organization, Inc., Needham, Mass.
— Granted modification of license to move studio from Great
Plain Ave., Babson Park, Needham, Mass., to 610 Beacon
St., Boston, Mass.
KLZ — The Reynolds Radio Co., Inc., Denver, Colo. — Granted
modification of license to change name to KLZ Broadcasting
Co.
KICA — The Southwest Broadcasting Co., Clovis, N. Mex. —
Granted consent to voluntary assignment of license to the
Western Broadcasters, Inc.
KIDW — The Lamar Broadcasting Co., Lamar, Colo. — Granted
consent to voluntary assignment of license to The Southwest
Broadcasting Co.
KVOE — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
Calif. — Granted C. P. to make changes in antenna system,
and approving transmitter and studio sites at 2825 W. 5th
St., Santa Ana, Calif.
WPFB — Forrest Broadcasting Co., Inc., Hattiesburg, Miss. —
Granted C. P. to install new equipment and move studio
locally in Hattiesburg.
KMPC — Beverly Hills Broadcasting Corp., Beverly Hills, Calif. —
Granted renewal of license for the period ending August 1,
1936; 710 kc., 500 watts day, limited time.
KFJZ — Fort Worth Broadcasters, Inc., Fort Worth, Tex.—
Granted C. P. to install new equipment and increase day
power from 100 watts to 250 watts; 1370 kc., unlimited
time.
WRAW — Reading Broadcasting Co., Reading, Pa. — Granted
license to cover C. P. authorizing installation of new equip¬
ment, move transmitter locally in Reading.
NEW — The Evening News Association Inc., Mobile (Detroit,
Mich.) — Granted C. P. for experimental broadcast pickup
station; frequencies 31100, 34600, 37600, 40600 kc., 5 watts.
W4XCA — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted modification of C. P. to increase power from 50
watts to 250 watts.
NEW — Central New York Broadcasting Corp., Portable-Mobile,
Syracuse, N. Y. — Granted C. P. for broadcast pickup sta¬
tion; frequencies 31100, 34600, 37600, 40600 kc., 1 watt.
Also granted license covering same.
WIBA — Badger Broadcasting Co., Inc., Madison, Wise. — Granted
license to cover C. P. authorizing changes in equipment, in¬
stallation of new directional antenna radiating system, and
increase in day power to 5 KW ; 1280 kc., 1 KW night.
WAIM — Wilton E. Hall, Anderson, S. C. — Granted amended C. P.
to make changes in equipment, change frequency from 1200
to 630 kc., and power from 100 watts unlimited to 1 KW
day only.
SET FOR HEARING
NEW — Maine Broadcasting Co., Inc., Portland, Me. — Application
for C. P. for new station; 620 kc., 500 watts night, 1 KW
day, unlimited time; site to be determined.
WMT — Iowa Broadcasting Co., Cedar Rapids, la. — Application for
C. P. to make changes in equipment, increase day power
from 2)4 to 5 KW.
WLBZ — Maine Broadcasting Co., Inc., Bangor, Me. — Application
for modification of license to change frequency from 620
to 970 kc., and hours of operation from unlimited to day,
and until sunset at Chicago.
WEDC — Emil Denemark, Inc., Chicago, Ill. — Application for modi¬
fication of license to make changes in specified hours of
operation requesting additional time from midnight to 6
a. m.
KFBB — Buttery Broadcast, Inc., Great Falls, Mont. — Application
for C. P. to make changes in equipment, increase day power
from 2)4 KW to 5 KW, change frequency from 1280 to 900
kc., and move transmitter locally, exact site to be determined
with Commission’s approval.
NEW — H. L. Corley, Trinidad, Colo. — Application for C. P. for
new station ; 1370 kc., 100 watts, unlimited time.
NEW — Stanley Reid & Charles Withnell Boegel, Jr., d/b as The
Rapids Broadcasting Co., Cedar Rapids, la. — Application
for C. P. for new station; 1310 kc., 100 watts, unlimited
time. Site to be determined.
NEW — Jack E. Brantley, Mrs. Jack E. Brantley and Jack E.
Brantley, Jr., Savannah, Ga. — Application for C. P. for new
station; 1310 kc., 100 watts, unlimited. Site to be de¬
termined.
NEW — J. R. Maddox & Dr. W. B. Hair, d/b as Chattanooga
Broadcasting Co., Chattanooga, Tenn. — C. P. amended to
read: erect a new station; 590 kc., 1 KW, unlimited time,
employing directional antenna system.
NEW — A. Earl Cullum, Jr., Dallas, Tex. — Application for C. P. for
new station ; 1500 kc., 100 watts, daytime only. Site to be
determined with Commission’s approval.
WNBC — William J. Sanders, New Britain, Conn. — Application for
C. P. to make changes in equipment, increase day power
from 250 watts to 1 KW.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla.
— Application for consent to the transfer of control of the
Okla. Broadcasting Co., Inc. (KGFG), from Hale V. Davis
to Harold V. Hough.
WHDL — Olean Broadcasting Co., Inc., Olean, N. Y. — Application
for C. P. to install new equipment, change frequency from
1420 to 1400 kc., increase power to 500 watts and move
transmitter locally 2.3 miles west of present location of
town of Allegany.
NEW — The Tribune, Great Falls, Mont.— Application for C. P.,
950 kc., 1 KW night, 5 KW day, unlimited time; exact
transmitter site and type of antenna to be determined with
Commission’s approval.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep., No. 1-137: Eastern States Broadcasting Corp.,
Bridgeton, N. J. — Remanded to dockets for further hearing.
NEW — Ex. Rep., No. 1-156: KWIL Broadcasting Co. (D. A.
Gibbs, Jr., and E. H. Shemerry), Williston, N. Dak. — De¬
nied C. P. for new broadcast station to operate on 1500 kc.,
100 watts, specified hours. Examiner M. H. Dalberg re¬
versed. Order effective July 7, 1936.
NEW — Ex. Rep., No. 1-185: Mid-Central Broadcasting Co. (J. E.
Davidson, Jr., M. M. Smith & J. M. Davidson), Kansas
City, Mo. — Denied C. P. for new station to operate on 1370
kc., 100 watts, unlimited time. Examiner R. H. Hyde sus¬
tained. Order effective April 17, 1936.
KWKC — Wilson Duncan, tr. as Wilson Duncan Broadcasting Co.,
Kansas City, Mo. — Application for renewal of license set
for further hearing.
KRSC — Ex. Rep., No. 1-192: Radio Sales Corp., Seattle, Wash. — -
Denied C. P. to move transmitter; change equipment; in¬
crease power from 100 watts to 250 watts; change hours of
operation from daytime to unlimited; 1120 kc. Examiner
P. W. Seward reversed. Order effective July 7, 1936.
NEW— Ex. Rep., No. 1-193: E. F. & S. F. Sapp, tr. as Waycross
Broadcasting Co., Waycross, Ga. — Granted C. P. for new
station to operate on 1200 kc., 100 watts, unlimited time
(site to be determined) ; Examiner R. H. Hyde sustained.
Order effective July 7, 1936.
WRBL — Ex. Rep., 1-197: WRBL Radio Station, Inc., Columbus,
Ga. — Granted renewal of license, 1200 kc., 100 watts, un¬
limited time. Examiner G. H. Hill sustained. Order effec¬
tive July 14, 1936.
1277
NEW— Ex. Rep., No. 1-96: Charles C. Theis, Wichita, Kans.-
Granted C. P. for new broadcast station to operate on 1210
kc., 100 watts, unlimited time. Examiner P. W. Seward
sustained. Order effective July 21, 1936.
KMA— Ex. Rep., No. 1-136: May Seed & Nursery Co., Shenan¬
doah, la. — Granted modification of license to change hours
of operation from sharing with KGBZ to unlimited (facili¬
ties of KGBZ), 930 kc., 1 KW, 2^4 KW LS, and granted
renewal of license, 930 kc., 1 KW, 2j4 KW LS. Examiner
G. H. Hill sustained. Order effective May 8, 1936.
KGBZ— KGBZ Broadcasting Co., York, Neb.— Denied renewal of
license to operate on 930 kc., 1 KW, 2 J4 KW LS, share with
KMA; also denied modification of license requesting facili¬
ties of KMA. Examiner Hill sustained.
NEW — Ex. Rep., No. 1-138: Big Spring Broadcasting Co., Big
Spring, Tex. — Granted C. P. for new station to operate on
1500 kc., 100 watts, unlimited time.
NEW — The North Texas Broadcasting Co., Paris, Tex. — Granted
C. P. for new station to operate on 1500 kc., 100 watts,
daytime.
NEW— Plainview Broadcasting Co., S. T. Cooper & Mrs. Cumi
Cooper, Plainview, Tex. — Denied C. P. for new station to
operate on 1500 kc., 100 watts, daytime. Examiner J. P.
Bramhall sustained. Order in above cases effective July 28,
1936.
KGHL — Ex. Rep., No. 1-139 — Northwestern Auto Supply Co., Inc.,
Billings, Mont. — Granted modification of license to change
frequency from 950 kc. to 780 kc., 1 KW, 2}4 KW LS, un¬
limited time. Examiner P. W. Seward sustained.
KSOO — Sioux Falls Broadcast Association, Inc., Sioux Falls, S.
Dak. — Denied modification of license to change frequency
from 1110 kc. to 780 kc.; change power from 2J4 KW
night, VA KW day to 1 KW night, 2*4 KW day; change
hours of operation from limited to specified hours; un¬
limited, except hours now being used by KFDY, i.e., 12:30
p. m. to 2 p. m. daily except Sunday. Examiner Seward
sustained.
KXL _ KXL Broadcasters, Portland, Ore.— Denied modification of
license to change frequency from 1420 kc. to 780 kc.; in¬
crease night power from 100 watts to 2S0 watts; 250 watts
day; change hours of operation from sharing with KBPS
to specified hours, 8 a. m. to LS ; 7:30 to 10:30 p. m. Ex¬
aminer Seward sustained.
KDFN — Donald Lewis Hathaway, Casper, Wyo. — Denied modifi¬
cation of license to change frequency from 1440 to 780 kc.;
500 watts; unlimited time. Examiner Seward sustained.
KEHE — Evening Herald Pub. Co., Los Angeles, Calif. — Granted
C. P. to change transmitter and studio location (to be de¬
termined) ; make changes in equipment; increase power
from 500 watts, 1 KW LS to 1 KW, 5 KW LS; change hours
of operation from sharing with KELW to unlimited. Ex¬
aminer Seward reversed. Order in above cases effective
July 28, 1936.
NEW— Ex. Rep., No. 1-159: Robert E. Cole, d/b as Washington
Broadcasting Co., Washington, Pa. — Denied C. P. for new
broadcast station to operate on 1350 kc., 250 watts, daytime.
Examiner M. H. Dalberg sustained. Order effective August
11, 1936.
WADC— Ex. Rep., No. 1-160: Allen T. Simmons, Tallmadge, Ohio
— Granted C. P. to make changes in equipment and increase
day power from 2/2 to 5 KW; 1320 kc., 1 KW night, 5
KW day. Unlimited time. Examiner M. H. Dalberg sus¬
tained. Order effective July 28, 1936.
WCMI— Ex. Rep., 1-198: Ashland Broadcasting Co., Ashland, Ky.
— Dismissed with prejudice application for C. P. to install
new equipment, change frequency from 1310 kc. to 1350
kc. ; increase power from 100 watts to 1 KW ; unlimited
time. Examiner P. W. Seward sustained.
WDAE— Ex. Rep., 1-201: Tampa Times Company, Tampa, Fla.-
Granted C. P. to make changes in equipment and increase
power from 1 KW to 1 KW night, 5 KW day ; 1220 kc.,
unlimited time. Examiner R. H. Hyde sustained. Order ef¬
fective July 14, 1936.
NEW — Ex. Rep., No. 1-202: Thames Broadcasting Corp., New
London, Conn. — Granted C. P. for new station to operate
on 1500 kc., 100 watts, daytime. Examiner Walker sus¬
tained. Order effective July 21, 1936.
NEW — Ex. Rep., 1-203: Fountain of Youth Properties, Inc., St.
Augustine, Fla. — 'Granted C. P. for new broadcast station to
operate on 1210 kc., 100 watts, unlimited time. Examiner
R. H. Hyde sustained. Order effective July 14, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KALE, Portland, Ore.; KCRC, Enid, Okla.; KDFN, Casper,
Wyo.; KECA, Los Angeles, Cal.; KFH, Wichita, Kans.; KFJR,
Portland, Ore.; KGA, Spokane, Wash.; KGB, San Diego, Cal.;
KGER, Long Beach, Cal.; KGHF, Pueblo, Colo.; KGIR, Butte,
Mont.; KGMB, Honolulu, T. H.; KGNC, Amarillo, Tex.; KGNF,
North Plate, Neb.; KGNO, Dodge City, Kans.; KID, Idaho Falls,
Idaho; KLO, Ogden, Utah.; KLRA, Little Rock, Ark.; KLS,
Oakland, Cal.; KQV, Pittsburgh, Pa.; KSCJ, Sioux City, la.;
KSTP, St. Paul, Minn.; KTUL, Tulsa, Okla.; KWK, St. Louis,
Mo.; WAAB, Boston, Mass.; WADC, Village of Tallmadge, Ohio;
WALA, Mobile, Ala.; WAWZ, Zarephath, N. J.; WBIG, Greens¬
boro, N. C. ; WBNS, Columbus, Ohio ; WBNX New York City ;
WCBA, Allentown, Pa., and auxiliary; WCKY, Covington, Ky. ;
WCSC, Charleston, S. C.; WDRC, Hartford, Conn.; WEVD,
New York City; WFBL, Syracuse, N. Y.; WGAR, Cleveland,
Ohio; WGES, Chicago, Ill.; WHLB, Shebovgan, Wis.; WHEC,
Rochester, N. Y.; WHK, Cleveland, Ohio; WHOM, Jersey City,
N. J.; WIRE, Indianapolis, Ind.; WJSV, Alexandria, Va. ; WKBW,
Buffalo, N. Y.; WLAC, Nashville, Tenn.; WMBD, Peoria, Ill.;
WNBC, New Britain Conn.; WOKO, Albany, N. Y.; WORK,
York, Pa.; WSAR, Fall River, Mass.; WSBT, South Bend, Ind.;
WSFA, Montgomery, Ala.; WSPD, Toledo, Ohio; KOMA, Okla¬
homa City, Okla.
The following stations were granted renewal of Relay Broad¬
casting Licenses for Experimental Service, effective May 1, 1936,
to expire May 1, 1937, in exact conformity with existing license:
W2XE, Atlantic Broadcasting Corp.; W9XAA, Chicago Fed.
of Labor; W8XAL, The Crosley Radio Corp.; W2XAD, General
Electric Co.; W2XAF, General Electric Co.; W4XB, Isle of
Dreams Brdcstg. Corp.; W3XAL, National Broadcasting Co.;
W9XF, National Broadcasting Co.; W3XAU, WCAU Broadcast¬
ing Co.; WlXK, Westinghouse E and M Co.; W8XK, Westing-
house E and M Co.
The following stations were granted renewal of Experimental
Visual Broadcasting station licenses in the Experimental Service,
for the period May 1, 1936 to May 1, 1937, in exact conformity
with existing license:
W2XAB and W2XAK, Atlantic Broadcasting Corp.; W1XG,
General Television Corp.; W2XBS, W2XBT, National Broadcast¬
ing Co. Inc.; W2XF, W3XAK, W9XAP, National Broadcasting Co.
Inc.; W9XG, Purdue University; W2XDR, Radio Pictures, Inc.;
W3XAD and W5XEP, RCA Mfg. Co. Inc. ; W10XX, RCA Mfg.
Co.; W9XK, Univ. of Iowa.
W1XKB — Westinghouse E and M Co., Portable — Granted re¬
newal of Spec. Exp. station license for Exp. service, for
period April 21 to July 21, 1936, in exact conformity with
existing license.
W9XAF — The Journal Co., (The Milwaukee Journal), Milwaukee,
Wis. — Granted renewal of Spec. Exp. station license for
Exp. service, for period May 1 to August 1, 1936, in exact
conformity with existing license.
W2XBH — Radio Pictures, Inc., Long Island City, N. Y. — Granted
renewal of Spec. Exp. station license for Exp. service, for
period May 1 to August 1, 1936, in exact conformity with
existing license.
W2XBR — Radio Pictures, Inc., Long Island City, N. Y. — Granted
renewal of special experimental station license for experi¬
mental service for period May 1, 1936 to May 1, 1937, in
exact conformity with existing license.
W3XAI — RCA Manufacturing Co. Inc., Portable — Granted re¬
newal of special experimental station license for experi¬
mental service for period May 1, 1936 to May 1, 1937, in
exact conformity with existing license.
W1XKA-W3XKA-W8XKA — Westinghouse E and M Co., Port¬
able-Mobile — Granted renewal of special experimental sta¬
tion license for experimental service for period April 30 to
July 30, 1936, in exact conformity with existing license.
W2XK — National Brdcstg. Co. Inc., New York City — Granted
renewal of special experimental station license for experi¬
mental service for period May 1, 1936 to May 1, 1937, in
exact conformity with existing license.
1278
MISCELLANEOUS
WPHR — WLBG, Inc., Petersburg, Va., and—
WMBG — Havens & Martin, Richmond, Va. — Denied request to
postpone taking depositions under order issued to Times
Dispatch Publishing Co. Inc. Depositions to be taken
April 9, 1936, as originally ordered.
WPRO — Cherry & Webb Brdcstg. Co., Providence, R. I. — Denied
petition for reconsideration and grant of application. Case
redesignated for hearing because of an amendment provid¬
ing for use of directional anitenna system daytime as well
as nighttime.
St. Petersburg Chamber of Commerce, St. Petersburg, Fla. —
Denied petition for rehearing of application for new broad¬
casting station in that city, including proposal to apply for
new frequency, wattage and operating hours.
WDSU — WDSU, Inc., New Orleans, La. — Granted petition to file
its answer to notice of appearance and desire to be heard
of the Star-Chronicle Publishing Co., Docket No. 3765.
W9XBY — First National Television Inc., Kansas City, Mo. — -
Granted authority to intervene and be made a party
respondent in opposition to application of WHB Broad¬
casting Co. in Docket No. 3808.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Overruled
motion to strike from bill of particulars relative to the re¬
opened case for Mod. of Lie. the issue “to determine
whether continued operation of this station would serve
public interest, convenience and necessity.”
WJBO — Baton Rouge Brdcstg. Co. Inc., Baton Rouge. La. —
Granted authority to intervene at hearing of application
of Hearst Radio Inc. (WISN) for authority to increase
night power to 1 KW. Application scheduled for hear¬
ing April 9, 1936.
WFEA — New Hampshire Brdcstg. Co., Manchester, N. H. —
Action taken March 27, recorded in Report 81 should have
read: Granted special authority to erect new antenna and
ground system. The signal strength of new radiating sys¬
tem must meet the requirements of Commission. The ap¬
plication for renewal of license still pending.
NEW — Continental Radio Co., Toledo, Ohio — C. P. already in
hearing docket amended to read: use 1200 ke., 100 watts
daytime only, site and antenna to be approved.
William A. Schall, Omaha, Nebr. — Denied petition asking Commis¬
sion to reconsider action of January 10, 1936, in rejecting
application for new station at Omaha to operate on 1500 kc.,
100 watts, and the alternate that application be referred
back to examiner for additional testimony.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Petition for recon¬
sideration of decision of March 3, 1936, denying application
for authority to change frequency from 1310 kc. to 1450 kc.,
and increase power from 100 watts night, 250 watts day, to
1 KW unlimited, set down for oral argument. Effective date
of decision of March 3, 1936, extended pending decision on
petition.
WLBL — State of Wise. Dept, of Agr. and Markets, Stevens Point,
Wise. — Reinstated application for C. P. to increase power
from iy2 KW daytime to 5 KW daytime.
KFH — Radio Station KFH, Wichita, Kans. — Granted motion to
have KFBI application defaulted and denied or cancelled.
The application was for authority to move KFBI from
Abilene to Wichita, Kans.
KFBI — Farmers & Bankers Life Ins. Co., Wichita, Kans. — Granted
authority to take depositions in re application for authority
to erect new broadcasting station at Wichita, Kans., to
operate on 1210 kc., 100 watts, unlimited.
Hammond-Calumet Broadcasting Corp., Hammond, Ind. — Denied
petition asking Commission to reconsider and grant applica¬
tion for new station to operate on 1480 kc., 5 KW, day¬
time. Application denied by Commission, order effective
May 12, 1936.
Continental Radio Company, Toledo, Ohio — Overruled demurrer
filed to pleadings of Community Broadcasting Co., which
seeks authority to erect station at Toledo to operate on
1200 kc., 100 watts daytime, scheduled for hearing, April 27,
1936.
WJAC — WJAC, Inc., Johnstown, Pa. — Denied petition asking
Commission to reconsider and grant application for ap¬
proval of transmitter site, changes in equipment and in¬
crease in day power, which was designated for hearing on
March 10, 1936.
Steffens Ice and Ice Cream Co., Wichita, Kans. — Overruled peti¬
tion to intervene at hearing of application of Chas. C.
Theis, who seeks authority to establish new broadcasting
station at Wichita, Kans.
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Applied for
modification of license; 920 kc., 1 KW ; shares with WPEN,
using directional antenna night.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa. — Applied
for modification of license; 920 kc., 1 KW; shares with
WRAX, using directional antenna night.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Application for C. P.,
heretofore set for hearing, requesting 590 kc., 5 KW un¬
limited time, was dismissed at request of applicant.
KFDY — So. Dak. State College, Brookings, S. Dak.- — Application
for modification of license, 780 kc., 1 KW, specified hours,
heretofore set for hearing, was dismissed for failure of ap¬
plicant to answer form letter, adopted by Broadcast Division,
requiring applicants to signify their desire to be heard within
10 days after receipt of said letter.
The following applications, heretofore set for hearing, were dis¬
missed at the requests of the applicants:
WARD — United States Broadcasting Corp., Brooklyn, N. Y. — Ap¬
plied for modification of license, 1400 kc., 500 watts, un¬
limited time.
WARD — United States Broadcasting Corp., Brooklyn, N. Y. — Ap¬
plied for voluntary assignment of license, 1400 kc., 500
watts, shares with WVFW, WLTH and WBBC.
WLTH — Voice of Brooklyn, Inc., Brooklyn, N. Y. — Applied for
voluntary assignment of license, 1400 kc., 500 watts, shares
with WARD, WVFW and WBBC.
APPLICATIONS DENIED
The following applications, heretofore set for hearing, were
denied as in cases of default for failure to file an appearance and
statement of facts to be proved in accordance with Rule 104.6 (c) :
NEW — Arde Bulova and Norman K. Winson, Brooklyn, N. Y. —
Applied for C. P., 1400 kc., 500 watts, unlimited time.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Ap¬
plied for voluntary assignment of license, 1400 kc., 500 watts,
shares with WARD, WLTH and WBBC.
KSCJ — Perkins Brothers Co. (The Sioux City Journal), Sioux
City, la. — Denied special temporary authority to operate
unlimited time pending completion of CP authorizing local
move of transmitter, installing new antenna and increasing
hours of operation to unlimited.
KMBC — Midland Broadcasting Co., Kansas City, Mo. — Denied
special authority to operate with a power of 5 KW night¬
time in order to overcome interference caused by Station
XEAW.
ORAL ARGUMENTS GRANTED
(Action taken April 3)
NEW — Ex. Rep., 1-200: Merced Star Pub. Co., Merced Cal. —
Oral argument granted to be held June 11, 1936.
NEW — Ex. Rep., 1-204: Christina M. Jacobson, d/b as The Val¬
ley Electric Co., San Luis Obispo, Cal. — Oral argument
granted to be held June 11, 1936.
NEW — E. E. Long Piano Co., San Luis Obispo, Cal. — Oral argu¬
ment granted to be held June 11, 1936.
APPLICATIONS RECEIVED
First Zone
WBEN — WBEN, Incorporated, Buffalo, N. Y. — Modification of
900 Construction permit (Bl-P-567) to make changes in equip¬
ment, increase day power from 1 KW to 5 KW, move trans¬
mitter to site to be approved by Commission, further re¬
questing approval of transmitter site at R. F. D. No. 2, near
Shawnee Road, Martinsville, New York. Amended: Re
Antenna.
WOV — International Broadcasting Corp., New York, N. Y. — Au-
1130 thority to install automatic frequency control.
WARD — United States Broadcasting Corp., Brooklyn, N. Y. —
1400 Voluntary assignment of license from United States Broad¬
casting Corp. to Kings Broadcasting Corp.
1279
WLTH — Voice of Brooklyn, Inc., Brooklyn, N. Y. — Voluntary
1400 assignment of license from Voice of Brooklyn, Inc., to Kings
Broadcasting Corp.
W10XGJ — Atlantic Broadcasting Corp., Portable-Mobile — Li¬
cense to cover construction permit for a general experi¬
mental station.
W2XR — John V. L. Hogan, Long Island City, New York-
Voluntary assignment of license from John V. L. Hogan to
Interstate Broadcasting Co., Inc.
W1XEH — The Travelers Broadcasting Service Corp., Avon Mt.,
Avon, Conn. — License to cover construction permit as modi¬
fied, for a special experimental station to be operated on
63500 kc., ISO watts.
WGBE — Onondaga Radio Broadcasting Corp., Portable-Mobile —
License to cover construction permit for a broadcast pickup
station to be operated on 1646, 2090, 2190 & 2830 kc., 45
watts.
W8XAZ — Buffalo Broadcasting Corp., Buffalo, New York — Con¬
struction permit to increase power to 25 watts and change
transmitter — general experimental station.
W8XAZ — Buffalo Broadcasting Corp., Buffalo, New York — Li¬
cense to cover above.
WABA — Wodaam Corporation, Mobile-in airplane — License to
cover construction permit for a new broadcast pickup sta¬
tion to be operated on 1622, 2060, 2150, 2790 ltc., 7lA watts.
Second Zone
WTAR — WTAR Radio Corporation, Norfolk, Va. — Construction
780 permit to increase power from 500 watts, 1 KW day to 1
KW day and night, install directional antenna for night use
and move transmitter from Virginia Beach Blvd,, 1.7 miles
from Norfolk, Virginia, to On Glen Rock, Elizabeth Park
Road, 1.6 miles E. of Norfolk, Va.
WTAR — WTAR Radio Corporation, Norfolk, Va. — Construction
780 permit to make changes in auxiliary equipment.
WHBC — Edward P. Graham, Canton, Ohio — Modification of con-
1200 struction permit (B2-P-241) to install new equipment and
increase power, requesting extension of completion date from
4-27-36 to 7-27-36.
NEW — Continental Radio Co., Toledo, Ohio — Construction permit
1200 for a new station to be operated on 1210 kc., 100 watts,
250 watts day, unlimited time. Amended: To change fre¬
quency from 1210 kc. to 1200 kc., power from 100 watts,
250 watts day to 100 watts, and hours of operation from
unlimited time to daytime.
WHAT — Independence Broadcasting Co., Inc., Philadelphia, Pa. —
1220 Construction permit to make changes in equipment, increase
power from 100 watts to 1 KW, frequency from 1310 kc. to1
1220 kc., hours of operation from share WTEL to unlimited
and move transmitter from Hotel Pennsylvania, 3900 Chest¬
nut Street, Philadelphia, Pa., to site to be determined,
Pennsylvania. Amended: Giving transmitter site as Lower
Merion Twp. Glen Rd., lot of W. Laurel Cemetery, approx.
1200' N. W. City Line Ave. & 1000’ S. W. Center Line
Schuylkill River, Pa., and install directional antenna.
WRAW — Reading Broadcasting Co., Reading, Pa. — License to cover
1310 construction permit (B2-P-799) for new equipment and
move of transmitter.
NEW — John E. Fetzer, Benton Harbor, Mich. — Construction per-
1500 mit for a new station to be operated on 1500 kc., 100 watts,
250 watts day, unlimited time. Amended: To change power
from 100 watts, 250 watts day to 250 watts and hours of
operation from unlimited time to daytime.
NEW — The Evening News Association, Portable-Mobile — Construc¬
tion permit for a new general experimental station to be
operated on 31100, 34600, 37600, 40600 kc., 3 watts.
NEW — The Evening News Association, Portable-Mobile — Con¬
struction permit for a new general experimental station to be
operated on 86000-400000 kc., 1 watt.
Third Zone
WWL — Loyola University, New Orleans, La. — Construction permit
850 to install new equipment, increase power from 10 KW to
50 KW and change hours of operation from specified hours
to unlimited. Amended: Re antenna.
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — Construc-
920 tion permit to install new equipment, increase power from
100 watts, 250 watts day to 250 watts, 500 watts day and
change frequency from 1310 kc. to 920 kc. Also move trans¬
mitter from Hall St., Jackson, Tenn., to 350' E. of Holly¬
wood Cemetery N. W., City limits, exact site to be de¬
termined, Tenn., using directional antenna. Amended: To
omit request for move of transmitter.
NEW — Neil O. Davis & F. M. Gleason, d/b as North Georgia
1200. Broadcasting Co., Rossville, Ga. — Construction permit for a
new station to be operated on 1200 kc., 100 watts, un¬
limited time.
NEW — Sweetwater Broadcasting Co., Sweetwater, Tex. — Construc-
1310 tion permit for a new station to be operated on 1260 kc.,
100 watts, unlimited time. Amended: To change frequency
from 1260 kc. to 1310 kc., hours of operation from un¬
limited to daytime.
NEW — Brownwood Broadcasting Co., Brownwood, Tex. — Con-
1370 struction permit for a new station to be operated on 1210
kc., 100 watts, unlimited time. Amended: To change fre¬
quency from 1210 kc. to 1370 kc., and hours of operation
from unlimited time to daytime only.
WPFB — Forrest Broadcasting Co., Inc., Hattiesburg, Miss. — Con-
1370 struction permit to install new equipment and move studio
from Sarphie Bldg., 512 Main St., Hattiesburg, Miss, to W.
7th St. & 25th Ave., Hattiesburg, Miss.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. — Au-
1420 thority to transfer control of corporation from Isaac
Wahlder, F. S. Hemenway, Jr., J. P. Rush, Jr. & S. B. Pearce
to W. H. Allen, 27 shares common stock.
Fourth Zone
WIBA — Badger Broadcasting Co., Inc., Madison, Wise. — License
1280 to cover construction permit (B4-P-716) for changes in
equipment, new antenna and increase in power.
Fifth Zone
NEW — Ben S. McGIashan, San Diego, Calif. — Construction permit
550 for a new station to be operated on 550 kc., 250 watts, day¬
time. Amended: To make changes in equipment.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Modification of con-
590 struction permit (B5-P-925) for changes in equipment, re¬
questing further changes in equipment and antenna, increase
in power from 1 KW, 2 KW day to 1 KW, 5 KW day, move
transmitter from Sprague Ave. & Post St., to site to be de¬
termined, Spokane, Washington, and extend commencement
and completion dates.
KOMO— Fisher’s Blend Station, Inc., Seattle, Wash. — License to
920 cover construction permit (B5-P-536) as modified for new
equipment, increase in power and move of transmitter.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Authority to
920 determine operating power by direct measurement of an¬
tenna.
NEW — KLA, Incorporated, La Grande, Ore. — Construction permit
1100 for a new station to be operated on 1100 kc., 250 watts, day¬
time.
NEW — Democrat News Co., Inc., Lewistown, Mont. — Construc-
1200 tion permit for a new station to be operated on 1200 kc.,
100 watts, 250 watts day, unlimited time. Amended: To
make changes in equipment, change power from 100 watts,
250 watts day to 100 watts, transmitter site to be determined,
Lewistown, Montana, and studio site given as 513 W. Main
Street, Lewistown, Montana.
KIUJ — W. C. Irvin, Santa Fe, New Mex. — Voluntary assignment
1310 of license from W. C. Irvin to J. Laurence Martin.
NEW — Albuquerque Publishing Co., Albuquerque, New Mex. —
1370 Construction permit for a new station to be operated on
1370 kc., 100 watts, unlimited time. Amended: To make
changes in antenna and change transmitter site from 422-424
W. Gold Ave., to site to be determined, Albuquerque, New
Mexico.
KOOS — Pacific Radio Corporation, Marshfield, Ore. — Construction
1390 permit to make changes in equipment, move transmitter from
Hall Bldg., Marshfield, Oregon, to V\ mi. from North city
limits of Marshfield, Oregon.
KNEC — Puget Sound Broadcasting Co., Inc., Portable-Mobile —
License to cover construction permit for a broadcast pickup
station, to be operated on 1646, 2090, 2190, 2830 kc., 40
watts.
1280
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
Vol. 4 - - No. 18
★ ★ ★ ★ ★
APRIL 16, 1936
NAB REPORTS
Copyright IS36. The National Asiociation of Broadcasters
IN THIS ISSUE
Page
NAB Convention, July 5, 6, 7, 8 . 1281
Directors Meeting April 27 . 1281
Index of Active Musical Selections . 1281
Hearings On Duffy Bill Ended . 1281
Securities Act Registrations . 1281
Pratt Returns to Private Practice . 1282
More Warner Suits . 1282
Broadcast List Corrections . 1283
Federal Trade Commission Action . 1284
Federal Communication Commission Action . 1285
NAB CONVENTION JULY 5, 6, 7, 8
The fourteenth annual convention of the National Association
of Broadcasters will be held in Chicago, Ill., July 5, 6, 7 and 8. The
hotel will be announced later.
DIRECTORS MEETING APRIL 27
The Board of Directors of the National Association of Broad¬
casters will meet in Chicago, Illinois, April 27. The meeting was
called by the Managing Director (a) to receive and give considera¬
tion to a plan of action in the field of copyright; (b) to give con¬
sideration to questions of policy with respect to NAB participa¬
tion in the general hearing called by the FCC for June 15 (see
NAB REPORTS dated April 9, 1936, page 1273), and (c) to
dispose of any routine matters.
INDEX OF ACTIVE MUSICAL SELECTIONS
E. C. Mills, General Manager of the ASCAP, has extended to the
NAB, under authority given him by the ASCAP Board of Direc¬
tors, an invitation to copy ASCAP indexes of and to all musical
compositions. Conferences have been held, and correspondence
has been exchanged concerning minimum data which would meet
the requirements of broadcasters and the working out of a plan
to compile complete information with respect to the musical
selections used one or more times on the network key stations
during the years 1934 and 1935. This will make available to
broadcasters an index of 25,000 active musical selections, more or
less, and furnish absolutely essential groundwork if a per-piece
system is adopted.
Plans now under discussion include a continuing service which
will maintain the indexes up to date and provide for a gradual
enlargement of them. The ASCAP invitation imposes two con¬
ditions: (1) the NAB will be required to make copies of such
index available to any broadcaster whether or not he is a member;
and, (2) it is to be definitely understood that under no circum¬
stances does the ASCAP warrant or guarantee to others that the
information contained in the index is correct.
As soon as it is determined what minimum data are required
to be shown on the cards, estimates of the cost for a single index
will be obtained and furnished to all broadcasters in order that
we may secure reliable information in respect to the demand for
such a record. The need for such a record was never greater
than it is today and every possible effort will be made to expedite
the compilation of a master index from which copies can be made
and supplied to all broadcasters.
HEARINGS ON DUFFY BILL ENDED
On April 15 the hearings on the Duffy Bill (S. 3047), and other
copyright legislation, which began February 25, came to a close,
although all persons who had appeared before the Committee
were given until Saturday, April 18, to file briefs or further state¬
ments. These hearings have easily been the most extensive ever
held before a committee of Congress on copyright legislation, and
the printed transcript will reach enormous proportions.
At the end of the closing session, a controversy developed be¬
tween members of the Committee with respect to the date on
which the Committee would take up consideration of the Bill and
its report thereon. Congressman Church of Illinois, seconded by
Congressman O’Malley of Wisconsin, moved that the Committee
meet in executive session on the following day, April 16, or, in any
event, not later than April 17. Congressman Kramer of California,
seconded by Congressman Daly of Pennsylvania, made a substitute
motion that the clerk call a meeting for Monday, April 20. The
substitute motion prevailed. A circumstance that may result in
a delay in reporting out a bill is the fact that probably (although
not necessarily) a sub-committee will be appointed to study the
legislation and draw up the Committee’s report. Since the ap¬
pointment of such a sub-committee would be by the chairman,
Dr. Sirovich (whose hostility to the Duffy Bill has been con¬
tinuously manifested since the outset), there is reason to fear that
a majority of the sub-committee will oppose early action.
Some confusion has been created in the minds both of members
of the Committee and to some extent among other members of
the House by the so-called Vandenberg amendment having to do
with design copyright. This amendment was added to the bill on
the floor of the Senate and has to do with matters which are_ of
no interest whatsoever to the broadcasting industry or to other
users of music. Whatever be the merits of the amendment, there
is a great deal to be said for the contention that it should be the
subject of a separate bill. In any event, nothing will be lost if
the amendment is stricken from the Duffy Bill.
The last day of the hearings was devoted to testimony by
Dr. Wallace McClure of the Department of State, representatives
of the Copyright Office, Nathan Burkan, ASCAP’s general counsel,
and two or three witnesses on minor matters. Burkan made a
very lengthy statement with respect both to the provisions of the
Duffy Bill and the proposed entry of the United States into the
International Copyright Union. In the course of his testimony,
he repeatedly made unfounded insinuations and charges against
practically everyone who has supported the Duffy Bill. At the
conclusion of his testimony, Dr. McClure was re-called to the
stand and, under questioning by Congressman Church, reiterated
his conviction that the $250 minimum penalty should be eliminated
from the law and his belief that the United States should adhere
to the International Convention.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
General Time Instruments Corp., New York City (2-2019,
Form A-2).
Dairyland,, Inc., San Antonio, Texas (2-2022, Form A-l).
St. Joseph Water Company, St. Joseph, Mo. (2-2023, Form A-2).
Tacony-Palmyra Bridge Co., Camden, N. J. (2-2024, Form
A-2).
LaFayette Atlantic Hotel Co., Philadelphia, Pa. (2-2025, Form
E-l).
LaFayette Atlantic Hotel Co., Philadelphia, Pa. (2-2026, Form
F-l) .
Rockwood Associates, Inc., New York City (2-2027, Form A-2).
Railway Equipment & Realty Co., Ltd., Oakland, Cal. (2-2028,
Form A-2).
Hartford Times, Inc., Hartford, Conn. (2-2029, Form A-2).
Middle States Securities Corp., Cleveland, Ohio (2-2030, Form
A-2).
American Kid Company, Salem, Mass. (2-2031, Form A-l).
Washington Industrial Loan Co., Washington, D. C. (2-2032,
Form A-l).
New York Merchandise Co., New York City (2-2033, Form A-2).
Michigan Steel Tube Products Company, Hamtramck, Mich.
(2-2034, Form A-2).
Associated Telephone Company, Ltd., Long Beach, Cal. (2-2035,
Form A-2).
The McKay Machine Company, Youngstown, Ohio (2-2036,
Form A-2).
1281
Continental Service Company, Madison, Wis. (2-2037, Form
A-l).
Union Bag & Paper Corporation, New York City (2-2038,
Form A-2).
Wilson Vegetable Oils, Limited, Montreal, Canada (2-2039,
Form A-l).
Albuquerque Natural Gas Company, Chicago, Ill. (2-2040, Form
D-1A).
Ferro Enamel Corporation, Cleveland, Ohio (2-2041, Form A-2).
Lima Locomotive Works, Incorporated, Lima, Ohio (2-2042,
Form A-2).
The Standard Tube Company, Detroit, Mich. (2-2043, Form
A-2).
Robot-Hand Corporation, Detroit, Mich. (2-2044, Form A-l).
The H. A. Montgomery Company, Detroit, Mich. (2-2046,
Form A-2).
Consolidated Investment Trust, Boston, Mass. (2-2047, Form
A-l).
United Shirt Distributors, Inc., Detroit, Mich. (2-2048, Form
A-2).
The Hill Packing Company, Topeka, Kan. (2-2049, Form A-2).
Tri-County Telephone Company, South Haven, Mich. (2-2050,
Form A-2).
The Master Electric Company, Dayton, Ohio (2-2051, Form
A-2).
Kalamazoo Stove Company, Kalamazoo, Mich. (2-2052, Form
A-2).
Kalamazoo Vegetable Parchment Company, Parchment, Kala¬
mazoo County, Mich. (2-2053, Form A-2).
The R. C. Mahon Company, Detroit, Mich. (2-2054, Form A-2).
The Van Dorn Iron Works Company, Cleveland, Ohio (2-2055,
Form A-l).
Santa Barbara Telephone Company, Santa Barbara, Cal.
(2-2056, Form A-2).
Securities Investment Corporation, Omaha, Neb. (2-2057, Form
A-2).
All-Penn Oil and Gas Company, Pittsburg, Pa. (2-2058, Form
A-l).
Investors Trust Company, Providence, R. I. (2-2059, Form A-2).
Iowa Electric Light & Power Company, Cedar Rapids, Iowa
(2-2060, Form A-2).
Seeber Brewing Company, Elizabeth, N. J. (2-2061, Form A-l).
Commercial Credit Company. Baltimore, Md. (2-2062, Form
E-l).
The Pierce Governor Company, Anderson, Ind. (2-2063, Form
A-2).
Dixie-Vortex Company, Chicago, Ill. (2-2064, Form A-2).
The Bridgeport Machine Company, Wichita, Kan. (2-2065,
Form A-2).
Navarro Oil Company, Houston, Texas (2-2067, Form A-2).
National Petroleum Company, Titusville, Pa. (2-2068, Form
A-l).
Metal Textile Corporation, West Orange, N. J. (2-2069, Form
A-2).
Chicago Rivet Machine Co., Chicago, Ill. (2-2070, Form A-2).
Foster Wheeler Corporation, New York City (2-2071, Form
A-2).
Veverly Apartments Liquidation Trust, Chicago, Ill. (2-207 2,
Form E-l).
Sun Oil Company, Philadelphia, Pa. (2-2074, Form A-2).
Columbia System, Inc., Washington, D. C. (2-2075, Form A-l).
PRATT RETURNS TO PRIVATE PRACTICE
Having completed for the NAB the work specially assigned to
him, Elmer W. Pratt has returned to his private practice.
MORE WARNER SUITS
Warner Brothers have made official announcement that they
have begun more suits based on the alleged infringment of song
copyrights owned by them as follows:
Harms, Inc. vs. A. & U. Restaurants, Inc., operating the Holly¬
wood in New York, for the alleged infringing use of “The Con¬
tinental” and “Let’s Swing It.” $500.00 damages demanded.
Remick Music Corp. vs. 870 Seventh Avenue Corp., operating
the Park Central Hotel in New York, on the songs “Moonlight
Bay” and “Don’t Give Up The Ship.” $500.00 damages demanded.
Remick Music Corp. vs. Plaza Operating Co., Inc., operating
the Hotel Plaza, on the song “My Buddy.” $250.00 damages de¬
manded.
Harms, Inc. vs. Plaza Operating Co. (the Hotel Plaza, New
York) on the songs “April in Paris,” “With A Song in My Heart,”
“Yours Sincerely” and “Dancing in the Dark.” $1,000.00 damages
demanded.
T. B. Harms Co. vs. Miami Valley Broadcasting Co., operating
WHIO, Dayton, Ohio, on “You’ve Got What It Takes” and “Two
Hearts Carved on a Lonesome Pine.” $10,000.00 damages de¬
manded.
Harms, Inc. vs. Miami Valley Broadcasting Co., on the song
“Trav’lin’ All Alone.” $5,000.00 damages demaoded.
Remick Music Corp. vs. station WIS, Columbia, S. C., on “Sweet
Georgia Brown.” $250.00 damages demanded.
Remick Music Corp. vs. Hotel Plaza, New York City, on “My
Buddy.” $250.00 damages demanded.
Harms, Inc. vs. Frank DeGoff, operating the Club Deauville,
San Francisco, on “Let’s Take A Walk Around the Block” and
“April in Paris.” $500.00 damages demanded.
M. Witmark & Sons vs. States Restaurant, San Francisco, Calif.,
on “The Kiss Waltz.” $250.00 damages demanded.
Harms, Inc. vs. St. Francis Hotel, San Francisco, on “April in
Paris.” $250.00 damages demanded.
Harms, Inc. vs. station WGAL, Lancaster, Pa., on two uses of
“Sleepy Valley.” $500.00 damages demanded.
Remick Music Corp. vs. station WOWO, Ft. Wayne, Ind., on
“Breezin’ Along With the Breeze.” $5,000.00 damages demanded.
Harms, Inc. vs. station WIRE, Indianapolis, Inc., on “Spin A
Little Web of Dreams.” $5,000.00 damages demanded.
M. Witmark & Sons vs. station WSAR, Fall River, Mass., on
the songs “When Irish Eyes Are Smiling,” “That Wonderful
Mother of Mine,” “I Live For Love,” “Then I Shan’t Love You
Any More,” “Love Will Live On,” “The Rose In Her Hair,”
“Lullaby of Broadway” and “About A Quarter To Nine.” $2,-
250.00 damages demanded.
Remick Music Corp. vs. the Nut Club, New Orleans, La., on
“Avalon” and “Chinatown, My Chinatown.” $500.00 damages
demanded.
M. Witmark & Sons vs. the Nut Club, New Orleans, on “Lulu’s
Back In Town” and “The Rose in Her Hair.” $500.00 damages
demanded.
M. Witmark & Sons vs. station WSGN, Birmingham, Ala., on
“Flag That Train To Alabam’.” $250.00 damages demanded.
Harms, Inc. vs. station KSOO, Sioux Falls, S. D., on “Brother
Can You Spare A Dime,” “You’re A Builder Upper” and “Let’s
Put Out The Lights and Go To Sleep.” $750.00 damages de¬
manded.
Harms, Inc. vs. Palace Hotel, San Francisco, on “Three Little
Words.” $250.00 damages demanded.
Remick Music Corp. vs. Palace Hotel, San Francisco, on “Sweet
Georgia Brown.” $250.00 damages demanded.
Harms, Inc. vs. Kit Kat Club, San Francisco, on “Three Little
Words.” $250.00 damages demanded.
Harms, Inc. vs. station WSAZ, Huntington, W. Va., on the
songs “The Continental,” “A Needle In A Haystack,” “Take This
Ring,” “I Was Taken By Storm,” “London On A Rainy Night”
and “I’m Just An Ordinary Human.” $2,250.00 damages de¬
manded.
Remick Music Corp. vs. station WTOC, Savannah, Ga., on
“Sweet Georgia Brown,” “Just A Little Bit of Love” and “The
Lady in Red.” $1,500.00 damages demanded.
M. Witmark & Sons vs. station WESG, Elmira, N. Y., on
“California, Here I Come.” $5,000.00 damages demanded.
Harms, Inc. vs. WSOC, Inc., Charlotte, N. C., on “Speak Easy.”
$250.00 damages demanded.
M Witmark & Sons vs. the National Broadcasting Co., Inc.,
operating station WENR, Chicago, on “My Wild Irish Rose.”
$5,000.00 damages demanded.
Harms, Inc. vs. station WGST, Atlanta, Ga., on “Where Am I?”
$5,000.00 damages demanded.
Remick Music Corp. vs. Roosevelt Hotel, New Orleans, on
“Sweet Georgia Brown,” “Avalon” and “My Buddy.” $750.00
damages demanded.
Harms, Inc. vs. Roosevelt Hotel, New Orleans, on “Night and
Day.” $250.00 damages demanded.
M. Witmark & Sons vs. Roosevelt Hotel, New Orleans, on
“Lulu’s Back In Town.” $250.00 damages demanded.
M. Witmark & Sons vs. Hotel Weylin, New York City, on “The
Rose In Her Hair.” $250.00 damages demanded.
Remick Music Corp. vs. Morrison Hotel, Chicago, on “Breezin’
Along With the Breeze.” $250.00 damages demanded.
Remick Music Corp. vs. Hotel Statler, St. Louis, on “Ev’ry
Day.” $250.00 damages demanded.
Remick Music Corp. vs. Lennox Hotel, St. Louis, on “Mr. and
Mrs. Is The Name.” $250.00 damages demanded.
Harms, Inc vs. The New Music Box, Pittsburgh, Pa., on “Any¬
thing Goes” and “The Blue Room.” $500.00 damages demanded.
1282
BROADCAST LIST CORRECTIONS
The Federal Communications Commission has made public the following list of broadcast station alterations and corrections for the
month of March. The corrections are italicised.
Call Main Studio
Frequency Time
Quota Units
Letter
Location
Name of Licensee
Power
( kc )
Designation
Night Day
KCMO
Texarkana, Ark.
K C M C, Incorporated
lOOw
1420
U
0.1
0.1
KCMO
Kansas City, Mo.
Wilson Duncan, tr. as Wilson
lOOw
1370
S. H.
O.OS
O.OS
Formerly
Duncan Broadcasting Co.
KWKC
S. A. Charlotte Duncan, Adm.,
& Co-contracting parties, Lester
E. Cox & Thos. L. Evans
KDYL
Salt Lake City, Utah
Intermountain Broadcasting
Corp.
lkw
1290
U
O.S
0.5
Strike out C. P. T-nr. Salt Lake
City — 5kw-LS
KFPY
Spokane, Wash.
Symons Broadcasting Co.
lkw
890
u
O.S
0.85
C. P. 5kw-LS
KFRU
Columbia, Mo.
KFRU, Incorporated
SOOw
630
Simultaneous
0.16
0.5
lkw-LS
D-WGBF, S-
WGBF night
KFSG
Los Angeles, Calif.
Echo Park Evangelistic Assn.
SOOw
1120
S-KRKD
0.2
0.03
(Maurice E. Kennedy, Agent)
2y2kw-Ls
KGBX
Springfield, Mo.
Springfield Broadcasting Co.
lOOw
1310
S. H.
0.3
0.3
S. A. T-nr.
Springfield .
SOOw
1230
U - Exp.
KID
Idaho Falls, Idaho
KID Broadcasting Co.
250w
SOOw-LS
1320
U
0.3
0.5
C. P. 500w
lkw-LS
KOOS
Marshfield, Ore.
Pacific Radio Corp.
250w
1200
**1390
D
0.2
KSCJ
Sioux City, Iowa
Perkins Brothers Co.
1 kw
1330
Simultaneous
0.5
0.75
(The Sioux City Journal)
2)4kw-LS
D-WTAQ,
S. H. night
C. P. V.
KVCV
Redding, Calif.
Golden Empire Broadcasting Co.
lOOw
1200
U (C. P. only )
Effective 4-21-36
KWBG
Hutchison, Kans.
The Nation’s Center
Broadcasting Co., Inc.
lOOw
1420
U
KYA
San Francisco, Calif.
Hearst Radio, Inc.
lkw
1230
U
0 s
O.S
0.85
WDBJ
Roanoke, Va.
Times World Corp.
lkw
930
u
O.S
C. P. 5kw-LS
WDZ
Tuscola, Ill.
WDZ Broadcasting Co.
250w
1020
D
0.2
0.06
WEST
Easton, Pa.
Associated Broadcasters, Inc.
lOOw
250w-LS
1200
S-WKBO
0.04
WFAM
South Bend, Indiana
The South Bend Tribune
lOOw
1200
V-D, S-WWAE,
night
0.01
0.1
WFBC
Greenville, S. C.
Greenville News-Piedmont Co.
lkw
5kw-LS
1300
U
O.S
0.8S
*WGRC
New Albany, Indiana
North Side Broadcasting Corp.
250w
1370
D (C. P. only)
0.2
Effective 5-12-36
WHA
Madison, Wise.
University of Wisconsin
2^kw
940
D
0.85
C. P. 5kw
*WFBM
Indianapolis, Ind.
Indianapolis Power and Light Co.
lkw
1230
U
O.S
0.85
T-nr. Millersville
C. P. 5kw-LS
WHBU
Anderson, Ind.
Anderson Broadcasting Corp.
lOOw
1210
u
0.1
0.2
C. P. 250W-LS
WHIO
Dayton, Ohio
Miami Valley Broadcasting Corp.
lkw
1260
u
O.S
0.85
T-nr. Dayton
C. P. 5kw-LS
WHN
New York, N. Y.
Marcus Loew Booking Agency
lkw
1010
u
O.S
0.85
T-Astoria, L. I.
5kw-LS
WILL
Urbana, Ill.
University of Illinois
250w
890
S-KFNF,
0.5
lkw-LS
KUSD
**lkw
580
D
WJAS
Pittsburgh, Pa.
Pittsburgh Radio Supply House
lkw
2J4 kw-LS
1290
U
O.S
0.85
Skw-LS
Effective 5-19-36
1283
Call Main Studio Frequency Time Quota Units
Letter
Location
Name of Licensee
Power (.kc)
Designation
Night Day
WJBC
Bloomington, Ill.
Arthur Malcolm McGregor &
lOOw
1200
S-WJBL
0.02
0.12
T-Normal
Dorothy Charlotte McGregor, a
partnership
C. P. 250w-LS
WMBR
Jacksonville, Fla.
Florida Broadcasting Co.
lOOw
250W-LS
1370
U
0.1
0.2
WNBX
Springfield, Vt.
The WNBX Broadcasting Corp.
lkw
1260
D to LS at
Erie, Pa.
0.5
0.5
5. A.
. 500w. . . . U
. Exp.
Strike out S. A.-U-Exp.
lkw-LS
wos
WRJN
Strike out all particulars
Racine, Wise.
Racine Broadcasting Corp.
lOOw
1370
U
0.1
0.2
C.P. T-Mt. Pleasant
250w-LS
WSPD
Toledo, Ohio
T-Perrysburg
Toledo Broadcasting Co.
lkw
2J^kw-LS
1340
U
0.5
0.85
C. P. 5kw-LS
WTAQ
Green Bay, Wise.
T-West De Pere
WHBY, Incorporated
lkw
1330
U
0.5
0.5
WWAE
Hammond, Ind.
Hammond Calumet Broadcasting
lOOw
1200
U-D, S-WFAM
0.09
0.1.
Corp.
night
** See Abbreviations — Lists of January 1, 1936.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2757. Retail Furniture Dealers’ Association of St.
Louis, its officers and 42 merchant members, have been named
respondents in a complaint alleging violation of the Federal Trade
Commission Act through combination and conspiracy to monopolize
the sale and distribution of furniture and allied products in the St.
Louis, Mo., and East St. Louis, Ill., trade area.
The respondents also are charged with combining to unreason¬
ably suppress competition and deprive the public of advantages in
price and service which it would otherwise receive.
Among practices alleged in the complaint are the fixing of prices
at which furniture, electric refrigerators and radios are to be re¬
tailed in the St. Louis area; discrimination against small business
enterprises; “freezing” competing companies out of business, and
injuring the public, manufacturers, producers, dealers, distributors,
and others who do not conform or do not desire to conform to
the respondents’ program, but are compelled to do so by the re¬
spondents’ concerted action.
The respondents are alleged to have enforced two policies affect¬
ing (1) retail furniture dealers in the St. Louis area, and (2) manu¬
facturers, distributors, jobbers and the public in that area.
No. 2758. False representations in advertising two brands of
bread it manufactures and sells in interstate commerce, is charged
in a complaint against William Freihofer Baking Co., 20th Street
and Indiana Avenue, Philadelphia. The respondents’ methods of
competiton are alleged to be in violation of Section 5 of the Fed¬
eral Trade Commission Act.
In advertisements, the respondent company allegedly represented
that “Freihofer’s Perfect Loaf” contains “100 per cent more but¬
ter,” and made various other representations of similar import,
which, according to the complaint, were misleading and deceptive,
and implied to purchasers that this particular brand of bread con¬
tained an unusually high butter content.
No. 2759. Alleging unfair competition through false and mis¬
leading advertising of cosmetics, a complaint has been issued against
Hollywood Mask, Inc., 10S West Monroe St., Chicago.
Selling “Hollywood Vitamin Hand and Skin Lotion” and “Holly¬
wood Mask Turtle Oil,” the respondent is alleged to have adver¬
tised its products as possessing ingredients capable of erasing lines
or wrinkles of the skin, or of nourishing the skin, muscles or tissues.
No. 2760. Reta Terrell Sloan, trading as Beta Terrell, with
her principal office at 513 Oakdale Ave., Chicago, and a branch
at 50 East 10th St., New York City, is charged with unfair methods
of competition in the sale of cosmetics in interstate commerce.
1
In advertising matter, the respondent allegedly represents that
her cosmetic preparations possess ingredients of such character
and in such quantity as to serve as a food for the skin, muscles or
tissues; that her preparations have a beneficial effect in filling out
and tightening the lines of broken tissues ; that they eliminate dry¬
ness from the skin and remove wrinkles, and that use of the'
preparations has a beneficial effect in the treatment of various con¬
ditions of the skin. Such representations, according to the com¬
plaint, are untrue, and the cosmetics do not produce the results
claimed for them.
No. 2761. Deceptive representations in the sale of a two-volume
set of books called “Health Knowledge,” is alleged in a complaint
issued against Medical Book Distributors, Inc., publisher and dis¬
tributor of the volumes, and American Health Society, Inc.,
which purchases the books from Medical Book Distributors and
sells them in interstate commerce. Both organizations have head¬
quarters at 1476 Broadway, New York City.
Sales managers and salesmen employed by the Health Society
are alleged to have interviewed prospective purchasers, usually
women, announcing that they were authorized to call and give
“health talks.”
Although the books were allegedly represented as a “New Re¬
vised Edition, 1934,” the set was not an up-to-date medical work,
but treated of old methods abandoned by the medical profession,
according to the complaint. A list of purported “eminent medical
authors,” said to have contributed to the work, is alleged to be
false and misleading, as these persons, it is charged, did not submit
their work for inclusion in the volumes.
No. 2762. Use of a lottery scheme to promote the sale of candy
is alleged in a complaint issued against Mack R. Keshan and
Oswald Freund, 114 East 13th St., New York City, and the
American Mint Corporation. The complaint charges the re¬
spondents with unfair competition in violation of Section 5 of the
Federal Trade Commission Act.
The respondents sell assortments of candy to brokers, whole¬
salers and retail chain stores, and, according to the complaint, fur¬
nish them with display cards describing the lottery scheme as one
by which the ultimate purchaser of a small piece of candy may
win a piece containing a sum of money, such sum of money being
procured as a prize wholly by chance.
Stipulations
The Commission has issued the following cease and desist orders:
No. 2363. An order has been entered against Edwin Cigar Co.,
Inc., and James B. Hall, Jr., Inc., 100 East 16th St., New York
City, both engaged in the manufacture and sale of cigars, directing
them to discontinue certain unfair methods of competition in viola¬
tion of Section 5 of the Federal Trade Commission Act.
The Commission found that Edwin Cigar Co., Inc., operates a
mail order business, selling direct to the consumer, that James B.
1284
Hall, Jr., Inc., sells to jobbers and retailers exclusively, and that
Max Rosenbloom is president of both respondent corporations and
directs their policies as though they were a single enterprise.
Both respondents are ordered to cease representing, by use of
the words “Finest Havana Filler,” “Havana Filled,” or “Havana
Filler,” that their cigars so designated or the filled portions thereof,
are actually made of Cuban or Havana tobacco, unless they are
composed of such tobacco and made and filled in conformity with
the standards followed in the manufacture of genuine Havana
filler cigars.
No. 2586. Radiator Specialty Co., 315 East 5th St., Char¬
lotte, N. C., dealer in a cleaning fluid advertised as “Perfo,” has
been ordered to cease and desist from misrepresentations in the
sale of the preparation.
Advertisements that the cleaning fluid is not harmful or injurious
to any fabric, material or color, that it will absorb spots, and does
not leave a spot or ring on materials, is prohibited in the order.
Findings are that use of the fluid on fabrics or materials dyed
with certain kinds of dyes, such as non-fast dyes, impairs and harms
the colors by causing them to bleed or run.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, April 20
HEARING BEFORE AN EXAMINER
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Renewal of
license, 1240 lie., 500 watts, 1 KW LS, unlimited time.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Modifica¬
tion of license, 630 kc., 500 watts, 1 KW, unlimited time.
Present assignment: 1240 kc., 500 watts, 1 KW LS, unlimited
time.
KSEI — Radio Service Corp., Pocatello, Idaho — Renewal of license,
900 kc., 250 watts, 500 watts LS, unlimited time.
Wednesday, April 22
HEARING BEFORE AN EXAMINER
(Broadcast)
KFH — The Radio Station KFH Co., Wichita, Kansas — C. P., 1300
kc., 1 KW, 5 KW LS, unlimited time. Present assignment:
1300 kc., 1 KW, 1 KW LS, unlimited time.
KFBI — The Farmers & Bankers Life Ins. Co., Wichita, Kansas —
C. P.. 1050 kc., 5 KW, limited time. (Request to move
from Abilene to Wichita, Kansas.)
NEW — The Farmers & Bankers Life Ins. Co., Wichita, Kansas —
C. P., 1210 kc., 100 watts, unlimited time.
Thursday, April 23
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-163
NEW — Paul R. Heitmeyer, Salt Lake City, Utah — C. P., 1210 kc.,
100 watts, unlimited time.
Examiner’s Report No. 1-173
NEW — Wyoming Radio Educational Assn. (Lester G. Baker,
Pres.) , Cheyenne, Wyoming — C. P., 630 kc., 500 watts, 1 KW
LS, unlimited time.
NEW — Paul R. Heitmeyer, Cheyenne, Wyoming — C. P., 1210 kc.,
100 watts, 250 watts LS, unlimited time.
Examiner’s Report No. 1-180
WFEA — New Hampshire Broadcasting Co., Manchester, N. H. —
Renewal of license, 1340 kc., 500 watts, 1 KW LS, unlimited
time.
Examiner’s Report No. 1-184
NEW — W. H. Kindig, Hollywood, Calif. — C. P., 1300 kc., 1 KW,
share with KFAC. (Requests facilities of KFAC.)
KFAG — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
Renewal of license, 1300 kc., 1 KW, unlimited time.
APPLICATIONS GRANTED
WBNY- — Roy L. Albertson, Buffalo, N. Y. — Granted license to
cover C. P. for new station; 1370 kc., 100 watts night, 250
watts day — all hours except those assigned station WSVS.
KELW — Evening Herald Pub. Co., Burbank, Calif. — Granted re¬
newal of license; 750 kc., 500 watts. S-KEHE.
NEW — The Evening News Assn., Portable-Mobile (Detroit) —
Granted C. P., 86000-400000 kc., 1 KW, unlimited time.
W8XAZ — Buffalo Broadcasting Corp., Portable-Mobile (Buffalo.
N. Y.) — Granted C. P. to make changes in transmitter and
increase power from 1.5 to 25 watts.
W8XAZ — Buffalo Broadcasting Corp., Portable-Mobile (Buffalo,
N. Y.) — Granted license to cover C. P.; frequencies 31100,
34600, 37600, 40600 kc., 25 watts.
SET FOR HEARING
NEW — John S. Braun, Waco, Texas — Application for C. P. for new
station; 1500 kc., 100 watts daytime. Site to be determined.
NEW — The Tribune Co., Tampa, Fla. — Application for C. P. for
new station; 560 kc., 1 KW night, 5 KW day, unlimited
time. Site to be determined.
NEW — Bay County Publishers, Inc., Panama City, Fla. — Applica¬
tion for C. P. for new station; 1420 kc., 100 watts, unlimited
time.
NEW — I. T. U. Radio Station, Inc., Indianapolis, Ind. — Applica¬
tion for C. P. for new station; 560 kc., 5 KW day, 1 KW
night, unlimited. Site to be determined.
NEW — J. W. Plame, Huntington Park, Calif. — Application for
C. P., 1500 lie., 100 watts, unlimited time. Facilities used
by KVOE.
NEW — George F. Bissell, Pittsfield, Mass. — Application for C. P.
for new station ; 1200 kc., 100 watts daytime. Site to be
determined.
NEW — Golden Empire Broadcasting Co., Marysville, Calif. — Ap¬
plication for C. P. for new station; 1140 kc., 250 watts day¬
time. Site to be determined.
NEW — New Jersey Broadcasting Co., Inc., Paterson, N. J. — Appli¬
cation for C. P. for new station; 620 kc., 250 watts daytime.
KVOS — KVOS, Inc., Bellingham, Wash. — Consent to the transfer
of control of KVOS, Inc., from Wescoast Broadcasting Co.
to Rogan Jones. (1200 kc., 100 watts, unlimited time.)
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 1-149: Reporter Broadcasting Co., Abilene,
Texas — Granted C. P. for new broadcast station to operate
on 1420 kc., 100 watts; unlimited time. Examiner Bramhall
sustained. Order effective August 4th.
NEW — Wm. O. Ansley, Jr., d/b as Guilford Broadcasting Co.,
Abilene, Texas — Denied C. P. for new station to operate on
1420 kc., 100 watts, unlimited time. Examiner Bramhall
sustained. Order effective August 4th, 1936.
KMED — Ex. Rep. No. 1-167 : Mrs. W. J. Virgin, Medford. Oregon —
Granted modification of license to change frequency from
1310 to 1410 kc.; power from 100 watts night, 250 watts
day, to 250 watts night and day, and change hours from
unlimited to specified. Examiner D. G. Arnold sustained.
Order effective August 4th, 1936.
NEW — Ex. Rep. No. 1-208: James R. Ross, Jr., Tuscaloosa, Ala. —
Granted C. P. for new broadcast station to operate on 1200
kc., 100 watts, daytime. Examiner Bramhall sustained.
Order effective August 11, 1936.
ACTION ON CASES HEARD BY BROADCAST
DIVISION
WTMJ — The Journal Company (The Milwaukee Journal), Mil¬
waukee, Wis. — Granted renewal of license; 620 kc., 1 KW
night, 5 KW day, unlimited time. Order effective August
11, 1936.
KFRC — Don Lee Broadcasting System, San Francisco, Calif. —
Granted renewal of license; 610 kc., 1 KW, unlimited time.
Order effective August 11, 1936.
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. No. 1-186: Advertiser Pub. Co., Ltd., Honolulu,
T. H. — Oral argument set for June 11, 1936.
WEAN — Ex. Rep. No. 1-205: The Shepard Broadcasting Service,
Inc., Providence, R. I. — Oral argument set for June 11, 1936.
1285
KVSO — Ex. Rep. No. 1-206: The Ardmoreite Pub. Co., Inc., Ard¬
more, Okla. — Oral argument set for June 4, 1936.
WFBR — Ex. Rep. No. 1-209: The Baltimore Radio Show, Inc.,
Baltimore, Md.- — Oral argument set for June 4, 1936.
WOOD — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich. — Oral argument set for June 4, 1936.
WASH — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich. — Oral argument set for June 4, 1936.
MISCELLANEOUS
KFBB — Buttery Broadcast, Inc., Great Falls, Mont. — Denied mo¬
tion asking Commission to dismiss and return to applicant
the application of the Calif. Sales Contract Co., San Fran¬
cisco, for authority to establish a new broadcasting station
to operate on 1280 kc., 500 watts (1 KW LS).
WAAW — Omaha Grain Exchange, Omaha, Neb. — Dismissed at re¬
quest of applicant C. P. heretofore set for hearing requesting
660 kc., 5 KW, daytime.
WORL — Broadcasting Service Organization, Inc., Needham, Mass. —
Dismissed at request of applicant, modification of license
heretofore set for hearing, for 920 kc., 1 KW, daytime.
NEW — National Television Corp., New York City — Denied as in
cases of default for failure to file an appearance and state¬
ment of facts to be proved in accordance with Rule 104.6
(c), application for C. P., 42000-56000 and 60000-88000 kc.,
30 watts, unlimited time.
APPLICATIONS RECEIVED
First Zone
WCAO — Monumental Radio Co., Baltimore, Md. — Construction
600 permit to install a new auxiliary transmitter to be located
60 feet from present site at same address (811 West Lanvale
Street) to use 250 watts power.
WHDH — Matheson Radio Co., Inc., Boston, Mass. — License to use
820 old W. E. Type 106-B transmitter as an auxiliary transmitter
using 500 watts power.
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. — Con-
1230 struction permit to make changes in equipment and increase
power from 1 KW, 2l/2 KW day, to 1 KW, 5 KW day.
NEW — William F. Kollecker, Pittsfield, Mass. — Construction per-
1290 mit for a new station to be operated on 1290 kc., 250 watts,
daytime.
NEW — Black River Valley Broadcasts, Inc., Watertown, New York
1420 — Construction permit for a new station to be operated on
1420 kc., 100 watts, 250 watts day, unlimited time.
NEW — World Broadcasting System, Inc., New York, N. Y. —
Authority to transmit programs from the World Broadcast¬
ing System, Inc., to the Northern Electric Co., Ltd. (Cana¬
dian).
Second Zone
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Construction
560 permit to install new equipment, erect a vertical antenna,
increase power from 500 watts, 1 KW day to 1 KW and
move transmitter from 801 Market St., Philadelphia, Pa.,
to 1300 feet northeast of Monument and City Line Ave.,
Merion Twp., Pennsylvania.
NEW — Cadillac Broadcasting Co., a Michigan Corporation, Dear-
1140 born, Mich. — Construction permit for a new station to be
operated on 1140 kc., 500 watts, daytime.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
1160 Construction permit to install a new transmitter, erect a
vertical antenna and increase power from 5 KW to 25 KW,
10 KW day. Amended: Re-equipment.
WRAK — WRAK, Incorporated, Williamsport, Pa. — Construction
1370 permit to make changes in equipment (antenna) and move
transmitter from 244 West Fourth Street, Williamsport, Pa.,
to 1631 W. 3rd, Williamsport, Pa.
WHIS — Daily Telegraph Printing Co., Bluefield, W. Va. — License
1410 to cover construction permit (B2-P-861) for new equipment
and move of transmitter.
WCKY — L. B. Wilson, Inc., Covington, Ky. — Construction permit
1490 to install new equipment and increase power from 5 KW to
50 KW day and night.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Modification of
1500 construction permit to make changes in equipment, move
transmitter from 12897 Woodward Avenue, Highland Park,
Mich., to site to be determined, Detroit, Mich., install vertical
antenna and extend commencement and completion dates.
Amended: To give transmitter site as Woodrow Wilson and
Pilgrim Streets, Detroit, Mich., and omit request for exten¬
sion of commencement and completion dates.
NEW — The Escanaba Daily Press Co.. Escanaba, Mich. — Con-
1500 struction permit for a new station to be operated on 1500 kc.,
100 watts, daytime.
Third Zone
WQAM — Miami Broadcasting Co., Miami, Fla. — License to cover
560 construction permit (B3-P-987) for new equipment.
WQAM — Miami Broadcasting Co., Miami, Fla. — License to use old
580 W. E. D-87737 transmitter as an auxiliary transmitter.
WPTF — WPTF Radio Co., Raleigh, N. C. — License to cover con-
680 struction permit (B3-P-863) to move auxiliary transmitter.
WKY — WKY Radiophone Co., Oklahoma City, Okla. — Construc-
900 tion permit to install new equipment, increase power from
1 KW to 5 KW, move transmitter from West 39th Street
(highway 8 mi. w. of) Oklahoma City, Okla., to site to be
determined, near Oklahoma City, Okla. Amended: Change
power from 5 KW to 1 KW, 5 KW day, make changes in
antenna and omit request for move to transmitter.
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — Construc-
920 tion permit to install new equipment, increase power from
100 watts, 250 watts day to 250 watts, 500 watts day and
change frequency from 1310 kc. to 920 kc. Amended: To
move transmitter from Hall Street, Jackson, Tenn., to north¬
west of Jackson, Tenn.
WIS — Station WIS, Inc., Columbia, S. C. — Modification of con-
1010 struction permit (3-P-B-3258) for changes in equipment,
increase in power, change of frequency and move of trans¬
mitter, requesting extension of completion date from 5-10-36
to 7-10-36.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. — Special
1180 experimental authorization to change hours of operation
from limited to unlimited time and install directional antenna
for the period to 8-1-36.
NEW — Southern Broadcasting Corp., New Orleans, La. — Construc-
1200 tion permit for a new station to be operated on 100 watts,
share WJBW. Requests facilities of WBNO. The frequency
1200 kc. requested.
NEW — Bayou Broadcasting Co., Houston, Texas — Construction
1210 permit for a new station to be operated on 1200 kc., 100
watts, unlimited time. Amended: To change frequency from
1200 kc. to 1210 kc.
NEW — John S. Allen & G. W. Covington, Jr., Montgomery, Ala. —
1210 Construction permit for a new station to be operated on
1210 kc., 100 watts, daytime. Amended: To change trans¬
mitter site from 1500 feet off Narrow Lane Road, 4 miles
south of Montgomery, Ala., to 1000 feet off Narrow Lane
Road, 3J4 miles southeast of Montgomery business section.
KUOA — KUOA, Inc., Fayetteville, Ark. — Construction permit to
1260 make changes in equipment, erect a new antenna, increase
power from 1 KW to 2Vi KW, move transmitter from
Mount Sequoyah, Fayetteville, Ark., to John Brown Uni¬
versity, Siloam Springs, Ark., and studio from Washington
Hotel, 101 West Mountain Street, Fayetteville, Ark., to John
Brown University, Siloam Springs, Ark.
WAML — New Laurel Radio Station, Inc., Laurel, Miss. — Applica-
1310 tion for license filed by New Laurel Radio Station, Inc., for
authority to operate Radio Station WAML.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — License to
1370 cover construction permit (B3-P-958) to make changes in
equipment.
WACO — Central Texas Broadcasting Co., Inc., Waco, Texas —
1420 Voluntary assignment of license from Central Texas Broad¬
casting Co., Inc., to KTSA Broadcasting Co.
KOMA — National Radio Manufacturing Co., Oklahoma City, Okla.
1480 — Voluntary assignment of license from the National Radio
Manufacturing Co. to Hearst Radio, Inc.
Fourth Zone
KSD — Pulitzer Publishing Co., St. Louis, Mo. — Modification of
550 license to change hours of operation from share KFUO to
unlimited time. Amended: To request facilities of KFUO.
NEW — Thomas L. Evans and J. L. Milligan, Jefferson City, Mo. —
920 Construction permit for a new station to be operated on
920 kc., 500 watts, daytime.
WSBT — The South Bend Tribune, South Bend, Ind. — Construction
1010 permit to make changes in equipment, install directional an¬
tenna, change frequency from 1360 kc. to 1010 kc., increase
1286
power from 500 watts to 1 KW, change hours of operation
from share WGES to unlimited time and move transmitter
from 4 Yi miles west on U. S. 2, South Bend, Ind., to site
to be determined, South Bend, Ind. Amended: For approval
of transmitter site at about 4 miles southeast of center of
South Bend on south side of Jackson Rd. 54 mile east of
Miami Highway, South Bend, Ind. To use directional an¬
tenna at night.
WCLO — Gazette Printing Co., Janesville, Wis. — Construction per-
1200 mit to move transmitter from Milwaukee Road, near Janes¬
ville, Wis., to Janesville, Wis. Amended: To give trans¬
mitter site as 1436 S. Oakhill Ave., Janesville, Wis., and to
request changes in antenna.
KSCJ — Perkins Brothers Co., Sioux City Journal, Sioux City, Iowa
1330 — Modification of construction permit (B4-P-619) to make
changes in equipment, change transmitter site from Sioux
City, Iowa, to McLaughlin Farm, southeast quarter of north¬
east quarter-section 1, Sioux City, Iowa, extend commence¬
ment date to 15 days after grant and completion date to 90
days thereafter.
WKBI — WKBI, Incorporated, Cicero, Ill. — Modification of license
1420 to change specified hours as specified on license, from Cen¬
tral Standard Time to Eastern Standard Time.
WHFC — WHFC, Inc., Cicero, Ill. — Modification of license to
1420 change specified hours as specified on license, from Central
Standard Time to Eastern Standard Time.
WEHS — WEHS, Incorporated, Cicero, Ill. — Modification of license
1420 to change specified hours as specified on license from Central
Standard Time to Eastern Standard Time.
NEW — KMJB Broadcasting Co., by Myron J. Bennett, Pres.,
1450 Minot, N. D. — Construction permit for a new station to be
operated on 1300 kc., 1 KW, unlimited time. Requests
facilities of KLPM. Amended: To change frequency from
1300 kc. to 1450 kc.
Fifth Zone
KFXM — J. C. and E. W. Lee (Lee Bros. Broadcasting Co.), San
1210 Bernardino, Calif. — Authority to install automatic frequency
control.
NEW — Ed Klies, Helena, Mont. — Construction permit for a new
1210 station to be operated on 1210 kc., 100 watts, 250 watts day,
unlimited time. Amended: To make changes in equipment.
KEUB — Eastern Utah Broadcasting Co. (Sam G. Weiss), Price,
1420 Utah — Authority to install automatic frequency control.
KEUB — Eastern Utah Broadcasting Co. (Sam G. Weiss), Price,
1420 Utah — Modification of construction permit (B5-P-648) for a
new station, requesting changes in equipment and approval
of transmitter and studio sites as 2.4 miles northwest Price
on Highway 50, Price, Utah.
NEW — Harold M. Finlay and Mrs. Eloise Finlay, La Grande,
1500 Oreg. — Construction permit for a new station to be operated
on 1500 kc., 100 watts, daytime.
1287
mimm
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * » . WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
* * * * * VoL 4 - - No. 19
APRIL 23, 1936
NAB REPORTS
Copyright 1 936. The National Association ot Broadcasters
IN THIS ISSUE
Page
Copyright Subcommittee Appointed . 1289
Securities Act Registrations . 1289
Prail Addresses Women’s Radio Committee . 1289
Federal Trade Commission Action . 1290
Federal Communications Commission Action . 1291
KGIR Files Answer in Copyright Infringement Suit 1293
COPYRIGHT SUBCOMMITTEE APPOINTED
Representative Sirovich, chairman of the House Committee on
Patents on Wednesday announced the following subcommittee to
consider copyright legislation: Representative Lanham of Texas,
chairman; Deen, of Georgia; O’Malley, of Wisconsin; Kramer, of
California; Daly, of Pennsylvania; Barry, of New York; Perkins,
of New Jersey; McLeod, of Michigan; Hartley, of New Jersey;
and Risk, of Rhode Island. Mr. Lanham called a meeting of the
subcommittee to be held on Thursday.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
McGraw-Hill Publishing Company, New York City. (2-2077,
Form A-2)
Alabama-California Gold Mines Co., Tacoma, Wash. (2-2078,
Form A-l)
Potrero Sugar Company, New York City. (2-2081, Form A-l)
Ashland Home Telephone Co., Ashland, Ky. (2-2082, Form A-l)
Cascade Mining Corporation, Ypsilanti, Mich. (2-2085, Form
A-l)
Coastal Minerals Development, Inc., New Orleans, La. (2-2086,
Form A-l)
Skookum Gold Mines, Ltd., Toronto, Canada. (2-2087, Form
A-l)
General Equities, Inc., Minneapolis, Minn. (2-2088, Form A-l)
Insurance Investors Company, Seattle, Wash. (2-2089, Form
A-l)
Bankers Incomes Shares, Ltd., St. Johns, Newfoundland. (2-
2090. Form A-l)
General Illinois Light Company, Peoria, Ill. (2-2093, Form A-2)
W. Wallace Alexander, Inc., Philadelphia, Pa. (2-2095, Form A-l)
PRALL ADDRESSES WOMEN’S RADIO
COMMITTEE
Anning S. Prail, chairman of the Federal Communications Com¬
mission, on Wednesday addressed the Women’s National Radio
Committee at the Astor Hotel, New York City, in connection with
the presentation of awards. Mr. Prail said:
“It is a privilege and a pleasure I assure you to compliment the
Women’s National Radio Committee for its devotion to a cause in
which both the listening public and the broadcasting industry are
vitally concerned.
“It is quite unnecessary to add that in its determination to im¬
prove the standards of radio programs the Women’s Committee will
always have the unqualified support of the Federal Communications
Commission, of which I have the honor of serving as its Chairman.
“I had intended to devote full fifteen minutes this afternoon to
the subject of the Freedom of Speech because frankness compels the
admission that the political and economic crisis which has become
world-wide in its effects has seriously undermined confidence in
some of our cherished beliefs. I cannot do so because my time has
been cut from fifteen minutes to eight. However, the objective of
the Women’s Committee and our Commission with respect to clear¬
ing the air of undesirable programs is closely related and the question
of free speech is so involved by legal restrictions that the elimina¬
tion of obnoxious programs may depend entirely on the voluntary
cooperation of the broadcasters. The Fourteenth Amendment to
the Constitution guarantees the freedom of speech and the pro¬
visions of the Communications Act regarding censorship are very
dear and definite. What is the justification for the feeling of
political insecurity that fills the hearts of men? Who could have
predicted that in the decades following a war intended to make the
world safe for democracy the specter of dictatorships would become
a reality? Who could have foretold that instead of the democratic
form of government finding wider acceptance among the peoples of
Europe we would see Lenin installed in Moscow, Hitler in Berlin,
and Mussolini in Rome? Have the nations for all time rejected
the ideal of democracy and with it all, the absolute repudiation of
free speech? Apparently the peoples of other lands are willing to
sacrifice much for economic and political security. For the moment
at least fundamental liberties have been foresworn in an attempt to
concentrate power in one or a few rather than in the many in order
to insure the equivalent values of what our forefathers called ‘life,
liberty and the pursuit of happiness.’ Freedom of speech, the
laissez-faire policy in business and social life, the right of assembly,
liberty of the press and radio, have been willingly sacrificed under
the present European dictatorships.
“Fortunately, the English-speaking peoples, particularly in Eng¬
land and the United States, despite the perils of war and the eco¬
nomic disaster that followed, have not been willing to sacrifice such
fundamental liberties, the attainment of which required centuries
of effort and sacrifice.
“The battle for a free press and free speech was not won in a day
or even in a century. The Supreme Court of the United States in
the decision involving the ‘Louisiana Newspaper Tax’ case pointed
out that it was a ‘tax on knowledge’ and a substitute for the older
forms of direct censorship. It was a device in the form of a tax
to limit the circulation of information to which the public is
entitled.
“Can the lesser degree of freedom attach to the most recent
medium of communication — the radio — an instrumentality as potent,
or more so, for good or evil as the printing press itself?
“In the twinkling of an eye, this marvelous invention carries news
items as well as recreational features, such as the drama and music,
to remote areas of our land not served by the daily press, and its
programs are heard by millions who have neither the desire, the
time nor the facilities to read the daily paper.
“A message of plans proposed or work done spoken at the fire¬
side of the White House is heard at millions of hearthstones through¬
out the land. Issues of all kinds relating to the functions of gov¬
ernment, such as the Constitution, finance, tariff, neutrality and
various types of relief are presented to our countrymen by speakers
of every type of status, race, political and religious belief in mes¬
sages ranging from passionate praise to withering censure.
“It is inconceivable that, as in the dictator-ridden countries of
Europe, or even in England where the radio is under state control,
there could be imposed by the Communications Commission regula¬
tions that would mean a denial of the same degree of free speech
over the radio as is enjoyed by the press of our country.
“But while that liberty should be granted and maintained, a
degree of reasonable restriction should be preserved, namely, the
protection of the government and its processes, including judicial
action from violent disruption, and unlawfully created disrespect;
the protection of individuals in good name and business reputation ;
and the protection of the morals of the public and of its right not
to be defrauded or deceived.
“One might discuss at some length certain questions of discretion
and propriety over and beyond the legal ones already implied.
When this marvelous mechanism is used in violation of good taste
as involved in either what is broadcast or the method employed, the
problem becomes not one of further legal restriction but the de-
1289
velopment of intelligence and taste both in the sponsors of a given
program and the listening audience to which the appeal is made.
It is a truism that you can legislate neither morals nor esthetic
appreciation.
“In the conduct of the press and the radio our fundamental obli¬
gation is to respect freedom of speech. The search for truth shall
keep us free.
“The freedom of the press within the legal limitations to which
I have referred, which conditions bespeak the wisdom of experi¬
ence, is a precious inheritance. That freedom must be extended to
the radio. To the defense of that freedom of the press and the
radio, we pledge as did our forefathers, our lives and our sacred
honor.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2763. Kroekel-Oetinger, Inc., Philadelphia candy manu¬
facturer, has been charged with unfair competition in selling to the
trade candy so packed and assembled as to involve lottery when
distributed to the consumer.
A candy assortment sold by this manufacturer to wholesalers,
jobbers and retailers is said to have been made up of candies of
uniform size together with certain larger pieces to be given as prizes
to certain purchasers of the uniform sizes.
The complaint alleges that sale of candy to the purchasing public
in this manner is a practice deemed contrary to public policy by the
common law and criminal statutes. Specifically, violation of Section
5 of the Federal Trade Commission Act is charged.
No. 2765. Charging unfair competition and restraint of trade
in the jobbing of automobile parts and accessories, a complaint
has been issued against the Motor and Equipment Wholesale
Association, with headquarters in Chicago, whose membership is
said to represent a substantial volume of this class of jobbing busi¬
ness in the United States, occupying a dominant position in the
parts and accessories trade.
Those named as respondents include the association, its officers
and directors; the Automotive Trades Association of Greater Kan¬
sas City. Mo., a member; Mississippi Valley Automotive Jobbers
Association (Iowa) ; Southwestern Automotive Wholesalers Asso¬
ciation, Southwestern Jobbers Association, and 42 member com¬
panies in various cities.
The complaint charges the respondents with entering into
agreements, combinations and conspiracies among themselves for
elimination of price competition among jobbers, preventing the
creation of new competition, and controlling parts and accessories
prices. This program, according to the complaint, was accom¬
plished through agreement and concerted action in (1) use of
uniform and substantially identical resale prices fixed by manu¬
facturers; (2) threats of boycott and actual boycott against manu¬
facturers not complying with the program; (3) monopoly in the
distribution of replacement parts, accessories and shop equipment
through “legitimate jobbers”; (4) strict enforcement of rules for
jobbers recognized as “legitimate”; and (S) establishment of “job¬
bing points,” “ethical merchandising,” or “clean merchandising”
policies for promotion of the respondents’ program, and holding
local and regional group meetings at national shows and elsewhere,
of which only meager and incomplete records have been kept so
as to avoid providing evidence of agreements and to minimize
detection.
No. 2766. Allegedly representing himself as a chemist in order
to promote the sale of formulas and specifications for the manu¬
facture of a wide variety of products, L. W. Gibson, 4700 North
Racine Ave., Chicago, is named respondent in a complaint charging
unfair methods of competition.
Gibson sells formulas for cosmetics, tooth paste, hair tonics,
polishing compounds, soap, food products, adhesives, rat extermi¬
nators and other commodities, and, the complaint alleges, certain
assertions he makes in advertisements, catalogues and other printed
matter regarding his business are in violation of Section S of the
Federal Trade Commission Act.
Among the respondent’s alleged misrepresentations are assertions
that he was educated in the science of chemistry, has had long
experience in the commercial application of such science, and has
spent large sums of money and devoted years to perfecting prac¬
tical working formulas and processes for the manufacture of various
products. The complaint also charges the respondent represents
that in his establishment are laboratories equipped with modern ap¬
paratus, and that associated with him are graduates of leading
American colleges whom he employs because of their sound knowl¬
edge of chemistry, their experience in the formation of money¬
making formulas, their success as manufacturers, and their ability
to teach other manufacturers every phase of profitable production.
No. 2768. False representations in the sale of men’s clothing are
alleged in a complaint against Jonas Sehainuek & Son, Inc., with
headquarters at 757 Broadway, New York City, from where it
operates a chain of retail stores in New York, Washington, D. C.,
and Pittston, Wilkes-Barre, Scranton, Allentown, Harrisburg, and
Hazelton, Pennsylvania, and in other cities.
The complaint charges that the respondent company makes asser¬
tions in radio broadcasts that its “Factory-to-You Policy Saves
You Money,” and that labels attached to garments sold by the
respondent bear such statements as “Maker to Wearer.”
According to the complaint, the respondent company does not
own or operate a factory where its products are manufactured, and
the representations that it does tend to cause purchasers of such
products to believe they obtain closer prices and superior quality
in dealing direct with a manufacturer rather than with a retailer
or middleman.
In newspapers, over radio and in other ways, the respondent
corporation is said to advertise that it sells “Two Garments for
One Low Price,” when, according to the complaint, it does not sell
two suits, two overcoats, or one suit and one overcoat for the price
of one garment, nor does the purchaser save the cost of an addi¬
tional garment through the medium of the respondent’s sales plan,
but pays the usual and ordinary retail price of two garments, or
approximately so.
The respondent’s practices, the complaint avers, violate Section 5
of the Federal Trade Commission Act, and not only deceive pur¬
chasers but tend to divert trade to the respondent from competitors
who do not misrepresent their products.
No. 2769. Combination and conspiracy to suppress competition
and create a monopoly in the ladies’ garment and dress goods trade
in the United States is alleged in a complaint issued against five
associations whose membership represents a large portion of the
national volume of business in these commodities. The complaint
charges violation of the Federal Trade Commission Act.
Principal respondents named are the Fashion Originators Guild
of America, Inc., with headquarters at 512 7th Ave., New York
City ; Michigan Avenue Guild of Chicago ; Minneapolis Fash¬
ion Guild; Ladies’ Ready-to-Wear Guild of Baltimore; Na¬
tional Federation of Textiles, Inc., 10 East 40th St., New York
City ; and the respective officers, directors and members of each
organization.
Included as respondents are members of the three main divisions
of the Fashion Originators Guild of America, Inc., namely the
ladies’ garment manufacturers, the textile merchants, and the affili¬
ated members, which group consists of certain retail dealers in
ladies’ garments and accessories in various cities.
Principal charges of the complaint have to do with alleged efforts
of the Fashion Originators Guild of America, Inc. (F. O. G. A.),
and its associated respondents, to maintain its style protective
program. According to the complaint, the Guild was organized
ostensibly to establish fair trade practices among its members, and
to promote a program to protect originators of fashions and styles
against copying and piracy. This program is said to extend to
textile merchants, retail dealers and non-member garment manu¬
facturers who cooperate in the style protective program.
No. 2770. Disparagement of competitors’ products on the part
of the Coolerator Company, Duluth, Minn., is alleged as an
unfair method of competition in a complaint issued against that
company.
The respondent company, a distributor of non-mechanical re¬
frigerators using natural or artificial ice, is alleged to have made
representations having a tendency to deceive buyers into the false
belief that electric refrigerators are undesirable, ineffective and
harmful.
According to the complaint, the respondent distributed a booklet
called “Why Ice Is Best for Refrigeration,” in which it was sug¬
gested that various gases used in electric refrigerators escape from
the coils, permeate the food chamber and have a deleterious effect
on foods; that foods kept in electric refrigerators dehydrate to such
an extent that the nutritive properties are impaired, and other sim¬
ilar assertions.
1290
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 1642. Barimm Laboratories, Inc., 2616 Independence
Ave., Kansas City, Mo., engaged in the compounding and selling
of cosmetics and toilet preparations, under the trade name of
Barnum’s Special Formula Laboratory, Inc., agrees to cease repre¬
senting in advertising that its products are made by or under the
personal supervision of Dr. Barnum, or that he renders any service
to customers, when such is not the fact; that its products are a food
for and penetrate the skin, possessing properties that will prevent
or cure wrinkles and double chins, or that any of such products
promote the growth of eyebrows and eyelashes. The respondent
company also stipulates it will not use such expressions as “Only
U. S. Government Standard Products Used,” or any similar ex¬
pression tending to mislead purchasers into the belief that, because
the ingredients of which such products are made may conform to
the requirements of the United States Pharmacopoeia, these prod¬
ucts are made under the supervision of the United States Govern¬
ment or have its endorsement.
No. 1643. Leon Seelig, 3225 Harrison St., Kansas City, Mo.,
trading as Peck Products, and engaged in the mail order busi¬
ness of selling a certain preparation commonly known as an em-
menagogue, agrees to discontinue representing in advertising matter
that such product is safe or harmless for self-administration.
No. 1645. James Lees & Sons Co., Bridgeport, Pa., agrees
that in the sale of its yarns and threads it will discontinue use of
the word “Rayona,” or any other similar word, as a trade name
for its products, or in any other way which may cause purchasers
to believe that the respondent’s products are made from that mate¬
rial known to the trade and public as rayon, when such as not the
fact.
No. 1647. George A. White, 645 Merion Ave., Penfield, Pa.,
trading as the Church Mart, will cease representing in advertising
matter, or in any other way, that his preparation, “Check-It,” will
prevent runs, breaks or snags in silk, chiffon or rayon hosiery,
dresses and lingerie, or that use of such product makes fabrics
treated with it proof against all spot-producing materials, or makes
all colors fast.
No. 1651. Walter L. Gerke, 107 Pike St., Seattle, Wash.,
trading as Gerke Mineral Co., signed a stipulation to cease and
desist from circulating, in connection with the sale of his mineral
water product, advertisements consisting of alleged letters from
users of such product, which letters contain representations that
the writers thereof have been healed or cured of any serious or
chronic ailment through the use of the respondent’s mineral water,
and from circulating advertising matter containing representations
which claim for the mineral water medicinal properties or thera¬
peutic values greater than those it actually possesses.
No. 1653. Chicago Mail Order Co., 511 South Paulina St.,
Chicago, dealing in rubber toilet products, will discontinue use of
the words “Spiral Spray” in advertising matter to designate syringes
of a type other than those commonly understood to be a “spiral
spray” syringe, and will cease using such words in any way which
may tend to deceive purchasers as to the type of the products so
advertised.
No. 2368. Victor Soap Co., Concord and Scoville Avenues,
Dayton, Ohio, trading as Royal Soap Co., and as Heick Soap
Co., has been ordered to discontinue unfair methods of competition,
including the misrepresentation of the incomes salesmen may earn in
selling the respondent’s products.
Specifically, the respondent is prohibited from representing that
it guarantees the financial success of its agents, that Victor agents
are “cleaning up” in opening soap shops, or that they are easily
earning incomes in excess of the average income made by the average
agent employed by the respondent.
No. 2738. Atlas China Co., Inc., 710 Wythe Ave., Brooklyn,
N. ¥., has been ordered to cease and desist branding chinaware
products as “Limoges,” or representing as Limoges certain porcelain
or chinaware products which have not originated or been made in
Limoges, France.
Findings are that for 150 years a vitreous, translucent and glazed
ware has been made in Limoges, France, and has acquired a favor¬
able reputation in Europe and America as a porcelain or china of
superior quality, utility and beauty. The respondent’s representa¬
tions are held to have a tendency to deceive buyers into believing
that its products were made in Limoges.
The order also directs the respondent to stop branding its articles
with the words “French Decoration,” or in any way representing
them as being decorated with French designs peculiar to France or
to French artistry, when this is not the fact.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
There was no meeting of the Broadcast Division of the Commis¬
sion early this week. The meeting was deferred because its mem¬
bers were attending hearings in connection with the Commission’s
telephone investigation. The meeting will be held later this week.
HEARING CALENDAR
Monday, April 27
HEARING BEFORE AN EXAMINER
(Broadcast)
WALR — WALR Broadcasting Corp., Zanesville, Ohio. — C. P. to
move to Toledo, Ohio; 1210 kc., 100 watts, unlimited time.
NEW — Community Broadcasting Co., Toledo, Ohio. — C. P., 1200
kc., 100 watts, daytime.
Tuesday, April 28
HEARING BEFORE AN EXAMINER
(Broadcast)
KMMJ — The M M. Johnson Co.. Clay Center, Nebr. — C. P., 740
kc., 1V2 KW (daytime), limited time.
Wednesday, April 29
HEARING BEFORE AN EXAMINER
(Broadcast)
KUMA — Albert H Schermann, Yuma, Ariz. — Renewal of license,
1420 kc., 100 watts, specified hours.
NEW — Continental Radio Co., Columbus, Ohio. — C. P., 1310 kc.,
100 watts, unlimited time.
Thursday, April 30
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — The Steffen Ice & Ice Cream Co., Wichita, Kans. — C. P.,
1210 kc., 100 watts, unlimited time.
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-187:
WCAO — The Monumental Radio Co., Baltimore, Md. — Modifica¬
tion of license, 600 kc., 1 KW, unlimited time. Present
assignment: 600 kc., 500 watts, 1 KW LS, unlimited time.
WICC — Southern Connecticut Broadcasting Corp., Bridgeport,
Conn.— Modification of license, 600' kc., 1 KW, specified
hours. Present assignment: 600 kc., 500 watts, specified
hours.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Modifica¬
tion of license, 610 kc., 1 KW, unlimited time. Present as¬
signment: 610 kc., 500 watts, unlimited time.
Examiner’s Report No. 1-189:
NEW — Golden Empire Broadcasting Co., Sacramento, Calif. — C. P.,
1310 kc., 100 watts, unlimited time.
NEW — Royal Miller, Sacramento, Calif. — C. P., 1210 kc., 100
watts, daytime.
Examiner’s Report No. 1-164:
(Oral argument on petition for rehearing and reconsideration)
KGCX — E. E. Krebsbach, Wolf Point, Mont.— C. P., 1450 kc., 1
KW, unlimited time. Present assignment: 1310 kc., 100
watts, 250 watts LS, specified hours.
APPLICATIONS RECEIVED
First Zone
WMAS — WMAS, Inc., Springfield, Mass. — Construction permit to
560 make changes in equipment ; change frequency from 1420 kc.
to 560 kc.; increase power from 100 watts, 250 watts day, to
1291
1 KW ; move transmitter from 70 Chestnut St., Springfield,
Mass., to Agawam, Mass., and studio from 70 Chestnut St.,
Springfield, Mass., to Hotel Stonehaven, Springfield, Mass.;
and install directional antenna.
WJZ — National Broadcasting Co., Inc., New York, N. Y. — Con-
760 struction permit to install new equipment, increase power
from SO KW to S00 KW, and move transmitter from No. 1
River Rd., Bound Brook, N. J., to site to be determined.
NEW — Twin City Broadcasting Co., Inc., Lewiston, Maine. — Con-
1210 struction permit for a new station to be operated on 1210 kc.,
100 watts, unlimited time. Amended: Transmitter site and
antenna to be determined.
WNBC — Wm. J. Sanders, New Britain, Conn. — Voluntary assign-
1380 ment of license from Wm. J. Sanders to State Broadcasting
Corp.
NEW — Auburn Publishing Co., Auburn, N. Y. — Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
unlimited time. Amended giving transmitter site as York
Street, Auburn, N. Y.
WMBQ — Metropolitan Broadcasting Corp., Brooklyn, N. Y. — Con-
1500 struction permit to install new equipment. Amended to move
studio and transmitter from 95 Leonard Street, Brooklyn,
N. Y., to 217 Havermever Street. Brooklyn, N. Y., and make
changes in antenna.
Second Zone
WWJ — The Evening News Assn., Detroit, Mich. — Authority to de-
920 termine operating power by direct measurement of antenna.
WWJ — Evening News Assn., Detroit, Mich. — License to cover con-
920 struction permit (B2-P-297) as modified for move of trans¬
mitter, new equipment, and increase in power.
WCMI — The Ashland Broadcasting Co., Ashland, Ky. — Construc-
1310 tion permit to make changes in equipment and increase power
from 100 watts to 100 watts, 2'50 watts day.
NEW — Owensboro Broadcasting Co., Owensboro, Ky. — Construc-
1500 tion permit for a new station to be operated on 1590 kc.,
100 watts, unlimited time. Amended to give studio site as
102 E. 3rd Street, Messenger & Inquirer Bldg., Owensboro,
Ky.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 31 100, 34600, 37600, 40600, 86000-400000 kc..
40 watts.
W8XEO — Harold F. Gross, M. Bliss Keeler, L. A. Versluis, d/b as
Capitol City Broadcasting Co., Portable-Mobile. — License to
cover construction permit for a new general experimental
station to be operated on 31100, 34600, 37600, 40600 kc.,
15 watts.
W3XER — Philco Radio & Television Corp., Philadelphia, Pa. —
License to cover construction permit for a new special ex¬
perimental station to be operated on 42000-56000, 60000-
86000 kc., 250 watts.
Third Zone
WPTF — WPTF Radio Co., Raleigh, N. C. — Authority to determine
680 operating power by direct measurement of antenna (1-KW
auxiliary equipment).
NEW — State Capitol Broadcasting Assn. (R. B. Anderson, Pres.),
1120 Austin, Tex. — Construction permit for a new station to be
operated on 1120 kc., 500 watts, 1 KW day, specified hours
(all hours not used by WTAW), using directional antenna.
Amended to make changes in directional antenna.
NEW — O. Lee Stone, Florence, S. C. — Construction permit for a
1200 new station to be operated on 1200 kc., 100 watts, daytime.
KFPW — Southwestern Hotel Co., Fort Smith, Ark. — Construction
1210 permit to make changes in equipment.
KTAT— KTAT Broadcast Co., Inc., Fort Worth, Tex. — Voluntary
1240 assignment of license from KTAT Broadcast Co., Inc., to
Raymond E. Buck.
WRR — City of Dallas Texas, Dallas, Tex. — Modification of con-
1280 struction permit (B3-P-889) for new equipment and move
of transmitter, requesting further changes in equipment.
WDOD — WDOD Broadcasting Corp., Chattanooga, Tenn. — Modifi-
1280 cation of license to increase power from 1 KW, 5 KW day,
to 5 KW day and night.
RPDN — Pampa Daily News, Inc., Pampa, Tex. — License to cover
1310 construction permit (B3-P-382) as modified for a new
station.
WGPC — Americus Broadcast Co., Albany, Ga. — Construction per-
1420 mit to install new equipment; move transmitter from 107 N.
Jackson Street, Albany, Ga., to corner Pine and Jackson Sts.,
Albany, Ga., and studio from 107 N. Jackson Street, Albany,
Ga., to 127H N. Jackson Street, Albany, Ga.
W4XBZ — Radio Station WSOC, Inc., Portable. — License to cover
construction permit for a new general experimental station
to be operated on 31100, 34600, 37600, 40600 kc., 7 watts.
KNED — Carter Publications, Inc., Portable-Mobile. — License to
cover construction permit for a new broadcast pickup station
to be operated on 1606, 2020, 2102, 2760 kc., 50 watts.
NEW — Memphis Commercial Appeal, Inc., Portable-Mobile. — Con¬
struction permit for a new broadcast pickup station to be
operated on 1606, 2020, 2102, 2760 kc., 35 watts.
Fourth Zone
KFRU — KFRU, Inc., Columbia, Mo. — Construction permit to
630 change hours of operation from share WGBF night, simul¬
taneous daytime WGBF, to unlimited time, using directional
antenna night, and to move transmitter from 1200 Broadway,
Columbia, Mo., to 4 miles from center of city, Columbia, Mo.
WGBF — Evansville on the Air, Inc., Evansville, Ind. — Construction
630 permit to change hours of operation from share WOS, KFRU
night, simultaneous day, to unlimited time, using directional
antenna.
NEW — KFLW Broadcasting Co., Myron J. Bennett, President,
1200 Mandan, N. Dak. — Construction permit for a new station to
be operated on 1200 kc., 100 watts, unlimited time. Requests
facilities of KGCU.
NEW — C. E. Wilkinson Broadcasting Co., Inc., Mason City, Iowa.
1210 —Construction permit for a new station to be operated on
1370 kc., 100 watts, unlimited time. Amended to change
name from Charles E. Wilkinson to C. E. Wilkinson Broad¬
casting Co., Inc., and change frequency from 1370 kc. to
1210 kc.
NEW — KMOK Broadcasting Co., Myron J. Bennett, Pres., Valley
1310 City, N. Dak. — Construction permit for a new station to
be operated on 1310 kc., 100 watts, unlimited time.
WOC — Tri-City Broadcasting Co., Davenport, Iowa. — Authority to
1370 install automatic frequency control.
WRJN — Racine Broadcasting Corp., Racine, Wis. — Modification of
1370 construction permit (B4-P-370) for equipment changes and
move of transmitter, requesting further changes in equipment
and extension of commencement and completion dates.
NEW — Crest on News Advertiser Broadcasting Co., Creston, Iowa. —
1500 Construction permit for a new station to be operated on
1500 kc., 100 watts, unlimited time. Amended to change
name from W. E. Day to Creston News Advertiser Broad¬
casting Co.
WKBB — Sanders Brothers Radio Station, East Dubuque, Ill. —
1500 Construction permit to install a new transmitter.
NEW — Central States Broadcasting Co., Portable. — Construction
permit for a new broadcast pickup station to be operated on
1606, 2020, 2102, 2760 kc., 30 watts.
Fifth Zone
NEW — The Hebrew Evangelization Society, Inc., Los Angeles, Calif.
570 — Construction permit for a new station to be operated on
570 kc.. 1 KW, unlimited time.
NEW — Thomas M. Hammond, d/b as Ventura Broadcasting Co.,
1210 Ventura, Calif. — Construction permit for a new station to be
operated on 1210 kc., 100 watts, daytime.
KVOA — Arizona Broadcasting Co., Inc., Tucson, Ariz. — Construe -
1260 tion permit to make changes in equipment.
NEW — Mile High Radio Corp., Denver, Colo.— Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
unlimited time.
W6XKG — 'Ben S. McGlashan, Los Angeles, Calif. — Construction
permit for increase in power of general experimental station
from 100 watts to 1000 watts.
KABB — Don Lee Broadcasting System, Portable-Mobile, San Fran¬
cisco, Calif. — License to cover construction permit for a new
broadcast pickup station to be operated on 1646, 2000, 2190,
2830 kc., 100 watts.
1292
KGIR FILES ANSWER IN COPYRIGHT
INFRINGEMENT SUIT
UNITED STATES DISTRICT COURT
DISTRICT OF MONTANA
REMICK MUSIC CORPORATION, Complainant
— against —
K. G. I. R., Inc., Defendant
The defendant, answering the bill of complaint herein:
(1) Denies each and every allegation contained in Paragraphs
I, X, XII, XIII, XIV, XV and XVI.
(2) Denies that it has any knowledge or information sufficient
to form a belief as to the truth or falsity of the allegations con¬
tained in paragraphs II, Ila, IV, VI, VII, VIII, Villa, IX, and XI,
and therefore denies the same.
(3) Upon information and belief, defendant admits that Stan¬
ley Murphy, also known as S. Murphy, and Perce Wenrich, also
known as P. Wenrich, prior to the Sth day of November, 1909,
wrote and composed the words and music of a musical composi¬
tion, entitled, “Put On Your Old Grey Bonnet,” but defendant
is without knowledge as to any of the other allegations con¬
tained in paragraph V.
FURTHER ANSWERING AND AS A FIRST AFFIRMATIVE
DEFENSE, DEFENDANT SAYS:
I. Upon information and belief, that on or about the 13th day
of February 1914, there was organized under the laws of the
State of New York, for the term of ninety-nine years, an un¬
incorporated voluntary association of seven or more persons,
composed of composers, authors and publishers of musical works
known and designated as the American Society of Composers,
Authors and Publishers (hereinafter, for brevity, referred to as
“ASCAP”) , for the purpose of granting licenses to users of musical
works, in public entertainment, to give public performances for
profit of the works in the repertory of said “ASCAP” (herein¬
after referred to as the small performing rights), and to collect
from such users royalties for the right to give such public per¬
formances, and to allow and distribute among the members of
ASCAP the revenue so collected from such users, and that ASCAP,
was, is, and at all times has been, duly empowered by all of its
members in its and their behalf to license the small rights of all
musical compositions at any time written, composed, published
or copyrighted by members of ASCAP.
II. Upon information and belief, that the complainant, or its
predecessors in interest, were at all times from on or about the
6th day of March, 1914, to at least the 31st day of December,
193S, duly elected members of said ASCAP, and that the com¬
plainant has been such member of ASCAP since the year of
1914, and that the complainant, and its predecessors, agreed
duly to perform and abide by the articles of association and all
by-laws, rules, regulations and resolutions of ASCAP, and of
its Board of Directors, which might be in force at the time of
their applications to membership, or might thereafter from time
to time be adopted. That Percy Wenrich, also known as P.
Wenrich, and Stanley Murphy, also known as S. Murphy, the
composers and authors of the music and words of the compo¬
sition “Put On Your Old Grey Bonnet,” and the said Percy
Wenrich, also known as P. Wenrich, and Stanley Murphy, also
known as S. Murphy, are at the present time, at this date, and
were at all times hereinbefore mentioned, duly elected members
of ASCAP, and that the estate and heirs of Stanley Murphy, as
well as Stanley Murphy in his lifetime, and the said Percy Wen¬
rich, agreed in writing to duly perform and abide by the articles
of association and all of the by-laws, rules, regulations and reso¬
lutions of ASCAP, and of its Board of Directors, which might
be in force at the time of its application to membership, or might
thereafter from time to time be adopted.
III. Upon information and belief, that under the articles of
association of ASCAP, and by virtue of the aforesaid membership
agreements of the complainant and of Percy Wenrich and Stanley
Murphy in ASCAP, the exclusive right to grant licenses to others
in respect of the small rights of “Put On Your Old Grey Bonnet.”
together with the entire copyright, were vested in ASCAP, in
that the by-laws of said association provided, among other things,
that each member, including the complainant herein, should exe¬
cute to ASCAP documents and agreements constituting exclusive
assignments to said ASCAP of all the copyrighted music owned by
said members, or that which they should thereafter acquire dur¬
ing their membership; that each of the aforesaid parties, com¬
plainant, Stanley Murphy and Percy Wenrich, executed certain
documents in writing to ASCAP, particularly providing:
A. An Assignment to the Society of the entire and exclusive
right of public performance of all copyrighted composi¬
tions owned or controlled by such members.
B. That each member shall thereafter assign from time to
time such entire and exclusive right to all the copyrighted
compositions or original compositions which he may in the
future compose or the rights to which he may in the
future acquire.
C. That he shall not grant any individual licenses and that
he will join with the Society in all suits tor infringements
of the exclusive right of public performance granted to the
Society.
D. Assigns to the Society the exclusive right to fix or deter¬
mine the terms or conditions of any license or licenses
covering any of the compositions assigned to the Society.
That the aforesaid documents and assignments have never been
revoked or reassigned from said ASCAP and the title to said
copyrighted musical composition “Put On Your Old Grey Bon¬
net” is no longer vested in complainant or its assigns, but on the
contrary, both grand and small rights are now vested in ASCAP
and its assignees and successors, if any, as herein set forth.
IV. Upon information and belief, that ASCAP, since 1914, has
licensed users of musical compositions in respect of the small
rights of musical works written and composed by its writer and
composer members, and published by its publisher members,
including since the date of its composition, “Put On Your Old
Grey Bonnet,” written and composed by the aforementioned
Wenrich and Murphy, and published by the Complainant; that
for such small rights, ASCAP has collected, under license agree¬
ments, from time to time made with users of the aforesaid musical
compositions, royalties which it has supposedly divided among its
members in the ratio of one-half thereof to the writer and com¬
poser members, and one-half thereof to the publisher members;
that under such license agreements, the users of musical compo¬
sitions have been licensed in respect of the small rights of each
and every musical composition which has either been written and
composed by a writer and composer member of ASCAP, of which
has been published by a publisher member of ASCAP, and all such
works are referred to hereinafter as being within the repertory of
ASCAP, or its successors and assigns.
V. Upon information and belief, that in the year 1921, the con¬
ditions then prevailing in said ASCAP were such that it was
deemed for the advancement and protection and mutual interest
of the members thereof, and to their benefit, that each member
should execute an assignment as set forth in paragraph 6 herein,
of the rights in his works then existing or which might thereafter
be written, composed or acquired by such member, that there¬
after, complainant and said Wenrich and Murphy agreed between
and with each other and with ASCAP (of which they were mem¬
bers), each in consideration of the agreement made by the other,
that the small and entire rights of all the musical works then
published by complainant and written or composed by said Wen¬
rich and Murphy, or which thereafter, and for a period of five
years, should be written, composed, or acquired by them, or any
of them, should be deemed to be and was vested in ASCAP, and
that said Wenrich and Murphy and the complainant should be
and were thereafter deemed by reason of their membership in
ASCAP and the agreements as aforesaid, to be owners in com¬
mon of the small and entire rights of all musical works theretofore
or thereafter composed by said Wenrich and Murphy and pub¬
lished by complainant; that this complainant permitted, approved
and ratified the election to membership in ASCAP of the said
Wenrich and Murphy and their right to participate to the extent
of one-half of the revenue derived from the licensing of the small
and entire rights of such musical compositions; and in all man¬
ners and respects, the complainant recognized the ownership in
common of said Wenrich and Murphy in and to a one-half
undivided interest in the small and entire rights of such musical
compositions including “Put On Your Old Grey Bonnet.”
VI. On information and belief, this complainant permitted
ASCAP to represent and hold out that the said Wenrich and
Murphy were owners in common with the complainant of the
small and entire rights of the musical compositions written and
corntrosed by the said composers, including “Put On Your Old
Grey Bonnet,” and this complainant permitted the said ASCAP,
during said period, to represent that it had the right to make
licenses for the small and entire rights of such musical composi¬
tions, including “Put On Your Old Grey Bonnet,” and said
1293
ASCAP, in reliance upon the permission, acquiescence and rati¬
fication of this complainant, did enter into various agreements
with users of music for the purpose of granting them license for
the small rights of the works in the repertory of ASCAP, includ¬
ing the composition, “Put On Your Old Grey Bonnet,” and in¬
cluding license agreements for broadcasting over and by means
of radio broadcasting station KGIR, as hereinafter set forth.
VII. That ASCAP, under various agreements made and re¬
newed from time to time, and now in force with defendant,
and in full force and effect prior to January 11th, 1936, licensed
the use of the small rights of and in the works in its repertory
by broadcasting from, over and by means of the facilities of radio
broadcasting station KGIR, and the National Broadcasting Com¬
pany, of which defendant is an affiliated station, and that such
license included the right to broadcast each such work, in its
repertory, including the composition “Put On Your Old Grey
Bonnet,” for which license substantial royalties have been paid
to ASCAP. That there is now outstanding and in force a valid
license agreement, under which the small rights of the works
in ASCAP’s repertory, including the composition “Put On Your
Old Grey Bonnet” may be put to commercial use for broadcast¬
ing purposes by radio broadcasting station KGIR, and that such
license and right existed on the 11th day of January, 1936.
VIII. That the execution of the aforesaid license agreements
and the making of the payments required thereunder was all
done in good faith and in full reliance upon the representations
made by ASCAP and this complainant and in reliance upon the
acts and conduct of this complainant in having acquiesced in, rati¬
fied and approved of, at all the times hereinabove mentioned,
the ownership by ASCAP of such rights derived from the author
and composer members of said ASCAP in the manner afore¬
mentioned, upon information and belief that at all the times here¬
inbefore mentioned, and up to the Sth day of December, 1935,
this complainant had representation upon the board of directors
of said ASCAP, and this complainant was cognizant of the rep¬
resentations made by ASCAP to all users of music, respecting
the ownership of the small and entire rights in complainant
and the respective authors and composers of the compositions
published by the complainant, and this complainant with full
knowledge of such representations, and in furtherance of the
same, and for the purpose of causing broadcasters to enter into
license agreements in reliance upon such representations, aided,
assisted and collaborated in the execution of license agreements,
from time to time, between the said ASCAP and broadcasters,
including the agreements hereinbefore set forth, and ratified the
same and accepted benefits thereunder; and by reason of the
premises, complainant is now estopped from asserting that any
performance by this defendant, publicly, for profit of the com¬
position, “Put On Your Old Grey Bonnet,” was without a license
from this complainant, and complainant’s claim in such respect
is made in bad faith and bad conscience and is inequitable.
IX. Upon information and belief, that when said Murphy and
Wenrich became members of ASCAP, they were given standing
and classification in ASCAP by reason of their creation and com¬
position of a number of musical compositions; that complainant,
at said time, had knowledge of the said applications made by
the said Murphy and Wenrich and acquiesced therein, and in
all manner consented and agreed that ASCAP should then acquire,
exclusively, the small and entire rights in and to the said com¬
positions, including “Put On Your Old Grey Bonnet.”
X. Upon information and belief, that thereafter, said Wenrich
and Murphy executed various agreements with the said ASCAP,
under which they assigned and continued to assign to ASCAP,
the small and entire rights in the compositions written by them,
including the composition “Put On Your Old Grey Bonnet,” that
the said Wenrich and Murphy executed such contracts with ASCAP
in the year of 1931, and re-executed such contracts at the end
of the year of 1935, for a term of five years from January 1,
1936; that in and by the aforesaid contracts, the said Murphy
and Wenrich vested exclusively and irrevocably in said ASCAP
the small and entire rights in all musical works theretofore written
and composed by them, including the composition “Put On Your
Old Grey Bonnet,” and the sole and exclusive rights to license
for public performance for profit such compositions, including
“Put On Your Old Grey Bonnet,” presently vested in, and on and
many years prior to the first day of January, 1936, vested in said
ASCAP.
XI. Upon information and belief, that for many years, said
Murphy and Wenrich have participated in the royalties derived by
the said ASCAP from licenses to publicly perform for profit and
compositions written and composed by them, including the composi¬
tion, “Put On Your Old Grey Bonnet,” with the knowledge, con¬
sent, approval and ratification of complainant.
XII. Upon information and belief, that in and about the year
1929, Warner Brothers Pictures, Inc., then and still engaged in the
business of producing and distributing motion pictures, through the
medium of a corporation known as the Music Publishers Holding
Corporation, purchased the controlling interest in the issued and
outstanding capital stock of the complainant and a number of other
music publishers, members of ASCAP; which the complainant,
as well as the other music publishers, members of ASCAP, which
have been owned and controlled by Warner Brothers Pictures, Inc.,
and the Music Publishers Holding Corporation, as aforesaid, since
the year 1929, have since said time, been represented on the board
of directors of ASCAP and have had full knowledge of and acqui¬
esced in and ratified each and every contract made between ASCAP
and said complainant, Murphy and Wenrich as referred to in para¬
graph 6 herein, as well as other contracts made between ASCAP and
users of musical works, including all of the contracts licensing the
performance of such works, by, over, and by means of the facilities
of broadcasting station KGIR; and the license now in force and
effect, under which such rights to exercise, use and enjoy the small
rights in and to the works in the repertory of ASCAP for broad¬
casting purpose by KGIR was made with knowledge, acquiescence,
and consent, agreement, ratification and approval of this com¬
plainant and the other music publishers, members of ASCAP owned
and controlled by Warner Brothers Pictures, Inc., and the Music
Publishers Holding Corporation.
FURTHER ANSWERING AND AS A SECOND AFFIRMA¬
TIVE DEFENSE, DEFENDANT SAYS:
I. That defendant KGIR is affiliated with the National Broad¬
casting Company as an outlet station, although defendant is inde¬
pendently owned and operated; that the business and practice of
radio is such that by reason of defendant’s affiliation with a national
network, the defendant must receive programs from said networks,
and the defendant has no choice in the selection of the musical
compositions carried by the said National Broadcasting Company
for rendition or performance; that the performance of a musical
score by the National Broadcasting Company is the same identical
performance as given by defendant; that while a rendition might
originate in Chicago in a studio, the performance in Butte, Montana,
is the same identical performance as that given in Chicago, with
the same performers rendering the same composition; that the
performance complained of, if it occurred, originated in Chicago and
a single performance was then given in Chicago and carried by
wire to Butte, Montana, and rendered simultaneously with that
same performance in Chicago; that on information and belief, the
National Broadcasting Company was licensed by complainant and
its agents for a valuable consideration for a term of five years
beginning on June 5th, 1935, and ending during the year 1940, by
which license complainant gave the National Broadcasting Com¬
pany the right to use commercially the works and compositions in
its musical repertory, including the musical composition “Put On
Your Old Grey Bonnet,” that said license is now in effect, is in full
force and operation and was subsisting on January 11th, 1936; that
it is inequitable and unjust that the complainant be permitted to
restrict the use of or to secure a second payment from defendant
for the use of said composition “Put On Your Old Grey Bonnet”
when the performance complained of originated, if performed at
all, in Chicago, Illinois, and the right to use and the right to per¬
form said composition had been paid for by said license agreement
existing between the National Broadcasting Company and com¬
plainant; that defendant received said performance from the Na¬
tional Broadcasting Company and that such performance was a
single performance and the complainant having been paid for the
use of said composition in Chicago is estopped from restricting the
same “use” of said composition, merely because the same perform¬
ance was carried over defendant’s facilities to a larger audience;
that the same performer who rendered the performance in Chicago
under a license to use the same from complainant, rendered only
one single performance for profit in both Chicago and Butte, Mon¬
tana ; that the use of such music on said performance having been
paid for, the complainant and its agents are estopped from restrict¬
ing, collecting or receiving payment twice for the same use of said
composition.
FURTHER ANSWERING, AND AS A THIRD AFFIRMA¬
TIVE DEFENSE, DEFENDANT SAYS:
I. That the title to said musical composition “Put On Your Old
Grey Bonnet” is no longer in complainant, and the complainant is
no longer the owner or proprietor thereof, by reason of exclusive
1294
and irrevocable assignments made by complainant to ASCAP ; that
the title of the said musical composition “Put On Your Old Grey
Bonnet” has been further clouded by the appointment of a receiver
for ASCAP in the State of Washington, whose title to said com¬
position relates back to the 24th day of June, 1935, when said
complainant was a duly elected and participating member of said
ASCAP; that the State of Washington in its sovereign capacity
proceeded by injunction proceedings against said ASCAP and all
of its members in an action in personam in said state in the Superior
Court of the State of Washington for Thurston County, for the
purpose of enforcing its criminal laws against price fixing, extortion,
conspiracy, and monopoly ; that personal service was obtained upon
said ASCAP and its members pursuant to the laws of Washington,
and that under the Code Civil Procedure No. 1919 of the laws
of New York, under which said ASCAP and its members including
the complainant were organized, such action brought the entire
membership of ASCAP before the Superior Court of the State of
Washington for Thurston County, of said state, including this com¬
plainant; that the Superior Court, as aforesaid, in construing the
contracts and assignments between complainant and ASCAP, and
the contracts and assignments between complainant and ASCAP,
and the contracts and membership agreements between complainant
and ASCAP, and the contracts and membership agreements in said
Society entered its written judgment to the effect that each mem¬
ber, including the complainant, the said Percy Wenrich and Stanley
Murphy, upon being admitted to membership in said ASCAP, were
obliged to and did execute identical contracts to said ASCAP and
that these contracts constituted exclusive and irrevocable assign¬
ments to said ASCAP of all of the copyrighted music owned by said
members, or that which they should thereafter acquire during their
membership; that the said judgment in said cause, entitled State
of Washington vs. ASCAP, et al., and each and every member
thereof, in Cause No. 16114, Superior Court of the State of Wash¬
ington for Thurston County, recited that under the law and by
virtue of these irrevocable assignments to ASCAP the said title to
the copyrights of the members of the said ASCAP, including the
composition “Put On Your Old Grey Bonnet,” was vested in the
Society, and that the receiver, Tracy Griffin, who was thereafter
appointed by operation of law, came into legal possession and pro¬
prietorship of said copyrighted musical compositions, including “Put
On Your Old Grey Bonnet”; that this judgment was entered on the
7th day of August, 1935, and a receiver for ASCAP and the joint
property of its members including complainant was appointed on
the 13th day of August, 1935, that no appeal was ever taken from
this judgment of a Court of Competent Jurisdiction, and the re¬
ceiver, as aforesaid, has assumed legal control and the proprietorship
of all the joint property, the copyrights, the performing rights, and
the tangible and intangible property of ASCAP and its members,
including the title to the musical composition “Put On Your Old
Grey Bonnet,” that the terms of said judgment vesting the title to
the musical composition “Put On Your Old Grey Bonnet,” as well
as to the other works of complainant and said ASCAP into the
receiver, Tracy Griffin, will appear more fully and at large in the
copy thereof, which will be produced as may be required ; that the
title to said copyrighted musical composition “Put On Your Old
Grey Bonnet” is manifestly clouded and there is not sufficient title,
proprietorship, or ownership in the complainant to justify the
intervention of this court, sitting as a court of equity, nor is there
sufficient grounds for this court to construe a right which does not
arise under the copyright laws of the United States of America or
any act of Congress in relation thereto.
FURTHER ANSWERING, AND AS A FOURTH AFFIRMA¬
TIVE DEFENSE, DEFENDANT SAYS:
I. That the said complainant, being a member of said ASCAP
on the 24th day of June, 1935, was convicted in the State of
Washington, in said cause as alleged hereinbefore, of extortion,
conspiracy, and price fixing, and said judgment has never been
appealed nor rescinded, and the property including this compo¬
sition is vested in the received as aforesaid, and by reason of
the matters and things therein set forth, complainant is guilty of
breaching the equitable maxim relating to “Unclean Hands,” that
a copy of said judgment will be made available at the trial hereof,
and the decision of the United States District Court for the West¬
ern District of Washington, Southern Division, upholding the
right of the State of Washington to maintain the action as afore¬
said on a removal action is reported in 13 Federal Supplement 141.
FURTHER ANSWERING AND AS A FIFTH AFFIRMA¬
TIVE DEFENSE, DEFENDANT SAYS:
I. That the matter in controversy herein does not arise under
and by virtue of the Copyright law of the United States; that
this conroversy hinges on contracts, assignments, and license
agreements between the various parties as hereinbefore enumerated,
and the construction of such agreements does not involve any law
of the United States; that the controversy does not involve the
validity of said copyrighted composition “Put On Your Old Grey
Bonnet,” the validity thereof and the fact that it was copyrighted
being admitted; that this controversy involves a question of title
and rights under contracts, assignments, and subsisting license
agreements, between complainant ASCAP, Tracy Griffin as re¬
ceiver for ASCAP, Stanley Murphy and Percy Wenrich, and the
alleged claim for infringement set forth in the bill of complaint
herein is merely incidental to such controversy ; that this suit for
infringement cannot lie in a Federal Court until the matter of
complainant’s title to “Put On Your Old Grey Bonnet” has
been determined in the proper form, or until recission has been
sought in the Superior Court of the State of Washington for
Thurston County of that order, proceedings, and judgment entered
by said Court of Competent Jurisdiction, whereby title of said
composition was vested in Tracy Griffin, as receiver for ASCAP,
which judgment remains unappealed from; that the complainant
is estopped from asserting its title in and to said composition, as
the judgment of said Court filed in the United States Copyright
Office, became the law of the case, and the matter of title to
this composition is now res adjudicata; that defendant had per¬
mission of both said ASCAP and the Receiver, Tracy Griffin, to
commercially perform said composition, and subsisting licenses
issued by the said complainant and its agents ASCAP, and the
Receiver, Tracy Griffin, to defendant and National Broadcasting
Company to publicly perform said composition were issued with
the knowledge, consent and acquiescence in both law and fact,
of said complainant.
II. That by reason of the premises, this Court is without
jurisdiction of the subject-matter of this suit and of the parties
herein.
WHEREFORE, defendant demands judgment, dismissing the
bill of complaint herein, besides the costs and disbursements of
this action and reasonable counsel fees and for such other and
further relief as to the Court may seem just and equitable.
JOHN CLAXTON,
Butte, Montana
KENNETH C. DAVIS,
1514 Northern Life Tower,
Seattle, Washington
RUSSELL, POST, DAVIS & PAINE,
Exchange Building,
Spokane, Washington
Solicitors for Defendant.
1295
< .. •
■
■
• ■
I
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ ★ ★ ★ * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
* * * * * V°l- 4 - - No. 20
APRIL 30, 1936
NAB REPORTS
Cspyriflht 1936. Th« National Asswiation of Broadcasters
IN THIS ISSUE
Page
Stevens Hotel Selected for NAB Convention . 1297
NAB Copyright Bureau . 1297
Board Acts on Hearing . 1297
FCC Wins Monocacy Case . 1297
Radio Committee to Meet . 1297
Wheeler Radio Bill passes Senate . 1297
Monaghan Introduces Radio Amendment . 1297
Granting of New License Recommended . 1298
Agenda for June IS Hearing . 1298
New Station Recommended on Conditions . 1298
Securities Act Registrations . 1298
New Wisconsin Station Recommended . 1299
Recommends Against North Carolina Station . 1299
Recommends Against Station Change . 1299
National Conference on Educational Broadcasting . 1299
Warner Brothers Suits . 1299
Federal Trade Commission Action . 1300
FTC Dismisses Cases . 1302
Federal Communications Commission Action . 1303
STEVENS HOTEL SELECTED FOR NAB
CONVENTION
The Board of Directors this week selected the Stevens Hotel as
the place for holding the Fourteenth Annual Convention of the
NAB on July S, 6, 7 and 8.
Information concerning rates, etc., will be mailed to all members
shortly.
NAB COPYRIGHT BUREAU
The Board of Directers, at a meeting helcPin Chicago, April 27,
authorized the creation of a Bureau of Copyrights in the NAB.
The report and plan of action as approved by the Board will be
distributed for the information of the members.
BOARD ACTS ON HEARING
The Board of Directors this week authorized and directed the
Managing Director to take such steps as are necessary to properly
and adequately represent the NAB at the forthcoming general
industry hearing called by the FCC for June IS.
FCC WINS MONOCACY CASE
Justice Jennings Bailey in the Supreme Court of the District of
Columbia has upheld the Federal Communications Commission in
an injunction proceeding filed against the Commission by the
Monocacy Broadcasting Company.
The broadcasting company was granted a license by the Commis¬
sion to erect a new station at Rockville, Md., but a protest was
filed against the grant. The protest was later withdrawn but the
Commission set the case for hearing. The Monocacy Company
asked the District Supreme Court to enjoin the Commission against
holding the hearing and to grant it the license. The Court re¬
fused to hold in favor of the broadcasting company.
RADIO COMMITTEE TO MEET
The American Section of the International Committee on Radio
will meet at the University Club, this city, on May 5.
Anning S. Prall, chairman of the Federal Communications Com¬
mission, will speak and there will be discussion of the forthcoming
meeting of the International Communications Conference to be
held at Cairo.
WHEELER RADIO BILL PASSES SENATE
The Wheeler bill (S. 2243) relating to the allocation of radio
facilities has passed the Senate just as it was favorably reported
by the Senate Committee on Interstate Commerce. As it passed
the bill is as follows:
That section 302 of the Communications Act of 1934 is hereby
repealed.
Sec. 2. Subsection (b) of section 307 of such Act is amended
to read as follows:
“(b) In considering applications for licenses, and modifications
and renewals thereof, when and insofar as there is demand for the
same, the Commission shall make such distribution of licenses,
frequencies, hours of operation, and of power among the several
States and communities as to provide a fair, efficient, and equitable
distribution of radio service to each of the same.”
MONAGHAN INTRODUCES RADIO AMENDMENT
Representative Monaghan of Montana has introduced a bill
(H. R. 12421) to amend the Communications Act of 1934. The
bill has been referred to the House Committee on Interstate and
Foreign Commerce. Part of the bill deals with communication
companies while another section provides for the striking out of
the second sentence of Section 315 of the 1934 Act.
The second sentence which would be eliminated under the
bill provides that “No obligation is hereby imposed upon any
licensee to allow the use of its station by any such candidate.”
The bill is as follows:
That section 207 of the Act of June 19, 1934, entitled the “Com¬
munications Act of 1934” is hereby amended by striking out all
after the semicolon down to the period.
Sec. 2. Section 315 of such Act is hereby amended by striking
out the second sentence.
Make Your Plans Now to Attend the
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL CHICAGO, ILLINOIS
JULY 5, 6, 7, and 8, 1936
1297
GRANTING OF NEW LICENSE RECOMMENDED
J. Laurance Martin applied to the Federal Communications
Commission for a construction permit for the erection of a new
broadcasting station at Tucumcari, N. M., to use 1200 kilocycles,
100 watts and unlimited time on the air.
Examiner P. W. Seward in Report No. 1-219 recommends that
the application be granted. He found that the applicant is qualified
to erect and operate the proposed station ; that the construction
will conform to the regulations of the Commission ; that its erec¬
tion will not adversely affect the service of station WOAI and that
it will serve the public interest.
AGENDA FOR JUNE 15 HEARING
The Federal Communications Commission has issued the follow¬
ing formal notice of the informal engineering hearing to be held
before it on June 15.
Notice is hereby given of an informal engineering hearing before
the Commission en banc to be held in the offices of the Commis¬
sion at Washington, D. C., beginning at 10 A. M., June 15, 1936,
for the purposes of:
(1) Determining the present and future needs of the various
classes of services for frequencies above 30,000 kc., with
the view of ultimately allocating such frequencies to serv¬
ices;
(2) Securing for the public and the Commission a keener in¬
sight into the conflicting problems which confront the in¬
dustry and the regulatory body in the application of the
new frequencies to the service of the public;
(3) Guiding experimentation along more definite lines as may
be justified from the evidence presented at the hearing;
(4) Reviewing present frequency allocations to services in the
radio spectrum below 30,000 kc., and
(5) Assisting the Government in its preparation for the Inter¬
national Telecommunications Conference at Cairo in 1938.
At this hearing neither individual applications nor individual
assignments within service bands will be considered. However, in
determining the width of the frequency band to be assigned to a
service in any particular portion of the spectrum, it may be neces¬
sary to justify, from an engineering standpoint, the width of the
band requested.
Persons appearing before the Commission at this hearing in behalf
of a particular service such as maritime, police, aviation, aural
broadcasting or television, should be prepared to furnish informa¬
tion as follows:
Evaluation of Services from the Standpoint of Public
Need and Benefit
(a) The dependence of the service on radio rather than wire
lines.
(b) The probable number of people who will receive benefits
from the service.
(c) The relative social and economic importance of the service,
including safety of life and protection of property factors.
(d) The probability of practical establishment of the service
and the degree of public support which it is likely to receive.
(e) The degree to which the service should be made available to
the public, that is, whether on a limited scale or on an ex¬
tended competitive scale.
(f) Areas in which service should be provided and, in general,
the points to which communication must be maintained.
Technical
(a) The frequency bands required for a given service and the
exact position thereof in the radio frequency spectrum;
also the width of communication bands or channels within
each portion required for station frequency assignments.
(b) Suitability and necessity for particular portions of the spec¬
trum for the service involved. This includes propagation
characteristics and reliable range data.
(c) Field intensity required for reliable service.
(d) The number of stations required to enable efficient service
to be rendered.
(e) The distance over which communication must be maintained.
(f) The relative amount of radio and other electrical interfer¬
ence likely to be encountered.
(g) The relative amount of noise which may be tolerated in the
rendering of service.
Apparatus Limitations
(a) The upper practical limit of the useful radio frequency
spectrum and, in general, what higher limit can be expected
in the future.
(b) The operating characteristics of transmitters with respect to
external effects and practicability in service for which in¬
tended, including frequency tolerances which should be pre¬
scribed.
(c) Types of antennas which are available for service for which
intended, and their practical limitations, including the best
methods of obtaining the most effective use of frequencies.
(d) Receivers available and in process of development, including
data with respect to selectivity and practical usefulness for
the service for which intended.
Persons who intend to testify at the hearing should prepare
exhibits which show the requirements for frequency bands and
positions in the frequency spectrum for the service in which inter¬
ested. One copy of each exhibit should be furnished the Commis¬
sion on or before June 1, 1936.
Cross examination of witnesses will be limited to questions by
Commissioners or members of the Commission’s technical or legal
staffs; however, the Chairman may permit any question of any
witness which may be submitted to the Chairman in writing.
Persons or organizations desiring to appear and testify will
notify the Commission of such intention on or before June 1,
1936. In such notification the number of witnesses who will ap¬
pear, the topic each will discuss, and the time expected to be
occupied by each should be stated. This information is necessary
in order more efficiently to organize the hearing.
NEW STATION RECOMMENDED ON
CONDITIONS
The Pittsburgh Broadcasting Company has applied to the Fed¬
eral Communications Commission for a construction permit for
the erection of a new station at Pittsburg, Kans., to use 790 kilo¬
cycles, 1,000 watts power and daytime operation.
Examiner George H. Hill in Report No. 1-220 recommended
that the application be granted “provided other applications now
pending before the Commission for 100 watt stations are denied.”
The Examiner states that there is a definite need for radio serv¬
ice in the Pittsburg area and “there appears to be local talent to
meet the requirements of such a station.” He found also that no
objectionable interference would be caused any existing service 'by
the operation of the proposed station.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
The United States Graphite Co., Saginaw, Mich. (2-2096, Form
A-2)
Scott Paper Company, Chester, Pa. (2-2099, Form A-2)
Diversified Royalty Co., Kansas City, Mo. (2-2100, Form A-l)
Youngstown Sheet & Tube Co., Youngstown, Ohio (2-2101,
Form A-2)
Sterling, Inc., New York City. (2-2102, Form A-2)
Hess Oil Company, Kansas City, Mo. (2-2103, Form A-l)
Pickford-Laskey Productions, Inc., Hollywood, Cal. (2-2104,
Form A-l)
United Goldfields of Nova Scotia, Inc., Liverpool, Canada.
(2-1748, Form A-l)
Bullion Imports, Inc., Nogales, Ariz. (2-2105, Form A-l)
Capital City Products Co., Columbus, Ohio (2-2106, Form A-2)
Mid-West Abrasive Co., Detroit, Mich. (2-2107, Form A-l)
Walton-Dodge Manufacturing Co., Detroit, Mich. (2-2108,
Form A-l)
Great Dike Gold Mines, Inc., San Francisco, Cal. (2-2109,
Form A-l)
Belmont Brewing Co., Martins Ferry, Ohio. (2-2110, Form A-l)
Reed Roller Bit Company, Houston, Texas. (2-2111, Form A-2)
United Gilpin Company, Denver, Colo. (2-2112, Form A-l)
Perfection Grain Shocker Co., Minneapolis, Minn. (2-2114,
Form A-l)
Institutional Securities, Ltd., Jersey City, N. J. (2-2115, Form
A-l)
California Water & Telephone Co., San Francsico, Cal. (2-2116,
Form A-2)
Schwitzer-Cummins Co., Indianapolis, Ind. (2-2117, Form A-2)
1293
Gold Mountain Mining & Milling Co., Denver, Colo. (2-2118,
Form A-l)
Household Finance Corp., Chicago, Ill. (2-2120, Form A-2)
National Petroleum Corp., Dallas, Texas. (2-2121, Form A-l)
Southern States Oil Company, Charleston, S. C. (2-2122, Form
A-l)
NEW WISCONSIN STATION RECOMMENDED
The Central Broadcasting Company filed an application with
the Federal Communications Commission asking for a construction
permit for the erection of a new broadcasting station to be located
at Eau Claire, Wis., to use 1050 kilocycles, 250 watts and daytime
operation.
Examiner Melvin H. Dalberg in Report No. 1-218 recommended
that the application be granted. The Examiner states that there
is undoubtedly a need for daytime service in the area proposed
to be served; that no existing station would be adversely affected
by interference from the proposed station, and the granting of the
application would serve the public interest.
RECOMMENDS AGAINST NORTH CAROLINA
STATION
C. G. Hill, George D. Walker, and Susan H. Walker applied to
the Federal Communications Commission for a construction permit
for the erection of a new broadcasting station at Winston-Salem,
N. C., to use 1250 kilocycles, 250 watts power and daytime opera¬
tion.
Examiner Ralph L. Walker, in Report No. 1-217, recommended
that the application be denied. He states that “the service which
the applicants propose to render does not appear to differ ma¬
terially from that which is or can be rendered through existing
facilities. No substantial need is shown for additional service, nor
does the record indicate that the proposed station could be suc¬
cessfully operated as a commercial project.”
RECOMMENDS AGAINST STATION CHANGE
Broadcasting Station KLO, Ogden, Utah, filed an application
with the Federal Communications Commission asking that its
location be changed and that its power be increased from 500 watts
to 1,000 watts and 5,000 watts LS. The station operates on a
frequency of 1400 kilocycles with unlimited time operation.
Examiner Ralph L. Walker in Report No. 1-221 recommends
that the application be denied. He found that operation of the
station as proposed would reduce its signal strength in Ogden to or
below the minimum strength necessary to afford satisfactory re¬
ception in that community. It would also, he states, result in a
restriction of the good service area of the station in the retail
trade area of Ogden lying north of the city.
NATIONAL CONFERENCE ON EDUCATIONAL
BROADCASTING
A group of organizations representing every important phase
of American education has arranged the first National Conference
on Educational Broadcasting in Washington, D. C., on December
10, 11, and 12. The Conference will be held in cooperation with
the United States Office of Education and the Federal Communica¬
tions Commission. The following organizations have been in¬
vited to sponsor the Conference: The American Association for
Adult Education, The American Council on Education, The
American Farm Bureau Federation, The General Federation of
Women’s Clubs, The Jewish Welfare Board, The International
Council of Religious Education, The Institute for Education by
Radio, The Institute of Radio Engineers, The National Advisory
Council on Radio in Education, The National Association of Edu¬
cational Broadcasters, The National Committee on Education by
Radio, The National Catholic Educational Association, The Na¬
tional Congress of Parents and Teachers, The National Education
Association, The National Grange, The Progressive Education
Association, The Women’s National Radio Committee, and The
Workers Education Bureau.
The purpose of the meeting is to enable the large number of
persons who are interested in educational broadcasting to discuss
means by which radio may become a more effective instrument
for education, both formal and informal; to serve as a clearing
house for information on the latest technical and professional
developments in educational broadcasting; and to enable persons
representing all phases of the subject to become acquainted and
to exchange ideas and experience.
In the last ten years complicated questions involving the use
of radio in education have been raised in practically every educa¬
tional conference held in the United States. In some instances
individual organizations have met to discuss various phases of
radio in education. The National Conference on Educational
Broadcasting, however, will be the first meeting at which all in¬
terested groups will be represented.
The program will include such topics as schools of the air,
radio music, speech, and drama, religious broadcasts, forums on
the air, organization of listening groups, radio workshops, writing
for radio, broadcasting to schools, use of radio programs by col¬
leges and universities, use of radio by libraries and museums, de¬
veloping use of electrical transcriptions for education, radio pro¬
grams for children, problems of research in educational broad¬
casting, organizing audiences for radio programs, educational
broadcasting in other countries, audience attitudes, exchange of
programs for educational purposes, organizing the community on
behalf of a radio station, and others. In addition to general
sessions at which formal addresses will be given, smaller meetings
will be held to discuss the more specialized interests of broad¬
casting.
All organizations interested in radio as a social force, nationally
or regionally, are invited to participate. The broadcasting indus¬
try will be represented. Government officials and prominent edu¬
cators from America and foreign countries will take part.
C. S. Marsh of the American Council on Education, 744 Jack-
son Place, Washington, D. C., is acting as Executive Secretary for
the planning committee.
WARNER BROTHERS SUITS
Warner Brothers have made official announcement that they
have begun suits based on the alleged infringement of song copy¬
rights owned by them against radio stations, night clubs and
restaurants through various music publishing subsidiaries as fol¬
lows:
Harms, Inc. vs. WADC, Akron, Ohio — “You Took Advantage
of Me”— $5,000.
Remick Music Corp. vs. WHIO, Dayton, Ohio — “Don’t Bring
Lulu” and “Quicker Than You Can Say Jack Robinson” — $10,000.
Harms, Inc. vs. WBTM, Danville, Va. — “Take This Ring” —
$250.
Remick Music Corp. vs. WBTM, Danville, Va. — “Sweet Georgia
Brown” — $500. Two infringements alleged.
M. Witmark & Sons vs. WBTM, Danville, Va. — “I Live For
Love,” “Mine Alone,” “Mother Machree,” “In a Shanty in Old
Shanty Town” — $1,000.
M. Witmark & Sons vs. WMFJ, Daytona Beach, Fla. — “She’s a
Latin From Manhattan” — $250.
Harms, Inc. vs. Royal Palm Club, Miami, Fla. — “Where Am I?”
—$250.
M. Witmark & Sons vs. Gay Paree Cafe, Sacramento, Calif. —
“My Wild Irish Rose,” “Am I Blue” — $500.
Remick Music Corp. vs. Prima’s Shim Sham Night Club, New
Orleans, La. — “Chinatown, My Chinatown” — $250.
Harms, Inc. vs. Prima’s Shim Sham Night Club, New Orleans,
La. — “Where Am I?” — $250.
M. Witmark & Sons vs. Prima’s Shim Sham Night Club, New
Orleans, La. — “Lulu’s Back In Town,” “The Rose In Her Hair”
—$500.
Remick Music Corp. vs. Hotel Del Coronado, Coronado, Calif.
— “Put On Your Old Grey Bonnet” — $250.
Harms. Inc. vs. WALA, Mobile, Ala. — “Day Dreams” — $250.
M. Witmark & Sons vs. WCAM, Camden, N. J. — “In The Vine
Covered Church Way Back Home” — $250.
Remick Music Corp. vs. Lucca Restaurant, Los Angeles, Calif.
—“The Lady In Red” — $250.
Harms, Inc. vs. Cine-Grill of Hotel Roosevelt, Los Angeles,
Calif. — “April in Paris” — $250.
Harms, Inc. vs. WOV, New York City. — “All Through the
Night”— $250.
M. Witmark & Sons vs. WTOC, Savannah, Ga. — “West of the
Great Divide,” “That Wonderful Mother of Mine,” “In a Shanty
in Old Shanty Town” — $1;S00.
M. Witmark & Sons vs. WGAR, Cleveland, Ohio — “My Wild
Irish Rose” — $5,000.
Music Publishers Holding Corp. vs. KMOX, St. Louis, Mo. —
“Liza Lee” — $5,000.
M. Witmark & Sons vs. Vanity Club, New Orleans, La. —
“Lulu’s Back In Town,” “The Rose in Her Hair” — $500.
M. Witmark & Sons vs. Club Plantation. New Orleans, La. —
“Lulu’s Back in Town” and “The Rose in Her Hair” — $500.
1299
Harms, Inc. vs. KOMA, Oklahoma City, Okla. — “Where Am I?
(Am I In Heaven?)” — $5,000.
Harms, Inc. vs. New Kenmore Hotel, Albany, N. Y. — “April In
Paris” and “I Cover the Waterfront” — $500.
M. Witmark & Sons vs. WBNO, New Orleans, La. — “You’re An
Eyeful of Heaven” — $250.
Harms, Inc. vs. WBNO, New Orleans, La. — “You and the
Night and the Music” — $1,750.
T. B. Harms Co. vs. WSMB, New Orleans, La. — “Two Hearts
Carved On A Lonesome Pine” — $5,000.
M. Witmark & Sons vs. WKI, San Francisco, Calif. — “That
Old Irish Mother of Mine” and “Where the River Shannon
Flows”— $10,000.
Remick Music Corp. vs. WHIO, Dayton, Ohio — “Don’t Bring
Lulu”— $5,000.
New World Music Corp. vs. KTAT, Fort Worth, Texas — “I
Got Rhythm”- — $5,000.
M. Witmark & Sons vs. New Kenmore Hotel, Albany, N. Y. —
“My Wild Irish Rose”— $250.
Remick Music Corporation vs. Savarin Restaurant, Buffalo,
N. Y. — “Ev’ry Day”— $250.
M. Witmark & Sons vs. Savarin Restaurant, Buffalo, N. Y. —
“The Kiss Waltz” and “When Irish Eyes Are Smiling” — $500.
Harms, Inc. vs. WGAR, Cleveland, Ohio — “Where Am I? (Am I
In Heaven?)” — $5,000.
Harms, Inc. vs. The Village Farm Barn, Ltd. — “Anything Goes”
and “Brother, Can You Spare a Dime?” — $500.
M. Witmark & Sons vs. The Village Farm Barn, Ltd. — “Cali¬
fornia, Here I Come” — $250.
Remick Music Corp. vs. Restaurant La Rue Co., Inc. — “The
Lady In Red” — $250.
Harms, Inc. vs. WGR, Buffalo, N. Y. — “When Buddha Smiles”
—$5,000.
Harms, Inc. vs. WDOD, Chattanooga, Tenn.— “Let’s Swing It”
—$250.
New World Music Corp., vs. WHFC, Cicero, Ill. — “I Got
Rhythm” — $250.
Harms, Inc. vs. WHFC, Cicero, Ill. — “Dancing in the Dark” —
$250.
Remick Music Corp. vs. WGFC, Cicero, Ill. — “Don’t Give Up
the Ship” — $500.
T. B. Harms Co. vs. WGFC, Cicero, Ill. — “Every Now and
Then” and “Madonna Mia”- — $500.
Harms, Inc. vs. WCHS, Charleston, W. Va. — “Let’s Pretend
There’s a Moon” — $250.
M. Witmark & Sons vs. WCSH, Portland, Me. — “When Irish
Eyes Are Smiling,” “My Wild Irish Rose” and “That Old Irish
Mother of Mine” — $750.
M. Witmark & Sons vs. WHFC, Cicero, Ill. — “I’m Goin; Shop-
pin’ With You,” “The Words Are In My Heart,” “In a Shanty
in Old Shanty Town,” “Lulu’s Back in Town” — $1,000.
New World Music Corp. vs. Royal Palm Club, Miami, Fla. —
“I Got Rhythm” — $250.
Harms, Inc. vs. Roney Plaza Hotel, Miami Beach, Fla. — “Where
Am I? (Am I In Heaven?)” — $250.
Harms, Inc. vs. Palomar Cafe, Los Angeles, Calif. — “Night and
Day”— $250.
Harms, Inc. vs. Vanity Club, New Orleans, La. — “Where Am I?
(Am I In Heaven?)” — $250.
Harms, Inc. vs. New Bismarck Hotel, Chicago, Ill. — “Night
and Day” — $250.
Remick Music Corp. vs. Blackstone Hotel, Chicago, Ill. — “The
Lady In Red” — $250.
Harms, Inc. vs. Terrace Garden, Chicago, III. — “Anything Goes”
—$250.
M. Witmark & Sons vs. WNEW, Newark, N. J. — “I Like
Mountain Music” — $5,000.
Remick Music Corp. vs. WMEX, Boston, Mass. — “I Like Moun¬
tain Music” — $5,000.
M. Witmark & Sons vs. WMEX, Boston, Mass. — “Weary” —
$5,000.
Harms, Inc. vs. WJAX, Jacksonville, Fla. — “Blue Moonlight”
—$500.
Harms, Inc. vs. WHBF, Rock Island, Ill, — “Born To Be
Kissed” — $500.
T. B. Harms Co. vs. WHBF. Rock Island, III. — “You’re An
Angel (Playing Hookey From Heaven)” — $500.
Harms, Inc. vs. Blackstone Hotel, Chicago, Ill. — “The Conti¬
nental (You Kiss While You’re Dancing)”, “Anything Goes,”
“Where Am I? (Am I In Heaven?)” and “I Get a Kick Out of
You”— $1,000.
Remick Music Corp. vs. The Palmer House, Chicago, Ill. —
“Moonlight Bay” and “Carolina in the Morning” — $500.
M. Witmark & Sons vs. La Lune Club, New Orleans, La. —
“Lulu’s Back In Town” and “The Rose in Her Hair”- — $500.
M. Witmark & Sons vs. Miami Biltmore Hotel, Coral Gables,
Fla. — “Can’t You Hear Me Callin’ Caroline” — $250.
Remick Music Corporation vs. WTFI, Athens, Ga. — “China¬
town, My Chinatown” — $250.
Harms, Inc. vs. WTFI, Athens, Ga. — “Day Dreams” — $500.
New World Music Corp. vs. St. Moritz-on-the-Park, Inc.,
N.Y.C.— “I Got Rhythm”— $250.
New World Music Corp. vs. 870 Seventh Ave. Corp. (Park
Central Hotel), New York City — “I Got Rhythm”— $250.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The respond¬
ents will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued against them.
No. 2767. A complaint alleging unfair methods of competition
in the sale of tinted or colored enlargements of photographs and of
frames therefor has been issued against International Art Co.
and American Discount Co., both with headquarters at 325
West Huron St., Chicago, and against their president, John C.
Kuck. The complaint alleges that American Discount Co. is a
“dummy corporation and collection agency” for International Art
Co.
Under International Art Co.’s sales plan, its salesmen contact
prospects, and, it is charged, offer to make from a family photograph
furnished by the prospect, a genuine hand-painted oil portrait
or picture with a sales value ranging from $30 to $60, when, in
fact, according to the complaint, the finished product is merely
a cheap photographic enlargement, tinted or colored by the use of
crayons or pastels, and in no instance by the use of oil, and is not
an original painting. The finished picture is said to cost about
$1.25, the cost of the frame ranges from 75$ to $1.75, and picture
and frame allegedly are sold by the salesman for as much as they
can obtain in any particular locality.
In order to induce prospects to sign orders, the respondent art
company’s agents make various false and misleading representa¬
tions, the complaint charges, including representations that it is
appointing a limited number of purchasers as private exhibitors in
any particular community where it sells pictures; that it intends
to open a branch studio in such community ; that it has won prizes
in art in public exhibitions, and that it will enter baby pictures in
a newspaper prize contest. Respondent’s contract blanks repre¬
sent that it has branch offices in various cities in South America,
Africa and Asia, when, according to the complaint, such is not a
fact.
No. 2771. Charging unfair competition in the sale of “Grove’s
Laxative Bromo Quinine Tablets,” a complaint has been issued
against The Grove Laboratories, Inc., 2630 Pine St., St. Louis.
On signs and counter placards furnished retail druggists in va¬
rious parts of the country, the respondent company, according to
the complaint, advertised its article by the representations “Stop
that cold in its tracks,” “kill colds dead,” and “strike at the cold
itself — not merely at the symptoms.”
These assertions are alleged to have been exaggerated and mis¬
leading, as the respondent company’s product, according to the
complaint, neither kills colds dead, stops a cold in its tracks, nor has
germicidal effect.
No. 2772. Unfair competition through representations that it
is a manufacturer of handkerchiefs, when such is not a fact, is
alleged in a complaint issued against General Handkerchief Mfg.
Co., Inc., 919 W. Roospelt Rd., Chicago.
Use by the respondent company of the abbreviation “mfg.” in
its trade name and of the words “manufactured” and “manufactur¬
ing” in circulars, letter-heads, advertising matter, and otherwise,
in connection with the sale of handkerchiefs, constitutes violation
of Section 5 of the Federal Trade Commission act, according to the
complaint, which also charges that the respondent company caused
itself to be listed as “General Handkerchief Manufacturing Co.” in
the annual directory of the handkerchief industry.
No. 2773. Misrepresentation of certain building materials, con¬
stituting an unfair trade practice, is alleged in a complaint issued
against Standard Wall Covering Co., Inc., 1819 North 9th St.,
Philadelphia, manufacturer of fiber wall coverings.
Competing with companies selling wall coverings, including those
made of ceramic or burned clay tile, and marble, the respondent
1300
company is alleged to have advertised in some instances in a manner
intended to convey the impression that its fiber products are clay
tile and marble.
No. 2774. Charging unfair trade practices, in violation of the
Federal Trade Commission Act, a complaint has been issued against
Twentieth Century Business Builders, Inc., 917 Furniture
Mart Building, Chicago, and its resident manager, Edwin I.
Gordon. The respondents are engaged in selling an alleged copy¬
righted sales promotion plan to retail merchants, and in offering
the services of a business consultant. The respondents’ practices,
it is alleged, have resulted in unfair diversion of trade from com¬
petitors.
The sales plan, it is alleged, consists of furnishing to retailers
advertising mats to be reproduced in local newspapers for dis¬
playing puzzles known as “Count the Dot” and “Count the Block,”
and of advertising merchandise sold by retailers in connection
with the puzzles.
These advertisements are alleged to have represented that on a
given day the retailer would give free of charge to the person most
closely approximating the number of dots or blocks in the picture,
certain described merchandise represented to be of considerable
value.
No. 2775. A complaint alleging unfair methods of competition
through use of a lottery scheme in connection with the sale of
candy has been issued against Helen Ardelle, Inc., 1401 E. 41st
Seattle, Wash.
According to the complaint, the respondent corporation sells to
wholesale and retail dealers certain assortments of boxes of candy,
together with punch boards, each bearing a statement informing
the purchasing public as to which numbers will win a box of candy.
The ultimate purchaser pays five cents to punch one of the num¬
bers on a board, the complaint alleges, and if he obtains one of
the winning numbers listed he receives a box of candy, while the
purchaser obtaining other than a winning number receives nothing
for his money.
No. 2776. Sale of candy by means of a lottery scheme is alleged
as an unfair method of competition, in violation of Section 5 of
the Federal Trade Commission Act, under a complaint issued against
Bonomo Candy and Nut Corporation, 649 Morgan Ave., Brook¬
lyn, N. Y.
The respondent corporation is said to pack candies in an assort¬
ment consisting of a number of pieces of uniform size and shape
which retail for one cent. According to the complaint, a purchaser
who selects a piece of candy with a center colored differently
from the centers of the majority of pieces wins a box of candy as
a prize.
Use of such lottery scheme, the complaint alleges, induces pur¬
chasers to buy the respondent’s product in preference to the candy
of competitors who do not resort to the same or equivalent sales
method, and trade is thereby diverted to the respondent from such
competitors.
No. 2777. Plantation Chocolate Co., Inc., 3150 Janney Street,
Philadelphia, is charged with unfair competition in promoting a
sales lottery, under a complaint issued alleging violation of Section
5 of the Federal Trade Commission Act.
The lottery method is alleged to involve including in assortments
of candy of uniform size and shape, several larger pieces and others
having centers of a different color. Purchasers drawing such pieces
different from the general run receive larger pieces of candy free,
according to the complaint.
This practice is alleged to be of a type deemed contrary to public
policy and to have a tendency to divert trade from competitors
who do not use similar sales methods.
No. 2778. Use of unfair methods of competition is alleged in a
complaint against Vaughn C. Salter and Paul Tesson, trading
as Falcon Camera Co., 8277 De Soto Ave., Detroit, and engaged
in selling a sales promotional plan which offers cameras as pre¬
miums.
Retailers are persuaded by the respondents and their salesmen,
the complaint alleges, to contract for the purchase of trade tickets
at $4.50 a thousand, generally in lots of 5,000, one of which the re¬
tailer gives to a customer with each merchandise purchase of a
stipulated amount. When a customer has accumulated 25 tickets,
he may forward them with 30 cents to the respondents, who, under
the terms of a sales plan described in the complaint, ship to the
customer a camera they have represented as a certain model Falcon
camera, and a trial roll of film.
In sales talks, advertising literature, trade tickets, contracts and
exhibits, the respondents are alleged to represent to retailers that
they manufacture Falcon cameras and the films therefor; that they
have put into operation a plan to increase the number of users of
Falcon cameras in order to increase the sale of films, which are
the only ones that can be used in such cameras; that use of the
sales plan by a retailer in conjunction with the distribution of
cameras will increase his business and build up goodwill, and that
the 30 cents remitted by each person who sends in trade tickets for
redemption is not intended to apply to the purchase of the camera,
but merely to cover the cost of packing and shipping, together with
the cost of the trial roll of film.
According to the complaint, the respondents do not manufac¬
ture cameras or films; they ship to retailers’ customers cameras
that do not approximate in appearance or value the Falcon model
promised ; they are not interested in the sale of films, but principally
in the sale of their promotion plan to obtain the profits resulting
therefrom, and the 30 cents remittance does not cover solely the
cost of packing and shipping, but actually represents the entire
cost of the camera and one roll of film.
No. 2780. Charging unfair competition in the use of a lottery
sales plan, a complaint has been issued against Charles R. Luce,
trading as Luce & Co., 350 Mercer St., Jersey City, N. J.
The practice complained of involves the sale of candy in assort¬
ments so that purchasers receiving certain pieces of a different
color from the general run in the assortment are awarded a prize,
consisting of a package of candy, according to the complaint.
This practice is alleged to result in diverting trade from com¬
petitors who do not use the same sales method, and to be of a
type deemed contrary to public policy. Violation of the Federal
Trade Commission Act is charged.
No. 2781. A. C. Hynd Corporation, 320 Franklin St., Buf¬
falo, N. Y., is charged in a complaint with unfair competition in
misrepresenting the therapeutic value of “Ku-Rill,” a germicide
manufactured and sold by the respondent corporation.
According to the complaint, “Ku-Rill” Is not, as allegedly adver¬
tised by the respondent, a competent remedy for athlete’s foot,
pimples, and other skin diseases, does not kill 27 different kinds of
disease germs or destroy the parasite that causes skin ailments, and
does not banish every trace of red, cracked skin and make it clear
and smooth again. Claims that the product excels other germicides
are untrue, the complaint alleges.
No. 2782. A complaint has been issued against Brown & Haley,
a corporation of 110 East 26th St., Tacoma, Wash., alleging un¬
fair competition, in violation of Section 5 of the Federal Trade
Commission Act, in the sale of candy. The respondent is charged
with placing in the hands of others the means of conducting a
lottery in the sale of its products.
Under the respondent corporation’s sales plan, the complaint
alleges, assortments of boxes of candy, together with punch boards,
are distributed to retailers. Customers pay 5 cents to punch num¬
bers on the board, and those who select certain numbers win a box
of candy, while those who punch other numbers receive nothing.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations.
No. 01345. M. C. Bass, operating as National Sales Co.,
Walnut Ridge, Ark., agrees to discontinue representing that the
“Astrological Life Reading” he sells is prepared especially for the
individual purchasing the same or that it will advise one regarding
money matters, home affairs, law suits, and other personal matters,
and that his combination “Astrological Life Reading,” “Fast Luck
Powder” and “Good Luck Medallion” will bring one good luck,
love, money and success in undertakings. The respondent also
will cease selling any powder of the same or similar composition
as “Fast Luck Powder” under any trade name, and stipulates that
he will not publish any testimonial containing any representation
contrary to his agreement with the Commission.
No. 01350. Eunice Runge, trading as Wisconsin Institute
of Horology, 524 E. Mason St., Milwaukee, Wis., and selling
a correspondence course in watch making and repairing, has signed
a stipulation to cease representations that by such course of instruc¬
tion a person can learn the trade of watch repairing at home as well
as in a shop, and that after completing the course, one can secure
a well paying position or start in business. The respondent also
will discontinue representing that there is an ever increasing scar¬
city of competent watch-makers or an equally increasing scale of
wages, and that diplomas of the Wisconsin Institute of Horology
are recognized officially by German “authorities,” or that such dip¬
lomas, by inference or otherwise, confer the right to practice the
trade of watch-making and repairing.
No. 1641. Trading as Tourist Luggage Co., 136 West 21st
St., New York City, Samuel Intner, Louis Aberman and
1301
Abraham Boretz, manufacturers of leather luggage, agree to cease
and desist stamping or branding products made of split leather with
the words “Cowhide Warranted,” or “Cowhide,” unless accom¬
panied by the word “Split” or “Split Leather” stamped in im¬
mediate juxtaposition to “Cowhide” or “Cowhide Warranted” and
in letters of equal size and conspicuousness. According to the stipu¬
lation, the respondent company had caused the word “split” to
be placed at a distance from the phrase “Cowhide Warranted,”
having a tendency to deceive purchasers into the belief that the
products were made of the whole cowhide and not of split leather.
No. 1644. M. Hopkins, trading as Silverware Redemption
Bureau, 1003 Santa Fe Building, Dallas, Tex., engaged in the
sale of coupons and advertising matter for use by retailers in con¬
nection with the sale of their goods, agrees to stop certain alleged
fictitious price markings and other misrepresentations in the sale
and redemption of coupons exchanged for silver-plated ware. Hop¬
kins, under the agreement, will no longer assert that the usual selling
price of silverware sets offered as prizes by his retail customers is
$25.75, or any other exaggerated sum, nor that the offer of silver¬
ware premiums is a “special advertising offer,” obtainable only with
his coupons, when this is not true. He agrees to desist from furnish¬
ing retail customers with advertising matter in which it is not made
known that a cash payment, in addition to the required coupons,
is exacted before retailers’ customers can obtain the silverware
promised them.
No. 1646. Oelerich & Berry Co., Inc., 854 Larrabee St.,
Chicago, manufacturing food products such as molasses, syrups
and jellies, will stop the use in advertising of the word “maple,”
either alone or in connection with other words, to describe a
product not composed wholly of maple syrup, unless the representa¬
tion is properly qualified. Provision is made that when this prepa¬
ration is composed substantially of maple syrup, the word “maple,”
if used to describe it, shall be immediately accompanied by other
words in conspicuous type to show clearly that the article is not
made wholly of maple syrup.
No. 1648. Oscar E. Minor, trading as “Craft Service,” 542
Blossom Rd., Rochester, N. Y., is engaged in the sale of materials,
tools and other merchandise to Boy Scouts and others interested
in making craft work. He signed a stipulation to discontinue in
advertising matter use of the words “Navajo Silver” as descriptive
of certain metal products he sells and which are not composed of
silver and not made by Navajo Indians. He also will cease using
“ite” in connection with the word “silver” to imply that such metal
products are composed of silver, and in the sale of leather jackets
and other merchandise designated and referred to in advertising as
“suede,” will refrain from using that word, or any derivative thereof,
so as to lead purchasers into the erroneous belief that such products
are made from suede or leather, prepared from the skins of certain
animals.
No. 1649. Ring-less Cleaning Fluid Co., Inc., 125 West 33rd
St., New York City, distributing “Ring-less” and “Neverring”
cleaning fluid, will no longer use on labels attached to containers
of its product the representation “not injurious to the most delicate
of materials,” or other assertions implying that the colors of certain
fabrics dyed with non-fast or fugitive dyes will not be injured by
application of this fluid. The fluid also will not be represented as
being capable of removing stains or spots of whatever kind or
character from fabrics when this is not true, and the company will
cease employing the word “Ring-less” as part of its trade name, or
in any manner tending to convey the belief that the fluid will not
leave a ring or mark when applied to certain fabrics for removal of
spots.
Use of the word “Neverring” as a brand name for the respondent’s
preparation will be discontinued.
No. 1650. Spiegel, May, Stem Co., 1061 West 35th St.,
Chicago, dealers in general merchandise, agree to discontinue use
in advertising matter of pictorial or other representations implying
that the company keeps in stock or is able to obtain for the filling
of orders products such as are pictorially or otherwise represented,
when this is not a fact. The stipulation says that Spiegel, May,
Stern Co. pictured in catalogues certain baseballs and playground
balls and their pasteboard containers, and that on balls and con¬
tainers were plainly visible depictions of the trade-mark, trade name,
and numbers used exclusively by a competitor. Such markings
identified these articles as products manufactured by the competitor,
according to the stipulation, when in fact Spiegel, May, Stern Co.,
in filling orders, did not furnish the balls pictured in the advertising.
No. 1652. New Jersey Laboratory Supply Co., 235 Plane
St., Newark, N. J., entered into a stipulation to discontinue use
of the word “Manufacturers” in advertising matter and the words
“Manufacturer” or “Manufacturers” in any way which may tend
to lead purchasers to believe that it owns or operates a factory where
it makes the scientific glass apparatus and instruments of precision
it sells and distributes in interstate commerce, when such is not the
fact.
No. 1654. Tomlinson of High Point, Inc., High Point, N. C.,
furniture manufacturer, stipulates that it will cease using on labels
or in advertisements the word “mahogany” to describe furniture,
implying that such products are made of wood derived from trees
of the mahogany tree family, when this is not true.
No. 1655. Minnie I. Marshall, of Bellows Falls, Vt., trad¬
ing as Green Mountain Gummed Tape Co., engaged in the sale
and distribution of gummed sealing tape, will ban use of the word
“Manufacturers” in advertising matter, when in fact she is not
the owner or operator of a plant or factory in which the product
advertised is made, but has filled orders with a sealing tape made
in factories controlled by others. The respondent also agrees to stop
employing the word “Manufacturers” in connection with the phrase,
“We sell to jobbers only.”
No. 2718. Economy Rubber Products Co., 600 Burkhardt
Ave., Dayton, Ohio, selling “Tiger-Grip Tire Patches,” has been
ordered to cease and desist from making exaggerated and mislead¬
ing representations as to the value and efficiency of its product, and
concerning the earnings of its salesmen.
The respondent company is directed to discontinue representing
in advertisements or circulars, on labels, or by radio broadcasts,
that its tire patches renew old blown out tires instantly or restore
such tires to their original quality; that they permanently repair
blow-outs and rim cuts, by self-vulcanizing, or that they save
motorists 50 per cent either in mileage or in cost in comparison with
the mileage obtained from or the price paid for comparable tire
patches of competitors.
No. 2719. In an order entered against Michael Whitehouse,
trading as International Tableware Co., 800 Washington Boule¬
vard Bldg., Detroit, he is directed to cease certain unfair methods
of competition in the sale of tableware, dishes, also promotional
sales plans.
The Commission found that the respondent sold trade cards to
local merchants, at $4.50 a thousand, for distribution among their
customers according to the amount of merchandise sold to such
customers, and agreed to redeem the trade cards with tableware or
chinaware. This and other representations made by the repondent
were not fulfilled, according to the Commission’s findings.
Under the order, the respondent will discontinue representing
in contracts, circulars or in advertisements that, free of charge, he
will redeem with tableware and dishes the trade cards he issues, or
that he will refund money paid by merchants for premiums delivered
to their customers; that he will furnish sets of tableware, or any
other merchandise, free of charge, to merchants for display and ad¬
vertising purposes, and to become their sole property, and that the
“gift boxes” of tableware he sells contain four pieces or any greater
number of pieces than they actually do contain.
FTC DISMISSES CASES
The Commission has announced the following dismissals:
No. 2757. The Commission has entered an order of dismissal
in its complaint, Docket No. 2757, as to the Biederman Furniture
Co., of 801 Franklin Ave., St. Louis.
In this complaint, the Retail Furniture Dealers’ Association of
St. Louis, its officers, and 42 merchant members, were named re¬
spondents, charged with violation of the Federal Trade Commis¬
sion Act through combination and conspiracy to monopolize the
sale and distribution of furniture and allied products in the St.
Louis, Mo., and East St. Louis, Ill., trade area.
The Commission has ordered its complaint against the Biederman
Company dismissed for the reason that evidence was presented to
it to show that the Biederman Company resigned from the asso¬
ciation some time prior to the issuance of the complaint, had ceased
to participate in the activities of the association, and abandoned the
practices charged against the association’s members. The complaint
was dismissed “without prejudice to the right of the Commission
to reinstate should conditions warrant.”
No. 2381. The Commission has also entered an order dismissing
its complaint against Van Kannel Revolving Door Co., 101 Clark
Ave., New York City, engaged in the manufacture and sale of
wood and metal revolving doors.
Under the complaint, the respondent had been charged with vio¬
lation of Section 7 of the Clayton Act in that it had acquired con¬
trolling stock in two competing companies, the Atchison Revolving
Door Co., Independence, Kans., and Revolving Doors, Inc., New
York City.
1302
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, May 4
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — The Times Dispatch Publishing Co., Inc., Richmond, Va. —
C. P., 1500 kc., 100 watts, unlimited time.
(Visual Broadcast)
NEW — National Television Corp., New York, N. Y. — C. P., 2000-
2100 kc., S00 watts, Emission A3, A4, unlimited time.
Tuesday, May 5
HEARING BEFORE AN EXAMINER
(Broadcast)
WQDM — E. J. Regan and F. Arthur Bostwick, d/b as Regan &
Bostwick, St. Albans, Vt. — C. P., 1390 kc., 1 KW, specified
hours. Present assignment: 1370 kc., 100 watts, specified
hours (request to move transmitter and studio).
NEW — F. N. Pierce, Taylor, Tex. — C. P., 1310 kc., 100 watts, day¬
time.
NEW — Eugene DeBogory, tr/as Tem-Bel Broadcasting Co.,
Temple, Tex. — C. P., 1310 kc., 100 watts, daytime.
Wednesday, May 6
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Hunt Broadcasting Assn., Greenville, Tex. — C. P., 1200
kc., 100 watts, daytime.
NEW — Voice of Marshall, Marshall, Tex. — C. P., 1500 kc., 100
watts, specified hours.
NEW — Navarre Broadcasting Assn., Corsicana, Tex. — C. P., 1310
kc., 100 watts, daytime.
NEW — Dorrance D. Roderick, El Paso, Tex. — C. P., 1500 kc., 100
watts, unlimited time.
APPLICATIONS GRANTED
WTAR — WTAR Radio Corp., Norfolk, Va. — Granted C. P. to
make change in auxiliary equipment.
WLLH — Merrimac Broadcasting Co., Inc., Lowell, Mass. — Granted
special experimental authority to install synchronized or
booster station at Lawrence, Mass., to operate synchronously
with station WLLH, Lowell, Mass., on 1370 kc., with vari¬
able power of 10 to 100 watts, for period ending July 1,
1936. Site to be determined.
NEW — Democrat-News Co., Inc., Lewistown, Mont. — Granted
C. P. for new station to operate on 1200 kc., 100 watts, un¬
limited time. Site to be determined.
WSIX — Jack M. Draughon, Louis R. Draughon, d/b as 638 Tire
and Vulcanizing Co., Nashville, Tenn. — Granted modification
of C. P. approving proposed transmitter site at northeast
corner Boscobal and 3rd St., Nashville, extend commence¬
ment date to two days after grant and completion date to
100 days thereafter.
WHIS — Daily Teleg. Printing Co., near Bluefield, W. Va. — Granted
modification of C. P. to make changes in equipment.
WNAC — Shepard Broadcasting Service, Inc, Boston, Mass. —
Granted C. P. to make changes in equipment and increase
day power from 2Vz to 5 KW.
WCLO — Gazette Printing Co., Janesville, Wis. — Granted C. P. to
move transmitter locally from Milwaukee Road near Janes¬
ville, to 1436 S. Oakhill Ave., Janesville, and install new
vertical radiator.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Granted C. P. ap¬
proving transmitter site Y\ mile north of city limits of Marsh¬
field at the port of Koos Bay, and install new radiating
system to comply with Rule 131.
WTAQ — WHBY, Inc., Green Bay, Wis. — Granted renewal of
license for period May 1 to November 1, 1936.
Standard Radio, Inc., Hollywood, Calif. — Granted authority to
deliver by express and parcel post, library service of pro¬
grams in the form of electrical transcriptions, to station
CHWC, Regina, Sask., Canada, and CFRB, Toronto, Ont.,
Canada.
World Broadcasting System, Inc., New York City. — Granted au¬
thority to deliver sustaining programs consisting of elec¬
trical transcriptions, to the Northern Electric Company,
Ltd., of the Dominion of Canada by express for transmission
of Canadian and Newfoundland radio stations.
WCAO — Monumental Radio Co., Baltimore, Md. — Granted license
to cover C. P., 600 kc., S00 watts night, 1 KW day, un¬
limited time.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted
license to cover C. P., 920 kc., 1 KW night, S KW day,
unlimited time.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted au¬
thority to determine operating power by direct measurement
of antenna input in compliance with terms of Rule 137.
WPTF — WPTF Radio Co., Cary, N. C. — Granted license to cover
C. P. authorizing move of auxiliary transmitter from Raleigh,
N. C., to Cary, N. C., the same site as regular transmitter.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
Granted license to cover C. P. authorizing installation of
new equipment.
WHDH — Matheson Radio Co., Inc., Boston, Mass. — Granted license
to use old transmitter as an auxiliary, to operate with 300
watts night and day, for emergency purposes only.
WQAM — Miami Broadcasting Co., Miami, Fla. — Granted license to
use old transmitter as an auxiliary for emergency purposes
only, equipment for 1 KW.
WKAQ — Radio Corp. of Porto Rico, San Juan, P. R. — Granted
modification of license to change time of operation from
Yz time to unlimited.
KFIZ — Reporter Printing Co., Fond du Lac, Wis. — Granted modifi¬
cation of license to increase time of operation from specified
hours to unlimited.
KFXM — J. C. and E. W. Lee (Lee Bros. Broadcasting Co.), San
Bernardino, Calif. — Granted authority to install automatic
frequency control equipment.
WNBR — Memphis Broadcasting Co., Memphis, Tenn. — Granted
renewal of license, 1430 kc., 300 watts, with an additional
300 watts from local sunrise to local sunset only. Antenna
current 3.7 amperes for 300 watts, 3.25 amperes for 1 KW.
Antenna resistance 36.4 ohms.
KSO — Cedar Rapids Broadcast Co., Des Moines, Iowa. — Granted
renewal of license for period May 1 to November 1, 1936;
1430 kc., 500 watts night, 1 KW day, unlimited time.
KGDY — Voice of South Dakota, Huron, S. Dak. — Granted renewal
of license for period May 1 to November 1, 1936; 230 watts,
1340 kc., daytime only.
KRNT — Iowa Broadcasting Co., Des Moines, Iowa. — Granted re¬
newal of license for period May 1 to November 1, 1936;
1320 kc., 500 watts night, 1 KW daytime, unlimited.
WKBH — WKBH, Inc., La Crosse, Wis. — Granted renewal of license
for period May 1 to November 1, 1936.
KXYZ — Harris County Broadcast Co., Houston, Tex. — Granted
renewal of license for period May 1 to November 1, 1936.
KUJ — KUJ, Inc., Walla Walla, Wash. — Granted renewal of license
for period May 1 to July 1, 1936.
KPDN — Pampa Daily News, Inc., Pampa, Tex. — Granted license
to cover C. P. as modified for new station to operate on
1310 kc., 100 watts, daytime only.
WIS — Station WIS, Inc., Columbia, S. C. — Granted modification of
C. P. to extend completion date from 3-10-36 to 7-10-36.
WNBC — William J. Sanders, New Britain, Conn. — Granted special
temporary authority to operate unlimited time on the night
of May 6, 1936, in order to broadcast a testimonial dinner
being given in honor of Postmaster General James A. Farley.
NEW — Lynchburg Broadcasting Corp., Portable-Mobile (Lynch¬
burg, Va.). — Granted C. P. for new broadcast pickup sta¬
tion, frequencies 31100, 34600, 37600 and 40600 kc., 40
watts.
WlXEH — Travelers Broadcasting Service Corp., Avon Mountain,
Avon, Conn. — Granted license to cover C. P., frequency
63500 kc., 150 watts, unlimited time, for rebroadcast of
WTIC program and radiotelephone transmissions.
W10XGJ — Atlantic Broadcasting Corp., Portable-Mobile (New
York, N. Y.). — Granted license to cover C. P., frequencies
31100, 34600, 37600, 40600, 86000-400000, 401000 kc. and
above, 30 watts.
KNEC — Puget Sound Broadcasting Co., Inc., Portable-Mobile
(Tacoma, Wash.). — Granted license to cover C. P., frequen-
1303
cies 1646, 2090, 2190 and 2830 kc., 40 watts; to be used
for temporary broadcast pickup service only.
WGBE — Onondaga Radio Broadcasting Corp., Portable-Mobile
(Syracuse, N. Y.). — Granted license to cover C. P. for new
broadcast pickup station in temporary service; 1646, 2090,
2190 and 2830 kc.. 4S watts.
WABA — Wodaam Corp., Mobile — in plane (Newark, N. J.). —
Granted license to cover C. P. for broadcast pickup station
in temporary service, frequencies 1622, 2060, 2150 and
2790 kc., ll/2 watts.
SET FOR HEARING
NEW — Glenn Van Auken, Indianapolis, Ind. — Application for
C. P. for new station, 1050 kc., 1 KW daytime. Site to be
determined.
NEW — Seaboard Investment Co., Inc., Montgomery, Ala. — Appli¬
cation for C. P. for new station, 610 kc., 500 watts night,
1 KW day, unlimited time.
NEW — William F. Kollecker, Pittsfield, Mass. — Application for
C. P. for new station, 1290 kc., 250 watts, daytime. Site
to be determined.
NEW — Smith, Keller & Cole, a partnership composed of Ralph E.
Smith, A. H. Keller and H. Wadsworth Cole, San Diego,
Calif. — Application for C. P. for new station, 1200 kc., 100
watts, daytime. Site to be determined.
NEW — Hildreth & Rogers Co., Lawrence, Mass. — Application for
C. P. for new station, 680 kc., 1 KW daytime. Site to be
determined.
NEW — Lillian E. Kiefer, Brooklyn, N. Y. — Application for C. P.
for new station, 1500 kc., 100 watts, specified hours. Site
to be determined.
NEW — Red River Valley Broadcasting Corp., Sherman, Tex.— Ap¬
plication for C. P. for new station, 1310 kc., 100 watts day¬
time. Site to be determined.
NEW — Tribune Printing Co., Jefferson City, Mo. — Application for
C. P. for new station, 1310 kc., 100 watts, daytime. Site to
be determined.
NEW — E. Anthony & Sons, Inc., Pawtucket, R. I. — C. P., already
in hearing docket, amended to read: 1200 kc., 100 watts
night, 250 watts day, unlimited time. Site to be determined.
KFPM — Voice of Greenville, Greenville, Tex. — C. P., already in
hearing docket, amended to read: Install new equipment;
change frequency from 1310 kc. to 1420 kc. ; increase
power from 15 watts, specified hours, to 100 watts, daytime
only; and move station locally, site and antenna system to
be determined with Commission’s approval.
NEW — Ellwood W. Lippincott, Bend, Ore. — C. P., already in hear¬
ing docket, amended to read: 1500 kc., 100 watts, unlimited
time. Site to be determined.
NEW — Ben S. McGlashan, San Diego, Calif. — C. P., already in
hearing docket, amended to read: 550 kc., 250 watts, day¬
time only. Exact transmitter site and type of antenna to be
determined with Commission’s approval.
NEW — John E. Fetzer, Benton Harbor, Mich. — C. P., already in
hearing docket, amended to read: 1500 kc., 250 watts, day¬
time only. Exact transmitter site to be determined with
Commission’s approval.
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — C. P.,
already in hearing docket, amended to read: Install new
equipment; move transmitter locally, 1.55 miles northwest
of Jackson, Tenn., 920 kc. ; install directional antenna; 250
watts night, 500 watts day, unlimited time.
NEW — Dr. F. P. Carniglia, Monroe, La. — Application for C. P.
for new station, 1500 kc., 100 watts, unlimited time.
NEW — George Harm, Fresno, Calif. — Application for C. P. for new
station, 1310 kc., 100 watts, unlimited time.
NEW — Edwin A. Kraft, Petersburg, Alaska. — Application for C. P.
for new station, 1420 kc., 100 watts, unlimited. Exact trans¬
mitter site and type of antenna to be determined with Com¬
mission’s approval.
WHBC— Edward P. Graham, Canton, Ohio. — Application for modi¬
fication of C. P. requesting extension of completion date
from 4-27-36 to 7-27-36 (original C. P. authorized changes
in equipment and increase in day power to 250 watts sub¬
ject to Rule 131).
NEW — Luther E. Gibson, d/b as Times-Herald Publishing Co.,
Vallejo, Calif. — Application for C. P. for new station in
vicinity of Mare Island Navy Yard between Vallejo and
South Vallejo, Calif., to operate on 1320 kc., 250 watts,
daytime only.
NEW — Arthur E. Seagrave, Lewiston, Maine. — Application for
C. P. for new station, 1420 kc., 100 watts night, 250 watts
day, unlimited. Site to be determined with Commission’s
approval.
J. L. Statler, M. D., d/b as Baker Hospital, Muscatine, Iowa. —
Authority to furnish programs in the form of electrical tran¬
scriptions to stations in Canada and Mexico to be delivered
by mail, express or by carrier.
WJBR — J. B. Roberts, Gastonia, N. C. — Consent to voluntary
assignment of C. P. from J. B. Roberts to Virgil V. Evans
(present assignment, under C. P. only, 1420 kc., 100 watts,
unlimited time).
WJBR — Virgil V. Evans, Gastonia, N. C. — Modification of C. P.
requesting approval of transmitter and studio sites at 214
So. St. Masonic Temple, Gastonia, and radiating system.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KFBK, Sacramento, Calif.; KIDO, Boise, Idaho; KIEM, Eu¬
reka, Calif.; KMO, Tacoma, Wash; KOH, Reno, Nevada; KOY,
Phoenix, Ariz. ; KTBS, Shreveport, La.; WBCM, Bay City, Mich.;
WCOA, Pensacola, Fla.; WFBC, Greenville, S. C.; WHIS, Blue-
field, W. Va.; WHP, Harrisburg, Pa.; WIOD-WMBF, Miami, Fla.;
WQBC, Vicksburg, Miss.; WROK, Rockford, Ill.; WSAI, Cin¬
cinnati, Ohio ; WSAN and auxiliary, Allentown, Pa. ; WSMK, Day-
ton, Ohio; WTFI, Athens, Ga.
WATL— J. W. Woodruff and S. A. Cisler, Jr., d/b as Atlanta
Broadcasting Co., Atlanta, Ga. — Present license further ex¬
tended on a temporary basis only, for the period May 1
to June 1, 1936, subject to such action as may be taken upon
application for renewal pending before the Commission.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Present
license further extended on a temporary basis only, for the
period May 1 to June 1, 1936, subject to such action as may
be taken upon application for renewal pending before the
Commission.
WWL — Loyola University, New Orleans, La.; KWKH — Interna¬
tional Broadcasting Corp., Shreveport, La. — Granted ex¬
tension of present license for the period May 1 to June 1,
1936, subject to same conditions as contained in existing
authorities to said stations, pending consideration of pending
petition of Station WLWL and petitions in opposition
thereto.
The following stations were granted renewal of licenses on a
temporary basis only, subject to whatever action may be taken by
the Commission upon pending applications for renewal of licenses:
KFAC, Los Angeles; WARD, Brooklyn, N. Y.; WBBC and
auxiliary, Brooklyn, N. Y. ; WLTH, Brooklyn, N. Y. ; WSMB, New
Orleans; WVFW, Brooklyn, N. Y.
WFEA — New Hampshire Broadcasting Co., Manchester, N. H. —
Granted renewal of license on a temporary basis only subject
to whatever action may be taken by the Commission upon
the renewal application and upon the petition of Station
WSPD in opposition to the granting of renewal of license to
this station. Also on condition that WFEA shall not permit
nighttime signal intensity without attenuation of station
radiated in the direction of station WSPD to be greater
than 62.5 millivolts per meter at a distance of 1 mile from
transmitter of WFEA.
The following stations were granted renewal of experimental
visual broadcasting licenses in the experimental service, for the
period May 1, 1936, to expire May 1, 1937, in exact conformity
with existing license:
W6XAO, Los Angeles; W9XAL, Kansas City, Mo.; W9XD,
Milwaukee, Wis.; W9XAK, Manhattan, Kans.; W3XE, Philadel¬
phia, Pa.; W8XAN, Jackson, Mich.; W9XAT, Minneapolis, Minn.
WlXAL — World Wide Broadcasting Corp., Boston, Mass. —
Granted renewal of relay broadcasting license for experi¬
mental service, in exact conformity with existing license, for
the period May 1, 1936, to May 1, 1937.
W8XAM — The Sparks-Withington Co., Jackson, Mich. — Same, ex¬
cept for special experimental station.
W3XDD — Bell Tel. Labs., Inc., Whippany (Morris Co.), N. J. —
Same, except for the period April 29 to July 29, 1936.
WlXAC — Shepard Broadcasting Service, Inc., Quincy, Mass. —
Same, except for the period May 21 to August 21, 1936.
1304
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were
dismissed at request of applicants:
WAAW— Omaha Grain Exchange, Omaha, Nebr.— Applied for
voluntary assignment of license, 660 kc., 500 watts, daytime.
WJIM— Harold F. Gross, M. Bliss Keeler and L. A. Veraluis, d/b
as Capitol City Broadcasting Co., Lansing, Mich.— Applied
for C. P., 1010 kc., 500 watts, 1 KW LS, unlimited time.
The following application, heretofore set for hearing, was dis¬
missed for failure of applicant to answer Commission letters and
want of prosecution:
NEW — The Attala Broadcasting Corp., Columbus, Miss. — Applied
for C. P., 1200 kc., 100 watts, unlimited time.
MISCELLANEOUS
KFH— Radio Station KFH Co., Wichita, Kans. — Affirmed Com¬
mission’s action of May 28, 1935, in granting application of
KFH for C. P., 1300 kc., 1 KW, 5 KW LS, unlimited time,
and dismissed protest of KFBI which had been designated
for hearing, upon request of KFBI to withdraw said protest.
WC AC— Connecticut State College, Storrs, Conn.— Present license
of this station cancelled, and call letters WCAC deleted,
effective April 30, 1936, upon request of the College asking
permission to discontinue operation of the station. WCAC
was normally licensed for 600 kc., '500 watts power, with
specified hours of operation.
KTSM— Tri-State Broadcasting Co., El Paso, Tex.— Granted peti¬
tion to intervene at hearing of application of Dorrence D.
Roderick for C. P. to establish a new station at El Paso to
operate on 1500 kc., 100 watts, unlimited time.
KVOS — KVOS, Inc., Bellingham, Wash. — Denied motion to dismiss
hearing to consider application for renewal of license sched¬
uled for May 19, 1936, at Washington, D. C., before an
examiner.
Winona Radio Service, Winona, Minn. — Granted request to take
depositions in re application for new radio station.
KMMJ — M. M. Johnson Co., Clay Center, Nebr. — Granted request
for postponement of hearing on application for increase in
power until after application for assignment of license is
acted upon.
WOWO — Main Auto Supply Co., Fort Wayne, Ind. — Granted peti¬
tion to postpone application for C. P. for increase in power
set for hearing May 18, 1936, until Commission has acted
upon application to transfer control of station to the West-
inghouse Electric & Mfg. Co.
WELI — Patrick J. Goode, New Haven, Conn. — Granted request to
postpone hearing on application for modification of license
now fixed for May 13, 1936.
WICC — Southern Connecticut Broadcasting Corp., Bridgeport,
Conn. — Granted permission to file answer to the appearance
of Patrick J. Goode, who seeks modification of license of
WELI at New Haven, Conn.
The Commission advanced the effective date of the following
cases:
Ex. Rep. 1-176 — Symons Broadcasting Co., Spokane, Wash. — Ef¬
fective date postponed to May 1, 1936, from April 28, 1936.
Ex. Rep. 1-182 — C. C. Morris, Ada, Okla. — Effective date post¬
poned to May 8, 1936, from May 5, 1936.
Ex. Rep. 1-111 — University of Illinois, Urbana, Ill. — Effective date
postponed to May 8, 1936, from May 5, 1936.
ORAL ARGUMENT GRANTED
NEW — Ex. Rep.. 1-212: A. W. Hayes, Erie, Pa. — Oral argument
granted to be heard September 10, 1936.
NEW — Watertown Broadcasting Corp., Watertown, N. Y. — Oral
argument granted to be heard September 10, 1936.
APPROVED MONITORS
The Commission approved the following monitors for use in
broadcast stations in order to comply with Rule 139, and assigned
approval numbers as given below:
Manufacturer’s Name Type Approval No.
General Radio Company Type 731-A 1551
RCA Manufacturing Company Type 66-A 1552
APPLICATIONS RECEIVED
First Zone
WTAG — Worcester Telegram Publishing Co., Inc., Worcester,
580 Mass.— License to cover construction permit (Bl-P-986) to
make changes in equipment.
NEW — Clarence C. Dill, Washington, D. C. — Construction permit
1230 for a new station to be operated on 1310 kc., 100 watts,
unlimited time. Requests facilities of WOL if WOL is
granted 1230 kc. Consideration under Section 307 (b).
NEW — John C. Looney, d/b as High Fidelity Broadcasting Serv-
1570 ice, Milton, Mass. — Construction permit for a new experi¬
mental broadcast station to be operated on 1570 kc., 1 KW,
unlimited and variable time.
W2XJI — Bamberger Broadcasting Service, Inc., New York, N. Y. —
Modification of construction permit to establish definite site
of transmitter at 1450 Broadway, New York City, to be
remotely controlled from 1440 Broadway, New York, N. Y.;
change power from 1 KW to 100 watts; make changes in
equipment ; and extend commencement and completion dates
to 4-15-36 and 9-15-36, respectively.
W10XCT — Shepard Broadcasting Service, Inc., Portable-Mobile. —
License to cover construction permit for changes in equip¬
ment and increase in power of general experimental trans¬
mitter.
Second Zone
NEW — Harold F. Gross, Lansing, Mich. — Construction permit for
580 a new station to be operated on 580 kc., 500 watts, 1 KW
day, unlimited time, to use directional antenna.
WHIS — Daily Telegraph Printing Co., Bluefield, W. Va. — Modifica-
1410 tion of construction permit (B2-P-861) for authority to in¬
stall new equipment and move transmitter, requesting further
changes in equipment.
Third Zone
WPTF — WPTF Radio Co., Raleigh, N. C. — Special experimental
680 authorization to use transmitter as requested under license
B3-L-301 as an auxiliary from local sunset to 11:00 p. m.,
EST, for period to 8-1-36.
KTRH — KTRH Broadcasting Co., Houston, Tex. — Modification of
1290 license to change power from 1 KW, 5 KW day, to 5 KW
day and night.
NEW — A. H. Belo Corporation, Grapevine, Tex. — Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 31000, 86000-400000, 401000 kc.,
and above, 100 watts.
W3XEN — Havens & Martin, Inc., Portable-Mobile. — License to
cover construction permit, as modified, for a new general
experimental station.
Fourth Zone
WCFL — Chicago Federation of Labor, Chicago, Ill. — Construction
970 permit to install new equipment and increase power from 5
KW to 25 KW.
NEW — Eau Claire Broadcasting Co., Eau Claire, Wis. — Construc-
1210 tion permit for a new station to be operated on 1210 kc.,
100 watts, unlimited time.
KWKC — Charlotte Duncan, Admin., Lester E. Cox, Thomas L.
1370 Evans and C. C. Payne, Kansas City, Mo. — Construction
permit to install new equipment; move studio from Werby
Bldg., 29th and Main St., Kansas City, Mo., to Commerce
Bldg., northwest corner 10th and Walnut, Kansas City, Mo.,
and transmitter from 3912 Main St., Kansas City, Mo., to
Commerce Bldg., northwest corner 10th and Walnut Sts.,
Kansas City, Mo. Amended to change hours of operation
from specified hours to unlimited and include C. C. Payne
in partnership and as a party applicant.
KWKC — Wilson Duncan, tr. as Wilson Duncan Broadcasting Co.,
1370 Kansas City, Mo. — Voluntary assignment of license from
Wilson Duncan, tr. as Wilson Duncan Broadcasting Co. to
Lester E. Cox, Thomas L. Evans and C. C. Payne. Amended
to add name of C. C. Payne to partnership — assignees.
NEW — WHBY. Inc., Portable-Mobile. — Construction permit for a
new general experimental station to be operated on 31100,
34600, 37600, 40600 kc., 10 watts.
NEW — WHBY, Inc., Portable-Mobile. — 'Construction permit for
a new general experimental station to be operated on 31100,
34600, 37600, 40600 kc., 10 watts.
1305
W9XHW — Northwestern Broadcasting, Inc., Minneapolis, Minn. —
License to cover construction permit for a new general ex¬
perimental station.
Fifth Zone
KMJ — James McClatchy Co., Fresno, Calif. — Voluntary assign-
580 ment of license from James McClatchy Co. to McClatchy
Broadcasting Co.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — License to
920 use W. E. D-87737 transmitter for auxiliary purposes.
KFEL — Eugene P. O’Fallon, Inc., Denver, Colo. — Construction
920 permit to make changes in equipment.
KFBB — Buttrey Broadcast, Inc., Great Falls, Mont. — Construction
950 permit to make changes in equipment; increase power from
1 KW, 2J4 KW day, to 1 KW, 5 KW day; change frequency
from 1280 kc. to 900 kc.; and move transmitter from S
miles south of town on 13th Street, Great Falls, Mont., to
site to be determined, south of Great Falls, Mont. Amended
to change frequency from 900 kc. to 950 kc. and omit re¬
quest for facilities of KSEI.
KJR — Fisher’s Blend Station, Inc., Seattle, Wash. — Construction
970 permit to install a new transmitter, erect a new antenna and
move transmitter from 185th Street and 1 5th Ave. N. E.,
Lake Forest Park, near Seattle, Wash., to 2600 26th Ave.,
Southwest, Seattle, Wash.
KWG — Portable Wireless Telephone Co., Inc., Stockton, Calif. —
1200 Voluntary assignment of license from Portable Wireless
Telephone Co., Inc., to McClatchy Broadcasting Co.
NEW — Barney Hubbs, A. J. Crawford, Jack Hawkins and Harold
1210 Miller, d/b as Carlsbad Broadcasting Co., Carlsbad, N. Mex.
— Construction permit for a new station to be operated on
1210 kc., 100 watts, unlimited time. Amended to change
name from Carlsbad Broadcasting Co. to Barney Hubbs,
A. J. Crawford, Jack Hawkins and Harold Miller, d/b as
Carlsbad Broadcasting Co., and giving exact transmitter site
as “La Huerta,” approximately 1J4 miles north of Carlsbad,
N. Mex.
KYA — Hearst Radio, Inc., San Francisco, Calif. — Construction
1230 permit to install new equipment and increase power from
1 KW to 1 KW, 5 KW day. Amended to make changes
in antenna and move transmitter from 1231 Market St.,
San Francisco, Calif., to Bay View Park, San Francisco,
Calif.
KGGM — New Mexico Broadcasting Co., Aubuquerque, N. Mex. —
1230 Consent to transfer control of corporation from Mrs. A. R.
(Goldie) Hebenstreit to A. R. Hebenstreit, 444 shares cap¬
ital stock.
NEW — The Tribune, Great Falls, Mont. — Construction permit for
1280 a new station to be operated on 950 kc., 1 KW, 5 KW day,
unlimited time. Amended to change frequency from 950 kc.
to 1280 kc., and request facilities of KFBB.
KERN — The Bee Bakersfield Broadcasting Co., Bakersfield, Calif.
1370 — Voluntary assignment of license from The Bee Bakersfield
Broadcasting Co. to McClatchy Broadcasting Co.
KFBK — James McClatchy Co., Sacramento, Calif. — Voluntary as-
1490 signment of license from James McClatchy Co. to McClatchy
Broadcasting Co.
NEW — Louis Wasmer, Inc., Portable-Mobile. — Construction per¬
mit for a new general experimental station to be operated on
31100, 34600, 37600, 40600 kc., 2 watts.
NEW — Louis Wasmer, Inc., Portable-Mobile. — Construction per¬
mit for a new general experimental station to be operated on
31100, 34600, 37600, 40600 kc., 2 watts.
1306
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS
Copyright 1936. The National Association of Broadcasters
Special
MAY S, 1936
REPORT ON COPYRIGHT
There is printed below the jull text of the Report and Recommendations
of the Managing Director concerning the creation of a Bureau of Copy¬
rights in the NAB as approved by the Board of Directors at a meeting
held in Chicago, April 27, 1936.
TO THE MEMBERS OF THE BOARD OF DIRECTORS
OF THE
NATIONAL ASSOCIATION OF BROADCASTERS
By motion passed on February 3, 1936, at your last meeting, you instructed me to prepare and
submit to the Board at an early date a detailed plan and program for the establishment and success¬
ful operation of a corporation having substantially the same purposes and powers as the Radio Program
Foundation. In pursuance of that action I submit the following report. In doing so I want to take
formal note of the assistance received from Mr. Walter J. Damm, Milwaukee, Wisconsin, to whom I
am indebted for the music classifications contained in the report; also of the advice and counsel re¬
ceived by me from Messrs. Philip G. Loucks and Louis G. Caldwell, Washington, D. C., in formulating
the basic principles embodied in the plan.
1
Part I
Foreword
Broadcasters Have Waged Copyright Fight For Ten Years
For more than ten years the broadcasting industry in the United States has been endeavoring to
solve what it calls the copyright problem.
The industry has at different times both supported and opposed copyright legislation in the Con¬
gress. It has instituted a lawsuit against the largest group of copyright proprietors in the world and
has aided the Government in its suit against this same group. It has waged fierce fights against groups
of copyright proprietors over terms and conditions in contracts and over methods of royalty payments.
It has attempted on two occasions to establish and operate its own music source. It has expended many
thousands of dollars; consumed many hours in discussion; considered many plans and proposals; and
adopted many resolutions and reports. But today the problem remains unsolved.
The present copyright laws are antiquated and should be revised. The provision of the present
law imposing minimum damages for infringement should be repealed. It is an anomaly in our law. No
other nation in the world has a similar provision in its copyright laws. Other changes also are needed.
But revision of the law, however favorable to broadcasters, will not in and of itself solve the problem.
A monopoly of music performing rights, if in violation of our laws, should be dissolved by the Gov¬
ernment. But dissolution of the monopoly, however sweeping the decree, will not in and of itself solve
the problem.
The broadcasting industry has learned one thing from its ten years of fighting. It has learned
that it must give more attention to its own business and less to the business of copyright owners.
Nobody knows whether the industry is paying too much or too little for its use of copyrighted music.
As long as the present situation exists, nobody can find out.
Existing Licensing Agreements Offer No Promise For Solution
Not a single license agreement in existence today holds any promise of a permanent solution of
the problem. Not only is this true from the viewpoint of the broadcasters; but it is equally true from
the viewpoint of the originator or creator of musical compositions. When broadcasting developed a
new market for creative works, it found the author and composer allied with publishers. The pub¬
lishers are commercial users of musical works in very much the same sense as broadcasters. Unlike
conditions of a decade ago, the publisher and broadcaster now compete for the creation of the author
and composer. It was simply a fact that the creator had disposed of a part of his valuable performing
right to one class of customers before another class had risen to prominence. Broadcasters want, and
are willing to pay generously for the works of the creator. Their interest is in the author and com¬
poser. They are not concerned with the profits or losses of the publishers or other users.
The problem has been made to appear more difficult than it really is. There are millions of
musical compositions now in existence and many more millions will be written. But of the millions
of works in existence, less than 800,000 are currently copyrighted in the United States. Of copy¬
righted and non-copyrighted musical works of all classes, about 35,000 compositions are active, that is,
in ordinary day to day use. An average broadcasting station, operating full time, will perform about
75,000 separate selections in a year. If the same composition is performed once a week for fifty-two
weeks, a library of 1,500 different compositions would supply the needs of a broadcast station. But
2
some numbers are performed more frequently and some less frequently, and 1,500 compositions would
not be considered by any broadcaster as an adequate repertory. But, contrary to the popular belief,
the broadcaster does not need all of the copyrighted music in the world; nor should he be required to
pay for such extensive accessibility.
Broadcasting Industry Has Never Measured Actual Musical Needs
The first task of the broadcaster, therefore, is to obtain some estimate of his actual musical needs.
Having determined this, he should then set about acquiring on the best terms possible that music which
will satisfy his needs. He should not endeavor to influence the price or prices asked by the copyright
owner. If the price is disproportionate to the merit or value of a work or works, he has the option to
refrain from use. As a member of an industry interested in a never-ending supply of new musical
works, the broadcaster is desirous of encouraging the creator. He is interested in encouraging authors
and composers to write for radio presentation. He will not forever be interested simply in acquiring
performing rights of music written primarily for publication or for the stage, motion picture, dance hall
or night club. As an art, broadcasting must develop creations written primarily for radio presentation
and adapted to conditions peculiar to broadcasting. Any proper plan devised by broadcasters for the
utilization of original creations must inevitably inure to the benefit of authors and composers. The use
of such creations should determine the extent of compensation to authors and composers. Merit of such
creations should determine the extent of their use.
Music Publishing Industry Custom Has Confused Copyright Ownership
Basic difficulties have faced broadcasters and copyright owners in their attempts to work out a joint
solution. Licensing agreements are entirely too vague as to rights conveyed thereunder. Existing
agreements say simply to the licensee that in the event you perform a composition, the performing right of
which is vested in the licensing group, that no infringement suit will be instituted. These agreements,
when carefully analyzed, convey no definite affirmative rights but are more in the nature of forbearance
of suits for infringement. This is so because no licensing group of any importance has furnished to its
licensees a complete list of the works it owns or controls or has agreed to adequately indemnify the
user in all cases where he exercises his best efforts to avoid infringement.
Perhaps one reason for the reluctance or refusal of licensing groups, up to the present time, to
make available detailed and complete catalogs and adequately warrant title to all compositions listed
therein, is the confusion which has resulted from private contracts between composers or authors
and publishers or other users. This confusion is the result of custom in the music publishing in¬
dustry which obtained before the advent of either broadcasting or sound motion pictures. The pub¬
lisher may own the performing right or the composer may have reserved that right to himself and parted
only with the right of publication. It is not always true, therefore, that a licensee may rely entirely
upon the copyright notice imprinted upon the printed copy of a composition.
Until such time as each broadcaster has in his possession a complete catalog of the compositions
in day to day use through which he is able to ascertain ownership of the performing rights therein, con¬
fusion will continue. Until that time arrives the broadcaster is left with no alternative except to avoid
the use of all compositions, the performing right ownership of which is in doubt. With respect to each
and every composition performed, the broadcaster must know (a) that he has a right to perform the
particular work he is using; (b) that the proper legal or equitable owner has authorized the perform¬
ance; and (c) that compensation is paid to the legal or equitable owner or his lawfully appointed agent.
3
Use Should Determine Basis of Compensation To Copyright Owner
Much has been said and written about the so-called “per piece” plan. The plan has been com¬
mended as the only sound and scientific method for the licensing of performing rights and, at the
same time, it has been condemned as impractical and unworkable. In these discussions mention is
seldom made of the fact that so-called “grand rights” are nearly always obtained on a “per piece” or
a “per performance” basis. But it is a fact that this method of obtaining “grand rights” has never
been extended to the more extensively used “small rights.” In existing licensing agreements “grand
rights” are specifically withheld and are available in most instances only upon a “per performance” basis.
At the present time broadcasters are at a distinct disadvantage in checking their performances and
entering such performances upon their program logs. But if for no other reason than to be in a position
to defend against an infringement suit erroneously commenced, the broadcaster must be in a position
to make proper entries on his log. This is now virtually impossible and will continue to be impossible
until confusion over ownership of performing rights is abated and the stations are in possession of ade¬
quate information to check accurately.
It is a condition precedent to the institution of a “per piece,” “per performance” or any measured
service plan, that each station should have in its possession a complete catalog of the works it is licensed
to perform and that accurate entries be kept on program logs at all times. Furthermore, broadcasters
have a right to know what they have a right to perform under their licenses. They should not be put
to the expensive and almost impossible task of trying to ascertain what they have no right to perform.
In no other way can the constant danger of infringement, with its unfairness to both the broadcaster
and the copyright owner, be avoided.
Performing Right Responsibility At Program Originating Point
Where a program is originated at a single point for broadcasting over a group of stations, per¬
forming rights, with respect to all stations accepting the program, should be cleared at such originating
point. This should be so irrespective of whether the originator of the program is a network, transcrip¬
tion or other company.
This should be so because a station broadcasting a network program, for example, does not know,
and even by the exercise of the greatest degree of care cannot know, whether the composition next
being broadcast is one for which he holds a valid license. Yet if there is included in the program a
composition for which the station holds no valid license, the rule seems to be that he is just as liable as
the originating station. The liability is the same whether the unlicensed composition occurs in a net¬
work or an electrically transcribed program.
Networks and transcription companies exercise the greatest possible care in avoiding the use of
compositions for which their affiliated or accepting stations do not hold licenses; but should error occur
the station actually broadcasting the number would be liable even though it had no way of knowing in
advance that the composition was to be performed or did not know that the particular arrangement or
adaptation from which the transcription was made was one for which it had no license.
In the case of network programs you have declared yourselves in favor of clearance of copyright
at the source so that only the originating station will be held responsible for infringement and affiliate
stations will be under no obligation to secure licenses with respect to such programs or to bear respon¬
sibility for any infringements that may occur therein. The same policy should apply with equal force
to electrical transcriptions.
4
Payment of Copyright Royalties Presents Serious Policy Question
The preceding section deals entirely with the matter of responsibility for clearing performing
rights. It does not mention by whom payment of the royalties should be made. Custom in the industry
is not uniform. Transcription companies, as a general rule, do not clear performing rights. Network
companies clear performing rights for affiliates with respect to certain licensing groups but do not do so
with respect to the largest and most important group. As a general proposition the station pays the
performing right royalties whether the program is supplied by the network of transcription company.
The fee must be paid. Whether the fee should be paid by the network or transcription company
for all stations taking a given program; whether it should be paid by the stations individually; or
whether it should be divided up among the stations and network or transcription companies, is a serious
policy question which is now, and perhaps always must be, a matter of private contract between the
stations and originating companies directly concerned.
But this is true. All of the costs which go into program production must be paid by someone.
If the originating company is required to add copyright performing fees to its other program produc¬
tion costs then it should have the right to adjust its station agreements to take into consideration this
new cost item.
As pointed out before, this is a matter of contract between stations and originating companies. It
would seem, however, that no distinction should be made between copyright costs and other items of
cost which go into the production of the entire program.
In the final analysis the advertiser pays all of the costs which go into the production and broad¬
casting of his program; and copyright fees are just as much a part of this program cost as is the cost
of talent, telephone lines, recording operations, and other items. In a few instances the copyright fee
is passed on to the advertiser as a direct charge but the general practice is otherwise. It may be that
the time has arrived when the advertiser should pay for the use made of music in his program as a direct
charge and under a system whereby he might have the benefits which will accrue from a market in
which copyright owners sell their rights in competition with each other and in which prices are fixed
by such competition. This is a question of policy which cannot be answered in this report.
Adequate Financial Support and Competent Personnel Needed
The Board of Directors of the National Association of Broadcasters has authorized the formation
of a corporation as the vehicle for perfecting and executing a comprehensive copyright plan designed to
effect a solution of the industry’s copyright problem. The exact form of the corporation or organiza¬
tion is not discussed in this part of the report. But any corporation or organization created will be
confronted with the necessity for raising money and finding competent personnel.
The ultimate object of the plan is to stabilize methods and practices in the performing rights field
in so far as those methods and practices affect broadcasting. It seeks to achieve this through the creation
of the machinery necessary to make competition among copyright owners effective and at the same time
secure to the creators of original works the compensation which their works are able to command in
an open and competitive market. It is not proposed that the corporation or organization should enter
either the publishing, transcription or licensing businesses unless it becomes necessary to do so in order
to achieve its objective. It recognizes that many, if not all, of the proposed functions can be per¬
formed by one or more existing agencies and that it would be far more desirable to utilize existing
facilities than to duplicate them. At the same time, the plan is complete enough to duplicate any or all
of them if that should become necessary.
S
The plan is divided into three principal parts:
1 . Making available to broadcasters a complete and accurate catalog or index of active musical
compositions.
2. Creation of a standard library of musical compositions taken, for the most part, from the
public domain of music.
3. Establishment of a system for making available to the industry copyrighted musical works
on a measured service basis.
Great flexibility should be given to the plan. In its administration it may be found advisable or
necessary to eliminate some of the principles; modify others; or develop new ones. Practical considera¬
tions should govern each step in its development and wide discretionary powers should be given to its
executive officers. Advantage should be taken of every opportunity to utilize existing facilities and the
cooperation of copyright owners sought toward this end.
The plan should not be considered as a substitute for pending litigation or legislation except where
such litigation or legislation is in direct conflict with the general objectives to be achieved.
6
Part II
Proposed Plan
1. The organization proposed to be organized under the resolution adopted by the Board of
Directors of the National Association of Broadcasters should provide broadcasters with a com¬
plete and accurate catalog or index of all active musical compositions based upon minimum
library requirements.
2. In the event such catalog or index is found to be unavailable, the organization should under¬
take a survey of the musical needs of the industry with a view to compiling its own catalog or
index based upon minimum library requirements.
3. If it is found necessary to undertake such survey, the study should embrace:
A. Analyses of libraries of leading broadcasting companies.
B. Analyses of transcription libraries.
C. Analyses of the best phonograph collections.
4. From the information obtained from such survey there should be compiled a master index of
all active musical compositions.
A. Three identical cards should be made for each composition included in the minimum
library.
B. Each card should list
(a) Title of the composition
(b) Name of composer or composers
(c) Name of author or authors
(d) Publisher or copyright owner
(e) Date of copyright
(f) Name of arranger
(g) Licensing group controlling performing right
(h) Character of composition
(i) Type of composition
C. If the composition has been electrically transcribed, the card should also note
(a) Name of transcription company
(b) Library reference
(c) Name or names of performing artists
(d) Serial number or other identification
D. If the number has been phonographically recorded, the card should note
(a) Name of recording company or companies
(b) Name or names of performing artists
(c) Serial number or numbers
(d) Arrangement used, etc.
5. One set of cards in the master index should be filed alphabetically by title of composition.
6. A second set of cards in the master index should be filed by classes or types of composition.
The following classifications are suggested:
A. Classical orchestrations
B. Classical song orchestrations
7
C. Popular old dance orchestrations
D. Popular new dance orchestrations
E. Popular song orchestrations
F. Popular song copies
G. Classical song copies
H. Hillbilly orchestrations
I. Special arrangements for particular groups
J. Modern impressions
K. Brass band
a. Concert
b. Marches, etc.
L. Vocal scores
M. Hillbilly song copies
N. String ensembles
O. Foreign language song copies
7. A third set of cards should be arranged in detailed classifications as an aid to program directors
in building programs. An example of this type of classification follows:
A. Accordian solos and duets
African (Indian)
Agitatos
Air
American music
Arabian music
Argentine
Aviation
B. Ballets
Baritone solos with orch. accomp.
Birds (butterfly)
Bohemian music
Bolero
Brass band
1. American marches
2. American patriotic
3. Baritone solos
4. Bass solos
5. Chime solos and Vibra-Harp solos
6. Christmas
7. Clarinet solos, duets, etc.
8. College music
9. Comedy songs
10. Concert
11. Fan Fares
12. Flute solos. Piccolo duets, etc.
13. Fox-trots — popular music
14. Funeral march
15. Galops — one-steps
8
16. German fox-trots & waltzes
17. German marches & Polonaise
18. German songs — vocal
19. Guitar solos
20. Horn solos
21. Laendlers
22. Lancers, Quadrilles, reels & hornpipes
23. Mazurkas, Mazurs, Kujawiaki, Oberok & Menuetts
24. Other foreign marches
25. Overtures
26. Polkas, Krakowiaks & Cakewalks
27. Brass quartets
28. Religious or Sacred
29. Schottisches & Barn dances
30. Tenor solos
31. Trombone solos
32. Trios
33. Trumpet solos, trios & duets
34. Waltzes — concert-dances
35. Waltzes — popular-dances
B. Brigadiers
C. Canadian music
Cello solos
Cello (duets, quartets, trios, etc.)
Characteristic dances
Children
Chinese
Christmas
Clarinet solos with orch. accomp.
College music
Light concert
Heavy concert
Cuban music
D. Dance (Special rhythmic)
Dance orchestrations
1. Bird
2. Children
3. Comedy
4. Day
5. Dream
6. Eyes
7. Fall
8. Flowers
9. Home
10. Kiss
11. Luck
12. Moon
9
r &
13. Mother
14. Name
15. Night
16. Rain
17. Smile
18. Spring
19. Star
20. Summer
21. Sun
22. Water
23. Wedding
24. Winter
Danish music
Day and night
Dramatic music
Dutch
E. Earth
Easter
Egyptian
English
F. Fan fares
Fashions
Flowers
Flute solos with orch. accomp.
Flute and Clarinet duets with orch. accomp.
Folk songs (American)
Forest (Woods-trees)
Fraternal music
French
Funeral marches
G. Galop
Gavottes
German
Grecian music
H. Hawaiian
Hill Billy
Hungarian (Gypsy)
I. India
Indian music
Intermezzo (Humoresque & Caprices)
Irish
Italian
J. Japanese
Jewish
Lullaby’s
M. Mazurkas
10
fO
Minuettes
Modern Impressions
Mother and Father
Mountains (Hills, Cliffs)
Musical comedy (Operettas & Comic Opera)
M. Mysteriosos
N. New Year
Nocturne
Northern music
Norwegian music
Novelty
O. One steps
Operatic music
Opera selections
Oriental music
Overtures
Medley overtures
P. Persian music
Piano solos
Piano solos with orch. accomp.
Piano duets
Piano duets with orch. accomp.
Picture tunes
Polish
Polkas
Processional marches
Religious
Reveries (Meditations, Barcodes & Romance)
Rhapsodies (Fantasias, Paraphrases)
Rube (Reels, Jigs, Hornpipes, Quadrilles & Lancers)
Rumbas
Russian music
S. Saxaphone solos with orch. accomp.
Schottisches
Scotch music
Seasons (Spring, summer, fall & winter)
Serenades (Berceuses, Idyll)
Slavonic music
Classical song orchestrations
Popular song orchestrations
South American music
Southern music
Spanish music
Sports
Standard marches
Stein songs (Toasts)
11
String ensemble
String quartets
String trios (Violin, Piano & Cello)
Suites
Swedish music
Swiss music
Symphonies (Sonatas)
T. Tangos
Themes
Trombone solos, with orch. accomp.
Trumpet solos with orch. accomp.
Trumpet duets with orch. accomp.
Turkish music
Two steps
U.
V. Valse concert
Viola solos, duets, etc., with piano accomp.
Violin solos with orch. accomp.
Violin solos with piano accomp.
Violin duets with orch. accomp.
Vocal
1. Vocal ensemble or chorus
2. Male quartets
3. Male trios
4. Mixed quartets
5. Trios (Sop., bar. & ten.)
6. Six voices (Male Quartet, sop. & alto)
7. Duets (Sop. & bar.)
8. Duets (Sop. & ten.)
9. Women’s trios
W. Waltzes (Dance)
Water (Nautical, Nature)
Wedding music
Wood wind music
Y.
Z.
8. Information contained in the master index should be made available to all broadcasters.
A. The exact form in which the information should be made available should be decided after
the master index is completed. It may be advisable to duplicate the three sets of cards
or only one set. It may be found advisable to publish the breakdown described in
Paragraph 7 in loose-leaf catalog form. Practical considerations of administration
and use should govern decision in this step.
9. The master index should be constantly supplemented by cataloging:
A. Additional compositions not included in the minimum library.
B. Currently published compositions.
10. All or a part of this additional information should be supplied to broadcasters.
12
11. The organization should equip itself with adequate facilities to supply a copyright checking
service to members.
A. Obviously, it would be impractical to include in broadcasters’ indices the hundreds of
thousands of cards listing compositions only occasionally used; but the organization
should, as rapidly as possible, build up complete information on the musical literature
of the world in order that its checking service will be both complete and accurate.
12. The organization should compile a standard library of music for broadcast stations.
A. Compositions included in the standard library should be available to broadcasters for
their unlimited use without the payment of performing fees.
(a) Such compositions should be taken from the public domain of music by care¬
ful selection.
B. Compositions in the standard library should be arranged or otherwise adapted to sound
or visual broadcasting presentation.
(a) Copies of such arrangements or adaptations should be made available to broad¬
casters.
C. Cards for such compositions should be inserted in the master index and duplicates sent
to all broadcasters just as in the case of all other compositions. These compositions,
however, should be listed on cards of different color in order that they may be readily
distinguished from compositions the performance of which requires payment of fees to
an individual or licensing group.
D. Compositions in the standard library should be electrically transcribed as rapidly as
possible through arrangement between the organization and some transcription firm or
firms and pressings of such compositions should be made available to all broadcasters.
13. The rights to perform compositions included in the standard library should be unlimited with
respect to all broadcasters.
A. Disposition of rights, if any, other than rights necessary and proper to the use and mainte¬
nance of the library may be disposed of by private contract but no such contract shall
in any manner impair the usefulness of the library.
14. The organization should warrant its rights in all compositions included in the standard library
and should defend against all claims for infringement and agree to save broadcasters harmless
in the event of recovery of judgment for infringement.
15. In addition to its other services, the organization may act as agent for broadcasters in the
negotiations for radio rendition or performance rights of any rhapsody, concerto, symphony,
or like work, or any opera, operetta, musical comedy, play or similar production which rendition
or performance involves the so-called grand rights. Also it may act as agent for any broadcaster
with respect to rentals necessary for such renditions or performances.
16. Under proper rules and regulations, the organization may classify broadcasters in accordance
with their relative economic status and may provide classifications of musical works, under
which rules and regulations copyright owners may list their compositions and set over against
each a price per performance for each class of members.
A. With respect to compositions listed on a performance basis the organization shall have the
power to collect from the broadcaster and pay over to the copyright owner all moneys
due from such broadcaster and due to such copyright owner.
13
B. Broadcasters shall send periodic statements of performances to the organization, upon
request, certifying that the information contained therein is taken from the official
program log. Should dispute arise broadcasters may be required to submit their com¬
plete official logs.
C. Compositions on a performance basis should be listed along with the cost per perform¬
ance or other cost factor on cards in the master library and duplicates sent to all
broadcasters. It may be found advisable to identify such per performances composi¬
tions through the use of cards of a different color.
17. The organization should suggest library methods, agreement forms, studio and remote control
practices, and supply other information of a detailed nature which will enable broadcasters to
minimize library expenses; facilitate their program operations; and avoid use of unowned or
unlicensed copyrighted material.
14
Part III
Organization
In acting on my Report dated February 3, 1936, you approved the following recommendation:
“13. That the need for the immediate establishment of a corporation having substantially
the same purposes and powers as the Radio Program Foundation be recognized and that the
Managing Director be instructed to prepare and submit to the Board at an early date a de¬
tailed plan and program for the establishment of such a corporation and its successful opera¬
tion.”
Further study and investigation has convinced me that the primary purposes and objectives outlined in
this report can be accomplished successfully by a properly manned “Bureau of Copyrights” in the
NAB. If such a Bureau is created no legal formalities will be required. The formation of a new cor¬
poration, of course, will require compliance with certain legal formalities. The important factor here
is the achievement of results and I am now of the opinion that in the beginning, at least, the NAB,
without the aid of a separate corporation, can accomplish much in respect of the three principal parts
of the plan, namely:
1. Make available to broadcasters a complete and accurate catalog or index of active musical
compositions.
2. Creation of a standard library of musical compositions taken, for the most part, from the public
domain of music.
3. Establishment of a system for making available to the industry copyrighted musical works on a
measured service basis.
Already substantial progress has been made with respect to (1) above. Mr. E. C. Mills, General
Manager of the ASCAP, has extended to the NAB, under authority given him by the ASCAP Board of
Directors, an invitation to copy their records concerning musical compositions. This invitation has been
accepted. Conferences have been held and correspondence has been exchanged concerning minimum
data required and the working out of a plan to compile complete information with respect to the
musical selections used one or more times on the Network key stations during the years 1934 and 1935.
This will make available to broadcasters an index of approximately 25,000 active musical selections
and furnish the most important groundwork for the establishment of a per piece or measured service
system. A continuing service will be supplied by the NAB which will keep such records up-to-date and
provide for a gradual enlargement of the index. The ASCAP invitation imposes two conditions:
(1) The NAB will be required to make copies of such index available to any broadcaster whether or
not he is a member, and (2) it is to be definitely understood that under no circumstance does the
ASCAP warrant or guarantee to others that the information contained in the index is correct.
Also, investigation and study made since the last Board meeting leads to the conclusion that the
NAB can provide a standard library (No. 2, above) of musical compositions taken, for the most part,
from the public domain. There is music of excellent quality available. It can be supplied through
the medium of electrical transcriptions of high quality and at a cost which any station can afford to pay.
Moreover, should experience resulting from practical operation show the need for a separate cor¬
poration, the “Bureau of Copyrights” could be incorporated without impeding further progress.
15
Part IV
Personnel
Adequate provision should be made for the employment of competent personnel to carry the plan
into successful operation.
Obviously there should be employed as Director of the Bureau of Copyrights a man of high
academic training in music who has had extensive practical experience in the field of copyrights and
their use in building radio programs.
Part V
Finances
It must be recognized at the outset that the plan can succeed only if it is adequately financed.
In the beginning it will be necessary only to provide funds for the employment of a Director of
the Bureau of Copyrights and his staff; and necessary office space and equipment. But prosecution
of the entire plan will require substantial expenditures and ways and means should be provided so
that the NAB’s income will be sufficient to meet them. This is a matter that must be passed upon by
the membership.
Part VI
Conclusion
The plan herein submitted is far from perfect. Undoubtedly it will necessitate extensive revision
and amplification in actual administration; but it is proposed as a framework upon which I believe a
constructive solution to the industry’s copyright problem can be found. It is my opinion that if adopted
it will receive wholehearted cooperation from both member and nonmember stations. I am confident
that with adequate financial support the plan will succeed. While progress will be slow, I believe that
it will materially improve the quality of radio programs. I believe it will result in a new and more
equitable formula for the payment for use of copyrighted music whereby authors and composers may
be rewarded generously for their creative ability. And I believe that authors and composers ultimately
will be encouraged to write music primarily for radio presentation.
I urge its adoption.
Respectfully submitted,
JAMES W. BALDWIN,
Managing Director.
Washington, D. C.
April 27, 1936.
16
The National Association of Broadcasters
NATIONAL PRESS BUILDING . * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
* * * * * Vol.4--No.21
MAY 7, 1936
NAB REPORTS
Capyright. 1936. The National Association of Broadcasters
IN THIS ISSUE
Page
Dr. Aiken Retained by NAB . 1307
Court Upholds FCC . 1307
Securities Act Registrations . 1307
Notes for the Sales Staff . 1307
FCC Amends Rule 106.18 . 1307
New Mexican Stations Planned . 1308
Recommends Denial of Richmond Applications . 1308
Broadcast Advertising in March . 1308
Federal Trade Commission Action . 1311
FTC Dismisses Case . 1312
Federal Communications Commission Action . 1312
DR. AIKEN RETAINED BY NAB
James W. Baldwin, Managing Director, has announced the
retention of Dr. Charles B. Aiken to represent NAB at the hear¬
ings called by the Federal Communications Commission for June IS.
Dr. Aiken was born in New Orleans in 1902. He has a B.S.
degree from Tulane University and an M.S., MA., and Ph.D. from
Harvard. During the summers of 1918-1921 he was a radio marine
operator and was assistant operator of Station WAAB, Tulane
University, 1922-1923.
In 1926-1928 Dr. Aiken was engaged in the development of
apparatus for geophysical exploration and in field work with Mason,
Slichter and Hay at Madison, Wis. He was a member of the
technical staff of the Bell Telephone Laboratories in 1928-1935 .
From 1930-1935 he was supervisor in charge of broadcast receiver
development and was also engaged in work on aircraft communi¬
cation, field strength measuring, centralized radio systems, and
common frequency broadcasting. He is assistant professor of
electrical engineering, in charge of communication, at Purdue
University this year, and has obtained a leave of absence to accept
the NAB assignment.
Dr. Aiken is the author of papers dealing with amplifiers, de¬
tectors, frequency measurement, shared channel broadcasting, syn¬
chronized broadcasting, band width and receiver noise, and radio
compass for aircraft. He is a member of the Institute of Radio
Engineers, American Institute of Electrical Engineers, Phi Beta
Kappa, and Sigma Xi.
COURT UPHOLDS FCC
Chief Justice Martin of the United States Court of Appeals of
the District of Columbia in a decision handed down this week
upheld the Federal Communications Commission in the so-called
Head of the Lakes Broadcasting Company case.
In January, 1934, Station KGFK, Moorehead, Minn., filed an
application with the Commission to move to Duluth, Minn. The
station operated on 1500 kilocycles, 100 watts power, and un¬
limited time. At the same time the City of Moorehead filed a
protest with the Commission on the ground that public interest
required that the station remain there. Also, Station WEBC,
Superior, Wis., filed a protest on the ground that it would be
adversely affected by removal of the station. The case was heard
before an Examiner who recommended that KGFK be granted
permission to move, which was later approved by the Commission.
The Court of Appeals, after reviewing the facts, states “that this
decision (of the Commission) is sustained by substantial evidence
and that it is not arbitrary or capricious and accordingly it is
hereby affirmed.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
American Box Board Company, Grand Rapids, Mich. (2-2123,
Form A-2)
NOTES FOR THE SALES STAFF
Broadcast advertising in March increased 12.6%
over the level of the corresponding month of 1935.
Radio continues to show the most rapid increase of
any major medium over the corresponding periods
of previous years. (See Comparison with Other
Media, page 1308.)
Regional network and national non-network busi¬
ness continue to show the greatest gains: in adver¬
tising volume. (See Total Broadcast Advertising,
page 1308.)
Electrical transcription and live talent business
were the only forms of rendition in the national
field to gain as compared with last March. Tran¬
scriptions alone increased in the local field. (See
Non-network Advertising by Type of Rendition,
page 1309.)
Automotive and food advertising throughout all
portions of the medium, national non-network and
regional network drug advertising and local finan¬
cial advertising were among the fields showing im¬
portant gains during the month. (See Comparison
with 1935, page 1309.)
American Box Board Company, Grand Rapids, Mich. (2-2124,
Form A-2)
Truax-Traer Coal Company, Chicago, Ill. (2-2125, Form A-2)
T. O. Heinrich et al., Richmond, Va. (2-2126, Form D-l)
Bayuk Cigars, Inc., Philadelphia, Pa. (2-2127, Form A-2)
Motherlode Development Corporation, Atlanta, Ga. (2-2128,
Form A-l)
Lockheed Aircraft Corporation, Burbank, Calif. (2-2129, Form
A-l)
Bliss & Laughlin, Inc., Harvey, Ill. (2-2130, Form A-2)
Seminole Provident Trust, Tulsa, Okla. (2-2131, Form A-l)
A-B Stoves, Inc., Battle Creek, Mich. (2-2132, Form A-l)
FCC AMENDS RULE 106.18
The Federal Communications Commission has announced the
adoption of the following revision of its Rule 106.18:
Rule 106.18. Subpenas requiring the attendance and testimony
of witnesses, and subpenas requiring the production of any books,
papers, schedules of charges, contracts, agreements, and documents
relating to any matter under investigation or hearing may be signed
and issued as follows:
(1) Hearings before the Commission en banc:
By any Commissioner.
(2) Hearings before a Division:
By a member of the Division.
(3) Hearings before a Director:
(a) By a member of the Division which authorized the
hearing.
(b) When a Director of any Division has been designated
to hear testimony in any case such Director may
sign and issue subpenas in that case.
(4) Hearings before an Examiner:
(a) By a member of the Division which authorized the
hearing.
(b) When an examiner has been designated to hear a case,
he may sign and issue subpenas in that case.
(c) By the Chief Examiner or the Assistant Chief Ex¬
aminer.
1307
No subpena shall be signed or issued in any event without rec¬
ommendation thereon in advance by the Law Department ; Pro¬
vided, however, that if a hearing is held in the field and no
representative of the Law Department is in attendance, examina¬
tion and recommendation by the Law Department in advance shall
not be required.
NEW MEXICAN STATIONS PLANNED
According to the monthly Bulletin of the U. I. R., the construc¬
tion of the following stations in Mexico is planned for 1936:
Matamorow
XEQ
Kilowatts
5
Kilocycles
1010
Villa Acuna
XER
150
630
Atzcapotzalco
XEMG
0,007
1060
Ensenda
XEAN
0,2
1000
Tijuana
XEPO
0,25
1060
San Luis Polosi
XEFH
0,25
1250
Mexico
XEBZ
0,1
820
Mexico
XENC
0,05
810
RECOMMENDS DENIAL OF RICHMOND
APPLICATIONS
the only ones to show gains in the local field as compared
to March of last year.
The most important gains in the national network field,
as compared to March 1935, occurred in the automotive,
accessory and cosmetic fields. Drug advertising fell off
to a marked degree as did confectionery and household
equipment volume.
Gains were fairly general throughout the regional net¬
work field, with drug, food, confectionery, household
equipment and soap and kitchen supply volume showing
the most marked increases.
Automotive, accessory, drug, food, beverage and house¬
hold equipment advertising experienced the most impor¬
tant increases as compared to March of the previous year
in the case of national non-network advertising. Trends
were confused in local broadcast advertising. Principal
gains included automotive, food and financial advertising.
Retail broadcast advertising increased 3.5% over the
March 1935 level.
Total Broadcast Advertising
Total broadcast advertising over stations and networks during
the month under review is set forth in Table I.
Broadcasting Station WMBG, Richmond, Va., requested au¬
thority of the Federal Communications Commission to change its
frequency from 1210 to 1350 kilocycles, increase its power from
100 watts night and 250 watts LS, to 500 watts, hours of operation
unlimited, and to change its transmitter site.
At the same time the Century Broadcasting Company, Inc.,
applied to the Commission for authority to establish a new station
at Richmond, to use 1470 kilocycles, 100 watts power, and daytime
operation only.
Examiner John P. Bramhall, in Report No. 1-222, recommended
that both of the applications be denied. In connection with the
application of WMBG the Examiner found that there are some
pending applications which involve the question of interference.
Also the state and zone are overquota and that area is already
being sufficiently served by radio.
The Examiner found in connection with the Century Company
application that the need for additional daytime service was not
shown in the area proposed to be served and the granting of the
application would not be in the public interest.
BROADCAST ADVERTISING IN MARCH
Developments of the Month
Broadcast advertising in March experienced the usual
seasonal up-swing. Gross time sales of the medium
totaled $9,332,368 and were 14.6% above the February
level. Radio broadcast advertising continued to show in¬
creases over the corresponding month of the preceding
year and was 12.6% greater than in March 1935.
Regional network and national non-network advertising
continued to show the greatest gains as compared to the
preceding year. National network increases continued
to taper off gradually, while local broadcast advertising
showed confused tendencies. March volume in the latter
field declined below the 1935 level.
Other than farm papers, radio broadcast advertising
experienced the greatest gains during the month as com¬
pared to the corresponding period of the previous year.
National farm paper volume increased 39.6% over the
March 1935 level.
Increases in non-network revenue were fairly even
throughout the entire medium as compared to March of
last year. Regional station volume showed the most
pronounced increases as compared to the previous month.
Non-network advertising in the South and Middle West¬
ern States continued to show the greatest gains over the
previous year’s volume.
While announcement volume showed the greatest in¬
crease as compared to February, electrical transcription
and live talent business were the only forms of rendition
to show gains over March 1935. In the national non¬
network field, announcement volume experienced the
most important increase over the preceding year’s level,
though it was closely seconded by both transcriptions
and live talent programs. Transcription programs were
TABLE I
TOTAL BROADCAST ADVERTISING
1936 Gross Time Sales
Cumulative
Class of Business
February
March
Jan.-Mar.
National networks .
. . $4,785,804
$5,400,252
$14,926,616
Regional networks .
92,432
112,546
300,318
5,670,550
National non-network. . . .
1,946,650
2,097,400
Local .
1,316,950
1,722,170
4,611,880
Total .
. . $8,141,836
$9,332,368
$25,509,364
Total broadcast advertising volume increased 14.6% as com¬
pared to the preceding month. National network advertising rose
12.8% and regional network volume 21.8%. National non-network
volume gained 7.7% as compared to February and local broadcast
advertising rose 30.8%.
Compared to March 1935, radio advertising as a whole gained
12.6%. Principal increases occurred in the regional network and
national non-network fields, the respective volume of which rose
45.5% and 42.6%. Local broadcast advertising declined 5.2% as
compared to the corresponding month of last year.
Comparison with Other Media
Advertising volume placed in national media during March is
found in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting .
National magazines1 .
National farm papers 1 . . . .
Newspapers 2 .
1936 Gross Time and Space Sales
Cumulative
February March Jan.Mar.
$8,141,836
11,240,096
657,717
36,511,000
$9,332,368
13,481,404
746,502
48,242,000
$25,509,364
32,977,625
1,826,218
124,033,000
Total
$56,550,649
$71,802,274 $184,346,207
3 Publishers’ Information Bureau.
2 Estimated.
Newspaper advertising showed the greatest increase in volume
of any medium as compared to the preceding month, rising 32.1%.
National magazine advertising increased 19.9%, while farm paper
volume rose 13.5%.
The greatest increase as compared to March of last year occurred
in the national farm paper field. Advertising revenues for this
type of medium rose 39.6% as compared to March 1935. National
magazine volume gained 9.2% and newspaper volume 5.8%.
1308
Non-network Advertising
Non-network advertising as a whole rose 17.0% as compared to
February of the current year and 16.2% over the level of March
of the preceding year.
Regional stations experienced the greatest rise in non-network
volume as compared to the preceding month. Non-network ad¬
vertising for this class of transmitter rose 26.3%. Clear channel
and high-powered regional station volume increased 13.2% over
the preceding month, while local station volume rose 7.3%.
Gains were fairly general as compared to March of the previous
year and were as follows: Clear channel and high-powered regional
stations 15.9%, regional stations 15.7%, local stations 18.7%.
Broadcast advertising by power of station is found in Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1936 Gross Time Sales
Cumulative
Power of Station February March Jan.-Mar.
Over 1,000 watts . $1,580,270 $1,788,350 $4,858,520
250-1,000 watts . 1,185,180 1,496,880 3,903,180
100 watts . 498,150 534,340 1,520,730
Total . $3,263,600 $3,819,570 $10,282,430
As compared to the previous month, non-network advertising
rose most markedly in the New England-Middle Atlantic Area.
Non-network revenues gained 34.9% in this district. Other gains
were as follows: South Atlantic-South Central district, 12.0%;
North Central States, 11.4%; Mountain and Pacific Area, 15.6%.
Non-network gains continued to be most pronounced in the
South and Mid-Western portions of the country as compared to
the preceding year. Non-network advertising rose 47.0% above the
March 1935 level in the South Atlantic-South Central Area and
21.1% in the North Central Area. Mountain and Pacific State
volume rose 5.8%, while New England-Middle Atlantic State non¬
network business declined 0.5%.
Non-network advertising by geographical areas is set forth in
Table IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1936 Gross Time Sales
Geographical District
February
March
Cumulative
Jan.-Mar.
New England-Middle Atlantic
Area .
$659,400
$889,700
$2,235,450
South Atlantic -South Central
Area .
676,600
757,660
2,065,670
North Central Area .
1,324,000
1,474,330
4,084,730
Pacific and Mountain Area . .
603,600
697,880
1,896,580
Total .
$3,263,600
$3,819,570
$10,282,430
Non-network Volume by Type of Rendition
Gains were general with regard to all types of rendition as com¬
pared to February. Announcement volume rose 25.8%, record
26.0%, live talent business 13.6%, and electrical transcriptions
16.3%.
In the national field, transcription volume rose 13.7% above the
February level, while announcements increased 21.9%. Live talent
business remained comparatively unchanged, rising 0.5%.
Local transcription volume rose 31.7% above the February level,
while live talent business gained 33.2%. Records increased 17.3%
and announcements 28.1%.
Transcription and live talent business were the only types of
rendition to increase in volume as compared to March 1935. The
former rose 50.9% and the latter 19.0%. Record volume declined
6.8% and announcements 9.6%.
In the national field, all forms of rendition rose materially as
compared to March of the preceding year. Announcement volume
increased 72.3%, transcriptions 56.5%, and live talent programs
47.1%. In the local field, transcription volume alone experienced
a gain, rising 28.1%. Announcements declined 17.0% below the
March 1935 level, record volume dropped 12.1%, and live talent
business 0.8%.
National non-network and local broadcast volume by type of
rendition is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
1936 Gross Time Sales
National Non-network Local Total Cumulative
Type of Rendition
February
March
February
March
February
March
Jan.-Mar.
Electrical transcriptions ....
$694,775
$789,680
$118,995
$156,660
$813,770
$946,340
$2,549,570
Live talent programs .
. . . . 994,530
989,380
715,770
953,490
1,710,300
1,942,870
5,280,140
Records .
2,670
7,980
53,430
62,700
56,100
70,680
183,970
Announcements .
254,675
310,360
428,755
549,320
683,430
859,680
2,268,750
Total .
. ... $1,946,650
$2,097,400
$1,316,950
$1,722,170
$3,263,600
$3,819,570
$10,282,430
Sponsor Trends in March
March broadcast advertising experienced the usual seasonal up¬
swing. Principal gains in the national network field included the
following: automotive, cosmetics, food and household equipment.
The most important decline was one of 11.4% in drug and pharma¬
ceutical volume. Accessory, beverage, soap and kitchen supply and
tobacco advertising showed the greatest gains as compared to Feb¬
ruary in the regional network field. Increases were fairly general
with regard to national non-network advertising, with household
equipment and soap and kitchen supply volume leading the field.
Local automotive, accessory, clothing, beverage and household
equipment volume experienced material increases during the month.
Comparison with March 1935
Principal increases in the national network field as compared to
the corresponding month of last year were as follows: automotive
34.3%, accessory 32.0%, cosmetics 24.1%, tobacco 18.3%. Drug
and pharmaceutical advertising declined 38.9%, due principally to
the application of the new network policies regarding this form of
radio sponsorship. Other declines of importance were as follows:
clothing 43.5%, confectionery 37.5%, and household equipment
55.3%.
Principal gains in the regional network field included an approxi¬
mate twelve-fold increase in drug and pharmaceutical volume, a rise
of 44.2% in food advertising, a marked increase in confectionery,
household equipment and soap and kitchen supply business. Sev¬
eral declines of minor importance occurred in the regional field.
Gains were quite general throughout the national non-network
field. Principal among them were the following: automotive
101.8%, accessory 72.2%, drug and pharmaceuticals 26.3%, food
stuffs 58.5%, beverages 37.6%, household equipment 44.4%, and
tobacco 37.9%. The most important decline was one of 23.0% in
confectionery volume.
Local broadcast advertising trends were highly confused. The
most important gains were one of 56.6% in the automotive field
and a rise of 56.7% in food volume. Clothing advertising declined
1.7%, while household equipment volume dropped 5.3%. Depart¬
ment and general store business decreased 11.6% as compared to
March, of last year. Broadcast advertising volume during March
by national and local sponsoring groups is found in Table VI.
1309
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(March, 1936)
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oil .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
(7) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings .
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
Details as to trends in the various fields of sponsorship are as
follows:
la. Amusements. National non-network volume 138.6% above
February. Local up 38.5%. Compared to March 1935, national
non-network up ninefold and local down 30.3%.
1. Automotive. Gains compared to February as follows: Na¬
tional network 15.8%, national non-network 0.4%, local 38.5%.
Increases as against March 1935 as follows: National network
34.3%, national non-network 101.8%, local 56.6%.
2. Gasoline and accessories. Increases over February as
follows: National network 8.9%, regional network 31.4%, national
non-network 16.2%, local 39.8%. National network 32.0% above
the March 1935 level. Regional network volume up 35.0% and
national non-network 72.2%. Local down 3.7%.
3. Clothing. Compared to February, gains as follows: National
network 25.8%, national non-network 10.1%, local 62.0%. Re¬
gional network down 43.5%. Declines from March 1935 level as
follows: National network 43.5%, regional network 86.1%, and
local 1.7%. National non-network up 81.3%.
4. Drugs and pharmaceuticals. National network volume
11.4% under February. Other gains as follows: Regional network
5.8%, national non-network 10.5%, local 0.8%. Regional network
volume twelve times that of last March and national non-network
up 26.3%. National network volume down 38.9% and local 36.5%.
5. Toilet goods. National network volume 19.0% ahead of
February. Regional network down 32.7%. National non-network
up 0.8% and local 17.8%. National network advertising 24.1%
above last March and national non-network up 24.5%. Regional
network volume down 71.2% and local 81.1%.
6. Foodstuffs. Gains over February as follows: National net¬
work 24.3%, regional network 3.9%, national non-network 18.7%,
local 18.8%. Gains as compared to March of preceding year as
follows: National network 6.0%, regional network 44.2%, national
non-network 58.5%, local 56.7%.
7. Beverages. National network 11.1% below February and'
national non-network down 40.7%. Regional network up 40.9%
and local 32.4%. Gains over March 1935 as follows: National net¬
work 16.6%, national non-network 37.6%, local 13.9%.
8. Confectionery. National network 13.3% above February.
Regional network up 29.2% and national non-network 24.4%.
Local down 3.3%. Declines as against March of preceding year as
follows: National network 37.5%, national non-network 23.0%,
local 60.9%. Regional network up 100.4%.
9. Household equipment. Gains over February as follows:
National network 41.8%, regional network 11.1%, national non¬
network 22.7%, local 55.1%. National network 55.3% below pre¬
Gross Time Sales
National
Networks
Regional
Networks
National
Non-network
Local
Total
—
—
$14,100
$31,000
$45,100
$428,475
—
233,620
115,470
777,565
447,904
$11,867
155,000
69,320
684,091
42,878
348
44,290
248,500
336,016
444,822
1,161,925
14,265
499,800
65,400
1,024,287
2,260
120,250
21,920
1,306,355
1,047,245
30,990
433,490
227,970
1,739,695
332,042
5,953
44,500
82,290
464,785
120,640
5,893
56,300
4,080
186,913
51,948
5,017
79,020
188,900
324,885
320,492
9,942
535
60,000
11,880
402,314
52,885
27,620
87,730
168,770
121,340
—
11,300
15,940
148,580
—
728
13,180
129,820
143,728
380,415
9,240
43,660
4,500
437,815
447,241
15,508
261,270
417,450
1,141,469
$5,400,252
$112,546
$2,097,400
$1,722,170
$9,332,368
vious March and local down 5.3%. Regional network up 241.8%
and national non-network 44.4%.
10. Soap and kitchen supplies. Gains over February as
follows: National network 19.8%, regional network 89.2%, national
non-network 65.8%, local 362.3%. Increases as compared to last
March as follows: National network 14.0%, regional network
138.2%, national non-network 29.6%, local 149.6%.
11. Insurance and financial. National network 8.9% above
February and local uf 43.9%. Regional network down 26.8% and
national network 30.3%. Increases over preceding March as fol¬
lows: National network 26.3%, regional network 30.5%, national
non-network 102.4%, local 29.5%.
12. Radio. National network 25.3% over February and local
up 47.6%. National non-network down 31.1%. Increases as com¬
pared to corresponding month of previous year as follows: National
network 27.7%, national non-network 296.5%, local 18.8%.
13. Department and general stores. National non-network
volume 31.0% below February. Local up 32.5%. Compared to
March 1935, national non-network up 90.2% and local down 11.6%.
Total down 6.5%.
14. Tobacco products. National network volume 12.3% over
February. Regional network up 51.7%, national non-network
23.6%. Local down 27.4%. Gains as against last March as follows:
National network 18.3%, regional network 12.5%, national non¬
network 37.9%. Local down 37.5%.
15. Miscellaneous. Gains compared to February as follows:
National network 17.2%, regional network 44.5%, local 18.7%.
National non-network down 5.4%. National network volume
120.2% ahead of March of last year. National non-network up
23.5%. Regional network down 3.6% and local 17.9%.
Retail Broadcast Advertising
Total retail broadcast advertising increased 34.2% as compared
to the preceding month. Principal gains occurred in the automotive,
filling station, retail clothing and house furnishing fields.
Radio advertising by retail establishments exceeded the March
1935 level by 3.5%. Gains were as follows: Automotive 70.7%,
clothing 6.0%, grocery and delicatessen stores 75.4%, restaurants
25.7%, radio dealers 17.3%. Declines as compared to the preceding
March were as follows: Filling stations and accessory stores 39.3%,
drug stores 10.7%, beauty parlors 36.1%, beverage retailers 67.4%,
confectionery stores 49.2%, household equipment dealers 17.1%,
furniture stores 2.9%, hardware retailers 29.7%, department stores
6.5%, and miscellaneous establishments 6.2%. Broadcast adver¬
tising by retail establishments will be found in Table VII.
1310
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business
February
March
Automobiles and accessories:
Automobile agencies and used car dealers
$101,170
$127,110
Gasoline stations, garages, etc .
22,995
45,100
Clothing and apparel shops .
167,900
264,000
Drugs and toilet goods:
Drug stores .
21,020
14,020
Beauty parlors .
5,280
7,210
Food products:
Grocery stores, meat markets, etc .
62,920
81,370
Restaurants and eating places .
23,280
20,370
Beverage retailers .
5,320
1,100
Confectionery stores .
1,700
1,320
Household goods:
Household equipment dealers .
31,710
44,960
Furniture stores .
70,810
106,060
Hardware stores .
6,750
13,800
Radio retailers .
7,580
15,900
Department and general stores .
117,095
143,728
Tobacco shops .
625
125
Miscellaneous .
78,920
86,870
Total .
$725,075
$973,043
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2779. Charging unfair disparagement of competitors’ prod¬
ucts in violation of the Federal Trade Commission Act, a complaint
has been issued against Sterling Products Corporation, 118-120
East 25th St., New York City, trading as Paul Hartmann
Agency, and engaged in selling surgical instruments and supplies
at wholesale and retail.
The respondent company is alleged to have made assertions in
catalogues and circulars to the effect that ethyl chloride tubes,
ethyl chloride, distilled water and glass ampules sold by competi¬
tors were either “German-made” goods or were not “100 per cent
American products,” and originated, in whole or in part, in Ger¬
many. These representations, according to the complaint, were
not true, as many of these products offered for sale on the American
market were wholly American-made goods.
Nos. 2783-2784. Under complaints issued, the Smoked Prod¬
ucts Co. and The Smoked Salt Co., Inc., both of Cincinnati,
and Pennsylvania Salt Manufacturing Co. and General Labo¬
ratories, Inc., both of Philadelphia, are charged with unfair
competition in the use of the term “smoked salt” in advertising
their salt products and in describing the effects of their process.
The different respondents are alleged to have advertised their
“Old Hickory Smoked Salt” by phrases such as “Curing with Old
Hickory Smoked Salt gives that same delicious flavor which has
made Virginia hams famous throughout the world,” and “The
curing salt that puts actual hickory smoke into your meats.” The
respondents are said to have advertised that their salt is exposed
to smoke “just like meat is exposed to smoke in old-fashioned
smoke houses,” when, according to the complaint, this is not true.
No. 2785. The American Lawn Mower Corporation, trading
as Richmond School Furniture Co., 18th St., Muncie, Lid., is
named respondent in a complaint alleging unfair methods of com¬
petition in the sale of “Litho Plate” blackboards to the toy trade,
and to a limited extent to schools.
The company allegedly advertises that its blackboards are un¬
breakable, are “better than slate,” and that their surfaces are
“slated” and not painted. The complaint charges that the re¬
spondent’s blackboards are breakable, are not superior to slate, and
the surfaces are painted.
According to the complaint, the writing surface is twenty-seven
thousandths of an inch in thickness and contains such a minute
quantity of slate flour that use of the term “slated surface” in
advertising misleads and deceives purchasers.
No. 2787. Unfair methods of competition in the sale of furs
and fur garments are alleged in a complaint issued against Bernard
Licht, trading as Licht’s Fur Factory, 102 West 29th St., New
York City.
Licht is alleged to represent in radio broadcasts and advertising
matter that he is the owner of a factory and the manufacturer of
the fur garments he sells, that he carries in stock thousands of such
garments, and that the purchasers of his products avoid the middle¬
man’s profit, thereby realizing savings of as much as 50 per cent,
when, according to the complaint, such assertions are not true.
As to the respondent’s purported representations that he repairs
without charge garments bought from him and provides free
storage for the same, the complaint alleges that the amount of
“free” repairs furnished is very limited, that he charges for mate¬
rials necessary to make repairs, and that he does not give free
storage, but charges customers for insurance against fire, burglary
and theft on furs and fur garments stored by such customers.
No. 2788. Duro-Test Corporation, 583 Broadway, New York
City, is named respondent in a complaint alleging unfair competi¬
tion in the sale of incandescent lamps.
The respondent corporation, through its canvassers and in ad¬
vertising matter, allegedly misrepresents that its lamps actually
possess the electro-motive power and force indicated by the number
of watts and volts marked thereon; that they are guaranteed to
have a life performance of 2,000 hours, or to give service for a year,
and to test correctly as to rated watts, volts and lumens; and that
they produce more luminosity, consume less current, and are more
economical than the lamps of competitors.
In connection with such alleged misrepresentations, the can¬
vassers, for purposes of comparison, the complaint charges, demon¬
strate lamps of the respondent and those of competitors by operat¬
ing them on a multiple socket, with the result that it is made to
appear to purchasers that the respondent’s lamps, marked falsely
as to the number of watts and volts, use less current and produce
the same amount, or more, of light, and at lower cost of operation
than the lamps of competitors correctly marked with an equal or
greater number of watts and volts.
No. 2789. A complaint has been issued charging The Leader
Novelty Candy Co., Inc., 23 Marcy Ave., Brooklyn, with unfair
methods of competition.
This respondent company is alleged to have made representa¬
tions in trade literature to the effect that it controls and operates
factories and manufactures the candy it sells, when, according to
the complaint, these are not the facts.
These representations, it is alleged, have a tendency to cause
customers to believe that the respondent company is a manufacturer
and that by dealing with it they eliminate the profits of middlemen
and obtain other advantages not available in buying from a selling
agency or middleman.
No. 2790. False representations in the sale of specially built
shoes designed for ill-formed feet are alleged in a complaint against
Dr. H. B. Norton Shoe Co., Inc., trading as The Foot Health
Institute, 1619 Chestnut St., Philadelphia. The complaint, charg¬
ing violation of Section 5 of the Federal Trade Commission Act, also
names as respondents Dr. H. B. Norton and Benjamin Weinstein,
officers and owners of the controlling stock in the corporation.
The respondents are said to use the radio for the major portion
of their advertising, and in broadcasts allegedly represent, among
other things, that 90 per cent of all ordinary foot troubles are
caused by ill-fitting shoes and can be successfully treated or cured
by use of the respondents’ shoes ; that the respondents’ shoes cure
or relieve sufferers from arthritis, neuritis, lumbago or rheumatism
to such an extent as to enable them to walk in absolute comfort ;
that 87 different bodily ailments result from feet that are not in
good health, and that curvature of the spine and twisted pelvis can
be caused by bad feet improperly fitted with shoes. According to
the complaint, such assertions are grossly exaggerated and untrue.
No. 2791. Use of false and misleading advertising on the part
of Remsen Corporation, 70 Pine St., New York City, in the sale
of “Aspirin + Plus,” is the basis of a complaint charging that
corporation with unfair methods of competition in violation of
Section 5 of the Federal Trade Commission Act.
The complaint alleges that the respondent corporation, in radio
broadcasts and in other ways, represents that its product is a newer
form of aspirin; that it combines aspirin with other ingredients
which doctors say are necessary for quick, safe action; that it is
the exact prescription many leading physicians always give when
they prescribe aspirin, and that it is the safest and quickest way
to relieve pain, and gives better results and more lasting relief.
No. 2792. Charging unfair competition in the sale of a book
entitled “How to be Always Well,” used in promoting the sale
of health foods made in Canada and sold there and in the United
States, a complaint has been issued against Dr. Robert G. Jackson,
1311
trading under the name Jackson Publishing Co., with offices in
Buffalo, N. 1.
In advertisements, the respondent is alleged to have represented
that the book offers the key to perfect health, “years in which you
can have the energy and vitality of a 30-year-old”; immunity from
sickness and disease, even such minor ailments as colds; freedom
from “tiredness, eclginess and nerves,” and a new way to live, a
way that will banish sickness and disease and add many active
years to life.
These representations are alleged to have no foundation in fact,
as, it is charged, there is no known system of diet, exercise or
hygiene, or all three combined, which, if used, offers complete
immunity from sickness and disease, and which will add 25 or more
years to human life.
No. 2793. Premier Peat Moss Corporation, 150 Nassau St.,
New York City, is named respondent in a complaint charging
unfair competition in the sale of imported peat moss. The re¬
spondent company is said to be the principal importer and dis¬
tributor of Swedish peat moss in the United States.
The complaint points out that peat moss consists of vegetable
matter partially decomposed in water, and that because of its great
water-absorbing and moisture-retaining capacities, it is extensively
used as a soil conditioner. A controlling influence in the sale of
competing varieties of this product, according to the complaint,
is the comparative weight, quality, absorbing capacity, and ash and
moisture content.
Representations of the respondent company are alleged to have
deceived purchasers into buying Swedish peat moss in preference
to German peat moss under the erroneous belief that the United
States Department of Agriculture recommends Swedish as prefer¬
able to German peat moss; that the New York State Experiment
Station, Geneva, N. Y., demonstrated that the Swedish product’s
absorbing capacity is 25 per cent higher than that of the German;
that ash content of Swedish moss is 40 per cent less than that of
the German; that State experiment stations in New Haven, Conn.,
and Amherst, Mass., have made tests showing that Swedish peat
moss contains 33 per cent less moisture than the German product,
and affords savings in weight. These and other representations of
like character, made in disparagement of German peat moss, were
not true, according to the complaint.
No. 2794. Charging unfair representations in the sale of hosiery,
a complaint has been issued against Charles W. Cromer, trading
under the name of Shalwin Hosiery Mills, Hagerstown, Md.
Hosiery sold by this respondent company is alleged to have been
marked in a manner tending to deceive buyers into believing that it
was made in large part of silk and was of a quality and price
higher than was actually the case.
In one type of men’s hosiery, the top, heel, toe and sole were
made of cotton and the remaining part of a mixture of rayon and
silk, each thread consisting approximately of 60 per cent rayon and
40 per cent silk, according to the complaint. This article was
alleged to have been marked as “Rayon — Reinforcing — Two threads
pure silk.” Among other markings alleged to have been used to
designate respondent company’s products were: “Pure Thread
Silk — Reinforced with fine rayon — made in U. S. A.”; “Shalwin —
New Style split-foot Silk Hose are made of the finest materials
and will give the wearer complete satisfaction,” and “Pure thread
silk — reinforced with art silk made in U. S. A.”
No. 2796. Charging unfair competition in the sale of lumber
products, a complaint has been issued against Lumber Mills Co.,
11 South LaSalle St., Chicago, alleging misrepresentation of the
company’s business and products.
Selling and distributing sash, windows, doors, molding, and other
wood mill work, the respondent company is charged with using
the word “Mills” in its corporate name on letterheads, order blanks,
and other business literature when it is not itself a manufacturer,
but engages solely in selling and distributing products.
The complaint points out that many wholesale and retail pur¬
chasers of wood products prefer to deal directly with a manufac¬
turer because of closer prices, superior quality, and other advan¬
tages, and that the respondent’s representations of itself as a manu¬
facturer tend to deceive buyers.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations.
No. 2158. W. A. Sheaffer Pen Co., of Fort Madison, Iowa,
under an order to cease and desist, is directed to discontinue a
resale price maintenance policy in violation of the Federal Trade
Commission Act.
In the sale of fountain pens, automatic pencils, ink, desk sets and
kindred articles, the respondent company is ordered to stop enter¬
ing into contracts, agreements or understandings with its dealer
purchasers to the effect that Sheaffer products are not to be adver¬
tised or sold at retail at prices less than those specified or fixed by
the respondent company.
Under the order, the respondent company’s resale price policy is
not to be effected by promises or assurances on the part of pur¬
chasers to the respondent company or by cooperative methods
between the respondent company and its dealers.
No. 2551. Under an order entered, the Chicago Silk Co., 421
South Wells St., Chicago, has been directed to cease and desist
from selling or disposing of hosiery or lingerie, free of charge, or
at varying prices, by lot or chance.
The order requires the respondent company to discontinue sell¬
ing its products by the use of push or punch cards. It also pro¬
hibits the company from supplying, mailing, or shipping to members
of the public push or punch cards so prepared or printed as to
enable such persons, by the use thereof, to sell hosiery or lingerie.
No. 2572. Under an order to cease and desist issued against
Samuel Horowitz, trading as Commercial Silk Co., New York
City, he is directed to discontinue representing, by use of his trade
name or through advertising literature, that he is a manufacturer,
mill operator, or mill owner.
Engaged in the sale and distribution of silk greige goods and
finished silk, the respondent is alleged to have advertised his busi¬
ness as that of a manufacturer.
FTC DISMISSES CASE
No. 2343. The Federal Trade Commission announces it had
vacated and set aside an order to cease and desist, issued January
30, 1936, against Rossett Manufacturing Corporation, 8 Astor
Place, New York City, engaged in the sale of hats and caps. The
order had directed cessation of the representation that the respond¬
ent company was a manufacturer.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, May 12
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Continental Radio Co., Toledo, Ohio. — C. P., 1200 kc.,
100 watts, daytime.
WALR — WALR Broadcasting Corp., Zanesville. Ohio. — C. P. to
move to Toledo, Ohio; 1210 kc., 100 watts, unlimited time.
NEW — Community Broadcasting Co., Toledo, Ohio. — C. P., 1200
kc., 100 watts, daytime.
Wednesday, May 13
WTJS — The Sun Publishing Co., Inc., Jackson, Tenn. — C. P., 920
kc., 250 watts, 500 watts LS, unlimited time. Present as¬
signment: 1310 kc., 100 watts, 250 watts LS, unlimited time.
Thursday, May 14
KGDE — Charles L. Jaren, Fergus Falls, Minn. — Renewal of license,
1200 kc., 100 watts. 250 watts LS, unlimited time.
KRNT — Iowa Broadcasting Co., Des Moines, Iowa. — C. P., 1320
kc., 1 KW, 5 KW LS, unlimited time. Present assignment:
1320 kc., 500 watts, 1 KW LS, unlimited time.
Friday, May 15
NEW — Albert Lea Broadcasting Corp., Albert Lea, Minn. — C. P.,
1200 kc., 100 watts, unlimited time.
NEW — Winona Radio Service, Winona, Minn. — C. P., 1200 kc.,
100 watts, unlimited time.
NEW — Daily News Corporation, St. Paul, Minn. — C. P., 1370 kc.,
100 watts, unlimited time.
NEW — Fred A. Baxter, Superior, Wis. — C. P., 1200 kc., 100 watts,
unlimited time.
NEW — Sioux Falls Broadcast Assn., Inc., Sioux Falls, S. Dak. —
C. P., 1200 kc., 100 watts, unlimited time.
APPLICATIONS GRANTED
WKBB — Sanders Bros. Radio Station, East Dubuque, Ill.— Granted
C. P. to install new equipment.
1312
KGHL — Northwestern Auto Supply Co., Inc., Billings, Mont.-
Granted C. P. to move transmitter approximately 70 feet,
install new equipment, and increase day power from 2J4 KW
to S KW.
WCAO — Monumental Radio Co., Baltimore, Md. — Granted C. P.
to rebuild entirely auxiliary equipment to comply with Rule
132 and move same 60 feet from present site to site of main
transmitter, using 250 watts for auxiliary purposes only.
KFPY — Symons Broadcasting Co., Spokane, Wash. — Granted C. P.
to move transmitter and approve vertical radiator and trans¬
mitter site.
KVOA — Arizona Broadcasting Co., Inc., Tucson, Ariz. — Granted
C. P. to make changes in equipment.
WREC — WREC, Inc., Rochester, N. Y. — Granted modification of
C. P. approving antenna and transmitter site at Mt. Read
Blvd., mile north of Lyell Ave., Rochester; extend com¬
mencement date to 60 days after grant and completion date
to 6 months thereafter.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
modification of C. P. approving antenna system and trans¬
mitting equipment and move of transmitter to junction of
State Highway 19 and Mishawaka Road, Elkhart.
WRJN — Racine Broadcasting Corp., Racine, Wis. — Granted modi¬
fication of C. P. to install new equipment and extend com¬
mencement date to 30 days after grant, and completion date
to 180 days thereafter.
WBEN — WBEN, Inc., Buffalo, N. Y. — Granted modification of
C. P. approving antenna and transmitter site at R. F. D. No.
2, near Martinsville, N. Y.
WOC — Tri-City Broadcasting Co., Davenport, Iowa. — Granted
authority to make changes in automatic frequency control
equipment.
WWJ — Evening News Assn., Inc., Detroit, Mich. — Granted license
to cover C. P. authorizing local move of transmitter, in¬
stalling new equipment, and increasing day power to 5 KW ;
920 kc., 1 KW night, unlimited time. Also granted authority
to determine operating power by direct measurement of
antenna input in compliance with terms of Rule 137.
WTAG — Worcester Telegram Pub. Co., Inc., Worcester, Mass. —
Granted license to cover C. P. authorizing installation of new
equipment; 580 kc., 500 watts, unlimited time.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted
license to use old W.E. transmitter for auxiliary purposes
only.
WQAM — Miami Broadcasting Co., Miami, Fla. — Granted license
to cover C. P. authorizing installation of new equipment.
WQAN — E. J. Lynett (Prop., The Scranton Times), Scranton, Pa.
— Granted consent to voluntary assignment of license to the
Scranton Times (copartnership), E. J. Lynett, Wm. R.
Lynett, Elizabeth R. Lynett, Edw. J. Lynett, Jr.
KNOW — KUT Broadcasting Co., Austin, Tex. — Granted authority
to transfer control of corporation from Southwest Broad¬
casting Co. to Hearst Radio, Inc. (present assignment: 1500
kc., 100 watts, unlimited time) .
KTSA — Southwest Broadcasting Co., San Antonio, Tex. — Granted
consent to voluntary assignment of license to KTSA Broad¬
casting Company.
WOV — International Broadcasting Corp., New York, N. Y. —
Granted authority to install new automatic frequency con¬
trol equipment.
W6XKG — Ben S. McGlashan, Los Angeles, Calif. — Granted C. P.
to make changes in equipment and increase power from
100 watts to 1 KW.
W4XBZ — Radio Station WSOC, Inc., Portable-Mobile (Charlotte,
N. C.). — Granted license to cover C. P. (broadcast pickup
station), frequencies 31100, 34600, 37600 and 40600 kc.,
7 watts.
KNED — Carter Publications, Inc.. Portable-Mobile (Fort Worth,
Tex.). — Granted license to cover C. P. (temporary broadcast
pickup), frequencies 1606, 2020, 2102 and 2760 lie., 50
watts.
KABB — Don Lee Broadcasting System, Portable-Mobile (San
Francisco). — Granted license to cover C. P. for new broad¬
cast pickup station, frequencies 1646, 2090, 2190 and 2830
kc., 100 watts.
WlOXCT — Shepard Broadcasting Service, Inc., Portable-Mobile
(Boston, Mass.). — Granted license to cover C. P. authoriz¬
ing changes in equipment and increase power from 2 watts
to 100 vyatts.
W8XEO — Harold F. Gross, M. Bliss Keeler, L. A. Versluis, d/b
as Capital City Broadcasting Co., Portable-Mobile (Lansing,
Mich.). — Granted license to cover C. P. for broadcast pick¬
up station, frequencies 31100, 34600, 37600 and 40600 kc.,
15 watts.
W3XER — Philco Radio & Television Corp., Philadelphia, Pa. —
Granted license to cover C. P. for new special experimental
station to be used for experimental transmission of the asso¬
ciated synchronized sound of visual broadcast station, fre¬
quencies 42000-56000 kc. and 60000-86000 kc., 250 watts.
SET FOR HEARING
NEW — Telegraph Herald, Dubuque, Iowa. — Application for C. P.
for new station, 1340 kc., 500 watts, daytime. Site to be
determined.
NEW — Advertiser Pub. Co., Ltd., Honolulu, T. H. — Application
for C. P. for new station, 1370 kc., 100 watts, unlimited
time.
NEW — Harry J. Grant, Milwaukee, Wis. — Application for C. P.
for new station, 1010 kc., 250 watts night, 500 watts day,
unlimited time. Site to be determined.
WCKY — L. B. Wilson, Inc., Covington, Ky. — Application for C. P.
to install new equipment and increase power from 5 KW to
50 KW.
WHO — Central Broadcasting Co., Des Moines, Iowa. — Special ex¬
perimental authorization to install new equipment, increase
power from 50 KW to 500 KW for period ending August 1,
1936. (To be heard by Broadcast Division.)
WGL — F. C. Zeig (Allen-Wayne Co.), Fort Wayne, Ind. — Appli¬
cation for voluntary assignment of license of station WGL
from Fred C. Zeig to Westinghouse Electric & Mfg. Co.
WJZ — National Broadcasting Co., Inc., New York City. — Applica¬
tion for C. P. to install new equipment, move transmitter to
site to be determined, install new radiator, and increase
power from 50 KW to 500 KW. To be heard by Broadcast
Division.
KOMA — National Radio Mfg. Co., Oklahoma City, Okla. — Appli¬
cation for consent to voluntary assignment of license to
Hearst Radio, Inc.
WACO — Central Texas Broadcasting Co., Inc., Waco, Tex. — Ap¬
plication for consent to voluntary assignment of license to
KTSA Broadcasting Co.
KTAT — KTAT Broadcast Co., Inc., Fort Worth, Tex. — Applica¬
tion for consent to voluntary assignment of license from
KTAT Broadcast Co., Inc., to Raymond E. Buck.
ORAL ARGUMENTS GRANTED
NEW — Ex. Rep. 1-214: Winona Broadcasting Co., Emmons L.
Abeles, Secy., Winona, Minn. — Oral argument to be held
September 10, 1936, involving applications for stations at
Mankato, Ft. Dodge, Iowa; Clinton, Iowa; Hastings, Nebr.;
Grand Island, Nebr.; Appleton, Wis.; and Wausau, Wis.
WPAR — Ex. Rep. 1-215: Ohio Valley Broadcasting Corp., Parkers¬
burg, W. Va. — Oral argument to be held September 10, 1936.
NEW — Ex. Rep. 1-216: Mason City Broadcast Co., Mason City,
Iowa. — Oral argument to be held June 11, 1936, involving
applications of Northern Iowa Broadcasting Co., Mason
City Globe-Gazette Co. and Mason City Broadcast Co.
ACTION ON EXAMINERS’ REPORTS
WNEW — Ex. Rep. 1-79: Wodaarfi Corp., Newark, N. J. — Denied
modification of license to increase daytime power from
2j4 KW to 5 KW; 1250 kc., 1 KW night. Share with
WNBI. Examiner R. L. Walker reversed. Order effective
August 25, 1936.
WNBF — Ex. Rep. 1-88: Howitt-Wood Radio Co., Inc., Bing¬
hamton, N. Y. — Denied special experimental authority to
operate on 1240 lie.; 500 watts, 1 KW-LS, unlimited time,
make changes in equipment and move transmitter. Ex¬
aminer Bramhall sustained. Order effective Sept. 1, 1936.
NEW — Ex. Rep. 1-116: Knox Broadcasting Co., Inc., Schenectady,
N. Y. — Denied (Commissioner Prall dissenting) C. P. for
new station to operate on 1240 kc., 1 KW ; unlimited time.
Examiner P. W. Seward reversed. Order effective Sept. 1,
1936.
NEW — Ex. Rep. 1-117: Wayne Broadcasting Co., Hamtramck,
Mich. — Denied (Commissioner Prall dissenting), C. P. for
new broadcast station to operate on 1370 kc., 100 watts;
daytime. Examiner P. W. Seward reversed. Order effec¬
tive Sept. 1, 1936.
NEW — Ex. Rep. 1-126: Utah Radio Educational Society, Walter
P. Monson, Jr., Pres., Salt Lake City, Utah — Denied C. P.
1313
for new station to operate on 1450 kc., 1 KW, unlimited
time. Examiner Geo. H. Hill sustained.
NEW — Louis H. Callister, Provo, Utah — Dismissed with preju¬
dice, application for C. P. for new station to operate on
1200 kc., 100 watts; unlimited time. Examiner sustained.
NEW — Paul Q. Callister, Salt Lake City, Utah — Denied C. P. for
new station to operate on 1370 kc., 100 watts, unlimited
time. Examiner sustained.
NEW — Great Western Broadcasting Assn., Inc., Logan, Utah —
Denied C. P. for new station to operate on 1500 kc., 100
watts, unlimited time. Examiner sustained.
NEW — Great Western Broadcasting Assn., Inc., Provo, Utah —
Denied C. P. for new station to operate on 1210 kc., 100
watts, unlimited time. Examiner reversed.
NEW — Munn Q. Cannon, Logan, Utah — Dismissed with prejudice
C. P. for new station to operate on 1210 kc., 100 watts,
unlimited time. Examiner sustained.
NEW — Ex. Rep. 1-126: Jack Powers, Frank C. Carman, David G.
Smith & Grant Wrathall, d/b as Utah Broadcasting Co.,
Salt Lake City, Utah — Granted C. P. for new station to
operate on 1500 kc., 100 watts, unlimited time. Examiner
sustained.
NEW — Cache Valley Broadcasting Service Co., J. A. & J. M.
Reeder & L. R. Jensen, Logan, Utah — Denied C. P. for
new station to operate on 1370 kc., 100 watts, unlimited
time. Examiner sustained. Order in above cases effective
Sept. 8, 1936.
NEW — Ex. Rep. 1-130 — Dudley J. Connolly, Elliot Knight, Roy
W. Knight & Fred Sullivan, d/b as Dudley J. Connolly &
Co., Chattanooga, Tenn. — Denied C. P. for new station to
operate on 1200 kc., 100 watts, daytime. Examiner P. W.
Seward reversed. Order effective Sept. 8, 1936.
NEW — Ex. Rep. 1-163: Paul R. Heitmeyer, Salt Lake City, Utah
— Denied C. P. for new broadcast station to operate on
1210 kc., 100 watts, unlimited time. Examiner Seward
reversed. Order effective Sept. IS, 1936.
NEW — Ex. Rep. 1-165: Fla. West Coast Broadcasting Co., Inc.,
Tampa, Fla. — Denied C. P. for new broadcast station to
operate on 1370 kc., 100 watts, unlimited time. Examiner
Bramhall sustained. Order effective Sept. 22, 1936.
NEW — Ex. Rep. 1-168: W. A. Patterson, Chattanooga, Tenn. —
Granted C. P. for new station to operate on 1420 kc., 100
watts. Daytime. Examiner Geo. H. Hill sustained. Order
effective Sept. 8, 1936.
NEW — Ex. Rep. 1-171: Herbert Lee Blye, Lima, Ohio — Granted
C. P. for new broadcast station to operate on 1210 kc.,
100 watts, daytime. (Transmitter site to be determined).
Examiner Dalberg sustained. Order effective Sept. 29,
1936.
NEW — Ex. Rep. 1-173: Wyo. Radio Educational Assn. (Lester
G. Baker, Pres.) Cheyenne, Wyo. — Denied C. P. for new
station to operate on 630 kc., 500 watts night, 1 KW day,
unlimited time. Examiner Seward sustained.
NEW — -Paul R. Heitmeyer, Cheyenne, Wyo. — Denied C. P. for
new station to operate on 1210 kc., 100 watts night, 250
watts day; unlimited time. Examiner Seward reversed.
Order effective Sept. 29, 1936.
NEW — Ex. Rep. 1-207: Champaign News-Gazette, Inc., Cham¬
paign, Ill. — Granted C. P. for new station to operate on
1370 kc., 100 watts, daytime. Examiner Geo. H. Hill
sustained. Order effective August 18, 1936.
NEW — Ex. Rep. 1-211: Alfred C. Matthews, Cape May, N. J. —
Denied C. P. for new broadcast station to operate on 1420
kc., 100 watts, specified hours. Examiner Bramhall sus¬
tained. Order effective August 25, 1936.
ACTION ON APPLICATIONS HEARD BY
BROADCAST DIVISION
NEW — Portland Broadcasting System, Inc., Portland, Maine —
Granted C. P. for new station to operate on 640 kc., 500
watts, limited time, using directional antenna. Order ef¬
fective June 16. 1936.
WOI — Iowa State College of Agriculture & Mechanic Arts College
Campus, Iowa — Granted renewal of license; 640 kc., 5
KW ; daytime hours.
NEW — Kunsky-Trendle Broadcasting Corp., Detroit, Mich. — De¬
nied C. P. for new station to operate on 640 kc., 10 KW,
unlimited time. Directional antenna after sunset at Los
Angeles, non-directional antenna during daytime.
NEW — Irving D. Sisson, Pittsfield, Mass. — Denied C. P. for new
station to operate on 640 kc., 1 KW. Daytime hours.
NEW — Eastland Company, Portland, Me. — Denied C. P. for new
station to operate on 640 kc., 100 watts ; daytime to sunset
at Cleveland, but if application of WJAY for 640 kc. de¬
nied, daytime to sunset at Los Angeles (Fac. WRDO).
WAIU — Associated Radiocasting Corp., Columbus, Ohio — Denied
modification of license to change frequency from 640 to
570 kc.; change power from 500 watts to 750 watts night,
1 KW day ; change time from Ltd. to specified hours now
assigned to WKBN.
KFUO — Evangelical Lutheran Synod, etc., Clayton, Mo. — Denied
modification of license to change frequency from 550 to
640 kc.; increase power from 500 watts night, 1 KW day,
to 1 KW ; change hours of operation from sharing with
KSD to specified. (Hours not used by WOI during day¬
time, and to operate from LS to sunset at Los Angeles;
part facilities of WOI.)
WORC — Alfred Frank Kleindienst, Worcester, Mass. — Denied
modification of license to change frequency from 1200 kc.
to 640 kc.; increase power from 100 watts to 500 watts.
Unlimited time.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Denied
C. P. to move transmitter; increase power from 500 watts
to 5 KW; change frequency from 1410 to 640 kc.; install
new equipment; unlimited time. Directional antenna.
WFLA-WSUN — Clearwater Chamber of Commerce, St. Peters¬
burg Chamber of Commerce, Clearwater, Fla. — Denied
special experimental authority to install new equipment;
change frequency from 620 to 640 kc.; increase power
from 250 watts night, 500 watts day, to 5 KW ; unlimited
time. Directional antenna.
WJAY— Cleveland Radio Broadcasting Corp., Cleveland, Ohio-
Denied modification of license to change frequency from
610 to 640 kc.; change power from 500 watts day to 500
watts; change time of operation from daytime to limited.
WKBN— WKBN Broadcasting Corp., Youngstown, Ohio— Denied
C. P. to move transmitter locally; change frequency from
570 to 610 kc.; change equipment and power from 500
watts to 500 watts night, 1 KW day ; change time from
specified hours to unlimited. Directional antenna after sun¬
set Youngstown.
WRDO- — WRDO, Inc., Augusta, Maine — Granted renewal of
license; 1370 kc., 100 watts; unlimited time. Order in all
above cases effective June 16, 1936.
WHDH — Matheson Radio Co., Inc., Boston, Mass. — Granted re¬
newal of license; 830 kc., 1 KW daytime. Dismissed ap¬
plication for modification of license to operate with power
of 1 KW until sunset at Denver, and 500 watts thereafter,
unlimited time. Order effective Oct. 6, 1936.
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. — De¬
nied C. P. to make changes in equipment; change location
of transmitter; change frequency from 1230 to 830 kc.,
increase power from 1 KW night, 2)4 KW day, to 5 KW
unlimited time. (Facilities of WHDH.)
WEEU — Berks Broadcasting Co., Reading, Pa. — Denied modifica¬
tion of license to change power from 1 KW day to 500
watts night, 1 KW day, and change hours of operation
from daytime to unlimited, 830 kc. Order effective Oct. 6,
1936.
WINS — American Radio News Corp., New York City, N. Y. —
Denied special experimental authority to use power of 5
KW instead of 500 watts; unlimited time instead of lim¬
ited; install new equipment. Order effective Oct. 13, 1936.
WDGY — Dr. Geo. W. Young, Minneapolis, Minn. — Denied C. P.
to make changes in equipment, move transmitter, install
directional antenna, and change hours of operation from
limited to unlimited; 1180 kc., 1 KW night, 5 KW-LS.
Order effective Oct. 13, 1936.
MISCELLANEOUS
WBAA — Purdue University, W. Lafayette, Ind. — Reconsidered
and granted application for modification of license authoriz¬
ing specified hours of operation on its present frequency of
890 kc., given some additional daytime heretofore used by
WILL which has been authorized by the Commission to
move from 890 to 580 kc., effective May 5, 1936.
WOW — Woodmen of the World Life Ins. Co., Omaha, Nebr. —
Granted motion to reconsider and reopen application of
WKZO. Inc., to move station locally, change power from
1 KW day. to 250 watts night. 1 KW day, and from day¬
time to unlimited operation. Grant made on Feb. 8, 1936,
1314
but effective date was heretofore postponed until May 29,
1936.
KWKC — Charlotte Duncan, Kansas City, Mo. — Granted motion
asking that Charlotte Duncan be substituted as party ap¬
plicant in application of Wilson Duncan, d/b as Wilson
Duncan Broadcasting Co., for renewal of license of KWKC.
Kunsky Trendle Broadcasting Corp., Detroit, Mich.— Denied spe¬
cial petition asking Commission to have application con¬
sidered for use of frequency of 990 kc., in lieu of 640 kc.,
and for authority to use a 3 unit directional antenna.
Continental Radio Co., Toledo, Ohio — Denied motion for enlarge¬
ment of issues on hearing and for reconsideration in part,
concerning application of WALR to move from Zanesville
to Toledo, Ohio, WALR application to proceed to hearing
as at present scheduled upon protest of WJIM.
Jesse H. Jay, Miami Beach, Fla. — Denied petition for reconsidera¬
tion and grant of application for C. P. for new station to
operate on 1500 kc., 100 watts, unlimited.
Edward Hoffman, St. Paul, Minn.— Granted petition to intervene
and be made a party to proceedings on application of
WISE Broadcasting Co., an application for new broadcast
station at St. Paul, Minn., to operate on 630 kc., 250 watts,
unlimited time.
Virgil V. Evans, Spartanburg, S. C. — Accepted answer of this
respondent to appearance and statement of facts of Sun
Publishing Co., Inc. (WTJS).
Fred A. Baxter, Superior, Wise. — Granted order to take deposi¬
tions in support of application for new station at Superior,
Wise.
Memphis Commercial Appeal, Inc., Memphis, Tenn.— Granted
motion for postponement of hearing on application for
C. P. now scneduled for May 30, 1936, for new station
at Mobile, Ala.
KGBZ — KGBZ Broadcasting Co., York, Nebr.— Granted motiun
asking Commission to postpone effective date of its order
denying KGBZ renewal of license; effective date changed
from May 8 to May 22, 1936.
KWKC (Now KCMO) — Charlotte Duncan, Administratrix,
Kansas City, Mo. — Redesignated for hearing application
for consent to assign license from Wilson Duncan, deceased,
to Lester E. Cox and Thos. L. Evans, since application was
amended recently to add a new partner. Also redesignated
for hearing application of Charlotte Duncan, administratrix,
Lester E. Cox and Thos. L. Evans for authority to install
new equipment, move transmitter and studio and change
hours of operation to unlimited.
KHSL — Golden Empire Broadcasting Co., Chico, Calif. — Granted
petition asking leave to amend its application so as to ask
for new frequency originally asked for 630 kc., amended
to 1260 kc.
Thomas L. Evans & J. L. Milligan, Jackson, Tenn. — Granted pe¬
tition to intervene as respondents in re application of
WTJS, Sun Publishing Co., Inc., for increase of power
from 100 watts to 250 watts night, and from 250 watts
day to 500 watts day.
Southwest Broadcasting Co., Prescott, Ariz. — Granted order to
take depositions in support of application for C. P. for
establishment of a broadcast station at Prescott, to operate
on 1500 kc., 100 watts night, 250 watts LS, unlimited time.
Nathan N. Bauer, Miami, Fla. — Granted order to take depositions
in support of his application for C. P. for new station to
operate on 1420 kc., 100 watts, unlimited.
Earl Weir, St. Petersburg, Fla. — Granted order to take depositions
in support of application for C. P. for new station at St.
Petersburg, Fla., to operate on 1370 kc., 100 watts, un¬
limited time.
Herbert Lee Blye, Lima, Ohio — Granted amended position to in¬
tervene in proceedings of application of WALR to move
from Zanesville to Toledo, Ohio.
Mason City Globe Gazette Co., Mason City, Iowa — Questions
raised by motion as to the sufficiency of exceptions to
Examiner’s Report 1-216, to be considered in connection
with other questions involved in the oral argument fixed
for June 11, after which all the matters will be disposed of
together.
APPLICATION DENIED
Uvalde Chamber of Commerce, Uvalde, Tex. — Denied authority to
transmit special Uvalde programs by remote control over
station XEPN, Piedras Negras, Mexico, from 12:15 to 12:45
p. m. and from 8:45 to 9 p. m., CST. May 7 and 8, 1936.
APPLICATIONS DISMISSED
The following application, heretofore set for hearing, was dis¬
missed for failure of applicant to answer form letter adopted by
Broadcast Division requiring applicants to signify their desire to
be heard within 10 days after receipt of said form letter:
KFKA — Mid -Western Radio Corp. — Applied for modification of
license, 880 kc., 1 KW, shares time with KPOF.
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
KJR — Fisher’s Blend Station, Inc. (Lessee). Seattle, Wash. — Ap¬
plied for C. P., 970 kc., 10 KW, unlimited time.
NEW — Foreign Lands Corp., Honolulu, T. H. — Applied for C. P.,
600 kc.. 1 KW, unlimited time.
NEW — Isadore Goldwasser, Tuscaloosa, Ala. — Applied for C. P.,
1370 kc., 100 watts, unlimited time.
NEW — Ellwood W. Lippincott, Bend, Ore. — Applied for C. P.,
1500 kc., 100 watts, unlimited time.
NEW — H. L. Corley, Trinidad, Colo. — Applied for C. P., 1370 kc.,
100 watts, unlimited time.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KADA, Ada, Okla.; KASA, Elk City, Okla. ; KCRJ, Jerome,
Ariz.; KDLR, Devils Lake, N. Dak.; KFJI, Klamath Falls, Ore.;
KFOR, Lincoln, Nebr.; KFPW, Fort Smith, Ark.; KFVS, Cape
Girardeau, Mo.; KFXJ, Grand Junction, Colo.; KFXM, San
Bernardino, Calif.; KFXR, Oklahoma City, Okla.; KGBX, Spring-
field, Mo.; KGCX, Wolf Point, Mont.; KGEK, Sterling, Colo.;
KGEZ, Kalispell, Mont.; KGFJ, Los Angeles, Calif.; KGFW,
Kearney, Nebr.; KGHI, Little Rock, Ark.; KINY, Juneau, Alaska;
KIT, Yakima, Wash.; KIUL, Garden City, Kans.; KMED, Med¬
ford, Ore.; KPPC, Pasadena, Calif.; KRMD, Shreveport, La.;
KSUN, Lowell, Ariz.; KTSH, El Paso, Tex.; KVOL, Lafayette,
La.; KVOS, Ardmore, Okla.; KWG, Stockton, Calif.; KXRO,
Aberdeen, Wash.; WABI, Bangor, Maine; WALR, Zanesville,
Ohio; WBAX, Wilkes-Barre, Pa.; WBBL, Richmond, Va. ; WBOW,
Terre Haute, Ind.; WBRB, Red Bank, N. J.; WBRE, Wilkes-
Barre, Pa.; WCAT, Rapid City, S. Dak.; WCLO, Janesville, Wis.;
WCLS, Joliet, Ill.; WCPO, Cincinnati, Ohio; WEBQ, Harrisburg,
Ill.; WEMP, Milwaukee, Wis.; WEST, Easton, Pa.; WEXL, Royal
Oak, Mich.; WFAS, White Plains, N. Y.; WFDF, Flint, Mich.;
WGBB, Freeport, N. Y.; WGH, Newport News, Va.; WGNY,
Chester Township, N. Y. ; WHAT, Philadelphia; WHBU, Ander¬
son, Ind.; WJAC, Johnstown, Pa.; WJBY, Gadsden, Ala.; WJIM,
Lansing, Mich.; WJW, Akron, Ohio; WKBO, Harrisburg, Pa.;
WLBC, Muncie, Ind. ; WLNH, Laconia, N. H. ; WLVA, Lynchburg,
Va.; WMFR, High Point, N. C.; WMPC, Lapeer, Mich.; WOL,
Washington, D. C.; WOMT, Manitowoc, Wis.; WPAX, Thomas-
ville, Ga.; WSBC, Chicago; WSIX, Springfield, Tenn.; WSOC,
Charlotte, N. C.; WTJS, Jackson, Tenn.; WTAX, Springfield, Ill.;
WBEO, Marquette, Mich.
APPLICATIONS RECEIVED
First Zone
NEW — Fred J. Hart, Honolulu, T. H. — Construction permit for a
609 new station to be operated on 600 kc., 250 watts, unlimited
time.
WREC — WREC, Inc., Memphis, Tenn. — License to cover construc-
600 tion permit (Bl-P-161) as modified for new equipment,
move of transmitter, increase in power, and to use direc¬
tional antenna night.
WREC — WREC. Inc., Memphis. Tenn.— Authority to determine
600 operating power by direct measurement of antenna.
WICC — The Southern Connecticut Broadcasting Corp., Bridgeport,
600 Conn. — Modification of license to change hours of operation
from specified hours to unlimited time. Requests facilities
of WCAC.
WTHT — The Hartford Times, Inc.. Hartford, Conn. — Modification
1200 of construction permit (Bl-P-360) for a new station, re¬
questing change of hours of operation from daytime to un¬
limited. using 100 watts power. Requests facilities of WNRI.
WCAP — Radio Industries Broadcast Co., Asbury Park, N. J. —
1280 Construction permit to make changes in equipment (an¬
tenna).
Second Zone
NEW — Voice of Detroit, Inc., Detroit. Mich. — Construction per-
1120 mit for a new station to be operated on 1140 kc., 500 watts,
1315
1 KW day, unlimited time. Amended to change frequency
from 1140 kc. to 1120 kc. and transmitter and studio sites
from Detroit, Mich., to site to be determined, Detroit, Mich.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. — Modifi-
1260 cation of construction permit (B2-P-838) for changes in
equipment and increase in power, requesting further changes
in equipment and extend commencement date from 5-17-36
to 2 months after grant and completion date to 6 months
thereafter.
WGH— Hampton Roads Broadcasting Corp., Newport News, Va. —
1310 Construction permit to install a vertical antenna and move
transmitter from 4th Floor, Warwick Hotel, 2400 West Ave¬
nue (Waterfront), Newport News, Va., to Jefferson Avenue,
end, Newport News, Va.
NEW — -The Exponent Co., Clarksburg, W. Va. — Construction per-
1370 mit for a new station to be operated on 1370 kc., 100 watts,
daytime.
WHK — Radio Air Service Corp., Cleveland, Ohio. — License to use
1390* old W.E. D-87737 as an auxiliary transmitter.
Third Zone
WPTF — WPTF Radio Co., Raleigh, N. C.— Authority to deter-
680 mine operating power by direct measurement of antenna
(1-KW auxiliary equipment).
WSPA — Virgil V. Evans, d/b as The Voice of South Carolina,
920 Spartanburg, S. C. — Construction permit to install a new
transmitter, erect a vertical antenna and increase power from
1 KW to 5 KW.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — License
1200 to cover construction permit (B3-P-872) for move of trans¬
mitter and install new antenna.
WRR — City of Dallas Texas, Dallas, Tex. — License to cover con-
1280 struction permit (B3-P-889) as modified for new equipment
and move of transmitter.
NEW — The Sherman Broadcasting Assn. (J. B. Knight, Pres.),
1310 Sherman, Tex. — Construction permit for a new station to be
operated on 1310 kc., 100 watts, daytime (request of at¬
torney).
NEW — Asheville Daily News (Harold H. Thoms, owner), Ashe-
1370 ville, N. C. — Construction permit for a new station to be
operated on 1400 kc., 100 watts, unlimited time. Amended
to change frequency from 1400 kc. to 1370 kc.
Fourth Zone
WGN— WGN, Inc., Chicago, Ill. — Construction permit to install
720 new equipment; increase power from SO KW to S00 KW ;
move transmitter from Villa Road, about 4 miles east of
Elgin, Ill., to site to be determined; equipment also to be
determined.
WCLO — Gazette Printing Co., Janesville, Wis. — Modification of
1200 construction permit (B4-P-1038) for changes in equipment
and increase in power, requesting approval of antenna and
exact transmitter site at 1436 S. Oakhill Avenue, Janesville,
Wis.
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — Modifica-
1210 tion of construction permit (B4-P-438) for changes in equip¬
ment and increase of power, requesting further changes in
equipment.
NEW — Hannibal Broadcasting Co., Hannibal, Mo. — Construction
1310 permit for a new station to be operated on 1310 kc., 100
watts, unlimited time. Amended giving exact transmitter
site as 120 E. Broadway, Hannibal, Mo.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Construction per-
1380 mit to make changes in equipment; install directional an¬
tenna for night use; change frequency from 1420 kc. to
1380 kc.; increase power from 100 watts, 250 watts day, to
500 watts; move transmitter from 1334 Roosevelt Ave.,
Joplin, Mo., to 1 mile east of city limits of Joplin, Mo., and
studio from 1334 Roosevelt Ave., Joplin, Mo., to 401 Main
Street, Keystone Hotel, Joplin, Mo.
KGNF — Great Plains Broadcasting Co. (a corporation), North
1430 Platte, Nebr. — Construction permit to make changes in
equipment.
Fifth Zone
KLZ — KLZ Broadcasting Co., Denver, Colo. — Modification of con-
560 struction permit (5-P-B-3274) for new equipment, increase
in power, and move of transmitter, requesting changes in
equipment and extension of commencement and completion
dates. (Application resubmitted in new name.)
KFPY — Symons Broadcasting Co., Spokane, Wash. — Authority to
890 transfer control of corporation from Symons Investment
Co. to T. W. Symons, Jr., 164-2/3 shares common stock.
KIT — Carl E. Haymond, Yakima, Wash. — Construction permit to
1250 install a new transmitter; erect a vertical antenna; change
frequency from 1310 kc. to 1250 kc. ; increase power from
100 watts, 250 watts day, to 2 50 watts, 500 watts day; and
move transmitter from 109J4 East Yakima Ave., Yakima,
Wash., to site to be determined, Yakima, Wash.
KERN— The Bee Bakersfield Broadcasting Co., Bakersfield, Calif.
1370 — Construction permit to install a new transmitter and erect
a new antenna.
NEW — The Southwest Broadcasting Co., La Junta, Colo. — Con-
1370 struction permit for a new station to be operated on 1370
kc., 100 watts, unlimited time.
KICA — Western Broadcasters, Inc., Clovis, N. Mex. — Modification
1370 of license to change hours of operation from specified hours
to unlimited time.
KWYO — Big Horn Broadcasting Co., Inc., Sheridan, Wyo. — Con-
1370 struction permit to make changes in equipment; erect a
vertical antenna; increase power from 100 watts, 250 watts
day; and move transmitter from corner Adair and West
Fourth Streets, Sheridan, Wyo., to 1.2 miles north of Sheri¬
dan, Wyo.
NEW — Geo. P. Allison and Thos. R. Waters, Jr., d/b as Skagit
1420 Broadcasting Assn., Whitney, Wash. — Construction permit
for a new station on 1420 kc., 100 watts, unlimited time.
1316
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ ★ * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyrioht. 1936. The National Association of Broadcasters
Vol.4--No.22
MAY 11, 1936
BROADCAST ADVERTISING: FIRST QUARTER
1936
Developments of the Month
Broadcast advertising during the first quarter of the
current year totaled $25,509,364, a gain of 11.4% over the
corresponding period of 1935. Indications point to the
beginning of the stabilization of radio advertising at a
post-depression level, in that the aforementioned growth
in volume is comparable to one of 19.6% for the first
quarter of the preceding year as against the correspond¬
ing three months of 1934.
Principal gains during the period under consideration
occurred in the regional network and national non-net¬
work fields, in keeping with the trends in evidence during
the major portion of the past year. National network and
local broadcast advertising gained but slightly over the
corresponding months of 1935.
Radio continued to show the greatest rate of increase
among major media, though it was surpassed with na¬
tional farm papers, whose volume rose 37.0% as com¬
pared to the corresponding period of 1935.
Regional stations showed the greatest gains in non¬
network volume, reflecting the rise in national non-net¬
work business. The South and Middle West continued to
experience the most pronounced rise in non-network
advertising.
Electrical transcriptions led the field as far as type of
rendition was concerned. This was true in both national
non-network and local broadcast advertising. Live talent
volume gained, while record and announcement business
declined as compared to the corresponding quarter of the
previous year.
Accessory and gasoline, beverage and tobacco adver¬
tising experienced important increases in the national
network field. A rise of 117.9% in the miscellaneous
classification indicated a continued trend toward more
diversified use of network advertising. Drug advertising
declined 31.7% as a result of network policies in this field,
while confectionery and household equipment advertising
also declined materially.
Gains were general in the regional network field, with
drug, food, beverage, tobacco and soap and kitchen sup¬
ply advertising showing the most important increases.
Gains likewise were general in the national non-network
field, with automotive, food, beverage and tobacco volume
experiencing the most significant rise. Local broadcast
advertising showed confused tendencies, with automotive
volume leading the increases and drug advertising show¬
ing the most important decline.
Total Broadcast Advertising
Total broadcast advertising during the first quarter of the current
year is set forth in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING VOLUME
Class of Business
National networks . . .
Regional networks . .
National non-network
Local .
Gross Time Sales
First Quarter
1935 1936
$14,107,206
193,299
4.035,182
4,545,023
$14,926,616
300,318
5,670,550
4,611,880
Total
$22,880,710 $25,509,364
Compared to a gain of 11.4% on the part of the medium as a
whole, national network advertising increased 5.8% as compared
to the corresponding three months of the preceding year. National
network volume seems particularly to be approaching a point of
stabilization, since this gain is comparable to a rise of 23.9% during
the first three months of last year as against the same period of
1934.
National non-network volume rose 40.5% as against the same
quarter of 1935, while regional network advertising increased
55.9%. Gains in 1935 over the corresponding period of the pre¬
ceding year averaged in the neighborhood of 10.0%. Local broad¬
cast advertising rose but 1.5% as compared to a 1935 increase
of 13.3%
Composition of Broadcast Advertising
The marked rise of regional network and national non-network
advertising has changed the composition of the medium’s business
to an interesting degree. Whereas national network volume during
the first quarter of 1935 comprised 61.3% of the gross billings of
the medium, it comprised but 58.5% during the corresponding
months of the current year. Regional network volume increased
from 0.8% of the medium’s total, while national non-network
advertising rose from 17.3% to 22.2%. Local broadcast advertis¬
ing, on the other hand, declined in importance from 20.6% to
18.1%. This constituted a further decline in relative importance
from 22.0% during the first quarter of 1934.
Comparison with Other Media
Advertising volume in major media during the period under
consideration is found in Table II.
TABLE II
ADVERTISING VOLUME BY MAJOR MEDIA
Advertising Medium
Radio broadcasting . .
National magazines 1
National farm papers1
Newspapers 2 .
Gross Time and Space Sales
First Quarter
1935 1936
$22 880,710
30,968,794
1,333,264
117,474,000
$25,509,364
32,977,625
1,826,218
124,033,000
Total . $172,656,768 $184,346,207
1 Publishers’ Information Bureau.
2 Estimated.
Compared to a rise of 11.4% in broadcast advertising during
the period under consideration, national magazine volume increased
6.5%, while newspaper lineage rose 5.6%. National farm paper
volume showed the greatest relative increase, rising 37.0% above
the level of the first quarter of 1935.
Non-network Advertising
General non-network advertising rose 19.7% during the period
under consideration. As noted previously, national non-network
advertising was responsible for practically all of this gain. Re¬
gional stations experienced the most marked increase in non-net¬
work advertising, and in doing so reflected the rising national
non-network volume. Non-network revenues for this class of
transmitter rose 20.2% as compared to the corresponding period
1317
RADIO BROADCAST ADVERTISING VOLUME
BY QUARTERS
January, 1935, to April, 1936
NON-NETWORK ADVERTISING BY GEO¬
GRAPHICAL DISTRICTS (QUARTERLY)
January, 1935, to April, 1936
LOCAL ADVERTISING BY TYPE OF
RENDITION (QUARTERLY)
January, 1935, to April, 1936
Jon. I Apr.l July I Oct.l Jo.n.1 Apr.l July I Oct. I
I >935 j >936
NON-NETWORK ADVERTISING BY STATION
POWER (QUARTERLY)
January, 1935, to April, 1936
Jo.n.1 Apr.l July! Oct.l Jo.n.1 Apr) July l Oct.l
| >935 | >936
NATIONAL NON-NETWORK ADVERTISING
BY TYPE OF RENDITION (QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l July I Oct.l Jan.l Apr.l July I Oct.l
| 1935 | 1936
NATIONAL NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l July I Oct.l Jan.l Apr.l Julyl Oct.l
| 1935 | 1936
1318
NATIONAL NETWORK ADVERTISING BY
PRODUCT CLASSES (QUARTERLY)
Jan. I Apr*. 1 July I Oct.l Jan. I Apr.l July! Oct,. I
1935 | 193b j
NATIONAL NON-NETWORK ADVERTISING
BY PRODUCT CLASSES (QUARTERLY)
January, 1935, to April, 1936
Jan.t Apr.l July 1 Oct. I Jan.l Apr.l July I Oct. I
1935 | 1936
LOCAL ADVERTISING BY PRODUCT CLASSES
(QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l July! Oct. I Jan.l Apr.l July l Oct. I
| 1835 | 1836
NATIONAL NON-NETWORK ADVERTISING
BY PRODUCT CLASSES (QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l July I Oct.l Jan.l Apr.l Julyl Oct. I
I «935 | 1936
LOCAL ADVERTISING BY PRODUCT CLASSES
(QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l Julyl Oct. I Jan.l Apr! Julyl Oct.l
| ‘935 | 1936 )
BROADCAST ADVERTISING BY RETAIL
ESTABLISHMENTS (QUARTERLY)
January, 1935, to April, 1936
Jan.l Apr.l Julyl Oct.l Jan l Apr.l Julyl Oct.l
| 1935 | 1936
1319
of last year. Clear channel and high-powered regional station
non-network business increased 16.0%, while local station volume
gained 2.4%. The relatively slight gain with regard to the last-
mentioned class of transmitter was due to the confused tendencies
in the local broadcast advertising field. Broadcast advertising by
power of transmitter is found in Table III.
TABLE III
NON-NETWORK BROADCAST ADVERTISING BY
POWER OF STATION
Power of Station
Over 1,000 watts .
250-1,000 watts . .
100 watts .
Gross Time Sales
First Quarter
1935 1936
$4,186,955
3,244,755
1,148,495
$4,858,520
3,903.180
1,520,730
Total
$8,580,205 $10,282,430
The most pronounced gains in non-network advertising con¬
tinued to occur in the South and the Middle West. Non-network
advertising in the South Atlantic-South Central States rose 54.5%
as compared to the first quarter of 1935, while revenues in the
North Central States increased 27.2%. Mountain and Pacific State
non-network volume gained 5.9%, while non-network advertising
in the New England-Middle Atlantic States dropped 0.4%. Broad¬
cast advertising, other than network, for major geographical dis¬
tricts is presented in Table IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
Gross Time Sales
First Quarter
Geographical District 1935 1936
New England-Middle Atlantic Area. . . . $2,245,050 $2,235,450
South Atlantic-South Central Area ... 1,335,080 2,065,670
North Central Area . 3,209,960 4,084,730
Pacific and Mountain Area . 1,790,115 1,896,580
Total . $8,580,205 $10,282,430
Advertising by Type of Rendition
Electrical transcriptions and live talent programs were the only
forms of rendition to gain as compared to the first quarter of the
preceding year. Of the two, transcriptions showed the greater gain,
increasing 55.3% in volume. Increases occurred in both the na¬
tional and local fields, rising 64.0% in the former and 21.8% in
the latter. National live talent volume continued its marked rise
of more than a year’s duration, increasing 44.5% as against the
corresponding three months of 1935. Local live talent volume rose
6.7%. Total live talent business increased 23.1% during the period
under consideration.
Records declined 6.2%, while announcements dropped 7.5%.
National announcement business decreased 3.1%, while local volume
dropped 9.8%.
Broadcast advertising volume by type of rendition is set forth
in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
(First Quarter)
Gross Time Sales
National Non-network Local Total
Type of Rendition
1935
1936
1935
1936
1935
1936
Electrical transcriptions .
. $1,300,745
$2,133,735
$341,391
$415,835
$1,642,136
$2,549,570
Live talent programs .
. 1,886,008
2,716,880
2,402,467
2,563,260
4,288,475
5,280,140
Records .
. 17,666
15,370
178,477
168.600
196,143
183,970
Announcements .
. 830,763
804,565
1,622,688
1,464,185
2,453,451
2,268,750
Total .
. $4,035,282
$5,670,550
$4,545,023
$4,611,880
$8,580,205
$10,282,430
The continued rise of electrical transcription and live talent
volume and the decline, especially in the announcement field, have
resulted in marked changes in the composition of non-network
advertising with regard to type of rendition. These changes are
presented in Table VI. The rise in local transcription business is
the direct result of the development of transcription libraries, so
prominent during the fall and winter of the current season.
TABLE VI
RELATIVE PROPORTION OF VARIOUS TYPES
OF RENDITION USED IN NON-NETWORK
BROADCAST ADVERTISING
(First Quarter)
Percentage Represented by
Rendition Type
National N on-network Local
Type of Rendition
1935
1936
1935
1936
Electrical transcriptions . .
32.1%
37.6%
7.5%
9.0%
Live talent programs .
44.2%
47.9%
52.8%
55.6%
Records .
.4%
.3%
3.9%
3.7%
Announcements .
23.3%
14.2%
35.8%
31.7%
Total .
100.0%
100.0%
100.0%
100.0%
Broadcast Advertising Sponsorship
Trends in broadcast advertising sponsorship during the period
under consideration were largely the continuation of tendencies
previously noted in the current season. Automotive advertising
continued to experience marked gains, especially in the national
non-network and local fields. Food advertising rose materially, as
did beverage volume. Drug and pharmaceutical advertising de¬
clined in the national network and local fields, though rising mate¬
rially with regard to regional networks and national non-net-
work volume. Tobacco advertising increased generally.
Principal gains in the national network field, as compared to the
first quarter of last year, were as follows: automotive, 12.1%;
accessories and gasoline, 43.4%; beverages, 27.2%; tobacco 14.8%
and miscellaneous, 117.9%. The latter is a significant indication of
a widening variety of sponsorship of national network advertising.
Drug and pharmaceutical volume declined 31.7%, while confec¬
tionery advertising dropped 37.4%.
Regional network volume rose quite generally, principal in¬
creases being the following: drugs and pharmaceuticals, 179.5%;
foodstuffs, 50.3%; beverages, 178.4%; soaps and kitchen supplies,
229.8%; tobacco, 132.1%. Gains likewise were general in the
national non-network field. Automotive advertising rose 185.6%,
while other increases were as follows: foodstuffs, 51.3%; beverages,
77.8%; and tobacco, 67.9%.
Local broadcast advertising registered considerably smaller
gains. Automotive advertising rose 41.3%, food volume 11.5%
and clothing business 6.6%. Drug volume decreased 23.2%, and
gasoline and accessory advertising 8.4%.
Broadcast advertising by various sponsoring product and serv¬
ice groups is found in Table VII.
1320
TABLE VII
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(First Quarter)
1936
Type of Sponsoring Business
la. Amusements . ’ .
1-2. Automobiles and accessories:
1. Automobiles .
2. Accessories, gas and oils .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
4. Drugs and pharmaceuticals .
5. Toilet goods .
6-8. Food products:
6. Foodstuffs .
7. Beverages .
8. Confections .
9-10. Household goods:
9. Household equipment and furnishings .
10. Soaps and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
Details as to trends in the various sponsoring product and serv¬
ice groups are as follows:
la. Amusements. National non-network business increased
105.1% as compared to the first quarter of last year. Local volume
decreased 19.9%.
1. Automotive. National network advertising rose 12.0%.
National non-network advertising increased 185.6%, while local
volume gained 41.3%.
2. Accessories and gasoline. National network volume rose
43.1% over the level of the first quarter of the preceding year.
Regional network advertising increased 29.6%, national non-net¬
work business 29.1%, while local advertising decreased 8.4%.
3. Clothing. National network advertising dropped off 26.6%
from the level of the first three months of 1935, while regional
network advertising decreased 80.8%. National non-network busi¬
ness rose 59.4% and local advertising 6.6%.
4. Drugs and pharmaceuticals. National network volume
decreased 31.7% and local volume 23.2%. Regional network ad¬
vertising increased 179.5%, while national non-network volume
rose 24.3%.
5. Toilet goods. National network advertising rose 12.3% and
national non-network business 18.8%. Regional network volume
decreased 3.9% and local volume 13.6%.
6. Foodstuffs. Increases were as follows: Regional networks
50.3%, national non-network 51.3%, and local 11.5%. National
network volume decreased 3.9%.
7. Beverages. General increases occurred in the field and were
as follows: National networks 27.2%, regional networks 178.4%,
national non-network 77.8%, local 12.9%.
8. Confectionery. Regional network advertising increased
211.0% as against the corresponding period of last year. Other
portions of the medium decreased as follows: National networks
37.4%, national non-network 13.0%, and local 3.6%.
9. Household equipment. National network advertising de¬
creased 35.9%. Regional network volume rose 53.2%, while na¬
tional non-network business gained 24.4%. Local advertising in¬
creased 1.3%.
10. Soaps and kitchen supplies. Increases were as follows:
National networks 6.7%, regional networks 229.8%, national non¬
network 22.6%, local 120.0%.
11. Insurance and financial. National network advertising
increased 1.5% and regional network volume rose more than five¬
fold. National non-network advertising gained 21.2% and local
advertising 25.0%.
12. Radios. National network advertising gained 9.9%. Na¬
tional non-network volume increased practically tenfold. Local
advertising declined 1.6%.
13. Department and general stores. National non-network
advertising rose 162.1%, while local volume declined 16.5%. Total
department store advertising decreased 9.6%.
14. Tobacco products. General increases occurred in this field
Gross Time Sales
National
Networks
Regional
Networks
National
Non-network
Local
Total
—
—
$28,580
$95,980
$124,560
$1,136,853
_
682,310
273,725
2,092,888
1,274,598
$32,785
376,100
189,825
1,873,308
105,741
1,848
118,320
626,080
851,989
1,454,898
41,622
1,396,000
219,870
3,112,390
3,076,412
9,680
310,010
63,550
3,459,652
2,799,343
89,654
1,131,790
634,150
4,654,937
1,063,495
353,217
15,085
162,920
233,810
1,475,310
17,231
137,750
25,800
533,998
127,031
16,727
192,335
440,905
776,998
831,904
16,090
140,230
21,690
1,009,914
436,565
136,791
2,524
68,040
219,210
310,971
—
42,140
37,890
391,001
395,143
—
728
43,175
351,240
15,475
1,078,213
21,840
101,970
1,217,498
1,177,149
34,504
738,880
1,162,680
3,113,213
$14,926,616
$300,318
$5,670,550
$4,611,880
$25,519,364
and were as follows: National networks 14.8%, regional networks
132.1%, national non-network 67.9%, local 46.2%.
15. Miscellaneous. National network advertising rose 117.9%
and regional network volume 12.2%. National non-network ad¬
vertising gained 19.2%, while local volume dropped 1.8%.
Retail Broadcast Advertising
Broadcast advertising by retail establishments during the first
quarter of the current year is presented in Table VIII.
TABLE VIII
RETAIL RADIO ADVERTISING OVER
INDIVIDUAL STATIONS
(First Quarter)
Gross Time Sales
Type of Sponsoring Business 1935 1936
Automobiles and accessories:
Automobile agencies and used car dealers $215,620 $304,210
Gasoline stations, garages, etc . 184,285 95,880
Clothing and apparel shops . 589,320 668,450
Drugs and toilet goods:
Drug stores . 50,430 56,415
Beauty parlors . 29,983 21,370
Food products:
Grocery stores, meat markets, etc . 128,011 204,880
Restaurants and eating places . 47,630 62,040
Beverage retailers . 17,129 19,220
Confectionery stores, etc . 6,465 11,950
Household goods:
Household equipment retailers . 112,977 108,670
Furniture stores . 254,954 250,950
Hardware stores . 36,618 26,940
Radio retailers . 38,506 34,860
Department and general stores . 437,202 395,143
Tobacco shops . 4,814 3,090
Miscellaneous . 239,145 241,110
Total . $2,393,089 $2,505,178
General retail broadcast advertising rose 4.7% as compared to
the corresponding quarter of the preceding year. Gains were as
follows: automotive, 41.1%; clothing, 13.4%; drugs and pharma¬
ceuticals, 11.9%; grocery and delicatessen stores, 60.0%; restau¬
rants, 30.3%; beverage retailers, 12.2%; confectionery stores,
84.8%; and miscellaneous retailers, 0.8%.
Decreases in the retail field were as follows: filling stations and
accessory stores, 48.0% ; beauty parlors, 28.7 % ; household equip¬
ment dealers, 3.8%; furniture stores, 1.6%; hardware dealers,
26.4% ; radio retailers, 9.5% ; department and general stores, 9.6%.
1321
.
The National Association of Broadcasters
NATIONAL PRESS BUILDING . * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyright, IS3G. The National Association of Broadcasters
Vol.4--No.23
MAY 14, 1936
IN THIS ISSUE
Page
House Committee Reports Radio Bill . 1323
Daily News Withdraws Appeal . 1323
Rayburn Radio Amendment . 1323
Please Return Cards . 1323
ICC Amends Rule 229 . 1323
Securities Act Registrations . 1325
Station Changes . 1325
Federal Trade Commission Action . 1327
Federal Communications Commission Action . 1327
HOUSE COMMITTEE REPORTS RADIO BILL
The House Committee on Interstate and Foreign Commerce has
made a favorable report on S. 2243, which has already passed the
Senate, relating to the allocation of radio facilities. This bill was
introduced in the Upper House by Senator Wheeler. The House
Committee reported the bill without any changes as follows:
“That section 302 of the Communications Act of 1934 is hereby
repealed.
“Sec. 2. Subsection (b) of section 307 of such Act is amended to
read as follows:
“ ‘(b) In considering applications for licenses, and modifications
and renewals thereof, when and insofar as there is demand for the
same, the Commission shall make such distribution of licenses,
frequencies, hours of operation, and of power among the several
States and communities as to provide a fair, efficient, and equitable
distribution of radio service to each of the same.’ ”
DAILY NEWS WITHDRAWS APPEAL
The Daily News Corporation, of St. Paul, Minn., has withdrawn
its appeal in the United States District Court for the District of
Columbia in connection with a decision of the Federal Communica¬
tions Commission.
The Commission granted a construction permit to Edward Hoff¬
man for the erection of a new broadcast station at St. Paul, Minn.,
to use 1370 kilocycles. The Daily News appealed to the court on
the ground that they also had an application for the same fre¬
quency. They have now withdrawn their appeal.
RAYBURN RADIO AMENDMENT
Representative Rayburn of Texas has introduced a bill (H. R.
12646) in the House to amend section 318 of the Communications
Act of 1934. The bill, which has been referred to the House Com¬
mittee on Interstate and Foreign Commerce, is as follows:
“That section 318 of the Communications Act of 1934 is hereby
amended to read as follows:
“ ‘Sec. 318. The actual operation of all transmitting apparatus
in any radio station for which a station license is required by this
PLEASE RETURN CARDS
Members are requested to expedite the return of
cards mailed them on which provision is made for
naming delegates and alternates to the NAB Con¬
vention at Chicago, Illinois, July 5-8, 1936.
Act shall be carried on only by a person holding an operator’s
license issued hereunder, and no person shall operate any such
apparatus in such station except under and in accordance with an
operator’s license issued to him by the Commission: Provided, how¬
ever, That the Commission may waive or modify the foregoing
provisions of this section for the operation of any station except
(1) stations for which licensed operators are required by inter¬
national agreement, (2) stations for which licensed operators are
required for safety purposes, (3) stations engaged in broadcasting,
and (4) stations operated as common carriers on frequencies below
thirty thousand kilocycles.’ ”
FCC MODIFIES RULE 229
Assigns Additional Frequencies to Broadcasting
The Federal Communications Commission on May 13 adopted
the recommendation of its Engineering Department to modify its
existing Rule 229, in which is assigned frequencies to various classes
of stations and services.
The band 1500 to 1600 kc. was assigned to broadcasting. This
does not mean, however, that there will be any immediate change
in the existing policy of maintaining stations on the 1530, 1550 and
1570 kc. frequencies in the experimental status, nor is it contem¬
plated that other frequencies will be assigned to stations at this
time.
Another change was the elimination of experimental visual broad¬
casting in the 2000 to 3000 kc. band, on the basis that the con¬
sensus of engineering opinion and the inspection of reports sub¬
mitted by visual broadcast stations reveal that these frequencies
are not particularly suited for television and that at present there
is no indication that these frequencies will ever be adequate for the
transmission of visual broadcast programs which will be of sufficient
quality to command public interest.
The frequencies thus released were made available to government
departments, intercity police communication services and to point-
to-point telegraph stations in the fixed public service.
25600 to 26600 kc. was assigned” to broadcasting in accordance
with the provisions of Article 7 of the International Regulations
to which the United States is a party. No specific change in exist¬
ing policy is involved in this assignment.
Four frequencies in the band 40000 to 42000 kc. were assigned to
experimental broadcasting, for the special purpose of ascertaining
Make Your Plans Now to Attend the
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL CHICAGO, ILLINOIS
JULY 5, 6, 7, and 8, 1936
1323
facts with respect to frequency modulation, a hitherto unused sys¬
tem of modulation as applied to broadcasting.
The text of the Orders follows:
FEDERAL COMMUNICATIONS COMMISSION
Washington, D. C.
Commission Order No. 14
At a general session of the Federal Communications Commission
held at its offices in Washington, D. C., on the 13th day of May,
1936:
The Commission, having under consideration Rule 229 of its
Rules and Regulations, has determined that in order to prevent
interference between stations and to carry out the provisions of
the Communications Act, the public convenience, interest and
necessity requires that said Rule 229 be revised in part for the
following reasons:
1. There is a need for the allocation of additional frequencies
for police, broadcast and fixed services.
2. The frequency bands, 2000 to 2100 kilocycles and 27SO to 2850
kilocycles, are no longer suitable for visual broadcasting be¬
cause a satisfactory picture or image in keeping with the
present state of the art cannot be transmitted on frequencies
within said bands.
3. There is a need for a greater frequency separation from other
services in the operation of relay broadcast (formerly broad¬
cast pickup) stations.
IT IS ORDERED That, Rule 229 be, and it is hereby, amended
by striking out
so much of said Rule as relates to the frequencies
listed below and substituting in lieu thereof the following:
“Frequencies ( kc .)
Allocation
1510
Broadcast
1520
Cl
1530
cc
1540
cc
1550
cc
1560
CC
1570
Cl
1580
Government
1584
Cl
1586
Cl
1590
Broadcast
1596
State Police (temporary)
1600
Broadcast
2000
Amateur
a 2004
Government
2008
General Communication
2012
Cl Cl
20,16
Cl Cl
2020 )
2024 j
2022
Relay Broadcast
2028
General Communication
i 2032
Government
2036
Police (Intercity Telegraph)
2040
“ (t it
2044
“ “ “
2048
General Communication
a 2032
Government
2036 |
2060 j
2058
Relay Broadcast
2064
General Communication
2068
cc Cl
2072
cc cc
i 2076
Government
2080
General Communication
2084
Cl Cl
2088 1
2092 ]
2090
Relay Broadcast
a 2096
Government
2752
General Communication
2756 |
2760 j
2758
Relay Broadcast
2764
General Communication
i 2768 )
a h i 2772 f
i 2770
Government
“Frequencies ( kc .) Allocation
2776
Fixed
2780
Cl
2784
CC
2788 )
2790
Relay Broadcast
2792 f
Government
2796
General Communication
2800
CC Cl
2804
Police (Intercity Telegraph)
2808
CC Cl CC
2812
cc cc cc
2816
General Communication
2820 J
2824 f
i 2822
Government
2828 }
2832 ]
2830
Relay Broadcast
2836
Fixed
2840
CC
2844
Government
2848
Fixed
5135
Police (Intercity Telegraph)
5140
CC Cl cc
5195
Cl cc cc
25600
Guard band for government assignment
25900 kc.
25625
Broadcast
25650
CC
25675
CC
25700
General Experimental
25725
Broadcast
25750
CC
25770
Government
25775
Guard band for government assignment
25770 kc.
25800
Broadcast
25825
Cl
2S850
CC
25875
cc
25900
cc
25925
cc
25950
cc
25975
cc
26000
General Experimental
26025
Broadcast
26050
“
26075
CC
26100
CC
26125
“
26150
“
26175
cc
26190
Government
26200
Guard band for government assignment
26190 kc.
26220
Government
26225
Guard band for government assignment
26220 kc.
26250
Government
26275
Guard band for government assignment
26280 kc.
26280
Government
26300
Broadcast
26325
CC
26350
CC
26375
cc
26400
cc
26425
cc
26450
cc
26475
cc
26500
cc
26525
cc
26550
cc
26575
cc
26600
cc
40300
Broadcast Experimental
41200
cc cc
41600
cc cc
41800
11 ll
“All frequencies allocated as General Experimental frequencies
are also available for assignment to broadcast service on an ex¬
perimental basis.
1324
“Hereafter in Rule 229 whenever the words ‘relay broadcast’
appear, there will be substituted the words ‘international broad¬
cast.’ Whenever the words ‘broadcast pickup’ appear, there will
be substituted the words ‘relay broadcast.’ ”
IT IS FURTHER ORDERED That said amendment to Rule 229
shall be effective at 3:00 A. M., E.S.T., July 1, 1936.
By the Commission,
John B. Reynolds,
Acting Secretary.
FEDERAL COMMUNICATIONS COMMISSION
Washington, D. C.
Commission Order No. 15
At a general session of the Federal Communications Commission
held at its office in Washington, D. C., on the 13th day of May,
1936:
The Commission, having under consideration the requirements of
Section 303(f) of the Communications Act of 1934 and having
adopted by its Order No. 14 an amendment to its Rule 229 which
contemplates a change in the frequency of certain existing stations:
IT IS ORDERED That, public notice of said order is hereby
given to all existing licensees, or pending applicants for instru¬
ments of authorization, whose frequency or frequencies heretofore
assigned or applied for may be changed by the provisions of said
Order, and that opportunity is afforded, prior to July 1, 1936, to
indicate in writing to the Commission whether or not such change
is consented to by such licensee.
IT IS FURTHER ORDERED That any licensee or pending
applicant not consenting to said change in frequency assignment
shall upon application by it be accorded a public hearing to deter¬
mine whether such change will promote public convenience and
interest or will serve public necessity or whether the provisions of
the Communications Act of 1934 will be more fully complied with
by such changes.
IT IS FURTHER ORDERED That as to any non-consenting
licensee or pending applicant, the effective date of said Order No. 14
shall be postponed until after a determination upon such public
hearing.
IT IS FURTHER ORDERED That as to all licensees or pend¬
ing applicants who consent prior to July 1, 1936, to the change
in frequency resulting from the reallocation made by said Order
No. 14, all outstanding licenses or applications for instruments of
authorization be and the same are hereby modified in accordance
with said allocation effective at 3:00 A. M., E.S.T., July 1, 1936.
By the Commission,
John B. Reynolds,
Acting Secretary.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
International Television Radio Corp., Jersey City, N. J. (2-
2133, Form A-l)
Naragansett Racing Association, Inc., Pawtucket, R. I. (2-2136,
Form A-l)
Standard Tractor Corporation, Jefferson, Ohio. (2-2137, Form
A-l)
Shamrock Oil & Gas Corp., Amarillo, Texas. (2-2138, Form A-l)
Colonial Mortgage Company, Baltimore, Md. (2-2139, Form
A-l)
Union Compress & Warehouse Co., Memphis, Tenn. (2-2140,
Form A-2)
Lisarbo Andreas, S. A., Rio de Janeiro, Brazil. (2-2141, Form
A-l)
James C. Auchincloss et al., New York City. (2-2142, Form
F-l)
Casco Products Corporation. Bridgeport, Conn. (2-2143, Form
A-2)
McDowell Mines, Inc., Denver, Colo. (2-2144, Form A-l)
Gregory-Bates Mining Co., Black Hawk, Colo. (2-2146, Form
A-l)
Jeannette Glass Company, Jeannette, Pa. (2-2147, Form A-2)
Metropolitan Personal Loan Co., Allentown, Pa. (2-2149, Form
A-l)
Curtiss-Wright Corporation, Wilmington, Del. (2-2150, Form
A-l)
STATION CHANGES
The Federal Communications Commission has issued the following statement containing alterations and corrections (italicised) for
the month of April:
Call
Main Studio
Frequency Time
Quota Units
Letter
Location
Name of Licensee
Power
( kc )
Designation
Night Day
KANS
Wichita, Kans.
Charles C. Theis
lOOw
1210
U (C. P. only)
Effective 7-21-36
KBST
Big Spring, Tex.
Big Spring Herald Broadcasting
Co.
lOOw
1500
U (C. P. only)
Effective 7-28-36
KDNC
Lewistown, Mont.
Democrat News Co., Inc.
lOOw
1200
U (C. P. only)
KEHE
Los Angeles, Calif.
Evening Herald Publishing Co.
500w
780
S-KELW
0.5
0.85
T-Santa Monica
lkw-LS
C. P. lkw-5kw-LS
U-
KFH
Wichita, Kans.
Radio Station KFH Co.
C.
lkw
P. 5kw-LS
1300
V
0.5
0.85
KFIZ
Fond du Lac, Wis.
The Reporter Printing Co.
lOOw
1420
u
0.1
0.1
KFJZ
Fort Worth, Tex.
Fort Worth Broadcasters, Inc.
lOOw
1370
u
0.1
0.2
C. P. 250W-LS
KFYO
Lubbock, Tex.
Plains Radio Broadcasting Co.
lOOw
250w-LS
1310
u
0.1
0.2
KGBZ
Strike out all particulars
Effective 5-8-36
KGHL
Billings, Mont.
Northwestern Auto Supply Co.,
lkw
950
u
0.5
0.75
Inc.
2)4kw-LS
Effective 7-28-36 — 780kc.
S.A. 780 — Exp.
KICA
Clovis, N. Mex.
Western Broadcasters, Inc.
lOOw
1370
S. H.
0.07
0.08
KIDW
Lamar, Colo.
The Southwest Broadcasting Co.
lOOw
1420
S. H.
0.04
0.09
KIEM
Eureka, Calif.
Redwood Broadcasting Co., Inc.
500w
1450
u
0.3
0.3
KIRO
Seattle, Wash.
Queen City Broadcasting Co.
250w
650
L-WSM
0.5
0.5
S.A.
. . 1 kw .
710
U — Exp.
1325
Call
Main Studio
Frequency Time
Quota Units
Letter
Location
Name of Licensee
Power
( kc )
Designation
Night Day
KLZ
Denver, Colo.
C. P. T-nr.
KLZ Broadcasting Co.
Denver .
Ikw
5kw-LS
560
U
0.5
0.85
KMA
Shenandoah, Iowa
May Seed and Nursery Co.
Effective 5-8-36 . . .
lkw
2j4kw-LS
V
930
S-KGBZ
0.5
0.75
KMED
Medford, Ore.
Mrs. W. J. Virgin
lOOw
250w-LS
**250w . .
1310
.1410 . .
U
. . S. H.
0.1
0.2
KOMO
Seattle, Wash.
Fisher’s Blend Station, Inc.
lkw
5kw-LS
920
U
0.5
0.85
KPDN
Pampa, Tex.
Pampa Daily News, Inc. lOOw
C. P. covered by license
1310
D
KPLT
Paris, Tex.
The North Texas Broadcasting
Co.
Effective 7-28-36
lOOw
1500
D (C. P. only)
KRBC
Abilene, Tex.
Reporter Broadcasting Co.
Effective 8-4-36
lOOw
1420
U (C. P. only)
KWSC
Pullman, Wash.
State College of Washington
lkw
2kw-LS
C. P. 5kw-LS
1220
S-KTW
0.39
0.73
WADC
Tallmadge, Ohio
Allen T. Simmons
lkw
2$4kw-LS
C. P. 5kw-LS
1320
U
0.5
0.85
WAIM
Anderson, S. C.
Wilton E. Hall
100 w
C.P.lkw .
1200
. .630 .
U
. . D
0.5
WAYX
Way cross, Ga.
E. F. Sapp & S. F. Sapp, trading
as Waycross Broadcasting Co.
Effective 7-7-36
lOOw
1200
U (C. P. only)
WBNY
WCAC
Buffalo, N. Y.
Strike out all particulars
Roy L. Albertson lOOw
250w-LS
C. P. covered by license
1370
All hours except
those WSVS
operates
0.1
0.16
WCLO
Janesville, Wis.
Gazette Printing Co., Inc.
lOOw
C. P. 250W-LS
1200
U
0.1
0.2
WDAE
Tampa, Fla.
Tampa Times Co.
lkw 1220
S.A. 2j4kw-LS — Exp.
C. P. lkw-5 kw-LS
u
0.5
0.85
WEED
Nr. Rocky Mount, N.C.
Wm. Avera Wynne
lOOw
C. P. 250w-LS
1420
U-D
S-WCHV night
0.05
0.2
WFOY
St. Augustine, Fla.
Fountain of Youth Properties,
Inc.
Effective 7-14-36
lOOw
1210
U (C. P. only)
WIBA
Madison, Wis.
Badger Broadcasting Co., Inc.
lkw
5kw-LS
1280
U
0.5
0.85
WJAS
Pittsburgh, Pa.
Pittsburgh Radio Supply House
Strike out effective 5-19-36
lkw
5kw-LS
• 5kw-LS
1290
u
0.5
0.85
WJRD
Tuscaloosa, Ala.
James R. Doss, Jr.
Effective 8-11-36
lOOw
1200
D (C. P. only)
WKAQ
San Juan, Puerto Rico
Radio Corporation of Porto Rico
lkw
1240
V
WNAC
Boston, Mass.
T-Quincy
Shepard Broadcasting Service,
Inc.
r
lkw
2^4kw-LS
C. P. 5kw-LS
1230
U
0.5
0.85
WNLC
New London, Conn.
Thames Broadcasting Corp.
Effective 7-21-36
lOOw
1500
D (C.P. only)
WORL
Boston, Mass.
T-Needham
Broadcasting Service Organiza¬
tion, Inc.
SOOw
920
D
0.3
WSAI
Cincinnati, Ohio
Strike out T -Mason
Crosley Radio Corp.
lkw
2J/2kw-LS
1330
U
0.5
0.75
WSYR-
WSYU
Syracuse, N. Y.
C. P. T -Syracuse
Central New York Broadcasting
Corp.
250w
lkw
570
U
0.5
0.5
** See Abbreviations — Lists of January 1, 1936.
1326
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2795. A complaint has been issued against Federal Civil
Service Training Bureau, 508 South Dearborn St., Chicago,
alleging unfair methods of competition in the sale of correspond¬
ence courses of instruction designed to prepare students for ex¬
aminations for various Federal Civil Service positions. John Hart¬
ford, owner of the correspondence school, and Harvey E. Wagley,
a creditor in active charge of the business, also are named as re¬
spondents in the complaint, which charges violation of Section 5
of the Federal Trade Commission Act.
Use of the name “Federal Civil Service Training Bureau” is al¬
leged to imply that such bureau is connected with or is an agency
of the United States Government or of the Civil Service Com¬
mission, when, according to the complaint, neither the respondents
nor their school has any such connection.
No. 2797. Anthony J. Hildreth and Joseph Fischler, trading
as Sanitas Fundoshi Co., 7508 Linwood Ave., Cleveland, are
named respondents in a complaint alleging unfair competition in
the sale of a suspensory which they manufacture from cloth im¬
ported from Japan.
The complaint charges the respondents advertise in magazines
and folders that their product restores health, is scientifically de¬
signed to preserve strength, and has certain other properties not
found in similar articles made of cloth.
No. 2798. Imitation of the product of a competitor in violation
of the Federal Trade Commission Act is alleged in a complaint
issued against John H. Meyer, trading as Med-Dental Systems
Co., 1015 Schmidt Building, Cincinnati, and engaged in the sale
of accounting systems designed for doctors and dentists. The
respondent’s practices are said to constitute unfair competition.
The complaint charges that the respondent’s accounting systems
are exact copies of the well-known “McCaskey System” of ac¬
counting sold by the McCaskey Register Company, Alliance, O.,
which has been in business since 1909.
In 1934, the Med-Dental Systems Co. was organized as a co¬
partnership by the respondent Meyer and Victor T. Griswold,
the latter previously having been in the employ of the McCaskey
Company, according to the complaint, and in the course of such
employment is said to have become familiar with the details of
the “McCaskey System.”
The copartnership was dissolved in 1935, Meyer remaining in
charge of Med-Dental Systems Co., which, the complaint alleges,
continued to sell accounting systems patterned from samples and
forms Griswold obtained from the McCaskey Company. The re¬
spondent also is alleged to have copied the McCaskey Company’s
sales promotional literature, as well as the size^ shape and general
appearance of that company’s cabinets and desks which house the
accounting systems.
No. 299. The Rieser Co., Inc., 119 West 40th St., New York
City, manufacturer of tissues, has been charged with unfair com¬
petition in violation of the Federal Trade Commission Act, in a
complaint. The company maintains a factory at Shamokin, Pa.
Tissue products sold by this respondent company, according to
the complaint, were labeled “Mentho-Kerchief, the Mentholated
Tissue Hankerchief.” These articles were also alleged to have
been described on the label as being capable of relieving head
colds, sinus and hay fever, and of clearing the nasal passages. The
respondent is also charged with representing that doctors recom¬
mend Mentho-Kerchief.
These representations are alleged to have had a tendency to
deceive buyers into believing that the respondent’s product has
been recommended by doctors as a cure, remedy or relief for sinus
trouble, hay fever and head colds, when, according to the com¬
plaint, these are not the facts, and such relief obtained by sufferers
from head colds, if any, would be limited to a possible momentary
clearing of the nasal passages, causing a relief so slight and tem¬
porary as to be negligible.
The complaint points out that the tissue products of the re¬
spondent are not handkerchiefs as the term is understood.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 1684. Harry Gritz, 1335 Seventh St., N. W., Washing¬
ton, D. C., trading as “Army & Navy Store,” agrees to stop ad¬
vertising his business by use of the words “Army & Navy,” in
violation of the Federal Trade Commission Act prohibiting unfair
methods of competition.
Gritz’ merchandise is described in the stipulation of facts as con¬
sisting only to a limited extent of goods formerly owned by the
Army and Navy, but mainly of articles purchased through regular
commercial channels and not made for or formerly owned by the
Federal Government. Gritz is said to deal mostly in workingmen’s
clothing and camping outfits and supplies.
The stipulation points out that Army and Navy surplus stocks
have for some time been practically exhausted, and the only classes
of such goods now procurable by dealers are articles which have
become obsolete, worn out, or damaged in storage, and a few
salvaged surplus items such as canteens, mess kits, pup tents, and
the like.
According to the stipulation, Gritz displayed the caption “Army
& Navy Store” on a sign in front of his store, and advertised
through use of the phrase “Army & Navy.” He agrees to stop
advertising in any way which would deceive buyers into believing1
that the merchandise he sells consists of Army and Navy surplus
products, when such is not the fact.
No. 1665. William P. Jacobs, trailing as Easpirin Co.,
Clinton, S. C., and selling “Easpirin,” the principal active element
of which is said to be aspirin, agrees to cease advertising, without
proper qualification, to the effect that there is not the slightest
risk of weakening the heart or causing depression of the heart by
use of his product. The stipulation provides that nothing therein
shall be construed as preventing the respondent from making proper
therapeutic claims and recommendations for his article, which are
based on reputable medical opinion or recognized medical or
pharmaceutical literature.
No. 1666. Keep Klean Cover C'o., Inc., 2828 Pine St., St.
Louis, manufactures automobile accessories, including a reflector
type advertising device for automobile tire covers. The respondent
company agrees to cease branding its product with “Pat. No.
1 ,947,549” or with other words and figures which may tend to
deceive buyers into believing that the corporation is owner of or
controls a subsisting patent on its article, when this is not true.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
There was no meeting of the Broadcast Division of the Com¬
mission on the usual meeting day, Tuesday. A meeting will be
held later this week.
HEARING CALENDAR
Monday, May 18
HEARING BEFORE THE COMMISSION EN BANC
WARD — United States Broadcasting Corp., Brooklyn, N. Y. —
C. P. to move transmitter; 1400 kc., 500 watts, share
WVFW, WLTH & WBBC.
WARD — United States Broadcasting Corp., Brooklyn, N. Y. —
Renewal of license; 1400 kc., 500 watts, share WVFW,
WLTH & WBBC.
WARD — United States Broadcasting Corp., Brooklyn, N. Y. —
Voluntary assignment of license to Kings Broadcasting
Corp.; 1400 kc., 500 watts, share WVFW, WLTH & WBBC.
WBBC — Brooklyn Broadcasting Corp., Brooklyn, N. Y. — Modifi¬
cation of license; 1400 kc., 500 watts, unlimited time (re¬
quests facilities of WARD, WVFW & WLTH). Present
assignment: 1400 kc., 500 watts, share WLTH, WARD &
WVFW.
WBBC — Brooklyn Broadcasting Corp., Brooklyn, N. Y. — Renewal
of license; 1400 kc., 500 watts, share WARD, WLTH &
WVFW.
WBBC — Brooklyn Broadcasting Corp., Brooklyn, N. Y. — Renewal
of license (aux. transm.) ; 1400 kc., 500 watts, share WARD,
WLTH & WVFW.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Modi¬
fication of license; 1400 kc., 500 watts, unlimtied time (re¬
quests facilities of WARD, WLTH & WBBC). Present as¬
signment: 1400 kc., 500 watts, share WARD, WLTH &
WBBC.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Re¬
newal of license; 1400 kc., 500 watts, share WARD, WLTH
& WBBC.
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — C. P.
to make changes in equipment; 1400 kc., 500 watts, share
WARD, WLTH & WBBC.
1327
WVFW — Paramount Broadcasting Corp., Brooklyn, N. Y. — Trans¬
fer of control of Corp.; 1400 kc., S00 watts, share WARD,
WLTH & WBBC.
WLTH — Voice of Brooklyn, Inc., Brooklyn, N. Y. — Renewal of
license; 1400 kc., 500 watts, share WARD, WVFW &
WBBC.
WLTH — Voice of Brooklyn, Inc., Brooklyn, N. Y. — Voluntary
assignment of license to Kings Broadcasting Corp.; 1400 kc.,
500 watts, share WARD, WVFW & WBBC.
NEW — Brooklyn Daily Eagle Broadcasting Co., Inc., Brooklyn,
N. Y. — C. P. ; 1400 kc., 500 watts, unlimited time (requests
facilities for WBBC, WLTH, WARD & WVFW).
WEVD — Debs Memorial Radio Fund, Inc., New York, N. Y. —
Modification of license; 1400 kc., 1 KW, unlimited time
(requests facilities for WBBC, WLTH, WARD & WVFW).
Present assignment: 1300 kc., 1 KW, share WBBH, WFAB
& WHAZ.
Tuesday, May 19
HEARING BEFORE AN EXAMINER
(Broadcast)
KVOS — KVOS, Incorporated, Bellingham, Wash. — Renewal of
license; 1200 kc., 100 watts, unlimited time.
KVOS— KVOS, Incorporated, Bellingham, Wash. — Transfer of con¬
trol of corporation; 1200 kc., 100 watts, unlimited time.
Wednesday, May 20
HEARING BEFORE AN EXAMINER
(Broadcast)
WOL— American Broadcasting Co., Washington, D. C. — C. P.;
1230 kc., 1 KW, unlimited time. Present assignment: 1310
kc., 100 watts, unlimited time.
Thursday, May 21
HEARING BEFORE AN EXAMINER
(Broadcast)
KXL — KXL Broadcasters, Portland, Ore. — Renewal of license;
1420 kc., 100 watts, 280 watts, LS, shares with KBPS.
KDYL — Intermountain Broadcasting Corp., Salt Lake City, Utah
— C. P.; 1290 kc., 1 KW, 5 KW-LS, unlimited time. Present
assignment: 1290 kc., 1 KW, 1 KW-LS, unlimited time.
Friday, May 22
HEARING BEFORE AN EXAMINER
(Broadcast)
KUMA — Albert H. Schermann, Yuma, Ariz. — Renewal of license;
1420 kc., 100 watts, specified hours.
APPLICATIONS RECEIVED
First Zone
WB2A — Westinghouse Electric & Mfg. Co., Springfield, Mass. —
550 Construction permit to install a new transmitter and direc¬
tional antenna, change frequency from 990 to 550 kc., move
transmitter from 625 Page Blvd., East Springfield, Mass,
to Agawam, Mass., and studio from Hotel Bradford, 275
Tremont St., Boston, Mass., to 140 Chestnut St., Springfield,
Mass. Also change hours of operation from unlimited when
synchronized with WBZ to unlimited time.
WNYC — City of New York, Dept, of Plant and Structures, New
810 York, N. Y. — Modification of construction permit (Bl-P-
678) for new equipment and move of transmitter, requesting
to make changes in directional antenna. Amended: To re¬
quest extension of completion date from 6-1-36 for 180 days.
WABI — Community Broadcasting Service, Bangor, Me. — Con-
1200 struction permit to install a new transmitter, erect a vertical
antenna, increase power from 100 watts to 100 watts night,
250 watts day, change hours of operation from specified
hours to unlimited time and move transmitter from Park
Street, Bangor, Maine, to Brewer, Maine.
WOL — American Broadcasting Company, Washington, D. C. —
1310 Construction permit to erect a vertical antenna and move
transmitter and studio from 1111 H St., N. W„ Washington,
D. C., to 1627 K St., N. W., Washington, D. C.
NEW — Edwin H. Armstrong, New York City — Construction per¬
mit for a general experimental station on 41600, 86500,
111000 kc., 40 KW.
W2XE — Atlantic Broadcasting Corp., Wayne, N. J. — Construction
permit to increase power to 10 KW and replace transmitter.
Second Zone
WKBN — WKBN Broadcasting Corp., Youngstown, O. — Authority
570 to install automatic frequency control.
NEW — Lincoln Memorial University, Middlesboro, Ky. — Construc-
1210 tion permit to erect a new broadcast station to be operated
on 1210 kc., 100 watts power, unlimited time.
WTEL — Foulkrod Radio Engineering Co., Philadelphia, Pa. —
1230 Construction permit to install new equipment, directional
antenna, change frequency from 1310 kc. to 1230 kc., in¬
crease power from 100 watts to 250 watts, 500 watts day,
hours of operation from share WHAT to unlimited time
and move transmitter. Amended: To omit request for move
of transmitter.
WSPD — The Toledo Broadcasting Co., Toledo, O. — License to
1340 cover construction permit (B2-P-715) for equipment changes,
and increase in power from 1 KW night, lYz KW day to
1 KW night, 5 KW day.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
1370 License to cover construction permit (B2-P-934) to install
auxiliary transmitter.
WHIS — Daily Telegraph Printing Co., Bluefield, W. Va. — License
1410 to cover construction permit (B2-P-861) for new equipment
and move of transmitter.
NEW — National Broadcasting Co., Inc., Cleveland, O. — Con¬
struction permit for general experimental station for 25700,
26000, 27100, 31100, 31600, 34600, 35600, 37600, 38600,
40600, 41000, 86000-400000, 401000 kc., and above 25
watts.
NEW — National Broadcasting Co., Inc., Cleveland, 0. — License to
cover 31100, 34600, 37600, 40600 kc., 25 watts.
NEW — National Broadcasting Co., Inc., Cleveland, O. — License to
cover 25700, 26000, 27100, 31600, 35600, 38600, 41000,
86000-400000, 401000 kc., 25 watts.
W10XGA — Miami Valley Broadcasting Corp., Portable-Mobile —
License to cover construction permit for 31100, 34600,
37600, 40600 kc., 2.5 watts.
Third Zone
WGCM — WGCM, Incorporated, Mississippi City, Miss. — Modifi-
1210 cation of construction permit (B3-P-421) to change fre¬
quency, power, equipment and time, requesting extension of
commencement and completion dates from 1-28-36 and
7-28-36 respectively to 30 days after grant and 180 days
thereafter.
WAYX — E. F. Sapp & S. F. Sapp, d/b as Waycross Broadcasting
1200 Co., Waycross, Ga. — Modification of construction permit
(B3-P-574) to make changes in equipment and for approval
of antenna, studio and transmitter site at 620 Plant Ave.,
Waycross, Georgia.
NEW — H. A. Hamilton, Ashville, N. C. — Construction permit for
1200 a new station to be operated on 1370 kc., 100 watts, day¬
time. Amended: To change frequency from 1370 to 1200
kc., and change time from daytime to unlimited time, using
100 watts power.
NEW — Associated Arkansas Newspapers, Inc., Hot Springs, Ark. —
1310 Construction permit for a new station to be operated on
1310 kc., 100 watts power, unlimited time.
KGFI — Eagle Broadcasting Co., Inc., Corpus Christi, Texas-
1500 Authority to install automatic frequency control.
Fourth Zone
KMA — May Seed & Nursery Co., Shenandoah, Iowa — Construc-
930 tion permit to move transmitter from Elm & Lowell Sts.,
Shenandoah, Iowa, to 1J4 rnile from Shenandoah, Iowa, and
make changes in equipment (antenna). Amended: To
change time from shares with KGBZ to unlimited time.
1328
WJJD — WJJD, Incorporated, Chicago, Ill. — Modification of license
1130 to change hours of operation from 6 a. m. CST, to local sun¬
set at Salt Lake City, Utah, to 6 a. m. EST, to local sunset at
Salt Lake City, Utah.
WJBC — Wayne Hummer & H. J. Dee, d/b as Kaskaskia Broad-
1200 casting Co., Bloomington, Ill. — Voluntary assignment of con¬
struction permit (B4-P-S71) from Wayne Hummer & H. J.
Dee, d/b as Kaskaskia Broadcasting Co. to Arthur Malcolm
McGregor & Dorothy Charlotte McGregor.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind.—
1230 License to cover construction permit (B4-P-144) for equip¬
ment changes and increase in power from 1 KW to 1 KW
night, and 5 KW day.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
1230 Authority to determine operating power by direct measure¬
ment of antenna power.
KGBX — Springfield Broadcasting Co., Springfield, Mo. — Exten-
1310 sion of special authorization to operate on 1230 kc., S00
watts power, unlimited time, using directional antenna at
night, for period from 6-1-36 to 12-1-36.
WMBD — Peoria Broadcasting Co., Peoria, Ill. — Modification of
1440 construction permit (B4-P-S90) as modified for equipment
changes, and move of transmitter, to further request change
in equipment, and to extend commencement and completion
dates from 2-8-36 and 8-6-36 to immediately and 3 months
after grant, respectively.
Fifth Zone
KGW — Oregonian Publishing Co., Portland, Ore. — Modification of
620 license to change power from 1 KW, 5 KW day to 5 KW
day and night.
KFPY — Symons Broadcasting Co., Spokane, Wash. — Modification
890 of construction permit (B5-P-332) for approval of antenna
and transmitter site at E 54 of of of Lot 10, Sec¬
tion 4, Township 24 N. Range 43 E. W. M. Spokane, Wash.
KOMO — Fisher’s Blend Station, Incorporated, Seattle, Wash. —
920 Modification of license to change power from 1 KW night;
5 KW day to 5 KW day and night.
KWYO — Big Horn Broadcasting Co., Inc., Sheridan, Wyo. — Con-
1370 struction permit to make changes in equipment, erect a
vertical antenna, increase power from 100 watts to 100 watts,
250 watts day and move transmitter from corner Adair and
West Fourth Streets, Sheridan, Wyoming, to 1.2 miles N.
of Sheridan, Wyoming. Amended: To change type of equip¬
ment from composite to Doolittle and Falknor.
Puerto Rican Zone
WPRP — Julio M. Conesa, Ponce, P. R. — License to cover con-
1420 struction permit (l-P-B-2940) as modified for a new station
on 1420 kc., 100 watts night; 250 watts day power, speci¬
fied hours.
1329
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W, BALDWIN, Managing Director
NAB REPORTS * *
Comrrlght. 1936. The National A$»ociation ol Broadcasters _
Vol. 4 - - No. 24
MAY 21, 1936
IN THIS ISSUE
Page
Food Bill Ordered Reported . 1331
Caution — Aldrich Blake Enjoined . 1331
License Renewal Recommended . 1331
ASCAP Aids Defense of Warner Suits . 1331
Recommends Power Increase on Condition . 1332
Decision in ASCAP Case . . 1332
Federal Trade Commission Action . 1332
FTC Dismisses Cases . . . ; . 1334
Federal Communications Commission Action 1334
FOOD BILL ORDERED REPORTED
The House Committee on Interstate and Foreign Commerce on
Wednesday ordered that a favorable report be made on the Pure
Food and Drug Bill. This bill passed the Senate during the last
session of Congress and has been pending in the House committee
for a long time. As the bill was ordered reported it places adver¬
tising under the Federal Trade Commission instead of the Depart¬
ment of Agriculture.
CAUTION— -ALDRICH BLAKE ENJOINED
On Tuesday, May 19, 1936, Justice Bailey of the Supreme Court
of the District of Columbia permanently enjoined Aldrich Blake
and Aldrich Blake, Inc., from violating the Securities Act of 1933
in the sale of agreements entitling the purchaser to oil on a when,
as and if produced basis. Justice Bailey held that such agreements,
although purporting to pay for oil at the rate of one cent a barrel,
were in fact investment contracts or certificates of interest in a
profit-sharing agreement and therefore a security within the mean¬
ing of said Act.
Aldrich Blake had failed to file five copies of his continuity with
the Securities and Exchange Commission five days before broad¬
casting same over a radio station, as required by Rule 800(d) of
the General Rules and Regulations of the Securities and Exchange
Commission under the Securities Act of 1933, which rules are
authorized under the provisions of Section 10(d) of said Act. This
Act defines a prospectus to mean, among other things, any com¬
munication by radio which offers any security for sale, with certain
exceptions such as the existence of a written prospectus which was
sent to prospective purchasers and complies with the provisions of
Section 10 of said Act.
It is our understanding that Aldrich Blake has been using other
radio stations and that he will endeavor to do so in the future.
While there are certain exemptions with reference to registration
statements and prospectuses, the only safe thing to do is to contact
the Securities and Exchange Commission prior to authorizing any
broadcast involving the sale of the security. The section of said
Act relating to fraudulent interstate transactions contains no exemp¬
tions and includes not only fraudulent transactions but also those
in which there may be an omission to state a material fact necessary
in order to make the statements made, in the light of the circum¬
stances under which they were made, not misleading. The primary
responsibility for filing the prospectus with this Commission is
upon the user of such prospectus but broadcasting stations should
not fail to take reasonable precautions to see that the Securities
Act of 1933, as amended, has been complied with.
LICENSE RENEWAL RECOMMENDED
Broadcasting Station WSMB, New Orleans, La., applied to the
Federal Communications Commission for a renewal of its license.
The station operates on 1320 kilocycles, 1,000 watts power and
unlimited time.
Examiner George H. Hill, in Report No. 1-223, recommended that
the application for renewal be granted “without restriction of
radiation toward Des Moines, la.”
The Examiner found that the station is rendering a meritorious
service. He states that “Station KRNT is already limited by the
operation of Station WADC to an extent which renders it unneces¬
sary for WSMB to restrict its radiation in the direction of KRNT.
The operation of WADC limits KRNT to its 4 millivolt per meter
contour, whereas Station WSMB, operating with 1,000 watts power
without restricting radiation toward KRNT, would limit KRNT
only to its 2.3 millivolt per meter contour.”
ASCAP AIDS DEFENSE OF WARNER SUITS
Approximately one hundred thirty-five complaints in actions
commenced by the Warner Brothers’ publishing interests have been
referred by broadcasters to the American Society of Composers,
Authors and Publishers for defense. Broadcasters have followed
this course in reliance upon the provision of the contract between
ASCAP and broadcasters, which provides that ASCAP agrees to
indemnify, save and hold harmless and defend the broadcasting
station from and against suits brought against the broadcaster with
respect to renditions of compositions contained in ASCAP’s reper¬
tory, and in accordance with the further provision of the contract
which requires the broadcaster to deliver to ASCAP any process or
pleading served upon it, so that ASCAP can assume charge of the
defense of the action.
ASCAP has, in every case in which a complaint has been referred
to it, caused its general counsel, Nathan Burkan, Esq., to prepare
an appropriate answer, and has forwarded such answer to the
broadcaster, with the request that it be filed by the broadcasting
station’s local counsel. In requesting local counsel so to act in
filing the answer, ASCAP has assured broadcasting stations, in
writing, that the appearance of such counsel in the suit would not
prejudice the station’s claim for defense by and indemnity from
ASCAP.
The NAB is informed that ASCAP intends to furnish the services
of its general counsel, and to make available the necessary informa¬
tion and evidence, without charge to any broadcaster who avails
himself of such services. ASCAP takes the position that the basic
questions involved in the Warner Brothers litigation will be dis¬
posed of in a few test cases, and it is expected that ASCAP will
assume charge of the trial and of the prosecution of appeals in such
test litigation. If ASCAP is correct, it is clear that a considerable
number of cases now pending will never come to trial, since the
issues involved therein will be disposed of by the precedents set in
these test cases.
ASCAP takes the position, however, that it is definitely relieved
of any obligation to defend or indemnify the station in those cases
in which the broadcaster fails to comply with the provisions of the
contract requiring the broadcaster to deliver pleadings to ASCAP,
and permitting ASCAP to assume charge of the defense in co¬
operation with counsel for the broadcasting station.
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS
JULY 5, 6, 7, 8, 1936
RECOMMENDS POWER INCREASE ON
CONDITION
Broadcasting Station WDBO, Orlando, Fla., operating on a fre¬
quency of 580 kilocycles, with unlimited time using 250 watts with
1,000 watts experimentally, applied to the Federal Communications
Commission to use 1,000 watts regularly.
Examiner Ralph L. Walker, in Report No. 1-224, has recom¬
mended that the application be granted “(1) if the application of
WCHS for 1,000 watts night power is granted and (2) if the pend¬
ing application of WDBO for authority to move the station is
granted ; otherwise that the application be denied.”
The Examiner states that the reception of programs of WDBO
is unsatisfactory in a large portion of the area which would nor¬
mally be considered as within its primary service radius because
of interference from a station outside the United States operating
on a frequency of five kilocycles removed from it.
DECISION IN ASCAP CASES
Judge Frederick H. Bryant, in the United States District Court
for the northern district of New York, has handed down a decision
in two ASCAP cases against Elm Lodge, Inc., in which he critisises
the practice of attorneys for the Society frequenting night clubs
to gain evidence on which to base a case. The decisions are as
follows:
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
In Equity No. 2870
Gene Buck, as President of the American Society of Composers,
Authors and Publishers, and Famous Music Corporation,
Plaintiff,
against
Elm Lodge, Inc., Defendant.
and
In Equity No. 2872
Gene Buck, as President of the American Society of Composers,
Authors and Publishers, and PIarms, Inc., Plaintiffs,
against
Elm Lodge, Inc., Defendant.
Appearances:
Earl I. Freshman, Esq., Attorney, Syracuse, New York, Solici¬
tor for the plaintiffs; and Louis D. Frohlich, Esq., Attorney,
1450 Broadway, New York City, N. Y., of Counsel for the
plaintiffs.
Albert Averbach, Esq., Attorney, Syracuse, N. Y., Solicitor for
the defendant.
Bryant, D. J.
The defendant, at times mentioned in the complaint, operated a
restaurant, or night club, near Syracuse, New York, with a table
seating capacity of about 200. Each evening, for entertainment,
there was a floor show and an orchestra.
It is the contention of the plaintiffs, in each case, that the de¬
fendant, without having obtained a license, allowed its orchestra to
play copyright pieces.
Plaintiffs, in each action, ask that defendant be enjoined and
restrained from publicly performing the compositions named, and
seek judgment for $250.00 with costs. Defendant, by answer in
each case, denies the playing of the pieces and alleges invalidity of
copyrights because of lack of originality. It also, by counterclaim,
asks damages alleged to have been sustained through plaintiffs’
publicizing the bringing of the actions, etc.
Plaintiffs in the first entitled action base their alleged cause of
action upon an alleged rendition of a composition entitled “Cham¬
pagne Waltz.” The second entitled action is based upon an alleged
rendition of the compositions entitled “Continental,” “Then I’ll Be
Tired Of You,” and “Night And Day.” The two actions were tried
together wtihout a jury.
In the first entitled action, defendant is entitled to a judgment
of dismissal of the complaint with costs. He is not entitled to
recover upon his alleged counterclaim. Findings may be presented
upon notice.
In the second entitled action the plaintiffs are entitled to judg¬
ment with costs. Findings may be presented on notice.
Plaintiffs, in each case, are entitled to copyright protection of
the compositions named. The present suits are for penalties rather
than for actual damages. Before a penalty is decreed, the evidence
should clearly show unlicensed rendition.
In the first entitled action the alleged violation rests upon the
testimony of one witness. I do not consider the testimony of this
witness reliable enough to support a verdict.
In the second case, a witness, the one referred to above, testified
that the three compositions, last above named, were played by an
orchestra in defendant’s place on December 5th, 1934. From the
evidence, I doubt if he was there on that particular night. How¬
ever, there is not any question but that he was at defendant’s Night
Club some evening about that time. On his evidence, uncorrobo¬
rated, I would not predicate a violation. In this case he is sup¬
ported by an orchestra leader and a piano player.
The leader of the orchestra, which played at defendant’s place
from the latter part of November until about December 5th, posi¬
tively stated that, during that period, his orchestra played “Con¬
tinental” every night and “Night And Day” part of the time. A
piano player, who played with the orchestra one night, testified
that the orchestra played “Night And Day.” He gave his reasons
for remembering that particular selection. This testimony is un¬
disputed except that both witnesses testified they played the night
of December 5th, while defendant’s evidence tended to show the
orchestra, in which they played, closed its engagement on the night
of the fourth. Regardless of this dispute, the evidence is of suffi¬
cient weight to sustain plaintiffs’ allegations.
Cases of this kind have received considerable adverse criticism.
The methods used by plaintiff, American Society of Composers,
Authors and Publishers, in the present cases, will not tend to allay
the criticisms.
An official of the Society testified that it is not the policy of
the Society to make inducements to orchestra leaders and players
to advise when they have played copyright pieces in unlicensed
places. Manifestly, the Society has no scruples against depending
upon orchestra leaders and players to prove its cases. It has done
so in the present instance. Inasmuch as orchestra leaders have the
choice of selections, a proprietor of an unlicensed place, however
innocent, may be placed in the toils of the Society through a
bribable leader and an unscrupulous investigator.
I am not in accord with the practice of attorneys, who are
directly or indirectly retained by the Society, frequenting Night
Clubs with the hopes that they may hear a composition played
upon which they can base a case and obtain a fee, and then take
the witness stand to prove the alleged violation. Such conduct
cannot have the sanction of this Court.
Dated May 7th, 1936.
Frederick H. Bryant,
United States District Judge.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them:
No. 2800. A complaint has been issued against Canterbury
Candy Makers, Inc., 93 Marion St., Seattle, Wash., charging
unfair methods of competition through sale to wholesalers and re¬
tailers of assortments of candy so packed as to involve the use of a
lottery scheme when distributed to consumers. One such assort¬
ment was sold together with a punchboard, according to the com¬
plaint. These methods of competition are alleged to have caused
diversion of trade to the respondent company from competitors.
No. 2801. Alleging unfair competition in the sale of encyclo¬
pedias, a complaint has been issued against the Times Sales Co.,
Sue., The Times Sales Co., William and George G. Heim, and
Edward B. Seegar, all having their place of business at 1524
Chestnut St., Philadelphia. The respondents Heim are officers
in both firms and are copartners of Seegar in the Times Sales Co.,
according to the complaint.
The respondents are said to offer for sale sets of “The Times
Encyclopedia,” sometimes known as “The Times Encyclopedia and
Gazetteer,” together with a 10-year loose-leaf extension service, a
membership in a bureau of research, and subscriptions to certain
magazines.
Purchasers of this so-called “combination sale” sign a contract
which, according to the complaint, describes the terms and time of
payments and sets forth that the signer does not have an under¬
standing of any kind with the respondents’ salesmen other than the
terms printed in the contract, and that the contract is not subject
to change or cancellation.
1332
However, the complaint charges, the respondents’ salesmen repre¬
sent to prospects that the contract is open to change, and, by
writing on the face thereof, alter the terms or time of payments
and substitute subscriptions to magazines other than those named
in the contract, but which are preferred by purchasers.
No. 2803. Improper labeling of whiskey is alleged in a complaint
issued against C. O. Taylor Distributing Co., 444 West Grand
Ave., Chicago, a wholesale distributor of alcoholic liquors. The
respondent’s practices are said to constitute unfair competition and
to be in violation of Section 5 of the Federal Trade Commission
Act.
By abbreviating the word “Distributing” to “DIST.” in its cor¬
porate name, and by use of such abbreviation on stationery, labels,
and in advertising matter, the respondent company, it is charged,
implies that it is a distilling company and manufactures its products
by the process of distillation, when, according to the complaint, it
does not own or operate a plant where such products are distilled.
No. 2804. Charged with unfair methods of competition in the
sale of a purported mineral water, Richard R. Soberanes, trading
as Tarzana Mineral Water Co., 1485 North Vine St., Holly¬
wood, Calif., is named respondent in a complaint. Soberanes also
has a branch office and place of business at Tarzana, Calif.
In radio broadcasts and in various kinds of advertising matter,
the respondent allegedly represents that his product will prevent
and cure, or is beneficial in the treatment of many diseases and
afflictions, including rheumatism, liver ailments, stomach troubles,
high blood pressure, diabetes and acidosis. The complaint charges
these representations are not true, and that the respondent’s water
does not possess the curative and beneficial qualities claimed for it.
The respondent also is said to advertise that the diet of the
average citizen is “sadly” deficient in sodium, calcium and mag¬
nesium, and that such deficiency can be supplied by drinking this
mineral water. According to the complaint, the average diet is
not lacking in the important mineral elements named, and the
respondent’s product does not act on the human body in any
manner different from any pure, potable water, and does not con¬
tain any elements or medicinal properties in sufficient quantities
to render it of greater benefit than any pure drinking water.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 1658. Landschaft & Bonning, Inc., 424 Main St., Buf¬
falo, N. Y., an advertising agency, agrees to discontinue false and
misleading advertising in connection with the sale of a book, “How
to be Always Well,” which recommends a system of diet devised
by and cereal products distributed by Dr. Robert G. Jackson,
Toronto, Canada. According to the stipulation, Dr. Jackson is a
client of the agency, which places his advertisements in various
periodicals and also superintends the sale of his health book. The
agency agrees, among other things, to cease representing, either in
advertisements or in the book itself, that use of the diet, exercise,
or hygiene advocated by Dr. Jackson gives immunity from sick¬
ness and disease, or from such minor ailments as colds, or prolongs
life from 25 to 50 years.
No. 1657. Mirrolilte Manufacturing Co., 35 Queens Boule¬
vard, Long Island City, N. Y., engaged in the sale of “Mirrolike
White Shellac,” signed a stipulation to discontinue use on labels
of the word “shellac” alone or in conjunction with the word
“white” so as to imply that the product is composed of shellac
gum, cut or dissolved in alcohol. The stipulation provides that
if shellac gum is the principal ingredient in the respondent’s prod¬
uct, the word “shellac” shall be accompanied by the word “com¬
pound,” and if shellac gum is not the predominant element, the
word “substitute” shall be used in connection with the word
“shellac,” and in each case the words “compound” and “substitute”
shall be in type equally as conspicuous as that in which the word
“shellac” is printed. The respondent corporation also will desist
from using on its labels the words “Guaranteed 5 lbs. cut” to
designate a product which does not actually contain the indicated
amount of gum to each gallon of liquid used therewith.
No. 1658. Ossola Bros., Inc., 1800 Penn Ave., Pittsburgh,
stipulates it will cease and desist from use of the words “Imported
from Italy,” either in English or Italian, as a brand for its olive
oil products; or if such product is composed in substantial part
of oil produced in and imported from Italy, and the words “Im¬
ported from Italy” are used to describe the same, such words shall
be accompanied by others to indicate the product is not composed
wholly of oil produced in and imported from Italy. According to
the stipulation, the respondent corporation caused advertisements
of its product to be broadcast in the Italian language from a Pitts¬
burgh radio station.
No. 1659. Lederle Laboratories, Inc., 30 Rockefeller Plaza,
New York City, engaged in the sale of “Poultry Worm Tablets
Lederle,” agrees to discontinue advertising to the effect that its
products “have an insoluble coating” or are “enteric coated,” so
as to imply that the tablets or the coating thereon remains in¬
soluble until they reach the intestines, then are dissolved at the
point of infection.
No. 1660. McCormick & Co., 400 Light St., Baltimore,
entered into a stipulation that, in the sale of pepper, it will cease
using in advertisements the statement, “Don’t pay for dust, dirt,
stems and stones that are ground up in cheap pepper,” so as to
imply that the price asked for pepper indicates the amount of
foreign substance therein. The respondent also agrees to discon¬
tinue making any representations tending to disparage brands of
pepper sold by competitors.
No. 1661. Toolinda Mahler, trading as D. J. Mahler Co.,
3124 Pawtucket Ave., East Providence, R. I., manufacturing
toilet requisites and an electrical apparatus, agrees to stop repre¬
senting that the use of the apparatus is the only method of perma¬
nently destroying superfluous hair or preventing its regrowth.
The respondent agrees also to stop advertising that use of the
device by self-application is safe, easy, painless, permanent or
harmless, without at the same time qualifying the allegations by
the condition that proper care and skill are required in its appli¬
cation.
The respondent company agrees not to represent that use of the
apparatus for removal of warts, moles, birthmarks, red veins,
freckles and other similar facial blemishes by self-application is
safe, unless it is explained that this could be done with safety only
by a skilled dermatologist.
The respondent agrees to stop representing that any person
named Daniel J. or D. J. Mahler now owns the company, and to
cease publishing purported literature or letters in his name, either
with or without his portrait, tending to confuse customers into
believing that D. J. Mahler, founder of the company, is still living
and offering them his services.
No. 1662. Montgomery, Ward & Co., in the sale of a facial
cream, designated it “Footlight Turtle Oil Cream,” when, accord¬
ing to the stipulation, the oil content of this product did not consist
entirely of turtle oil and did not possess the properties and values
advertised.
The respondent company agrees to stop using the words “turtle
oil,” independently or in conjunction with other words, as a trade
name for its facial cream product, implying that the oil content
of the preparation is composed wholly of turtle oil; unless, when
such oil content is substantially turtle oil, the words “turtle oil,”
if used to describe it, shall be immediately accompanied by other
words clearly indicating the actual oil content.
The respondent company also agrees to cease making other rep¬
resentations implying or tending to deceive buyers into believing
that its facial cream, when applied externally, will nourish the skin,
act as a corrective for wrinkles, or aid the skin of all users to retain
a youthful complexion, when these are not the facts.
No. 1663. Trading as “Marcelle Laboratories” and “Foot-
light Products Co.,” C. W. Beggs & Sons, Inc., 1741 North
Western Ave., Chicago, manufacturer of “Footlight Turtle Oil
Cream,” entered into a stipulation of facts similar to that in the
Montgomery Ward case, and agreed to discontinue the same repre¬
sentations regarding its product.
No. 2651. An order has been issued requiring Newark Felt
Novelty Co., Inc., 416 Morris Ave., Newark, N. J., to cease and
desist from selling certain articles made of second-hand material
unless they are clearly marked so that purchasers will not mistake
them as being made of new material.
Specifically, the order directs the respondent company to cease
selling baseball caps manufactured from felts obtained from sec¬
ond-hand, old, used and discarded men’s and women’s felt hats,
unless and until there is stamped upon or attached to such caps in
a conspicuous place, words clearly indicating that they are not
made from new and unused felts, but manufactured from felts
obtained from second-hand and discarded felt hats.
No. 2724. Under an order, Gustave Goldstein, trading as
Humania Hair & Specialty Manufacturing Co., 10-12 East
23rd St., New York City, is directed to cease and desist using
false advertising in the sale of hair goods, cosmetics, or toilet
preparations.
The respondent will cease representing that he is a manufacturer
of hair and specialty goods, an importer of hair goods, or that
some of the wigs he sells are imported French wigs made of the
finest quality soft French hair.
1333
Among other representations to be discontinued by the respond¬
ent are that his “Magic Shaving Powder” does not affect the
growth of hair or injure the skin, that “Ro-Zol Face Bleach” is
an effective remedy for skin diseases, and that some of his oint¬
ments and creams, sold under various trade names, rid the skin
of blemishes and pimples, while others lighten dark skin “almost
over night” and permit the desired shade to be retained, without
injurious effects.
FTC DISMISSES CASES
The Federal Trade Commission has announced that it has
dismissed and set aside the following cases:
No. 2450. The Commission has issued an order closing its case
against Distillers Importing Corporation, 485 Madison Ave.,
New York City, charged in a Commission complaint with unfair
competition through use of the word “Distillers” in its corporate
name when the company was not engaged in distilling liquor but
was an importer and wholesaler.
The Commission based its closing order on the fact that the
respondent company has surrendered its permits, is undergoing
dissolution, has not further engaged in interstate commerce in the
importation or sale of alcoholic beverages, and on the fact that it
appears unlikely the respondent will resume such importation or
sale.
The case was closed without prejudice to the Commission’s right
to reopen it and resume prosecution of the complaint under its
regular procedure, should the facts warrant such action.
Nos. 1773-2071. The Commission has vacated and set aside
orders to cease and desist issued in April, 1934, against two Phila¬
delphia candy companies, Quaker City Chocolate & Confec¬
tionery Co., 2134 Germantown Ave., and Sol Block and Sidney
Blumenthal, trading as Rittenhouse Candy Co., Worth and
Herbert Sts.
The Commission has issued against these respondents amended
and supplemental complaints alleging practices similar to those
alleged in the original complaints, involving the use of an alleged
lottery scheme in the sale of package candies, and has ordered the
cases reopened for taking of further testimony.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, May 25
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Dorrance D. Roderick, El Paso, Tex. — C. P., 1500 kc., 100
watts, unlimited time.
Tuesday, May 26
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — The Brockway Co., Watertown, N. Y. — C. P., 1270 kc.,
250 watts, daytime.
Wednesday, May 27
HEARING BEFORE AN EXAMINER
NEW — Metro Broadcasting Co., Los Angeles, Calif. — C. P., 820
kc., 250 watts, limited with WHAS.
NEW — Leon S. Packard, Lewis H. Stebbins, Alden C. Packard,
d/b as Valley Broadcasting Co., Pomona, Calif. — C. P.,
1100 kc., 250 watts, daytime.
KYA — Hearst Radio, Inc., San Francisco, Calif. — C. P., 1230 kc.,
1 KW, 5 KW LS, unlimited time. Present assignment:
1230 kc., 1 KW, unlimited time.
Thursday, May 28
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— Jefferson Broadcasting Co., Ormond O. Black, Pres., Bir¬
mingham, Ala. — C. P., 1200 kc., 100 watts, 250 watts LS,
unlimited time.
NEW — J. R. Maddox and Dr. W. B. Bair, d/b as Chattanooga
Broadcasting Co., Chattanooga, Tenn. — C. P., 590 kc., 1
KW, unlimited time.
NEW — Lookout Broadcasting Corp., Chattanooga, Tenn.— C. P.,
1420 kc., 100 watts, daytime.
NEW — Wilton Harvey Pollard, Huntsville, Ala. — C. P., 1200 kc.,
100 watts, unlimited time.
Friday, May 29
HEARING BEFORE AN EXAMINER
(Broadcast)
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Au¬
thority to transfer control of corporation to WJR, The
Goodwill Station; 1450 kc., 500 watts, 1 KW LS, un¬
limited time.
WJAY — The Cleveland Radio Broadcasting Corp., Cleveland,
Ohio. — Authority to transfer control of corporation to U. B.
Company; 610 kc., 500 watts, daytime.
WHK — Radio Air Service Corp., Cleveland, Ohio. — Authority to
transfer control of corporation to U. B. Company; 1390 kcn
1 KW, 2)4 KW LS, unlimited time.
APPLICATIONS GRANTED
KGNF — Great Plains Broadcasting Co. (a corporation), North
Platte, Nebr. — Granted C. P. to make changes in equipment.
KFPW — Southwestern Hotel Co., Fort Smith, Ark. — Granted
C. P. to make changes in equipment, using approved type of
“A” cut crystal and oscillator circuit.
WTAR—WTAR 'Radio Corp., Norfolk, Va.— Granted C. P. to
install directional antenna; move transmitter to - on
Glen Rock - Elizabeth Pk. Rd., 1.6 miles east of Nor¬
folk, Va.; increase night power from 500 watts to 1 KW,
with directional antenna subject to approval; 780 kc., 1
KW day, unlimited time.
KVOE — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
Calif. — Granted transfer of control of The Voice of the
Orange Empire, Inc., Ltd., from the estate of J. S. Edwards,
deceased, to J. S. Edwards, Inc.
WREC — WREC, Inc., Memphis, Tenn. — Granted license to cover
C. P., 600 kc., 1 KW directional antenna night, 2)4 KW
LS, unlimited. Also granted authority to determine operat¬
ing power by direct measurement.
WSGN — R. B. Broyles, tr/as R. B. Broyles Furniture Co., Bir¬
mingham, Ala. — Granted consent to voluntary assignment of
license from R. B. Broyles, tr/as R. B. Broyles Furniture
Co., to The Birmingham News Co.
NEW — Louis Wasmer, Inc., Portable-Mobile, Spokane, Wash.
(2 appls.). — Granted C. P. for broadcast pickup station in
the experimental service; frequencies 31100, 34600, 37600
and 40600 kc., 2 watts.
NEW — The Evening News Assn., Portable-Mobile (Detroit,
Mich.). — Granted C. P. (exp. gen. exp.), frequencies 31100,
34600, 37600, 40600 kc., 3 watts.
W8XO— The Crosley Radio Corp., Mason, Ohio. — Granted renewal
of special experimental station license, in exact conformity
with existing license, for the period May 21 to August 21,
1936.
SET FOR HEARING
NEW — The Birmingham News Co., Birmingham, Ala. — Applica¬
tion for C. P. for new station, frequency 590 kc., 500 watts
night. 1 KW day, unlimited time; site to be determined.
KIT — Carl E. Haymond, Yakima, Wash. — Application for C. P.
to install new equipment, change frequency from 1310 kc.
to 1250 kc., erect a vertical radiator at site to be determined
with Commission’s approval, and increase night power from
100 watts to 250 watts, day power from 250 watts to 500
watts.
NEW — Mile High Radio Corp., Denver, Colo. — Application for
C. P. for new station, 1420 kc., 100 watts, unlimited time;
site to be determined.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
Application for C. P. for new station, 1410 kc., 500 watts,
unlimited time; site to be determined.
NEW — The Metropolis Co., Jacksonville, Fla. — Application for
C. P. for new station, 1310 kc., 100 watts, unlimited time;
site to be determined.
NEW — Neil O. Davis and F. M. Gleason, d/b as North Georgia
1334
Broadcasting Co., Rossville, Ga. — Application for C. P. for
new station, 1200 kc., 100 watts, unlimited time; site to be
determined.
NEW — Owensboro Broadcasting Co., Owensboro, Ky. — Applica¬
tion for C. P. for new station, 1500 kc., 100 watts, un¬
limited time ; site to be determined.
KNX — Western Broadcast Co., Los Angeles, Calif. — Application
for consent to transfer control of Western Broadcast Co.
(licensee of KNX) from Guy C. Earl, Jr., and five other
parties, to the Columbia Broadcasting System. To be heard
June 29 before the Broadcast Division. Also remanded
application for renewal of license to docket for further
hearing on June 29, 1936.
MISCELLANEOUS
KCMO — Charlotte Duncan, Administratrix, Lester E. Cox, and
Thos. L. Evans, Kansas City, Mo. — Reconsidered and
granted application for renewal of license and for assign¬
ment of license to Lester E. Cox, Thos. L. Evans, and C. C.
Payne.
NEW — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted permission to file its appearance and statement of
facts to be proved in re application for new broadcast station
to operate on 630 kc., 1 KW, unlimited time, to be located
at Mobile, Ala.
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Denied
petition asking Commission to reconsider and grant without
hearing application for C. P. to make changes in equipment
and to increase daytime power from 2)4 KW to S KW.
WCBD — WCBD, Inc., Zion City, Ill. — Denied petition asking Com¬
mission to reconsider and grant without hearing application
for modification of license for authority to move its studio
to Chicago.
KOB — New Mexico College of Agriculture & Mechanic Arts, Al¬
buquerque, N. Mex. — Granted petition requesting postpone¬
ment of hearing on renewal of license, now scheduled for
May 25, 1936, pending formal application now being pre¬
pared for the assignment of the station license.
NEW — Struble, Strong, Fagan, Dalles, Ore. — Granted request for
an order to take depositions in support of application for
a new broadcast station at Dalles, Ore.
WWAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— Suspended grant made March 27, 1936, and designated for
hearing application to operate unlimited daytime and share
with WFAM (South Bend, Ind.) at night, because of the
protests of WSBC, WEDC, and WCRW, all of Chicago.
NEW — R. J. Laubengayer, Salina, Kans. — Denied petition asking
Commission to reconsider and grant without hearing appli¬
cation for permit to erect and operate new broadcast station
at Salina, using 100 watts on 1500 kc., full time.
WALA — Pape Broadcasting Corp., Inc., Mobile, Ala. — Granted
request for order to take depositions as intervener for use
at hearing in opposition to application of Memphis Com¬
mercial Appeal, Inc., for new station at Mobile, Ala.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 1-77 (in part): G. D. Goff, Tampa, Fla. —
Denied C. P. for new station to operate on 1500 kc., 100
watts, unlimited time (site to be determined subject to Com¬
mission’s approval), reversing Examiner Geo. H. Hill.
Order effective August 25, 1936. (Action taken May 1,
1936.)
WBNX — Ex. Rep. No. 1-134 (in part) : Standard Cahill Co., Inc.,
New York City. — Granted C. P. to make changes in equip¬
ment, move transmitter, and increase power from 250 watts
to 1 KW, 1350 kc., share time with WAWZ, sustaining
Examiner John P. Bramhall. Order effective September 15,
1936. (Action taken May 1, 1936.)
APPLICATIONS RECEIVED
First Zone
NEW — Old Colony Broadcasting Corp., Brockton, Mass. — Con-
680 struction permit for a new station to be operated on 680 kc.,
250 watts, daytime.
WELI — Patrick J. Goode, New Haven, Conn.— Modification of
930 license to change hours of operation from daytime to un¬
limited time, requesting 250 watts night, 500 watts day
power and change frequency from 900 kc. to 930 kc.
Amended to install directional antenna.
NEW — Harriett M. Alleman and Helen W. McLellan, d/b as Cape
1210 Cod Broadcasting Co., Barnstable Township, Mass. — Con¬
struction permit for a new station to be operated on 1210
kc., 100 watts, 250 watts day, unlimited time.
Second Zone
NEW — Valley Broadcasting Co., Cleveland, Ohio. — Construction
890 permit for a new station to be operated on 890 kc., 1 KW,
unlimited time.
NEW — WRBC, Inc., Cleveland, Ohio. — Construction permit for a
950 new station to be operated on 780 kc., 1 KW, unlimited
time. Amended to change frequency from 780 kc. to 950 kc.
WSAI — The Crosley Radio Corp., Cincinnati, Ohio.— Authority
1330 to determine operating power by direct measurement of
antenna.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Modification of
1500 construction permit (B2-P-637) for changes in equipment,
requesting to install new equipment, make changes in an¬
tenna, and extend commencement and completion dates.
NEW — Farnsworth Television, Inc., of Pennsylvania, Springfield,
Pa. — Construction permit for an experimental visual broad¬
casting station and synchronized sound track for 60000-
86000 kc. band on specific frequencies of 62750 kc. for
visual broadcasting and 66000 kc. for synchronized sound
track. Visual power 4 KW, sound track power 1 KW.
W8XAL — Crosley Radio Corp., Mason, Ohio. — Modification of
license to add frequency 9590 kc.
Third Zone
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
780 Modification of construction permit (B3-P-621) for changes
in equipment and increase in power, requesting to install a
new directional antenna, change transmitter site from inter¬
section U. S. Highways 64 and 70, Memphis, Tenn., to 34
mile northwest of 5 Points — intersection U. S. Highway
No. 70 and Macon Road, near Memphis, Tenn., and extend
commencement and completion dates.
NEW — Radio Enterprises, Inc., Hot Springs, Ark. — Construction
1310 permit for a new station to be operated on 1310 kc., 100
watts, daytime.
WLAK — Lake Region Broadcasting Co., Lakeland, Fla.- — License
1310 to cover construction permit (B3-P-42) for a new station.
W4XC — Wade Dellinger, Portable. — Modification of license to
change from telegraph service to broadcast. Licensed for
31600, 35600, 38600, 41000, 86000-100000 kc., 15 watts.
Fourth Zone
NEW — Daily News Corp., St. Paul, Minn. — Construction permit
630 for a new station to be operated on 1370 kc., 100 watts,
unlimited time. Amended to change frequency from 1370
kc. to 630 kc., and power from 100 watts to 250 watts.
WJJD — WJJD, Inc., Chicago, Ill. — License to cover construction
1130 permit (B4-P-362) for move of transmitter.
WEOA — Evansville on the Air, Inc., Evansville, Ind. — License to
1370* cover construction permit (B4-P-384) for a new station.
NEW — KMJB Broadcasting Co., by Myron J. Bennett, Pres.,
1450 Minot, N. Dak. — Construction permit for a new station to
be operated on 1450 kc., 1 KW, unlimited time, facilities of
KLPM. Amended to change equipment and give trans¬
mitter site as site to be determined, Ward County, North
Dakota.
Fifth Zone
KGW — Oregonian Publishing Co., Portland, Ore. — Construction
620 permit to make changes in equipment.
1335
NEW — The Tribune, Great Falls, Mont. — Construction permit for
950 a new station to be operated on 1280 kc., 1 KW, 5 KW
day, unlimited time. Amended: Change frequency back to
950 kc. from 1280 kc. and omit request for KFBB’s facili¬
ties.
KGY — KGY, Inc., Olympia, Wash.— Authority to install auto-
1210 matic frequency control.
KGY — KGY, Inc., Olympia, Wash. — Construction permit to in-
1210 stall a new transmitter.
NEW — Ed Klies, Helena, Mont. — Construction permit for a new
1280 station to be operated on 1210 kc., 100 watts, 2S0 watts
day, unlimited time. Amended to change equipment, change
frequency from 1210 kc. to 1280 kc., and power from 100
watts, 250 watts day, to 1 KW, 5 KW dav, facilities of
KFBB.
KSLM — Oregon Radio, Inc., Salem, Ore. — Authority to make
1370 changes in automatic frequency control.
WDNC — Durham Radio Corp., Durham, N. C.- — Authority to
1500 transfer control of corporation from George Watts Hill,
Herbert Bleuthenthal, Harris Newman and John Sprunt Hill
to The Durham Herald Company, 684 shares common stock.
Puerto Rican Zone
WKAQ — Radio Corporation of Porto Rico, San Juan, Puerto Rico.
1240 License to cover construction permit (B4-P-743) for changes
in equipment and move of transmitter.
1336
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ ★ ★ ★ * WASHINGTON, D. C.
JAMIES W. BALDWIN, Managing Director
NAB REPORTS
Copyright, 1936. The National Association of Broadcasters
★ ★ ★ ★ *
VoI.4--No.25
MAY 28, 1936
IN THIS ISSUE
Page
Reports on Broadcast Station Revenue . 1337
House Radio Bill Reported . 1337
Recommends License Renewal for WLBG . 1337
Securities Act Registrations . 1337
New Rebroadcast Rule . 1337
New Rules Promulgated by FCC . 1338
Federal Trade Commission Action . 1338
FTC Orders Vacated . 1340
Federal Communications Commission Action . 1340
REPORTS ON BROADCAST STATION REVENUE
Total receipts of the 77 broadcast stations in the Pacific Coast
states from the sale of radio time during 1935 amounted to
$6,441,623, according to announcement of the Bureau of the
Census, Department of Commerce. These figures were obtained
in the new census of business series on the broadcasting business.
In the same series the Bureau announced that total receipts
from the sale of time by the 30 broadcast stations in Texas in 1935
amounted to $2,220,821.
HOUSE RADIO BILL REPORTED
The House Committee on Interstate & Foreign Commerce has
made a favorable report on H. R. 12646 which provides for the
amendment of Section 318 of the Communications Act of 1934.
As reported the bill is as follows:
That section 318 of the Communications Act of 1934 is hereby
amended to read as follows:
“Sec. 318. The actual operation of all transmitting apparatus in
any radio station for which a station license is required by this
Act shall be carried on only by a person holding an operator’s
license issued hereunder, and no person shall operate any such
apparatus in such station except under and in accordance with an
operator’s license issued to him by the Commission: Provided,
however, That the Commission may waive or modify the fore¬
gong provisions of this section for the operation of any station
except (1) stations for which licensed operators are required by
international agreement, (2) stations for which licensed operators
are required for safety purposes, (3) stations engaged in broad¬
casting, and (4) stations operated as common carriers on frequen¬
cies below thirty thousand kilocycles.”
RECOMMENDS LICENSE RENEWAL FOR WLBG
Three applications have been filed with the Federal Communi¬
cations Commission all dealing with 880 kilocycles, 500 watts power
and daytime operation. Station WPHR, Petersburg, Va., operating
on this frequency asks for license renewal; the Petersburg Broad¬
casting Company asks for the facilities of WPHR to erect a new
station at Petersburg, Va., and WLBG, at Petersburg, Va., asks to
move its transmitter from Petersburg to Richmond, Va.
Examiner John P. Bramhall, in Report No. 1-225, recommends
that the application of the Petersburg Broadcasting Company and
of WLBG be denied and that the application of WLBG for license
renewal be granted.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Owings Mills Distillery, Inc., Owings Mills, Md. (2-2153, Form
A-l)
John Irving Shoe Corp., Boston, Mass. (2-2154, Form A-2)
Bridgeport Brass Co., Bridgeport, Conn. (2-2155, Form A-2)
Kendall Refining Co., Bradford, Pa. (2-2156, Form A-2)
Black & Decker Mfg. Co., Towson, Md. (2-2157, Form A-2)
Silver Strike Mining Co., Murray, Ida. (2-2158, Form A-l)
Harden Chemical Corp., Cincinnati, Ohio (2-2159, Form A-l)
Lawrence Warehouse Co., San Francisco, Cal. (2-2160, Form
A-2)
Owens-Illinois Glass Co., Toledo, Ohio. (2-2161, Form A-2)
Soulsby-Belle Mining Co., Kansas City, Mo. (2-2164, Form A-l)
Bolivian Bondholders Protective Committee, New York City.
(2-2165, Form D-l)
NEW REBROADCAST RULE
The Federal Communications Commission has issued a new
rule, No. 177, effective July 1, dealing with rebroadcasting. It is
as follows:
177. (a) The licensee of a regular broadcast station may, with¬
out authority of the Commission, rebroadcast a program of another
United States regular broadcast station upon notice to the Com-
misssion and upon the express authority of the licensee of the sta¬
tion originating the program.
(b) No licensee of any other class of broadcast station (inter¬
national, visual, high frequency, experimental or special) shall re¬
broadcast the program of any United States radio station without
written authority first having been obtained from the Commission.
(c) No licensee of a regular broadcast station shall rebroadcast
the program of any other class of United States radio station with¬
out written authority having first been obtained from the Com¬
mission.
(d) No licensee of any class of broadcast station shall rebroad¬
cast the program of any foreign radio station without written
authority having first been obtained from the Commission. In case
a program is transmitted entirely by telephone facilities in which
a section of such transmission is by radio, the broadcast of this pro¬
gram is not considered a rebroadcast.
(e) An application for authority to rebroadcast the program of
any radio station shall be accompanied by the written consent of
the station originating the program.
(f) In case of a rebroadcast where the program is transmitted
by several broadcast stations, such as a chain program, the person
legally responsible for distributing the program or the chain facility
may obtain the authorization for the entire rebroadcast.
(g) Authority will not be granted to rebroadcast in the United
States the programs of an international broadcast station located
within the limits of the North American Continent, except upon a
satisfactory showing that no wire or other facilities exist for trans¬
mitting the program to the area served by the station proposing the
rebroadcast.
(h) A licensee of an international broadcast station may author¬
ize the rebroadcast of its program by any station outside the limits
of the North American Continent without permission from the
Commission, provided, however, that the station rebroadcasting the
programs cannot be received consistently in the United States.
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS JULY S, 6, 7, 8, 1936
1337
177.1 No person shall be permitted to locate, use or maintain
a radio broadcast studio or other place or apparatus from which
or whereby sound waves are converted into electrical energy, or
mechanical or physical reproduction of sound waves produced,
and caused to be transmitted or delivered to a radio station in a
foreign country for the purpose of being broadcast from any radio
station there having a power output of sufficient intensity and/or
being so located geographically that its emissions may be received
consistently in the United States, without first obtaining a permit
from the Commission upon proper application therefor.
NEW RULES PROMULGATED BY FCC
The Federal Communcations Commission, through its Broadcast
Division has promulgated new rules concerning all broadcast sta¬
tions except regular broadcast stations in the band 550 to 1500
kilocycles. The Commission has made the following official state¬
ment in this connection:
The Broadcast Division on May 21, promulgated new rules and
regulations concerning all broadcast stations except regular broad¬
cast stations in the band 550 to 1500 kilocycles. These broadcast
stations are as follows:
Relay broadcast stations (formerly broadcast pickup stations).
International broadcast stations (formerly experimental relay
stations) .
Visual broadcast stations, including television and facsimile.
High-frequency broadcast stations (formerly general experimental
stations authorized to operate as broadcast stations).
Experimental broadcast stations.
Special broadcast stations (formerly experimental broadcast sta¬
tions on the frequencies of 1530, 1550 and 1570 kilocycles).
These new rules provide certain new restrictions and principles of
operation that are fully set out in the attached copy of the new
rules. All outstanding rules concerning these stations which are in
conflict with the new rules are automatically cancelled.
The name “relay” broadcast station now applies to stations
which were formerly called broadcast pickup stations. The new
name “relay” is considered more in keeping with the actual service
rendered by these stations. In the future these stations will be
licensed only to the holders of regular broadcast station licenses.
Two groups of frequencies are provided, one in the medium fre¬
quency band and the other in the very high frequency band. In
both groups the licensees are required to notify the Commission
two days before each operation for the purpose of relaying pro¬
grams to be broadcast. Certain of the frequencies in the medium
frequency band have been changed by two kilocycles to provide
better frequency separation from other services. All licensees of
these stations should read the new rules governing these stations
carefully as certain other changes have been made.
The name “international” broadcast station now applies to those
stations which were formerly called experimental relay stations.
These stations are licensed for international service. There are
certain new principles set out in the new rules that the licensees of
these stations should study carefully.
The frequency bands 2000 to 2100 kilocycles and 2750 to 2850
kilocycles have been dropped for the television service. Experience
to date has shown that a satisfactory picture in keeping with the
development of the art cannot be transmitted successfully in these
narrow bands. The stations now assigned these frequencies which
are carrying on active programs of research and experimentation
will be assigned specific frequencies in the bands 42,000 to 56,000
kilocycles and 60,000 to 86,000 kilocycles. One license will author¬
ize both the visual and aural broadcast. There are certain other
principles of operation involved in the new rules which the licensees
of these stations should study carefully.
High-frequency broadcast stations are required to carry on active
programs of research to hold a license. Licensees not carrying on
this active program cannot be considered as making proper usage
of the assignment and full consideration will be given at the time
of the renewal of license.
Experimental broadcast stations are provided for specific experi¬
mentation along lines other than those prescribed by other broad¬
cast rules. Certain frequencies throughout the entire useful radio
spectrum are made available for this purpose by Rule 229 as
modified.
The name “special broadcast station” applies to stations formerly
named “experimental” stations licensed to operate on the frequen¬
cies of 1530, 1550, and 1570 kilocycles. The new rules provide that
all rules that apply to regular broadcast stations (Rules 69 to 181,
inclusive) shall apply to special broadcast stations. This means
that these stations must have frequency monitors, modulation moni¬
tors, protected equipment, etc.
It will be necessary to modify several of the outstanding licenses
to comply with the new frequency allocation as provided in Rule
229 as modified by the Commission on May 13, 1936. The Broad¬
cast Division’s new rules as discussed above provide an allocation
in compliance with the frequencies made available by the action
of the Commission. A careful comparison should be made between
your existing licenses with respect to the frequencies and class of
broadcast service and that provided in the new rules and regula¬
tions. It may be necessary to change either or both.
So that these requirements may be discussed thoroughly and
understood, an informal engineering conference is scheduled for
June 8, 1936, at which all licensees affected should be represented,
or should supply information to the Broadcast Division of the Com¬
mission as to the new frequencies that they desire in keeping with
the new rules. All licensees of television broadcast stations should
especially be present so that a definite assignment of a visual and
aural frequency can be made in either the 42,000-56,000 kilocycle
band or the 60,0000-86,000 kilocycle band. If the licensees are not
present so that an agreeable change of frequency can be effected,
the Commission will, on July 1, 1936, issue a modified license speci¬
fying the frequency that it deems best in keeping with public in¬
terest, convenience and necessity, as provided in Rule 229 as modi¬
fied.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commssion has alleged unfair competition in
complaints issued against the following companies. The respon¬
dents will be given an opportunity for hearing to show cause why
cease and desist orders should not be issued againt them.
No. 2802. Charging a conspiracy resulting in restraint of trade
in the interstate sale of rubber heels and soles, a complaint has
been issued against The I. T. S. Co., 135 Maple St., Elyria, O.,
The National Federation of Master Shoe Rebuilders, 1124
Chester Ave., Cleveland, and George Benson, C. C. Zeigler,
Walter L. Green, and S. L. Orenstein, individually and as
officers of the association, representing all members.
The I. T. S. Co., wholesale dealer in rubber heels and soles, the
shoe rebuilders’ association, and its officers acting individually, are
alleged to have entered into an agreement and conspiracy to close
the natural channels of distribution to wholesalers and manufac¬
turers who sell their products to the 5-and-10^ stores, and to cause
shoe manufacturers, shoe findings jobbers, repairers and hardware
stores to boycott and refuse to deal with manufacturers and
wholesalers who sell their goods to such stores.
In pamphlets, trade literature and advertisements, The I, T. S.
Co. is alleged to have represented to shoemakers, jobbers and shoe
repairers that they should not buy rubber heels or soles made by
manufacturers selling heels or stick-on soles to the 5-and-10<?
stores, and that every such article these manufacturers and whole¬
salers sell to such stores means that the shoe repairer is “cheated
out of a heel or tap job.” The I. T. S. Co. is alleged to have repre¬
sented that it “has always been on the side of the shoemaker and
jobber” and has “never sold to the 5-and-10^ stores, any chain
store, or shoe manufacturer.”
Advising shoemakers and jobbers that it would like to give them
information as to what concerns are selling to 5-and-10^ stores,
The I. T. S. Co. is alleged to have explained that it would be un¬
ethical for it to do so, but that such information would be fur¬
nished by S. L. Orenstein, executive secretary of the National Fed¬
eration of Master Shoe Rebuilders.
The association is said to have responded to requests for informa¬
tion by forwarding a list of manufacturers and wholesale rubber
heel and sole dealers who did not sell their products to 5-and-10^
stores.
No. 2805. Charging unfair competition in the sale of inter¬
linings used in the manufacture of garments, a complaint has been
issued against Charles A. Sarets-ky, 246 West 38th Street, New
York City, jobber and converter of interlinings.
The respondent is alleged to have labeled or permitted purchasers
to attach a tag furnished by the respondent to each garment manu¬
factured in part from the respondent’s interlining, such tag or label
allegedly containing lettering such as the following: “This garment
is interlined with lamb’s wool filling” or “This garment is inter¬
lined with 100 per cent wool filling.”
The respondent’s product is not “lamb’s wool filling” nor “100
per cent wool filling,” according to the complaint, but is an inferior
product made in part of wool or reworked wool or shoddy, adulte¬
rated with cotton, and the cloth to which such filling is attached,
1338
and which forms a part of the completed interlining, is alleged to
be composed entirely of cotton.
No. 2808. Unfair competition in the sale of candy is alleged in
a complaint issued against March of Time Candies, Inc., 446
North Hermitage Ave., Chicago.
The complaint alleges that the respondent corporation packs
candy in assortments so as to involve a lottery scheme whereby
the ultimate purchaser of a piece of candy may win, without ad¬
ditional cost, a package or a bar of candy.
Such a sales method, the complaint charges, tends to divert
trade to the respondent from competitors who do not use the same
or a similar scheme in the sale of their products.
No. 2807. Under a complaint issued, United Distillers (of
America), Ltd., 33 North La Salle St., Chicago, is charged with
unfair competition in the wholesaling of alcoholic beverages. The
respondent corporation, which also has a place of business in Balti¬
more, is a subsidiary of United Distillers of Canada (Ltd.) and the
exclusive agent in the United States for the products of its parent
company.
By use of the word “Distillers” in its corporate name in adver¬
tising and on stationery and labels on bottles, United Distillers (of
America) Ltd., is said to represent that it is a distiller and manu¬
factures its products through the process of distillation, when, the
complaint alleges, it is not a distiller and does not own or operate
a plant where the beverages it sells are distilled.
No. 2808. Use of lottery in the sale of candy to the consumer
is alleged as an unfair method of competition in a complaint issued
against D. Goldenberg, Inc., and Frank Rabinowitz, trading as
Novelty Sweets Co., 2019 East Arizona St., Philadelphia.
Assortments of candy of uniform size and shape sold by the re¬
spondents were arranged so that some purchasers drew prizes
consisting of larger pieces of candy, according to the complaint.
Such practice is against public policy and -tends to divert trade
from competitors who do not use such a plan in the sale of their
products, it is charged in the complaint.
No. 2809. False and misleading representations in advertising
an electric comb designed for use in treating the hair and scalp are
alleged in a complaint issued against G. Lindholm Co., Inc., 316
Flatbush Ave., Brooklyn, N. Y.
The respondent company, in radio broadcasts, newspapers and
other advertising matter, is said to represent that use of its product,
known as “Evans Dermectro Electric Comb,” checks dandruff
and falling hair in a few days, imparts new life to dry, dull hair,
and causes it to become lustrous, thick and wavy, arrests baldness,
and restores gray hair to its original color. The complaint charges
-that such assertions are untrue, and that the electric comb so adver¬
tised does not perform any function other than that which may
be accomplished by an ordinary comb.
According to the complaint the respondent company advertises
that “A thousand-dollar guarantee goes with every comb,” and
represents that the purchase price will be refunded if purchasers
are not satisfied with the comb after a 7-day trial. The complaint
describes this purported guarantee as vague and misleading, and
alleges that it does not go with every comb, and that the $1,000
has not been posted so as to be available to a purchaser in event
the guarantee is broken.
No. 2810. Fraudulent representations in the sale of receptacles
for storing clothing is alleged as an unfair method of competition
in violation of the Federal Trade Commission Act in a complaint
issued against Mortimer Alfred Gersten and Lee Gersten,
trading as Gersten Brothers, 516 West 34th St., New York City.
Manufacturing corrugated fibre storage receptacles, chests and
closets, the respondents are alleged to have been in unfair competi¬
tion with other dealers in storage receptacles by use of misleading
assertions concerning the protection from moths afforded by their
own fibre products.
The respondents are alleged to have branded their receptacles
as “Cedarol Closets” and “Cedarol Chests,” falsely representing
them to the trade as being effective against the ravages of moths,
because of the presence of cedar oil in their construction.
No. 2811. A complaint alleging unfair competition in the sale
of a medicinal preparation and treatment for eczema has been
issued against Dr. J. E. Cannaday, 316 South Ohio Ave., Sedalia,
Mo.
Among the representations allegedly made by Dr. Cannaday in
various advertising media, and which the complaint charges are
false and exaggerated, are that use of his preparation and treatment
effects a cure and brings permanent relief in all cases of eczema.
Dr. Cannaday is said to have circulated testimonials in which
various persons made statements to the effect that they had suffered
from eczema and had been relieved or cured by the use of his
product, when, the complaint charges, many had not been cured
or completely restored to health. He also is alleged to have made
claims that he cured numerous persons, but, according to the com¬
plaint, was without personal knowledge as to the ailment from
which such persons were suffering and as to the extent to which
they benefited by use of his product.
No. 2812. Millinery Quality Guild, Inc., and Uptown
Creators’ Guild, both of New York City, and their 27 members
who design, manufacture and sell ladies’ hats of fine grade are
alleged, in a complaint, to be engaged in unfair practices in restraint
of trade, which are injurious -to manufacturers and retailers of
stylish millinery, as well as to the purchasing public.
All members of the guilds are located in New York City, except
one in San Francisco, and are recognized leaders in the field of
ladies’ hats so far as style and design are concerned. They are
said to manufacture hats wholesaling at not less than $8 each, and
to have approximately 1600 retail dealers throughout the country
buying their products under a so-called “Declaration of Coopera¬
tion” entered into with the respondent Millinery Quality Guild, Inc.
Under this “Declaration of Cooperation”, the complaint alleges,
retailers are coerced and compelled to recognize the property rights
in styles created by guild members; to refrain from purchasing
copies of styles pirated from guild members, and, in placing an
order for millinery, to stamp on such order notice to the seller
to the effect that the order is placed only with the manufacturer’s
warranty that the hats so ordered are not copies of styles originated
by the members of either guild.
No. 2813. Named respondent in a complaint, Dermolav Lab¬
oratories, Inc., 1700 Broadway, New York City, engaged in the
manufacture and sale of preparations for use on the scalp, is charged
with unfair methods of competition in violation of Section 5 of the
Federal Trade Commission Act.
Advertising in tabloid newspapers, in magazines, and in other
ways, the respondent corporation represents, the complaint charges,
that its “Dermolav Liquid Scalp Peel” and “Dermolav Scalp Com¬
pound” grow hair and cure a disease causing baldness, and that
treatment with these Dermolav preparations has certain other bene¬
ficial effects on the hair and scalp.
These representations are alleged to be untrue, as is the assertion
that “Dermolav Liquid Scalp Peel” is a harmless liquid for re¬
moving congested skin from the scalp, when, according to the com¬
plaint, its use may result in serious injury.
Nos. 2814-2815-2816. Three companies selling tableware
labeled “Dirigold” are named as respondents in complaints charg¬
ing unfair competition in violation of the Federal Trade Com¬
mission Act. The respondent companies are American Dirigold
Corporation, Kokomo, Ind.; Dirigold Metals Corporation,
Barrington, Ill.; and Dirigold Distributors, Inc., Chicago.
The respondents are charged with making representations indi¬
cating that their tableware articles contain gold, when, according
to the complaints, this is not a fact. The Kokomo and Barrington
companies manufacture alloy and tableware made therefrom, while
the Chicago concern sells tableware.
Among advertising descriptions used by the three respondents
were, according to the complaint, the following: “No home need
be denied the rare luxury and beauty of gold on the table and in
the home” ; “Dirigold is truly — the ultimate gift of a Golden Age”,
and “Dirigold — the fashionable and exquisite ware that possesses
the color and lustrous beauty of gold!”
The name “Dirigold” is said to be stamped on each article sold
by the respondents, and to occupy the most prominent part of their
trade-marks, used in advertising literature and other printed matter.
The word “Dirigold” also appears fn their corporate names. The
complaints charge that use of this name applied to articles contain¬
ing no gold is misleading in that it implies and serves as a represen¬
tation that such products contain at least some gold. In fact, ac¬
cording to the complaints, the alloy and the products made there¬
from, as sold by the respondents, consist chiefly of aluminum and
copper, and the articles are highly polished and so finished that they
are of the color, lustre and appearance of 14-carat gold.
No. 2817. Misrepresentation of the nature and effect of “St.
Joseph Aspirin” is alleged in a complaint issued against Plough,
Inc., Memphis, Tenn., which sells that product in interstate
commerce. Violation of Section 5 of the Federal Trade Commis¬
sion Act is charged.
The respondent corporation, in newspaper and magazine adver¬
tisements, is said to represent that “St. Joseph Aspirin” gives quicker
relief than and is superior to other aspirin, and is fully effective
for pains and colds; that it exceeds in purity and accuracy of in¬
gredients rigid standards set by the United States Government;
that cellophane wrappings protect its purity and benefit it ma¬
terially ; that aspirin requires cellophane wrappings, under usual
and normal conditions of sale, to protect it from deterioration caused
1339
by moisture, and that failure to so wrap it decreases its value or
potency.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01350. Harriett Hubbard Ayer, a corporation, 323
East 34th St., New York City, selling an “eyelash and eyebrow
grower”, agrees to stop advertising that the product will increase
the length of eyelashes and eyebrows and promote their growth.
The respondent admits in its stipulation that, according to scientific
authority, no product capable of increasing the growth of hair on
any part of the body has at the present time been discovered.
No. 01353. Lucky Tiger Manufacturing Co., 6th and Dela¬
ware Sts., Kansas City, Mo., will cease advertising that its
“Lucky Tiger Ointment” is a competent treatment for many skin
and scalp ailments, unless the representations are limited to asser¬
tions that the ointment is only a palliative for relief of superficial
conditions; that it is an effective remedy for athlete’s foot, or is
useful for anything more than relief from itching, burning and
surface irritations; or that it will prevent infection, unless repre¬
sentations to this effect are qualified by statements that the oint¬
ment may be of value because of its antiseptic or germicidal quali¬
ties, but only when in proper contact with the germ. The respond¬
ent company further agrees not to publish any testimonial contain¬
ing any representation contrary to the stipulation.
No. 01354. C. H. Sisson, trading as Sisson Drug Co.,
Columbus, O., selling Sisson’s Formula Tablets Nos. 1, 2 and 3,
stipulates he will discontinue representing that the preparations,
alone or in combination, are a competent treatment for rheuma¬
tism, unless he qualifies such representations by limiting the claims
for the preparations’ therapeutic value to rheumatism caused by
uric acid. The respondent also agrees to stop representing that
his products are an effective treatment for sciatica, neuritis or lum¬
bago, and that other preparations, not based upon the theory that
rheumatism and kindred ailments are caused by the formation of
uric acid crystals, are ineffective for the treatment of such ailments.
The respondent’s claim that he employed a German chemist to
develop the formula for his No. 1 tablet will be discontinued.
No. 01355. Servex Laboratories, Ltd., 6405 Selma Ave.,
Hollywood, Calif., engaged in selling hygiene products for
women, agrees to cease representing that its “Servex Jelly” is an
antiseptic or possesses definite bactericidal action, unless the formula
is so modified that the preparation will meet competent tests for
antiseptic and germicidal properties under the conditions prescribed
for its use. The respondent will discontinue representing that “Ser¬
vex Jelly” and “Servex Powder” are endorsed or prescribed by phy¬
sicians as safe antiseptics for use in treating certain infections, and
will desist from using in its corporate name the word “Labora¬
tories” until it actually maintains a place where scientific investiga¬
tions are conducted.
No. 01358. H. J. Laird and G. J. Warren, trading as
Paraguayan Mate Co., 749 Washington St., New York City,
selling a beverage commonly known as Yerba Mate and designated
“Viril-A-Tea”, agree to cease representing, among other things,
that Yerba Mate is a new discovery, a general tonic, or is more
than a temporary stimulant; that it restores vitality, is almost a
“cure-all” for a wide variety of ailments, fortifies the body against
infection, and is a substitute for alcohol and essential in the diet.
The respondents admit Yerba Mate has been used as a beverage
for many years, particularly in South America. They agree that
the name “Viril-A-Tea”, will be discontinued, and that the name
substituted therefor will not imply that Yerba Mate will produce
any effect contrary to the terms of the stipulation.
No. 01357. Charles Allen, operating as Allen Medicine
Co., 323 North Grand Ave., St. Louis, engaged in the sale of
Allen’s Gas Tablets, will discontinue representations that these
tablets produce any beneficial effect other than that resulting from
use of a laxative, that they are an effective remedy for gas or
stomach disorders, and that they are a tonic and do not contain
anything harmful to the human system.
No. 01359. General Insulating & Manufacturing Co., 705
Olive St., St. Louis, selling “Gimco Rock Wool,” an insulating
material, agrees to stop asserting that its article will withstand a
constant flame of 1350 degrees without effect on the material; that
a thin layer of dust over a surface of reflective insulations will re¬
duce their insulating value to practically nothing; that “Gimco
Rock Wool” will stop heat loss or will give a building “a positive
barrier” against the rays of the sun, and that all drafts can be elimi¬
nated by use of this insulating material.
No. 01369. C. L. Smith and E. J. Dwyer, trading as C. L.
O. Smith Co., 820 North Michigan Ave., Chicago, agree to
1340
cease advertising that their cod liver oil product, called “Kiel-Oil”,
when fed to poultry, will increase egg production, prevent rickets,
lessen mortality, provide greater resistance to disease, and other
representations. The respondents also agree to stop advertising
that “Kiel-Oil” contains Vitamin E, that it is a pure cod liver oil,
and conforms to requirements of the United States Pharmacopoeia.
In their stipulation the respondents admit that vitamin deficiencies
in poultry may be due to confinement, lack of sufficient sunshine,
or other causes, and that feeding poultry the respondents’ product
will not result in improvement of the poultry or eggs, unless the
poultry is deficient in nutritional elements contained in the product.
No. 01361. Gordon Bannerman, trading as Antiseptic Eye
Remedy Co., 11422 Lorain Ave., Cleveland, stipulates that he
will discontinue advertising that his preparation, designated “Eye-
Res” is a competent remedy in the treatment of tired, strained,
congested or aching eyes, that it is antiseptic and will guard against
infection, or that it is of any special merit therapeutically.
No. 01362. International Correspondence Schools, Scran¬
ton, Pa., in its stipulation admits that the I. C. S. phonographic
system of instruction in languages was used to a limited extent,
at one time, by the Government in its naval and military academies
for aiding students whose work was not up to standard, but that
it is not now so used.
No. 01363. M. L. Clein & Co., Atlanta, will cease repre¬
sentations that its “Mentho-Mulsion” is a competent treatment
for coughs, except for coughs due to colds; that it is safe, and
that it is an effective remedy for “smoker’s cough.”
No. 01364. Arthur Sachs, trading as Eugenia Sachs Lab¬
oratories, 309 Fifth Ave., New York City, agrees to stop
representing that any of the respondent’s cosmetics will grow eye¬
lashes or increase or promote the growth or length of eyelashes.
Among products sold by the respondent are “Saxalur Eyelash
Grower,” “Allura Eyelash Grower” and “Allura Creme Mascara.”
No. 01365. O. H. D., Inc., 3 East Front St., Wilmington,
Del., entered into an agreement to cease representations that “Oxy
Indian Cough Syrup” will relieve colds and coughs, unless the rep¬
resentations are limited to claims that the product brings relief
only for coughs and colds of a mild nature, and to those types
of such ailments definitely known to be within the therapeutic
limits of the preparation; that it relieves colds or coughs instantly
or with the first dose, and that it contains no opiates or habit¬
forming drugs. The respondent company will stop designating
its preparation as “Indian” unless labels and advertising matter
clearly state that the preparation is not of Indian origin.
No. 01370. Venus Health Corporation, 815 South Hill St.,
Los Angeles, engaged in the sale of “V-76 Tablets” and “Venus
Fat Reducing Tablets”, agrees to stop representing that “V-76
Tablets” are competent in the treatment of gastritis, stomach dis¬
tress, indigestion, and other ailments; that they are effective in
restoring normal bowel activity, and are safe or harmless. As to
Venus Tablets, the respondent company agrees to cease represent¬
ing that any reduction in weight experienced by any person is due
entirely to the use of these tablets; that the Venus method is
either a drugless or a safe or sane way to start reducing, or that
any person who is overweight may reduce to normal by the Venus
method.
No. 01371. Stephen V. and Anthony V. Girnino, trading
as Elite Publishing Co., 214 Grand Street, New York City,
in the sale of a booklet, “Collection of Successful Business Plans”,
agree to stop alleging that the chance for success in an independent
business is greater than that in a salaried position, unless this asser¬
tion is substantiated by authentic data; that their plans have been
“approved”; that they do not involve any risk or require invest¬
ment, and that the booklet is free of charge, unless in fact it is sent
without payment of money by the recipient or the rendering of
service. In their stipulation, the respondents admit that they have
no evidence to substantiate the assertion that the chance for suc¬
cess in an independent business is sixteen times greater than that
of a salaried position, as was advertised.
No. 01372. Mrs. Dean Ladd Kidder, widow and executrix
of the will of the late William V. Kidder, trading as Pyroil Co.,
559 LaFollette Ave., LaCrosse, Wis., in the sale of a graphited
lubricant, agrees to ban the representation that this lubricant,
called “Pyroil”, contains a special solvent to remove carbon; will
produce a perfectly smooth surface where deep scoring has occurred;
will more than double the life of an automobile or increase its use¬
fulness 50 to 150 per cent, and other representations.
No. 01373. George H. Sanders, Walter C. Schad, and Art
Ede, operating as Aura Laboratories, 1587 Broadway, New
York City, are dealers in a device recommended for correcting
protruding ears, known as “Aura Primset”. The respondents aver
in their stipulation that the device consists of adhesive tabs and
glue, and that while it may cause temporary correction, permanent
relief cannot be had in all cases by use of the device. The respon¬
dents agree to stop advertising that “Aura Primset” is endorsed by
physicians as the best method for correcting misshapen or protrud¬
ing ears; that the device will give permanent relief; that normal
setting of protruding ears is brought about immediately through use
of this device and without resort to surgery; that the apparatus
trains the muscles of the ear to stay back normally, thus effecting
a permanent relief from deformity in the oldest cases, and other
representations.
No. 2526. Mid West Mills, Inc., 1726-28 Arcade Place, Chi¬
cago, jobber of upholstering fabrics and other furniture material,
has been ordered to cease and desist representing by use of its
corporate name, in advertising literature or in any other manner,
that it is a manufacturer, mill operator, or mill owner.
Findings are that the respondent used the phrase “Jobbers and
Converters” along with its corporate name, and the word “Mills”
in its corporate name. The company, according to the findings, is
not a manufacturer of the merchandise in which it deals.
No. 2772. General Handkerchief Mfg. Co., Inc., 919 W.
Roosevelt Rd., Chicago, has been ordered to discontinue repre¬
senting through its corporate name, letterheads, circulars, adver¬
tising literature, or in any other manner, that it manufactures
the handkerchiefs it sells in interstate commerce.
The Commission found that the respondent company used the
letters “Mfg.” and the words “manufacturers,” “manufactured”
and “factory” in such manner as to cause customers or prospec¬
tive customers to believe it owned or operated a factory, when
such was not the case.
FTC ORDERS VACATED
No. 1790. An order entered in April, 1934, against Pasquale
Margarella, 477 Broome St., New York City, directing him to
cease and desist from unfair competition in the sale of candy, has
been vacated and set aside by the Federal Trade Commission.
At the same time, the Commission issued an amended and supple¬
mental complaint against Margarella, alleging that he sells to
wholesalers and jobbers assortments of candy so packed as to
involve the use of a lottery scheme when sold to consumers. The
unfair practices charged in the amended and supplemental com¬
plaint are similar to those involved in the original complaint.
No. 2784. The Commission has also dismissed charges of unfair
competition in the sale of salt products made in a complaint
issued April 24, 1936, against General Laboratories, Inc., ot
Philadelphia.
Dismissal was ordered because of dissolution of the company.
The complaint charged the Pennsylvania Salt Manufacturing
Company and its subsidiary, General Laboratories, Inc., with un¬
fair competition in the use of the term “smoked salt” in adver¬
tising their products and process.
The dismissal order applies only to General Laboratories, Inc.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, June 1
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Nathan N. Bauer, Miami, Fla. — C. P., 1420 kc., 100 watts,
unlimited time.
NEW — Earl Weir, St. Petersburg, Fla. — C. P., 1370 kc., 100 watts,
unlimited time.
Tuesday, June 2
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Saginaw Broadcasting Co., Saginaw, Mich. — C. P., 1200
kc., 100 watts, 250 watts LS, specified hours.
NEW — Harold P. Gross and Edmund C. Shields, Saginaw, Mich. —
C. P., 950 kc., 500 watts, daytime.
WKBZ — Karl L. Ashbacker, Muskegon, Mich. — Modification of
license, 1200 kc., 100 watts, 250 watts LS, unlimited time.
Present assignment: 1500 kc., 100 watts, 250 watts LS,
unlimited time.
NEW — Wolverine Broadcasting Co. (John E. Fetzer), Ann Arbor,
Mich. — C. P., 800 kc., 1 KW, daytime.
NEW— WRBC, Inc., Youngstown, Ohio.— C. P., 890 kc., 1 KW,
unlimited time.
NEW — Harmon LeRoy Stevens and Herman LeRoy Stevens, d/b
as The Port Huron Broadcasting Co., Port Huron, Mich. —
C. P., 1370 kc., 250 watts, daytime.
Thursday, June 4
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-170:
NEW — Ralph Perez Perry, Santurce, Puerto Rico. — C. P., 1340
kc., 250 watts, unlimited time.
Examiner’s Report No. 1-191:
NEW— F. W. Atkinson, Watsonville, Calif.— C. P., 1310 kc., 250
watts, daytime.
Examiner’s Report No. 1-199:
KFJM — University of North Dakota, Grand Forks, N. Dak. —
C. P., 1410 kc., 1 KW, unlimited time. Present assign¬
ment: 1370 kc., 100 watts (SA Exp. 250 watts LS), un¬
limited time.
Examiner’s Report No. 1-206:
KVSO — The Ardmoreite Publishing Co., Inc., Ardmore, Okla. —
C. P., 1210 kc., 100 watts, 250 watts LS, unlimited time.
Present assignment: 1210 kc., 100 watts, daytime.
Examiner’s Report No. 1-209:
WOOD — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich.— C. P., 1270 kc., 1 KW, shares with WASH. Present
assignment: 1270 kc., 500 watts, shares with WASH.
WASH — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich. — C. P., 1270 kc., 1 KW, shares with WOOD. Present
assignment: 1270 kc., 500 watts, shares with WOOD.
WFBR — The Baltimore Radio Show, Inc., Baltimore, Md. —
Modification of license, 1270 kc., 1 KW, unlimited time.
Present assignment: 1270 kc., 500 watts, unlimited time.
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Robert Raymond McCulla, Oak Park, Ill. — C. P., 1500 kc.,
100 watts, unlimited time.
Friday, June 5
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Southwest Broadcasting Co., Prescott, Ariz. — C. P., 1500
kc., 100 watts, 250 watts LS, unlimited time.
NEW — W. P. Stuart, Prescott, Ariz. — C. P., 1500 kc., 100 watts,
unlimited time.
APPLICATIONS GRANTED
KMLB — Liner’s Broadcasting Station,' Inc., Monroe, La. — Granted
license covering C. P. authorizing changes in equipment.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
Granted license to cover C. P. authorizing installation of
auxiliary transmitter; 1370 kc., 100 watts night, 250 watts
day.
KFRC — Don Lee Broadcasting System, San Francisco, Calif. —
Granted license to cover C. P. authorizing changes in equip¬
ment and increase in day power to 5 KW ; 610 kc., 1 KW
night.
KBIX — Oklahoma Press Publishing Co., Muskogee, Okla. — Granted
license to cover C. P. authorizing erection of new station to
operate on 1500 kc., 100 watts, unlimited time.
WHOM — New Jersey Broadcasting Corp., Jersey City, N. J.—
Granted consent to transfer control of New Jersey Broad¬
casting Corp. (licensee of Station WHOM), from Harry F.
O’Mealia and the O’Mealia Outdoor Advertising Co., to
Paul F. Harron and Joseph Lang; 1450 kc., 250 watts,
unlimited time.
KFWB — Warner Bros. Broadcasting Corp., Hollywood, Calif. —
Granted modification of C. P. extending commencement
date to 6-1-36 and completion date to 11-30-36.
1341
KLZ — KLZ Broadcasting Co., Inc., Denver, Colo. — Granted
modification of C. P. to install new equipment, extend
commencement date to 60 days after grant and completion
date to 6 months thereafter.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. —
Granted modification of C. P. to install new equipment,
extend commencement date to 2 months after grant and
completion date to 6 months thereafter.
WCLO — Gazette Printing Co., Janesville, Wis. — Granted modifica¬
tion of C. P. approving antenna and transmitter site.
WHK — Radio Air Service Corp., Cleveland, Ohio. — Granted
license to use old transmitter as auxiliary transmitter; 1390
kc., 1 KW night, 2)4 KW day, unlimited time; 1 KW for
emergency purposes only.
KFRC — Don Lee Broadcasting System, San Francisco, Calif. —
Granted license to use old transmitter for auxiliary pur¬
poses only; 610 kc., 1 KW night, 5 KW day, unlimited
time; 1 KW for auxiliary purposes.
WCAO — Monumental Radio Co., Baltimore, Md. — Granted license
to use old W. E. transmitter for auxiliary purposes only;
600 kc., 500 watts night, 1 KW day, auxiliary purposes
(present assignment, 600 kc., 500 watts night, 1 KW day,
unlimited) .
KEUB — Eastern Utah Broadcasting Co., Price, Utah. — Granted
modification of C. P. to make changes in equipment and
approve transmitter and studio sites.
WHIS— Daily Teleg. Printing Co., Bluefield, W. Va. — Granted
license to cover C. P. authorizing installation of new equip¬
ment and move of transmitter; 1410 kc., 250 watts night,
500 watts day, unlimited time.
WPRP — Julio M. Conesa, Ponce, P. R. — Granted license to cover
C. P. authorizing erection of new station to operate on
1420 kc., 100 watts night, 250 watts day, specified hours.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — Granted
license to cover C. P. authorizing installation of new equip¬
ment; 1370 kc., 100 watts night, 250 watts day.
WICC — The Southern Conn. Broadcasting Corp., Bridgeport,
Conn. — Granted modification of license to change hours of
operation from specified to unlimited and facilities of
WCAC; 600 kc., 500 watts night, 1 KW day, specified
hours (all hours not used by WCAC).
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — Granted
C. P. to make changes in equipment.
KFEL — Eugene P. O’Fallon, Inc., Denver, Colo. — Granted C. P.
to make changes in equipment and install 2,600-ft. con¬
centric transmission line.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — Granted
modification of C. P. to extend completion date from
5-30-36 to 11-30-36.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
Granted license to cover C. P. authorizing move of trans¬
mitter locally; installing new antenna and equipment; in¬
crease day power from 1 to 5 KW ; also granted authority
to determine operating power by direct measurement of
antenna input.
KTAT — KTAT Broadcast Co., Inc., Fort Worth, Tex. — Granted
authority to determine operating power by direct measure¬
ment of antenna input.
WPTF — WPTF Radio Company, Raleigh, N. C. — Same as above
(for auxiliary equipment, 1 KW).
WKBN— WKBN Broadcasting Corp., Youngstown, Ohio. —
Granted authority to install automatic frequency control
equipment.
WNBH — E. Anthony & Sons, Inc., New Bedford, Mass. — Granted
authority to install automatic frequency control.
KGFI— Eagle Broadcasting Co., Inc., Corpus Christi, Tex. —
Granted authority to install automatic frequency control.
WTAG — Worcester Telegram Pub. Co., Inc., Worcester, Mass. —
Granted license for auxiliary transmitter; 580 kc., 500 watts,
emergency purposes only.
KVOL — George H. Thomas, Robert M. Dean, Louis M. Sepaugh,
T. B. Lanford, a partnership, d/b as Evangeline Broadcast¬
ing Co., Lafayette, La. — Granted voluntary assignment of
license of station KVOL from George H. Thomas, Robert
M. Dean, Louis M. Sepaugh, T. B. Lanford, a partnership
trading as Evangeline Broadcasting Co., licensee, to Evan¬
geline Broadcasting Co., Inc.
NEW — WGCM, Inc., Portable-Mobile (temp, b/c pickup). —
Granted C. P. for new broadcast pickup station in the tem¬
porary emergency service; frequencies 1646, 2090, 2190
and 2830 kc., 50 watts.
NEW — Memphis Commercial Appeal, Inc., Portable-Mobile
(temp, b/c pickup). — Granted C. P. for new broadcast
pickup station in the temporary service; frequencies 1606,
2020, 2102 and 2760 kc., 35 watts.
NEW — Central States Broadcasting Co., Portable (temp, b/c
pickup). — Granted C. P. for new broadcast pickup station
in the temporary service; frequencies 1606, 2020, 2102 and
2760 kc., 30 watts.
NEW — WHBY, Inc., Portable-Mobile (exp. gen. exp.), 2 applica¬
tions. — Granted C. P. for new general experimental station
to be used as broadcast pickup station; frequencies 31100,
34600, 37600 and 40600 kc., 10 watts.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Granted
C. P. for new general experimental broadcast pickup sta¬
tion; frequencies 31100, 34600, 37600 and 40600 kc., 40
watts.
W9XHW — Northwestern Broadcasting, Inc., Minneapolis, Minn. —
Granted license to cover C. P. for general experimental
broadcast station ; frequencies 31600, 35600, 38600, 41000,
86000-400000, 401000 kc. and above, 50 watts.
WlOXGA — Miami Valley Broadcasting Corp., Portable-Mobile. —
Granted license to cover C. P. for general experimental
broadcast pickup station ; frequencies 31100, 34600, 37600
and 40600 kc., 2.5 watts.
W3XEN — Havens & Martin, Inc., Portable-Mobile. — Granted
license to cover C. P. for general experimental broadcast
pickup station ; frequencies 31100, 34600, 37600 and 40600
kc., 40 watts.
W2XR — John V. L. Hogan, d/b as The Scientific Broadcasting
Service, Long Island City, N. Y. — Granted consent to vol¬
untary assignment of license to Interstate Broadcasting Co.,
Inc.
SET FOR HEARING
NEW — KLA, Inc., La Grande, Ore. — Application for C. P. for new
station; 1100 kc., 250 watts, daytime.
NEW — John S. Allen and G. W. Covington, Jr., Exchange Hotel
Bldg., Montgomery, Ala. — Application for C. P. for new
station; 1210 kc., 100 watts, daytime.
NEW — Fred J. Hart, Honolulu, T. H. — Application for C. P. for
new station; 600 kc., 250 watts, unlimited time, site to be
determined.
NEW — Bayou Broadcasting Co., Houston, Tex.— Application for
C. P. for new station; 1210 kc., 100 watts, unlimited time.
NEW — Twin City Broadcasting Co., Inc., Lewiston, Maine. — Ap¬
plication for C. P. for new station; 1210 kc., 100 watts,
unlimited time, site to be determined.
NEW — Thomas L. Evans and J. L. Milligan, Jefferson City, Mo. —
Application for C. P. for new station; 920 kc., 500 watts,
daytime, site to be determined.
NEW — Harold M. Finlay and Mrs. Eloise Finlay, La Grande,
Ore. — Application for C. P. for new station; 1500 kc., 100
watts, daytime, site to be determined.
NEW — H. Wimpy, Albany, Ga. — Application for C. P. for new
station; 1420 kc., 100 watts night, 250 watts day, unlimited
time, site to be determined.
NEW — Eau Claire Broadcasting Co., Eau Claire, Wis. — Applica¬
tion for C. P. for new station; 1210 kc., 100 watts, un¬
limited time, site to be determined.
KFBB — Buttery Broadcast, Inc., Great Falls, Mont. — C. P.,
already in hearing docket, amended to read: Make changes
in equipment, move transmitter to site to be determined,
change frequency from 1280 kc. to 950 kc., increase day
power from 2)4 KW to 5 KW.
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Modification
of license application, already in hearing docket, amended
to read: Change operating time from sharing with KFUO
to unlimited time. Requests facilities of KFUO.
NEW — Ed Klies, Helena, Mont. — C. P. (amended), 1280 kc.,
1 KW night, 5 KW day, unlimited, site to be determined.
WHBC — Edward P. Graham, Canton, Ohio. — Consent to volun¬
tary assignment of license and C. P. to Ohio Broadcasting
Co.
WOWO — The Main Auto Supply Co., Fort Wayne, Ind. — Consent
to transfer of control of corporation from Fred C. Zieg,
C. R. Durbin and J. A. Beckers to Westinghouse Electric &
Mfg. Co.
NEW — Cacha Valley Broadcasting Co., Logan, Utah. — C. P.
amended to read: 1200 kc., 100 watts, unlimited time.
WGN — WGN, Inc., Chicago, Ill. — C. P. to install new equipment
and antenna, increase power from 50 KW to 500 KW ; site
1342
to be determined. To be heard before the Broadcast
Division.
KTRH — KTRH Broadcasting Co., Houston, Tex. — Application for
modification of license to increase night power from 1 to 5
KW. (Present assignment, 1290 kc., 1 KW night, S KW
day, unlimited time.) To be heard before the Broadcast
Division.
WDOD — WOOD Broadcasting Corp., Chattanooga, Tenn. — Ap¬
plication for modification of license to increase night power
from 1 to 5 KW. (Present assignment, 1280 kc., 1 KW
night, 5 KW day, unlimited time.) To be heard before
the Broadcast Division.
WCRW — Clinton R. White, Chicago, Ill. — Renewal of license,
1210 kc., 100 watts, specified hours. Temporary license
granted subject to whatever action may be taken on re¬
newal application.
KICA — Western Broadcasters, Inc., Clovis, N. Mex. — Application
for modification of license to change hours of operation
from specified hours to unlimited time.
KVOE — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
Calif.— Application for renewal of license; 1500 kc., 100
watts, unlimited time.
NEW — The Tribune, Great Falls, Mont. — C. P., already in hearing
docket, amended to read: 950 kc., 1 KW night, 5 KW day,
unlimited, site to be determined.
NEW — C. E. Wilkinson Broadcasting Co., Inc., Mason City, Iowa.
— C. P., already in hearing docket, amended to read: 1210
kc., 100 watts, unlimited time, site to be determined.
WSBT — The South Bend Tribune, South Bend, Ind. — C. P.,
already in hearing docket, amended to read: Make changes
in equipment; install directional antenna for nighttime op¬
eration; change frequency from 1360 kc. to 1010 kc.; in¬
crease power from 500 watts, sharing with WGES to 1 KW,
unlimited time; move transmitter and approval of proposed
transmitter site at 4 miles southeast of center of South Bend
on So. Jackson Rd., Y\ mile east of Miami Highway.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KFJB, Marshalltown, Iowa; KFXD, Nampa, Idaho; KIUJ,
Santa Fe, N. Mex.; KMLB, Monroe, La.; KWTN, Watertown,
S. Dak.; WAIM, Anderson, S. C.; WCMI, Ashland, Ky.; WCOL,
Columbus, Ohio; WDAH, El Paso, Tex.; WEBR and auxiliary,
Buffalo, N. Y.; WEDC, Chicago; WFBG, Altoona, Pa.; WGCM,
Mississippi City, Miss.; WHBF, Rock Island, Ill.; WIBX, Utica,
N. Y.; WIL, St. Louis, Mo.; WJBC, Bloomington, Ill.; WJBL,
Decatur, Ill.; WJBW, New Orleans; WKOK, Sunbury, Pa.;
WMBG, Richmond, Va., and auxiliary; WMFF, Plattsburg,
N. Y.; WNBH, New Bedford, Mass.; WRAW, Reading, Pa.;
WROL, Knoxville, Tenn.; WSJS, Winston-Salem, N. C.; WTEL,
Philadelphia, Pa.; WTRC, Elkhart, Ind.
WlXBS — American-Republican, Inc., Prospect Township, Conn. —
Granted renewal of experimental broadcast station license
for the period June 1, 1936, to December 1, 1936, in exact
conformity with existing license.
W2XR — John V. L. Hogan, d/b as the Scientific Broadcasting
Service, Long Island City, N. Y. — Granted renewal of ex¬
perimental broadcast station license for the period June 1,
1936, to December 1, 1936, in exact conformity with existing
license.
W9XBY — First National Television, Inc., Kansas City, Mo. —
Granted renewal of experimental broadcast station license
for the period June 1, 1936, to December 1, 1936, in exact
conformity with existing license.
W6XAI — Pioneer Mercantile Co., Bakersfield, Calif. — Granted re¬
newal of experimental broadcast station license for the
period June 1 to December 1, 1936, in exact conformity
with existing license.
MISCELLANEOUS
NEW — Lookout Broadcasting Corp., Chattanooga, Tenn. —
Granted postponement of hearing scheduled for May 20,
1936, to consider application for C. P. for new station to
operate on 1420 kc., with 100 watts daytime.
WCAE — Pittsburgh Publishing Co., Pittsburgh, Pa. — Reconsidered
renewal of license effective April 1, 1936, authorizing opera¬
tion on 1220 kc., 1 KW night, 5 KW day, full time, with
the use of the transmitter and antenna system described in
license, because of protest of WREN, Tonganoxie, Kans.
Authorized temporary continuance of use of facilities pend¬
ing hearing and decision on application for regular renewal
of license.
WPAX — H. Wimpy, Thomasville, Ga. — Retired to the closed files
application for C. P. to make changes in equipment, in¬
crease power, and move transmitter, since applicant has
failed to comply with requirements of Commission’s letters.
APPLICATIONS DISMISSED
The following stations, heretofore set for hearing, were dismissed
at request of applicants:
NEW — Northern Broadcasting Corp., Watertown, N. Y. — Applied
for C. P., 1270 kc., 250 watts, daytime.
NEW — Ben L. Taylor, Phil B. Whitaker and Mrs. Phil B. Whit¬
aker, Chattanooga, Tenn. — Applied for C. P., 1200 kc., 100
watts, daytime.
KFEQ — KFEQ, Inc., St. Joseph, Mo. — Applied for C. P., 680 kc.,
5 KW, daytime.
KQOS- — Pacific Radio Corp., Marshfield, Ore. — Applied for modifi¬
cation of license, 1390 kc., 250 watts, unlimited time.
KWBG — The Nation’s Center Broadcasting Co., Inc., Hutchinson,
Kans— Applied for C. P., 1120 kc., 1 KW, unlimited.
NEW — Evans Broadcasting Co., Kansas City, Mo. — Applied for
C. P., 1370 kc., 100 watts, unlimited time.
NEW — Southland Broadcasting Corp., Chattanooga, Tenn. — Ap¬
plied for C. P., 1200 kc., 100 watts, daytime.
ORAL ARGUMENTS
NEW — Ex. Rep. 1-217: C. G. Hill, Geo. D. Walker, and Susan H.
Walker, Winston-Salem, N. C. — Oral argument to be held
September 17, 1936.
NEW — Ex. Rep. 1-218: Central Broadcasting Co., Eau Claire, Wis.
— Oral argument to be held September 17, 1936.
NEW — Ex. Rep. 1-220: A Staneart Graham, E. B. Baxter, and
Norman Baxter, d/b as Pittsburg Broadcasting Co., Pitts¬
burg, Kans. — Oral argument to be held September 17, 1936.
APPROVED MODULATION MONITOR
The Commission approved the following Modulation Monitor
for use in broadcast stations to comply with Rule 139 and assigned
approval number as given below:
Manufacturer’s Name Type Approval No.
RCA Mfg. Company Type 66-B 1553
APPLICATION DENIED
Evening Herald Pub. Co., Los Angeles, Calif. — Denied special
authority to operate unlimited time pending the filing of
and action on application for license to cover C. P.
APPLICATIONS RECEIVED
First Zone
WTAG — Worcester Telegram Publishing Co., Worcester, Mass. —
580 Construction permit to install directional antenna, move
transmitter from 20 Franklin Street, Worcester, Mass., to
Shrewsbury St., Holden, Mass., and increase power from
500 watts to 1 KW. ,
WEEI — The Edison Electric Illuminating Co. of Boston, Boston,
590 Mass. — Voluntary assignment of license from The Edison
Electric Illuminating Co. of Boston to WEEI Broadcasting
Corp.
NEW — Eugene Meyer & Co., d/b as The Washington Post, Wash-
630 ington, D. C. — Construction permit for a new station to be
operated on 630 kc., 250 watts, 500 watts day, unlimited
time. Requests facilities of Station WMAL.
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. —
1230 Modification of construction permit (Bl-P-1083) for in¬
crease in power from 1 KW, 5 KW day, to 5 KW day and
night, and changes in antenna. Directional antenna night.
KHBC — Honolulu Broadcasting Co., Ltd., Hilo, Hawaii. — License
1400 to cover construction permit (B-P-552) as modified for a
new station.
WCNW — Arthur Faske, Brooklyn, N. Y. — Construction permit to
1500 make changes in antenna and move transmitter from 1525
Pitkin Avenue, Brooklyn, N. Y., to 195 Varick Avenue,
Brooklyn, N. Y.
NEW — National Broadcasting Co., Inc., Portable-Mobile.— Con¬
struction permit for a new broadcast pickup station to be
operated on 1606, 2020, 2102, 2760 kc., 100 watts.
1343
NEW — National Broadcasting Co., Inc., Portable-Mobile. — License
to cover above.
W1XEQ — E. Anthony & Sons, Inc., Fairhaven, Mass. — License to
cover construction permit for a new general experimental
station.
NEW — National Broadcasting Co., Inc., New York, N. Y. — Con¬
struction permit for a new general experimental station to
be operated on 25700, 26000, 27100 31100, 31600, 34600,
35600, 37600,* 40600, 41000 kc., 100 watts. *(also 38600
kc.).
NEW — National Broadcasting Co., Inc., New York, N. Y. — License
to cover frequencies 31100, 34600, 37600, 40600 kc., 100
watts.
NEW— National Broadcasting Co., Inc., New York, N. Y. — License
to cover 25700, 26000, 27100, 31600, 35600, 38600, 41000
kc., 100 watts.
NEW — The WATR Company, Inc., Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 31100, 34600, 37600, 40600 kc., 10 watts.
W2XKI — National Broadcasting Co., Inc., New York, N. Y. —
License to cover construction permit for a new special ex¬
perimental station.
Second Zone
NEW — Valley Broadcasting Co., Youngstown, Ohio. — Construc-
780 tion permit for a new station to be operated on 780 kc.,
1 KW, unlimited time.
WHAS — The Courier-Journal Co. and The Louisville Times Co.,
820 Louisville, Ky. — Special experimental authorization to in¬
stall new equipment, increase power from 50 KW to 500
KW, and move transmitter from Rural Route No. 1, near
Jeffersontown, Ky., to site to be determined, Oldham
County, Kentucky, for period to 8-1-36.
WHAS — The Courier- Journal Co. and The Louisville Times Co.,
820 Louisville, Ky. — Construction permit to install a vertical
antenna and move transmitter from Rural Route No. 1,
near Jeffersontown, Ky., to site to be determined, Oldham
County, Kentucky.
WGBI — Scranton Broadcasters, Inc., Scranton, Pa. — License to
880 cover construction permit (B2-P-264) for new equipment
and increase in power .
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — Modification of
890 construction permit (B2-P-506) for new equipment, in¬
crease in power, and move of transmitter, requesting
changes in equipment and extend commencement and com¬
pletion dates.
WCOL — WCOL, Inc., Columbus, Ohio. — Construction permit to
1210 make changes in equipment.
WJAS — Pittsburgh Radio Supply House, Pittsburgh, Pa. — Modifi-
1290 cation of license to increase power from 1 KW, 5 KW day,
to 5 KW day and night.
NEW — L. Martin Courtney, Toledo, Ohio. — Construction permit
1420 for a new station to be operated on 1420 kc., 100 watts,
unlimited time. Amended to make changes in equipment.
NEW — John E. Fetzer, Benton Harbor, Mich. — Construction per-
1500 mit for a new station to be operated on 1500 ltc., 250
watts, daytime. Amended to request 100 watts, 250 watts
daytime, unlimited time, contingent upon the granting of
WKBZ’s application for 1200 kc.
W8XHU — Pittsburgh Radio Supply House, Portable-Mobile. —
License to cover construction permit for a new general
experimental station.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 31100, 34600, 37600, 40600 kc., 2 watts.
NEW — WJR, The Goodwill Station, Portable-Mobile.— Construc¬
tion permit for a new general experimental station to be
operated on 86000-400000 kc., 2 watts.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 86000-400000 kc., 40 watts.
NEW — The Courier- Journal Co. and The Louisville Times Co.,
Louisville, Ky. — Construction permit for a new general ex¬
perimental station to be operated on 31600 kc., 100 watts.
Amended to read: 31600, 35600, 38600, 41000 kc., 100
watts.
Third Zone
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
780 Modification of construction permit (B3-P-621) for changes
in equipment and increase in power, requesting extension
of completion date from 7-19-36 to 1-19-37.
KFPL — C. C. Baxter, Dublin, Tex. — Modification of construction
1310 permit (B3-P-345) as modified to extend commencement
and completion dates.
W4XBS — Memphis Commercial Appeal, Inc., Portable-Mobile. —
License to cover construction permit for a new general
experimental station.
W4XCA— Memphis Commercial Appeal, Inc., Memphis, Tenn. —
License to cover construction permit for a general ex¬
perimental station.
Fourth Zone
WHBU — Anderson Broadcasting Corp., Anderson, Ind.— License
' 1219 to cover construction permit (B4-P-438) for changes in
equipment and increase in power.
WKBB — Sanders Brothers Radio Station, Dubuque, Iowa. — Con-
1500 struction permit to install new antenna, move studio from
R. F. D. No. 1, E. Dubuque, Ill., to Hotel Julien, Dubuque,
Iowa, and transmitter from same address to site to be de¬
termined, Julien Township, Iowa.
NEW — William Six, Portable-Mobile. — Construction permit for a
new general experimental station to be operated on 31600,
35600, 38600, 41000, 86000-400000, 401000 kc. and above,
15 watts.
NEW — Frank O. Knoll and Julian F. McCutchan, St. Cloud,
Minn. — Construction permit for a new general experimental
station to be operated on 31600, 35600, 38600, 41000 kc.,
100 watts.
Fifth Zone
KIRO — Queen City Broadcasting Co., Seattle, Wash. — License to
650 cover construction permit (B5-P-766) for changes in equip¬
ment and to move transmitter and studio.
KHSL — Golden Empire Broadcasting Co., Chico, Calif. — Modifi-
950 cation of license to change frequency from 950 kc. to 630
kc., power from 250 watts daytime to 250 watts day and
night, and hours of operation from daytime to unlimited
time. Amended to change requested frequency from 630 kc.
to 1260 kc.
KRSC — Radio Sales Corp., Seattle, Wash. — Construction permit
1120 to install new equipment.
KVCV — Golden Empire Broadcasting Co., Redding, Calif. — Modi-
1200 fication of construction permit (B5-P-546) to make changes
in equipment, for approval of transmitter and studio sites
at 2J4 miles south of city (Bonny View Tract), Redding,
Calif., and for approval of antenna system.
KGFJ — Ben S. McGlashan, Los Angeles, Calif. — Construction
1200 permit to install new equipment, change frequency from
1200 kc. to 1170 kc., power from 100 watts to 250 watts,
500 watts day.
NEW — Cache Valley Broadcasting Co., Logan, Utah. — Construc-
1200 tion permit for a new station to be operated on 1370 kc.,
100 watts, unlimited time. Amended to change frequency
from 1370 kc. to 1200 kc.
KFJI — KFJI Broadcasters, Inc., Klamath Falls, Oregon. — License
1210 to cover construction permit (B5-P-1010) to make changes
in equipment.
KFBB — Buttrey Broadcast, Inc., Great Falls, Mont. — Construc-
1280 tion permit to install a new transmitter, erect a new antenna,
and move transmitter from 5 miles south of town on 13th
Street, Great Falls, Mont., to near Great Falls, Mont.
KID — KID Broadcasting Co., Inc., Idaho Falls, Idaho. — Modifica-
1320 tion of construction permit (B5-P-559) giving exact trans¬
mitter site as Yellowstone Highway, near Idaho Falls,
Idaho, and install vertical antenna. Amended to change
transmitter site from Yellowstone Highway, near Idaho
Falls, Idaho, to near Idaho Falls, Idaho.
NEW — J. D. Keating, Harvey Wells, L. J. Keating, Joe Mi
1500 Meyer and L. C. Keating, d/b as Vancouver Broadcasting
Co., Vancouver, Wash. — Construction permit for a new
station to be operated on 1500 kc., 100 watts, daytime.
NEW— W. P. Stuart, Prescott, Ariz. — Construction permit for a
1500 new station to be operated on 1500 kc., 100 watts, un¬
limited time, facilities of KPJM. Amended: Transmitter
site and antenna to be determined.
NEW — Standard Radio, Inc., Hollywood, Calif. — Authority to
transmit electrical transcriptions to foreign countries
(CKAC, Montreal, Quebec; CHNS, Halifax, N. S.; CFRN,
Edmonton, Alberta, Canada; CKPC, Brantford, Ont.,
Canada; and other Canadian stations.
1344
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright, 1936. The National Association of Broadcasters
Vol.4--No.26
MAY 29, 1936
FCC PROMULGATES NEW RULES
The Federal Communications Commission has promulgated
general rules and regulations applicable to relay broadcast, inter¬
national broadcast, visual broadcast, high frequency broadcast,
and experimental broadcast stations, effective July 1.
In connection with these new regulations the Commission issued
the following statement:
The Broadcast Division on May 21, promulgated new rules and
regulations concerning all broadcast stations except regular broad¬
cast stations in the band 5S0 to 1S00 kilocycles. These broadcast
stations are as follows:
Relay broadcast stations (formerly broadcast pickup stations).
International broadcast stations (formerly experimental relay
stations).
Visual broadcast stations, including television and facsimile.
High-frequency broadcast stations (formerly genera! experimental
stations authorized to operate as broadcast stations).
Experimental broadcast stations.
Special broadcast stations (formerly experimental broadcast sta¬
tions on the frequencies of 1530, 1550 and 1570 kilocycles).
These new rules provide certain new restrictions and principles of
operation that are fully set out in the attached copy of the new
rules. All outstanding rules concerning these stations which are in
conflict with the new rules are automatically cancelled.
The name “relay” broadcast station now applies to stations
which were formerly called broadcast pickup stations. The new
name “relay” is considered more in keeping with the actual service
rendered by these stations. In the future these stations will be
licensed only to the holders of regular broadcast station licenses.
Two groups of frequencies are provided, one in the medium fre¬
quency band and the other in the very high frequency band. In
both groups the licensees are required to notify the Commission
two days before each operation for the purpose of relaying pro¬
grams to be broadcast. Certain of the frequencies in the medium
frequency band have been changed by two kilocycles to provide
better frequency separation from other services. All licensees of
these stations should read the new rules governing these stations
carefully as certain other changes have been made.
The name “international” broadcast station now applies to those
stations which were formerly called experimental relay stations.
These stations are licensed for international service. There are
certain new principles set out in the new rules that the licensees of
these stations should study carefully.
The frequency bands 20C0 to 2100 kilocycles and 2750 to 2850
kilocycles have been dropped for the television service. Experience
to date has shown that a satisfactory picture in keeping with the
development of the art cannot be transmitted successfully in these
narrow bands. The stations now assigned these frequencies which
are carrying on active programs of research and experimentation
will be assigned specific frequencies in the bands 42,000 to 56,000
kilocycles and 60,000 to 86,000 kilocycles. One license will author¬
ize both the visual and aural broadcast. There are certain other
principles of operation involved in the new rules which the licensees
of these stations should study carefully.
High-frequency broadcast stations are required to carry on active
programs of research to hold a license. Licensees not carrying on
this active program cannot be considered as making proper usage
of the assignment and full consideration will be given at the time
of the renewal of license.
Experimental broadcast stations are provided for specific experi¬
mentation along lines other than those prescribed by other broad¬
cast rules. Certain frequencies throughout the entire useful radio
spectrum are made available for this purpose by Rule 229 as
modified.
The name “special broadcast station” applies to stations formerly
named “experimental” stations licensed to operate on the frequen¬
cies of 1530, 1550, and 1570 kilocycles. The new rules provide that
all rules that apply to regular broadcast stations (Rules 69 to 181,
inclusive) shall apply to special broadcast stations. This means
that these stations must have frequency monitors, modulation
monitors, protected equipment, etc.
It will be necessary to modify several of the outstanding licenses
to comply with the new frequency allocation as provided in Rule
229 as modified by the Commission on May 13, 1936. The Broad¬
cast Division’s new rules as discussed above provide an allocation
in compliance with the frequencies made available by the action
of the Commission. A careful comparison should be made between
your existing licenses with respect to the frequencies and class of
broadcast service and that provided in the new rules and regula¬
tions. It may be necessary to change either or both.
So that these requirements may be discussed thoroughly and
understood, an informal engineering conference is scheduled for
June 8, 1936, at which all licensees affected should be represented,
or should supply information to the Broadcast Division of the
Commission as to the new frequencies that they desire in keeping
with the new rules. All licensees of television broadcast stations
should especially be present so that a definite assignment of a visual
and aural frequency can be made in either the 42,000-56.000 kilo¬
cycle band or the 60,000-86,000 kilocycle band. If the licensees are
not present so that an agreeable change of frequency can be ef¬
fected, the Commission will, on July 1, 1936, issue a modified
license specifying the frequency that it deems best in keeping with
public interest, convenience and necessity, as provided in Rule 229
as modified.
The rules themselves are as follows:
“These Rules and Regulations are effective July 1, 1936.
General Rules and Regulations Applicable to Relay Broadcast,
International Broadcast, Visual Broadcast, High Frequency
Broadcast, and Experimental Broadcast Stations.
980. The operating frequency of the broadcast stations as listed
in Table I shall be maintained within plus or minus the percentage
of the assigned frequency as given in Table I.
Table I
Station
T olerance
Relay Broadcast
(a) 1622 to 2830 kc.
0.04%
(b) 31,100 to 40.600
0.05%
International Broadcast
0.01%
Visual Broadcast
(a) Television
0.05%
(b) Facsimile
0.05% or less as required
High Frequency Broadcast
0.01%
Experimental Broadcast
0.05% or less as required
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS JULY 5, 6, 7, 8, 1936
1345
981. (a) The licensee of each broadcast station listed in Rule
980, except relay broadcast stations, shall operate at the transmitter
a frequency monitor independent of the frequency control of the
transmitter.
(b) The frequency monitor shall be designed and constructed
in accordance with good engineering practice and shall have an
accuracy sufficient to determine that the operating frequency is
within the allowed tolerance.
(c) The licensee of each relay broadcast station shall provide
the necessary means for determining that the frequency of the
station is within the allowed tolerance.
(d) The frequency of all stations listed in Rule 980 shall be
checked at each time of beginning operation and as often there¬
after as necessary to maintain the frequency within the allowed
tolerance.
982. (a) Licenses for the following classes of broadcast stations
will be normally issued for a period of one year expiring as follows:
Class of Station
Relay Broadcast
(a) 1622 to 2830 kc.
(b) 31,100 to 40,600 kc.
International Broadcast
Date of Expiration
October 1
November 1
December 1
Visual Broadcast
(a) Television
(b) Facsimile
High Frequency Broadcast
Experimental Broadcast
February 1
March 1
April 1
May 1
(b) Each licensee shall submit the application for renewal of
license at least 60 days prior to the expiration date (Rule 103.15).
(c) A supplemental report shall be submitted with each appli¬
cation for renewal of license of a station operating on frequencies
allocated on an experimental basis in accordance with the regula¬
tions governing each class of station.
983. (a) No frequency allocated on an experimental basis to
broadcast stations listed in Rule 980 will be assigned exclusively
to any licensee. In case interference will be caused by simultaneous
operation, licensees shall endeavor to arrange satisfactory time
division. If such agreement cannot be reached, the Commission
will determine and specify the time division.
(b) The Commission may from time to time require the licensee
of a station assigned frequencies on an experimental basis to con¬
duct experiments that are deemed desirable and reasonable for the
development of the service.
(c) The program of research and experimentation as offered by
an applicant in compliance with the requirements for obtaining
a license on the experimental frequencies shall be adhered to in the
main, unless the licensee is authorized to do otherwise by the
Commission.
(d) A licensee of a station assigned a frequency or frequencies
on an experimental basis is not required to adhere to a regular
schedule of operation but shall actively conduct a program of
research and experimentation or transmission of programs, pro¬
vided, however, licensees of experimental broadcast stations which
are licensed to conduct special intermittent experiments, such as to
develop and test commercial broadcast equipment, are required to
operate only when there is a need therefor.
(e) A supplementary statement shall be filed with and made
a part of each application for construction permit for a broadcast
station which requests any frequency above 30,000 kilocycles, con¬
firming the applicant’s understanding:
1. That all operation upon these frequencies is on an experi¬
mental basis.
2. That these frequencies may not be the best suited to the
particular service assigned.
3. That they may not be allocated eventually for such service.
984. (a) The licensee of each class of broadcast station listed in
Rule 980 shall maintain adequate records of the operation, in¬
cluding:
1. Hours of operation.
2. Program transmitted.
3. Frequency check.
4. Pertinent remarks concerning transmission.
5. Research and experimentation conducted.
6. And any additional information specified in the regulations
governing each class of station or for completing the sup¬
plemental report as required.
(b) The above information shall be made available upon request
by authorized Commission representatives.
985. The licensee of each class of broadcast station listed in Rule
980 may make any changes in the equipment that are deemed de¬
sirable or necessary, provided:
1. That the operating frequency is not permitted to deviate
more than the allowed tolerance.
2. That the fidelity of transmission is not impaired.
3. And that the power output complies with the regulations
governing the same.
986. All classes of broadcast licenses authorize A3, A4 and/or
special emission. In case Ai, or A2 emission, or both, is necessary
or helpful in carrying on any phases of experimentation, applica¬
tion setting out fully the needs should be made to, and authority
therefor received from, the Commission.
987. In case all the general rules and regulations and the specific
rules governing each class of broadcast station do not cover all
phases of operation or experimentation with respect to external
effects, the Commission may make supplemental or additional
orders in each case as deemed necessary for operation in the public
interest, convenience, and/or necessity.
RELAY BROADCAST STATIONS
1000. The term “relay broadcast station” means a station
licensed to transmit over short distances where wire facilities are
not available, programs or orders concerning such programs for
broadcast by one or more regular broadcast stations in the band
550 to 1600 kilocycles.
1001. (a) A license for a relay broadcast station will be issued
only to the licensee of a regular broadcast station; provided, how¬
ever, in cases where it is impractical, impossible, or prohibited
by laws or regulations for the licensee of a regular broadcast
station to install, operate or maintain the necessary equipment
under its legal control, the Commission may grant special tempo¬
rary authority for each event to other persons to operate as a
relay broadcast station equipment already licensed for another
service, or equipment which may be installed under Section
319(b) of the Communications Act of 1934 without a construction
permit.
(b) The licensee of a relay broadcast station is authorized to
transmit commercial or sustaining programs and orders concern¬
ing such programs to its regular broadcast station and other broad¬
cast stations transmitting the same program simultaneously, but
is not authorized to transmit programs to be broadcast solely by
other regular broadcast stations.
(c) Each application for temporary authority to operate a
relay broadcast station from a person other than a licensee of a
regular broadcast station shall be accompanied by an application
for authority to broadcast the program from the licensee of the
regular broadcast station proposing the broadcast.
(d) An application for special temporary authority to operate
another class of station as a relay broadcast station shall specify
a group of frequencies allocated in Rule 1003 ; provided, however,
in case of events of national interest and importance which cannot
be transmitted successfully to the nearest available wire facilities
on these frequencies, other frequencies under the jurisdiction of
the Commission may be requested, if it is shown that the operation
thereon will not cause interference to established stations; and,
provided further, that in no case will the Commission authorize
the use of the international broadcast frequencies for this puroose.
(c) An application for special temporary authority to operate
on frequencies not allocated by Rule 1003 or to operate another
class of station as a relay broadcast station must be received by
the Commission not less than ten days prior to the actual event
to be broadcast, and shall contain complete information concerning
the frequencies requested, the license of the station to be used, and
the information specified in Rule 1002 (b), (1) (2) (3) (4). In
case of emergencies, which shall be fully explained in the applica¬
tion, the Commission may waive the ten-day requirement specified
herein.
1002. (a) The license of a relay broadcast station does not
authorize operation except as provided in subsections (b), (c) and
(d) of this Rule.
(b) An application which may be submitted either by letter or
telegram, for authority to operate temporarily a relay broadcast
station for each event or series of associated events to be broad¬
cast, must be received at least two days before the first proposed
operation, and shall include:
1. A statement as to the period of use desired.
2. Identification and succinct description of the event proposed
to be broadcast.
3. A statement concerning the availability of wire facilities.
4. Location of the program transmitter and receiver.
1346
(c) Relay broadcast stations licensed on the experimental fre¬
quencies allocated in Rule 1003 (c) may be operated at any time for
experimental purposes without notice to the Commission if no
interference results to established stations and the program trans¬
mitted is not rebroadcast.
(d) In case of events occurring about which the licensee had no
means of obtaining information two days in advance, such as
earthquakes, aeroplane accidents, fires, etc., the application to and
authority from the Commission as required in subsection (b) of
this rule will be waived, provided the Commission is advised by
telegram sent before the broadcast as to the details of the events
and the expected duration of the broadcast.
1003. (a) The following groups of frequencies are allocated for
assignment to relay broadcast stations:
Group A Group B Group C
1622 kc. 1606 kc. 1646 kc.
2058 2022 2090
2150 2102 2190
2790 2758 2830
(b) One group including four frequencies will be assigned each
station. The first application from any metropolitan area shall
specify group A, the second group B, and the third group C, the
fourth group A again, etc. Outstanding assignments not follow¬
ing this order will not be changed unless a need therefor develops.
Additional applications shall specify the next unassigned group in
sequence or any other group if it appears interference will be
avoided thereby.
(c) The following groups of frequencies are allocated for relay
broadcast stations on an experimental basis and may be changed
without prior notice or hearing (experimental frequencies) :
Group D Group E
31,100 kc. Any four frequencies above
34.600 86.000 kc. except in band
37.600 400,000 to 401,000 kc.
40.600
(d) All four frequencies in Group D will be assigned each sta¬
tion. Applicants may request any four specific frequencies under
Group E which appear most suitable for the experimental work to
be conducted. The licensee of a station on Group D or E shall
carry on research and experimentation for the advancement of
relay broadcast art and development of these very high frequencies
for relay broadcast services.
(e) Applications for authority to construct a station for opera¬
tion on the experimental frequencies shall include a statement con¬
cerning the research and experiments to be conducted. The research
and experiments shall indicate reasonable promise of substantial
contribution to the development of the program relay services.
(f) A license authorizes operation on only one of the four as¬
signed frequencies at any one time. In case it is desired to transmit
programs and spoken orders concerning such programs simul¬
taneously, two licenses are required though each will specify the
same group of frequencies.
1004. In case two or more stations are licensed for the same
group of frequencies in the same area and have been authorized
to operate under Rule 1002 (b), the licensees shall endeavor to
select frequencies to avoid interference. If a mutual agreement to
this effect cannot be reached, the Commission shall be notified
and it will specify the frequencies on which each station is to be
operated.
1005. A relay broadcast station shall be operated with a power
output not in excess of that necessary to transmit the program
and orders satisfactorily to the receivers, and in no event greater
than the licensed power.
1006. The licensee of a relay broadcast station assigned the
experimental frequencies under Rule 1003 (c) shall submit a
supplemental report with and made a part of each application for
renewal of license as follows:
1. Number of hours operated for experimental purposes.
2. Developments in the relay broadcast service.
3. Propagation characteristics of the frequencies assigned with
regard to relay broadcast service.
4. All developments or major changes in equipment.
5. Any other pertinent developments.
INTERNATIONAL BROADCAST STATIONS
1010. The term “international broadcast station” means a station
licensed for the transmission of broadcast programs for interna¬
tional public reception. Frequencies for these stations are allo¬
cated from bands assigned (between 6,000 and 26,600 kilocycles)
for broadcasting by Article 7, General Radio Regulations, annexed
to the International Telecommunication Convention, Madrid, 1932.
.1011. A license for an international broadcast station will be
issued only after a satisfactory showing has been made in regard
to the following, among others:
1. That the applicant has a program of research and experi¬
mentation which indicates reasonable promise of substan¬
tial contribution to the development of the international
broadcast service.
2. That the station will render an international broadcast
service.
3. That the program production and experimentation will be
conducted by qualified persons.
4. That the applicant is legally and financially qualified and
possesses adequate technical facilities to carry forward the
program.
5. That the public interest, convenience and necessity will be
served through the operation of the proposed station.
1012. (a) Licensees of international broadcast stations shall not
broadcast programs for which they receive directly or indirectly
any form of compensation but may transmit the programs of
regular broadcast stations, including commercial stations, if the
call letters when identifying both stations are given on their re¬
spective assigned frequencies only and the statement is made over
the international broadcast station that the regular program of a
broadcast station (identify by call letters) is being broadcast. In
case of the rebroadcast of the program of any broadcast station,
Rule 177 applies.
(b) No additional charge, direct or indirect, shall be made by
the broadcast licensee for simultaneous transmissions by the inter¬
national broadcast station and commercial accounts shall not be
solicited by licensees of broadcast stations or by others upon rep¬
resentation that the program will also be transmitted by the inter¬
national broadcast station.
(c) Programs of regular broadcast stations shall be transmitted
only when they are of special international service or when pro¬
grams for international service are not available.
(d) Station identification and program announcements shall
be made with international significance suited for the foreign
nation or nations for which the service is intended or in which
the reception is believed to be best on account of the frequency,
season and hour of operation.
1013. (a) The following groups of frequencies are allocated for
assignment to international broadcast stations on an experimental
basis:
Group A
Group B
Group C
Group D
6020 kc.
9510 kc.
11,710 kc.
15,110 kc.
6040
9530
11,750
15,150
6060
9570
11,770
15,170
6080
9590
11,790
15,190
6100
11,810
15,210
15,230
6140
11,830
11,850
11,870
11.890
Group E
Group F
Group G
Group H
15,250 kc.
17,760 kc.
21,460 kc.
25,625 kc.
15,270
17,780
21,480
25,650
15,290
17,800
21,520
25,675
15,310
15,330
21,540
25,725
25,750
25,800
25,825
25,850
25,875
(b) A separate license and call letters will be issued for each fre¬
quency except where frequencies in two or more groups are required
to maintain a particular international broadcast service to certain
foreign country or countries, one frequency from each of the
groups required will be authorized by one license and call letters.
In such cases these frequencies shall be used consecutively during
a day as required and they shall not be used simultaneously either
on the same transmitter or different transmitters.
(c) Not more than one frequency in any such group in sub¬
section (a) of this rule will be assigned to a licensee unless it is
satisfactorily shown that different foreign countries will be served
by means of directional antennas.
(d) An applicant shall select the frequency which it is believed
is best suited to the experiments to be conducted, for reception in
1347
the foreign country for which the service is intended, and for a
minimum of interference to other international broadcast stations.
(e) Applicants shall file a separate application for each fre¬
quency or frequencies requested in different groups as provided in
subsection (b) of this rule.
1014. (a) No international broadcast station will be licensed
for a power output rating less than 5 kilowatts.
(b) While conducting apparatus experiments and in case ade¬
quate signal is delivered in the foreign country being served, the
operating power output may be less than S kilowatts.
1015. A supplemental report shall be filed with and made a part
of each application for renewal of license and shall include state¬
ments of the following:
1. The number of hours operated on each frequency.
2. A list of programs transmitted of special international in¬
terest.
3. Outline of reports of reception and interference and con¬
clusions with regard to propagation characteristics of the
frequency assigned.
4. Research and experiments being carried on to improve
transmission and to develop international broadcast and
the frequencies assigned.
5. All developments or major changes in equipment.
6. Any other pertinent developments.
VISUAL BROADCAST STATIONS
Television and Facsimile Broadcast Stations
1030. The term “visual broadcast station” means a station carry¬
ing on the broadcasting of images for general public reception.
There are two classes of visual broadcast stations, namely: tele¬
vision broadcast stations and facsimile broadcast stations.
1031. The term “television broadcast station” means a station
licensed for the transmission of transient visual images of moving
or fixed objects for simultaneous reception and reproduction by
the general public. The transmission of the synchronized sound
(aural broadcast) is considered an essential phase of television
broadcasting and one license will be issued for both visual and
aural broadcast as hereinafter set out.
1032. The term “facsimile broadcast station” means a station
licensed to transmit images of still objects for record reception by
the general public.
1033. Licenses for visual broadcast stations will be issued only
after a satisfactory showing has been made in regard to the
following, among others:
1. That the applicant has a program of research and experi¬
mentation which indicates reasonable promise of substan¬
tial contribution to the development of the visual broad¬
cast art.
2. That the program of research and experimentation will be
conducted by qualified engineers.
3. That the applicant is legally and financially qualified and
possesses adequate technical facilities to carry forward the
program.
4. That the public interest, convenience and/or necessity will
be served through the operation of the proposed station.
1034. (a) Licensees of visual broadcast stations shall not trans¬
mit programs either aural, visual or record, for which they receive
directly or indirectly, any form of compensation.
(b) In the case of experimental televising of the production
of a commercial broadcast program, all commercial announcements
not a part of the entertainment continuity shall be eliminated from
the television broadcast except the mere statement of the name of
the sponsor or product or the televising of the trade mark, symbol,
slogan or product of the sponsor; provided, however, when the
program transmission is incidental to the experiments being con¬
ducted and not featured and subject to interruptions as the ex¬
periments may require, the commercial announcements may be
broadcast aurally.
(c) No additional charge, direct or indirect, shall be made by
the licensee of a regular broadcast station for simultaneous trans¬
mission by a television broadcast station and commercial accounts
shall not be solicited by licensees of regular broadcast stations or
by others upon the representation that the program will also be
transmitted by a television broadcast station.
(d) The synchronized sound (aural) program of a television
broadcast station may be broadcast by a regular broadcast station
provided:
1. That no announcements or references shall be made over
the regular broadcast station regarding the operation of the
television broadcast station, except the mere statement that
the program being transmitted is the synchronized sound
program of a television broadcast station (identify by call
letters).
2. That the call letters when identifying the television broad¬
cast station and the broadcast station shall be given on
their respective assigned frequencies only.
1035. (a) The following groups of frequencies are allocated by
bands for television broadcast stations on an experimental basis
and may be changed without prior notice or hearing:
Group A Group B Group C
42,000 to 56,000 kc. 60,000 to 86,000 kc. Any two adjacent
frequencies above
110,000 kc. except
in the band 400,-
000 to 401,000 kc.
(b) A license for a television broadcast station will authorize
the use of two adjacent frequencies in any one group. The lower
carrier frequency shall be for visual broadcast and the higher
carrier frequency for the aural broadcast.
(c) A licensee will be granted only one station in each frequency
group for operation in the same service area.
(d) An application may be made for two adjacent frequencies
(one for the visual and the other for the aural carrier) in any
frequency group. However, if it is desired to operate in more
than one frequency group, it will be necessary to make separate
applications, one for each.
(e) Applicants shall specify the band width required for the
proposed transmission.
(f) Carrier frequencies shall be so selected that no emission
from any cause will result outside the bands specified in sub¬
section (a) of this rule.
(g) An applicant shall select the frequency which is believed
suited for the experiments to be conducted and will cause the
least or no interference to established stations.
1036. (a) No frequencies are specifically allocated for facsimile
broadcast stations but an applicant may request any frequency
specified in Rule 1073 which will cause the least or no interference
to established stations.
(b) Each application shall specify the frequency or frequencies
desired and the maximum modulating frequencies proposed to be
employed.
(c) The operating frequency of a facsimile broadcast station
shall be maintained in accordance with the frequency assignments
as shown by Rule 980 provided, however, where a more strict
adherence to the assigned frequency is necessary to prevent inter¬
ference, the Commission will specify the tolerance.
(d) A facsimile broadcast station authorized to operate on fre¬
quencies regularly allocated to other stations or services shall be
required to abide by all rules governing the stations regularly
operating thereon, which are applicable to facsimile broadcast sta¬
tions and are not in conflict with Rules 980 to 986, inclusive, and
Rules 1030 to 1039, inclusive, excluding Rule 1035.
1037. The power output rating of a visual broadcast station shall
not be in excess of that necessary to carry forward the program
of research. The operating power may be maintained at the
maximum rating or less, as the conditions of operation may require.
1038. A supplemental report shall be filed with and made a part
of each application for renewal of license and shall include state¬
ments of the following:
1. Number of hours operated for transmission of visual pro¬
grams.
2. Comprehensive report of research and experimentation con¬
ducted.
3. Conclusions and program for further developments of the
visual broadcast service.
4. All developments and major changes in equipment.
5. Any other pertinent developments.
HIGH FREQUENCY BROADCAST STATIONS
1050. The term “high frequency broadcast station” means a sta¬
tion licensed on the very high frequencies for transmission of aural
programs for general public reception. The frequencies for these
stations are above 25,000 kilocycles and are allocated for this
service on an experimental basis subject to change without notice
or hearing.
1348
1051. A license for a high frequency broadcast station will be
issued only after a satisfactory showing has been made in regard
to the following among others:
1. That the applicant has a program of research and experi¬
mentation which indicates reasonable promise of substan¬
tial contribution to the development of very high frequency
broadcasting.
2. That data will be taken on the ground wave propagation
characteristics of these frequencies; on the shadows cast by
buildings, hills, large bridges, etc. ; on the noise level in
different parts of the city; on the field intensity necessary
to render good broadcast service ; and on other allied phases
of broadcast coverage.
3. That the research and experimentation will be conducted by
qualified engineers.
4. That the applicant is legally and financially qualified and
possesses adequate technical facilities to carry forward the
program.
5. That the public interest, convenience and necessity will be
served through the operation of the proposed station.
1052. (a) Licensees of high frequency broadcast stations shall
not broadcast programs for which they receive directly or in¬
directly any form of compensation but may transmit the programs
of regular broadcast stations, including commercial programs, if
the call letters when identifying the stations are given on their
respective assigned frequencies only and the statement is made
on the high frequency broadcast station that the program of a
regular broadcast station (identify by call letters) is being broad¬
cast. (In case of the rebroadcast of the program of a broadcast
station, see Rule 177.)
(b) No additional charge, direct or indirect, shall be made by
the broadcast licensee for simultaneous transmissions by the high
frequency broadcast station nor shall commercial accounts be
solicited by licensees of regular broadcast stations or others upon
representation that the program will also be transmitted by a high
frequency broadcast station.
1053. (a) The following groups of frequencies are allocated for
high frequency broadcast stations on an experimental basis and
may be changed without prior notice or hearing:
Group A Group B Group C Group D
25,950 kc.
26,050
26,100
26,150
26,400 kc.
26,450
26,500
26,550
31.600 kc.
35.600
38.600
41,000
40,300 kc.
41,200
41,600
41,800
Group E
Any four frequencies
above 86,000 kc., ex¬
cept in the band 400,-
000 to 401,000 kc.
(b) Frequencies in groups A and B will be assigned exclusively
for amplitude modulation with a band width for high fidelity trans¬
mission (30 kilocycles maximum). Frequencies in groups C and E
will be assigned for either amplitude modulation with the above
band width of frequency modulation with a total band width not
greater than 200 kilocycles. Frequencies in group D will be as¬
signed exclusively for frequency modulation with a band width
of not greater than 200 kilocycles.
(c) In groups A, B and D only one frequency from each group
will be assigned a licensee for operation in the same service area.
A separate license and call letters will be assigned for each fre¬
quency. In group C all four frequencies and in group D any four
frequencies will be authorized by each license. A license authorizes
operation on only one of the four assigned frequencies at any
one time.
(d) An applicant shall file separate application for each fre¬
quency requested in groups A, B or D. Each application therefor
shall specify all four frequencies in group C and any four frequen¬
cies in group E.
(e) An applicant shall select the frequency which it is believed
is best suited for the experiments to be conducted and which will
cause the least or no interference to established stations.
(f) A licensee operating on a frequency in groups A or B shall
request reports concerning any reception outside the North Ameri¬
can Continent during operation from 10 a. m. to 2 p. m. local
standard time. The request for reports shall be made at the time
of station identification and at least every thirty minutes.
1054. (a) No high frequency broadcast station will be licensed
for an output power rating greater than 1000 watts unless the
applicant can show that greater power is needed to carry on a
special program of research.
(b) While conducting apparatus experiments and in case ade¬
quate signal for reliable service can be delivered with less power,
the operating output may be reduced accordingly.
1055. Each high frequency broadcast station transmitter shall be
equipped with automatic frequency control apparatus so de¬
signed and constructed that it is capable of maintaining the operat¬
ing frequency within plus or minus 0.01 percent of the assigned
frequency.
1056. A supplemental report shall be filed with each and made
a part of the application for renewal of license and shall include
statements of the following, among others:
1. The number of hours operated.
2. Data taken in compliance with Rule 1051 (2).
3. Outline of reports of reception and interference and con¬
clusions with regard to propagation characteristics of the
frequency assigned.
4. Research and experiments being carried on to improve
transmission and to develop broadcasting on the very high
frequencies.
5. All developments or major changes in equipment.
6. Any other pertinent developments.
7. Comprehensive summary of all reports received. See Rule
1053 (f).
EXPERIMENTAL BROADCAST STATIONS
1070. The term “experimental broadcast station” means a sta¬
tion licensed to carry on development and research for the ad¬
vancement of broadcast services along lines other than those
prescribed by other broadcast rules.
1071. (a) Licenses for experimental broadcast stations will be
issued only after a satisfactory showing has been made in regard
to the following, among others:
1. That the applicant has a program of research and develop¬
ment which cannot be successfully carried on under any
of the classes of broadcast stations already allocated.
2. That the program of research has reasonable promise of
substantial contribution to the development of broadcast¬
ing.
3. That the program of research and experimentation will be
conducted by qualified persons.
4. That the applicant is legally and financially qualified and
possesses adequate technical facilities to carry forward the
program.
5. That the public interest, convenience and necessity will be
served through the operation of the proposed station.
(b) A separate experimental broadcast station license will be
issued for each development proposed to be carried forward. When
it is desired to carry on several independent developments, it will
be necessary to make a satisfactory showing and obtain a license
for each.
1072. (a) A licensee of experimental broadcast stations shall
broadcast programs only when they are necessary to the experi¬
ments being conducted. No regular, program service shall be
broadcast unless specifically authorized by the license.
(b) A licensee of experimental broadcast stations shall not
broadcast programs for which it receives, directly or indirectly,
any form of compensation but may transmit the programs of reg¬
ular broadcast stations, including commercial programs, if the call
letters when identifying the stations are given on their respective
assigned frequencies only and a statement is made on the experi¬
mental broadcast station that the program of a regular broadcast
station (identify by call letters) is being broadcast in connection
with the experimental work. (In case of the rebroadcast of the
program of a broadcast station see Rule 177.)
1073. (a) The following frequencies are allocated for assign¬
ment to general experimental stations in services other than broad¬
cast and for experimental broadcast stations:
1,614
23,100
2,396 ]
25,700
2,398
26,000
2.400 J
27,100
3,490 ]
30,100
r-
3,492.5
31,100
3,495 J
31,600
1349
4,795 1
33,100
f
4,797.5
34,600
4,800 j
35,600
6,420 1
37,100
[
6,425
37,600
6,430 j
38,600
8,650 1
40,100
\
8,655
40,600
8,660 j
41,000
12,855 1
86,000 to 400.000
i
12,870 j
17,300 1
17,320 J
12,862.5
17,310
401,000 and above
(b) A license will be issued for more than one of these frequen¬
cies upon a satisfactory showing that there is need therefor.
(c) The frequencies suited to the purpose and in which there
appears to be the least or no interference to established stations
shall be selected.
(d) In cases of important experimentation which cannot be con¬
ducted successfully on the frequencies allocated in subsection (a)
of this Rule, the Commission may authorize experimental broad¬
cast stations to operate on any frequency allocated for broadcast
stations or any frequencies allocated for other services under the
jurisdiction of the Commission upon satisfactory showing that
such frequencies can be used without causing interference to estab¬
lished services.
1074. (a) The operating frequency of an experimental broad¬
cast station shall be maintained in accordance with the frequency
tolerance as shown by Rule 980, provided, however, where a more
strict adherence to the assigned frequency is necessary to prevent
interference, the Commission will specify the tolerance.
(b) The power output rating of an experimental broadcast
station will not be in excess of that necessary to carry on the
program of research. The operating power may be maintained at
the maximum rating or less, as the conditions of operation may
require.
1075. A supplemental report shall be filed with and made a part
of each application for renewal of license and shall include state¬
ments of the following, among others:
1. The number of hours operated.
2. Comprehensive report on research and experiments con¬
ducted.
3. Conclusions and program for further development of the
broadcast service.
4. All developments and major changes in equipment.
5. Any other pertinent developments.
1076. An experimental broadcast station authorized to operate
on frequencies regularly allocated to other stations or services,
shall be required to abide by all rules governing the stations
operating regularly thereon which are applicable to experimental
broadcast stations and are not in conflict with Rules 980 to 986
inclusive, and Rules 1070 to 1075 inclusive.
SPECIAL BROADCAST STATIONS
970. (a) The following frequencies are allocated for assignment
to special broadcast stations on an experimental basis: 1530, 1550
and 1570 kilocycles. Two or more stations may be licensed for
simultaneous operation on each frequency.
(b) Licenses for special broadcast stations will be issued only
after a satisfactory showing has been made in regard to the follow¬
ing, among others:
1. That the applicant has a program of research and experi¬
mentation which indicates reasonable promise of substantial
contribution to the development and practical application
of high fidelity broadcasting, and will be in addition to
and advancement of the work done by regular broadcast
stations.
2. That the program of research and experimentation includes
a thorough study of advanced antenna design, field in¬
tensity surveys and plans for a comprehensive analysis of
the response of listeners.
3. That the transmitter and all studios will be equipped so
as to be capable of high fidelity transmission.
4. That the operation and experimentation will be under the
direct supervision of a qualified engineer with an adequate
staff of engineers qualified to carry on the program of re¬
search and experimentation.
5. That the programs transmitted, either sponsored or sus¬
taining, will not interfere with the proper prosecution of
the program of research and experimentation.
6. That the applicant is legally and financially qualified and
possesses adequate technical facilities to carry forward the
program of research and experimentation.
7. That the program of research and experimentation will be
reasonably independent of the income derived from spon¬
sored programs.
8. That the public interest, convenience and necessity will be
served through the operation of the proposed station.
(c) The Commission may require from time to time a licensee
of a special broadcast station to conduct experiments that are
deemed desirable and reasonable for the development of the
service.
(d) The program of research and experimentation as offered
in compliance with the requirements of obtaining a license for a
special broadcast station, shall be adhered to in the main unless
the licensee is authorized to do otherwise by the Commission.
(e) The authorized power of a special broadcast station will not
exceed 1 kilowatt. However, the licensee may operate at less than
the authorized power where such operation facilitates experimenta¬
tion.
(f) The licensee of a special broadcast station is not required to
adhere to a regular schedule, but shall actively conduct a program
of research and experimentation or transmission of programs.
(g) A supplemental report shall be filed with and made a part
of each application for a renewal of license of a special broadcast
station and shall include statements of the following in the order
designated:
1. Comprehensive summary of all research and experimenta¬
tion conducted.
2. Conclusions and outline of proposed program for further
research and development.
3. Number of hours operated, including percentage of spon¬
sored programs.
4. Fidelity characteristics of the equipment, including the
transmitter, studio equipment and the telephone lines over
which the programs are regularly carried from the studio
to the transmitter and the methods used to determine such
characteristics.
(h) All rules applying to regular broadcast stations shall apply
equally to special broadcast stations, except where in conflict with
any term of this rule.
1350
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ ★ * * * WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright. 1936. The National Association of Broadcasters
Vol.4--No.27
JUNE 4, 1936
IN THIS ISSUE
Page
Davis Amendment Repealed . 1351
Texas Broadcasters Organize . 1351
Notes for the Sales Staff . 1351
Notice of Amendments . 1351
Hall & McCreary Company Music . 1352
Power Increase Recommended for WGBF . 1352
Radio Censorship Charged . 1352
Changes Recommended for WHB . 1352
Recommends Power Increase for WIRE . 1352
Case Dismissed with Prejudice . 1352
Securities Act Registration . 1352
Additional Time for KGDM Denied . 1352
Deny New California Station Recommended . 1352
WISN Recommended for Power Increase . 1353
Broadcasting Advertising in April . 1353
Federal Trade Commission Action . 1355
Federal Communications Commission Action . 1357
DAVIS AMENDMENT REPEALED
The House of Representatives on Monday repealed the Davis
amendment as provided for in S. 2243 introduced by Senator
Wheeler. The identical bill passed the Senate a short time ago and
the bill now goes to the President for his signature. As the bill
passed the House and as it will become law it reads as follows:
“Be it enacted, etc., That section 302 of the Communications Act
of 1934 is hereby repealed.
“Sec. 2. Subsection (b) of section 307 of such act is amended
to read as follows:
“‘(b) In considering applications for licenses, and modifications
and renewals thereof, when and insofar as there is demand for
the same, the Commission shall make such distribution of licenses,
frequencies, hours of operation, and of power among the several
States and communities as to provide a fair, efficient, and equi¬
table distribution of radio service to each of the same.’ ”
TEXAS BROADCASTERS ORGANIZE
At a meeting held in Fort Worth, May 23, the Texas broad¬
casters formed a permanent organization, selecting T. Frank Smith,
KXYZ, Houston, President; Ralph S. Bishop, KFJZ, Fort Worth,
Vice President; James R. Curtis, KFRO, Long View, Secretary-
Treasurer; and Hugh Halff, WOAI, San Antonio; Dick Niles,
KRGV, Weslaco; 0. L. Taylor, KGNC, Amarillo; and Earl Yates,
KGKL, San Angelo, Directors.
Almost every station in the State was represented at the meeting.
James W. Baldwin, Managing Director, attended the meeting.
NOTICE OF AMENDMENTS
June 4, 1936.
TO ALL MEMBERS:
In pursuance of the provisions contained in Article IX and
By-Law 17 of the Constitution and By-Laws of the National
Association of Broadcasters, Inc., notice is hereby given that cer¬
tain amendments to the Constitution and By-Laws of the National
Association of Broadcasters, Inc., as hereinafter described, will be
presented for consideration at the annual membership meeting in
Chicago, Illinois, July 6-8, 1936.
NOTES FOR THE SALES STAFF
Radio broadcasting still continues to gain as com¬
pared to the corresponding periods of last year.
(See Total Broadcast Advertising, page 1353.)
The marked growth in the use of electrical tran¬
scriptions is particularly to be noted. (See Non¬
network Volume by Type of Rendition, page 1354.)
Especially to be noted are the types of sponsors
which are making the greatest use of transcriptions
in the national and local fields. (See Non-network
Volume by Type of Rendition, page 1354.)
Lagging local broadcast advertising volume
should be a challenge to sales staffs. (See Total
Broadcast Advertising, page 1353.)
The Board of Directors, at a formal meeting held on April 27,
1936, by unanimous agreement proposed the following amendment
to the By-Laws of the National Association of Broadcasters, Inc.:
By-Law No. 1.
Strike out all of the first paragraph and insert the following
in lieu:
“Effective Setpember 1, 1936, bi-monthly dues of active
members shall be payable January 1, March 1, May 1, July 1,
September 1, and November 1, on the following basis:”
E. B. Craney (KGIR, Butte, Montana), has proposed the fol¬
lowing amendments to the Constitution of the National Associa¬
tion of Broadcasters, Inc.:
Article V, Section (b)
Strike out the period (.) after the word “years” in line 5 and
insert the following:
“, provided, that one Director of each class shall be elected
by and from the active members of each radio zone (as de¬
fined in the Communications Act of 1934), and provided
further, that one of the Directors from each such zone shall
be a member representing a local station.”
Article V, Section (c)
Strike out the words “in addition to” and “such” in line 2.
Strike out all of lines 3 and 4.
Insert after the word “provided” in line 2 the following:
“and the active members of each zone shall elect such ad¬
ditional Directors as may be needed to fill the places of those
from their respective zones whose terms expire on the date
of such annual meeting.”
Article VI
Insert after section (d) a new section as follows:
“(e) To more effectively carry out the objects set forth in
this article of this Constitution and in order to more effec¬
tively preserve the present system of American broadcasting,
it shall be the duty of the Directors of this Association to
immediately put into effect and operation, upon such terms
and conditions to the membership as may be necessary, a plan
designed to make the facilities of all licensed broadcasting
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS JULY 5. 6, 7, 8, 1936
1351
stations in these United States available impartially to all
bonafide non-profit organizations, or groups of like character.
That such facilities shall be equally available on the stations
operated by members of this Association in time units of 5%
or such other and increased percentages or allotments of time
as the membership may hereafter approve, provided, however,
such allotments of time in excess of 5% shall not be used on
any one member station until that amount has been used on
all member stations. It is the intendment of this amendment
that radio time should be thus given to only bona-fide groups
or bodies of non-profit organizations or character including
religious, fraternal, educational labor organizations, and such
other organizations as the Directors shall hereafter define as
being non-profit, who will furnish their own programs, defray
all costs and expenses therefor, and conduct them under their
own supervision and responsibility. It shall be the duty of the
Directors of this Association to make such rules, regulations,
and provisions as are necessary and proper to carry out the
terms of this amendment, and they have power to create a
special department of this organization for that purpose. All
programs of non-profit organizations carried over national
networks shall count as part of the said time and the member
affiliated stations agree, by the passage of this amendment, and
their membership agreements herein, to allot solely by the
provisions of this amendment for the purpose herein.”
hall & McCreary company music
The Hall and McCreary Company of Chicago, Illinois, have ad¬
dressed to broadcasting stations a form letter with reference to
musical selections contained in their catalog and which permits the
stations to use such music with the understanding that the station
shall purchase a certain amount of their music.
The Managing Director has queried the publishers concerning
this proposition and with the view of learning whether the pub¬
lishers would agree to indemnify the stations against loss or dam¬
age sustained by the use of their copyrighted musical selections.
In a letter just received by the NAB, the publishers advise that
they cannot furnish the guarantee asked for. Member stations are
advised against the use of any copyrighted musical selection under
terms and conditions which do not adequately provide for in¬
demnity against loss or damage sustained by the performance of
such selections.
POWER INCREASE RECOMMENDED FOR WGBF
Broadcasting Station WGBF, Evansville, Ind., applied to the
Federal Communications Commission to increase its daytime power
from 500 to 1,000 watts. The station operates on 630 kilocycles.
Examiner R. H. Hyde in Report No. 1-232 has recommended
that the application be granted. He states that the use of in¬
creased daytime power by the station would tend to satisfy the
need for increased service in the area served. The Examiner found
also that no substantial increase in objectionable interference to
the reception of other stations may be expected from the pro¬
posed change.
RADIO CENSORSHIP CHARGED
Oswald F. Schuette, president of the Short Wave Institute in a
letter to the Federal Communications Commission charged it with
an attempt to establish a censorship over broadcasting by its
Rule 177 (d), effective July 1. He contends that this rule would
create a censorship over the rebroadcast of foreign programs in
violation of the Communications Act, and would be a step toward
the censorship of domestic programs.
CHANGES RECOMMENDED FOR WHB
Broadcasting Station WHB, Kansas City, Mo., applied to the
Federal Communications Commission to change its frequency from
850 to 1120 kilocycles, from daytime to full time operation and
its power from 1,000 watts to 500 watts at night and 1,000 watts
until local sunset.
Examiner Melvin H. Dalberg, in Report No. 1-229 recommended
that the application be granted. The Examiner found that a re¬
gional station, such as suggested by WHB “would be of interest
and advantage to the community involved.” He says further in
connection with this application that “the record in this case clearly
shows that the other broadcasting stations now serving Kansas
City, which are of the highest excellence in their respective spheres,
cannot satisfactorily render a local service at nighttime by reason
of their network commitments.” There are some chances of inter¬
ference, says the Examiner, “but they are slight.” He thinks that
public interest would be served by granting the application.
RECOMMENDS POWER INCREASE FOR WIRE
Broadcasting Station WIRE, Indianapolis, Ind., operating on a
frequency of 1400 kilocycles, unlimited time applied to the Fed¬
eral Communications Commission to increase its nighttime power
from 500 to 1,000 watts and its daytime power from 1,000 to
5,000 watts.
Examiner R. H. Hyde, in Report No. 1-226 recommends that
the application be granted on certain conditions. He says that “it
is recommended that the application of WIRE for a construction
permit be granted, subject however to conditions requiring that
the antenna system be so constructed as to prevent any increase
in the field intensity broadcast nighttime hours in the directions
of Brooklyn, and Tulsa, requiring the submission of satisfactory
proof of performance in accordance with the foregoing condition,
and requiring the painting and illuminating of the antenna towers
for protection of air traffic.”
CASE DISMISSED WITH PREJUDICE
The Farmers & Bankers Life Insurance Company, applied to the
Federal Communications Commission for a construction permit
for the erection of a new broadcasting station at Wichita, Kans.,
to use 1210 kilocycles, 100 watts power and unlimited time on
the air.
Examiner R. H. Hyde in Report No. 1-228 recommends that the
case be dismissed with prejudice. When the case was called for
hearing the applicant failed to enter appearance and no evidence
was offered in support of the application.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
G. A. Dye, Tulsa, Okla. (2-2167, Form A-l)
Lava Cap Gold Mining Co., Ansonia, Conn. (2-2169, Form A-l)
Thorrez & Maes Mfg. Co., Jackson, Mich. (2-2170, Form A-l)
Barlow & Seelig Mfg. Co., Ripon, Mich. (2-2171, Form A-l)
Herring-Hall-Marvin Safe Co., Hamilton, Ontario (2-2172, Form
A-l)
Unified Debentures Corp., Newark, N. J. (2-2173, Form E-l)
The Paraffine Companies, Inc., San Francisco, Cal. (2-2174,
Form A-2)
Pressed Metals of America, Inc., Port Huron, Mich. (2-2175,
Form A-2)
F. L. Jacobs Co., Detroit, Mich. (2-2176, Form A-2)
Iniskin Drilling Co., Los Angeles, Cal. (2-1900, Form A-l)
ADDITIONAL TIME FOR KGDM DENIED
Broadcasting Station KGDM, Stockton, Cal., operating on 1100
kilocycles, 1,000 watts power daytime applied to the Federal Com¬
munications Commission that it be allowed “to resume operation
after the dominant stations in the First Zone suspended operation
at night.”
Examiner Ralph L. Walker in Report No. 1-227 recommends
that the application be denied. The Examiner found, among other
things, that “the use of 1,000 watts as proposed by the applicant
would result in serious interference of an existing Canadian station
and a resultant curtailment of the present good service area of that
station.” He also calls attention to the fact that California and
the Fifth Zone are already overquota for nighttime service.
DENY NEW CALIFORNIA STATION
RECOMMENDED
The Union-Tribune Publishing Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new broadcasting station at San Diego, Cal., to use
1420 kilocycles unlimited time, 100 watts and 250 watts LS.
Examiner Ralph L. Walker in Report No. 1-231 recommends
that the application be denied. In his conclusion the Examiner
states that:
“The record fails to disclose in detail the type and character of
service which the applicant proposes to render, and does not reveal
any substantial need in the San Diego area for additional broad¬
cast service. The proposed station would cause objectionable inter¬
ference to, and result in the curtailment of the present good service
area of an existing station in the State of Arizona. The granting of
the present application would further increase the existing over-
1352
quota status of the State of California and the Fifth Zone in viola¬
tion of the Rules and Regulations of the Commission.”
WISN RECOMMENDED FOR POWER INCREASE
Broadcasting Station WISN, Milwaukee, Wis., applied to the
Federal Communications Commission to increase its power from
250 watts and 1,000 watts LS to 1,000 watts day and night, and
to change the location of its transmitter. The station now operates
unlimited time on 1120 kilocycles.
Examiner Melvin H. Dalberg in Report No. 230 recommends
that the application be granted. The Examiner found that there is
need for improved nighttime service in the area served by the
station and he states that granting the application would be in the
public interest.
BROADCAST ADVERTISING IN APRIL
Total broadcast advertising declined 5.4% as compared to the
preceding month. National network volume decreased 10.6%,
while national non-network business dropped 7.1%. Regional
network volume rose 1.0%, contrary to the usual seasonal trend.
Local broadcast advertising experienced the normal upswing for
April and rose 12.5%.
Broadcast advertising continued to register gains as compared
with the corresponding period of the preceding year. Total vol¬
ume was 9.5% above the April 1935 level. Gains throughout the
various portions of the medium were as follows: national net¬
works 9.8%, regional networks 38.5%, national non-network
17.8%, local broadcast advertising 0.4%.
Comparison with Other Media
Advertising volume placed in major media during the month
under consideration is found in Table II.
Developments of the Month
Broadcast advertising volume in April amounted to
$8,829,488. Gross time sales of the medium experienced
the usual seasonal decline, dropping 5.4% from the level
of the preceding month. Local broadcast advertising
showed the normal counter tendency during the month
and rose 12.5% above the March level. The local rise is
a reflection of the usual upswing in retail trade at this
time of the year. Principal gains in non-network volume
as compared with March occurred with regard to regional
and local stations, due to the greater importance of local
business on these types of transmitters than on clear
channel stations.
Radio broadcast advertising continued to gain as com¬
pared with the corresponding period of the preceding
year. Gross time sales were 9.5% above those of April
1935. Regional network and national non-network vol¬
ume continued to show the greatest relative gains.
Local radio advertising continued to lag behind the gen¬
eral field and was but 0.4% above the previous April.
Local stations continued to show the greatest increase
in non-network volume.
Electrical transcriptions showed the greatest gain as
compared with both March and the corresponding month
of last year. This was true with regard to both national
and local business. Trends as to the volume of radio
advertising sponsored by various product and service
groups were fairly confused during the month. Declines
were general as compared with March. Principal in¬
creases during the month included national non-network
and local automotive advertising; regional network, na¬
tional non-network, and local gasoline and accessory
volume; local clothing and department store advertising
and national non-network and local household equipment
business.
Automotive advertising continued to show the most
important gains as compared with the corresponding
month of 1935. The marked rise in the miscellaneous
group with regard to national network sponsorship indi¬
cated a continued trend toward a wider use of that por¬
tion of the medium. Regional network and national non¬
network gasoline and accessory advertising gained mate¬
rially, while national non-network food volume also rose.
Advertising by retail establishments increased 12.3%
above the March level, but remained 0.1% below that of
the corresponding month of last year.
Total Broadcast Advertising
Total broadcast advertising over stations and networks during
the month under review is set forth in Table I.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting .
National magazines .
National farm papers
Newspapers .
1936 Gross Time and Space Sales
Cumulative
March April Jan.-Apr.
$9,332,368
13,481,404
746,502
48,242,000
$8,829,488
14,527,792
721,304
50,498,000
$34,338,852
47,505,417
2,547,522
174,531,000
Total
$71,802,274 $74,576,584 $258,922,791
National magazine volume gained 7.8% as compared with
March, while newspaper lineage rose 4.7%. Both increases were
in the nature of normal seasonal rises. National farm paper ad¬
vertising decreased 3.4%.
All media gained as compared with the corresponding period of
the preceding year. The greatest increase was experienced by
national farm papers, whose volume increased 20.8%. National
magazine volume rose 11.0%, while newspaper lineage increased
8.1%.
Non-network Advertising
Non-network advertising as a whole increased 1.7% above the
March level, local gains more than offsetting national non-network
declines. Clear channel station non-network volume declined
2.4% over the month, while regional and local station advertising
increased 5.2% and 5.8%, respectively.
Local station non-network volume continued to show the
greatest relative gain as compared with the previous year, exceed¬
ing the April 1935 level by 21.6%. Clear channel station non¬
network advertising increased 4.2% and regional station business
9.0%. Total non-network advertising gained 8.4% as compared
with last April.
Broadcast advertising by power of station is found in Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1936 Gross Time Sales
Cumulative
Power of Station March April Jan.-Apr.
Over 1,000 watts . $1,788,350 $1,745,470 $6,603,990
250-1,000 watts . 1,496,880 1,574,800 5,477,980
100 watts . 534,340 565,320 2,086,050
Total . $3,819,570 $3,885,590 $14,168,020
TABLE I
TOTAL BROADCAST ADVERTISING
1936 Gross Time Sales
Cumulative
Class of Business March April Jan.-Apr.
National networks . $5,400,252 $4,830,251 $19,756,867
Regional networks . 112,546 113,647 413,965
National non-network . 2,097,400 1,937,800 7,608,350
Local . 1,722,170 1,947,790 6,559,670
Total . $9,332,368 $8,829,488 $34,338,852
Non-network advertising in the South and Mid-West increased
5.5% and 4.8%, respectively, as against the preceding month.
New England-Middle Atlantic State volume declined 3.1%, while
that of the Mountain and Pacific States dropped 2.8%.
Compared with April of the previous year, New England-Middle
Atlantic State volume decreased 9.5%, while Pacific and Mountain
State business dropped 1.7%. The greatest gain was experienced in
the South Atlantic-South Central States where non-network ad¬
vertising increased 40.1% above that of last April. Non-network
volume in the North Central States rose 12.7%.
Non-network advertising by geographical areas is set forth in
Table IV.
1353
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1936 Gross Time Sales
Geographical District
March
April
Cumulative
Jan.-Apr.
New England-Middle Atlantic
Area .
$889,700
$861,840
$3, 097,290
South Atlantic-South Central
Area .
757,660
799,590
2,865,260
North Central Area .
1,474,330
697,880
1,545,580
5,630,310
Pacific and Mountain Area. .
678,580
2,575,160
Total .
$3,819,570
$3,885,590
$14,168,020
Non-network Volume by Type of Rendition
Principal development of the month was the rise of electrical
transcription volume in both the national and local fields. Na¬
tional transcription business increased 9.5% above the March level.
Local volume rose 66.9%. In the national field, live talent spon¬
sored program volume declined 22.4%, while announcements
dropped 6.6% below March. Local live talent volume decreased
2.6%. Local record business increased 14.1% and announcements
25.0%.
The marked growth in national and local transcription business
also constituted the outstanding development of the month as com¬
pared with April of last year. National transcription business in¬
creased 50.7% and local volume 61.4%. The rise in transcription
volume continues a trend which has been particularly marked
since the beginning of the current year.
The use of transcriptions in the national non-network field is
comparatively widely scattered. The proportion of total non¬
network business represented by transcriptions on the part of the
principal groups using them is as follows: automotive 86.0%,
gasoline and accessories 35.0%, foodstuffs 60.0%, drugs 35.0%,
tobacco 50.0%, miscellaneous 50.0%. In the local field, clothing,
foodstuffs, and household equipment volume was represented by
transcriptions to the extent of approximately 40.0%. In the case
of department stores, transcriptions comprised about 45.0% of
total volume.
Live talent volume declined 4.1% below the April 1935 level in
the local field and rose but 2.2% in the national field. The local
decline represents a definite trend which has existed for several
months. In the case of national live talent volume, the relatively
small increase during April seems to be an indication that the
marked rise which has taken place in this field during the past two
and one-quarter years is approaching the stabilization point.
Announcements continued to decline, dropping 2.5% in the
national field and 6.0% in the local field. Local record advertising
decreased 9.5%.
National non-network and local broadcast advertising volume by
type of rendition is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
Type of Rendition
Electrical transcriptions
Live talent programs . .
Records .
Announcements .
National N on-network
March April
$789,680 $865,070
989,380 767,920
7,980 6,050
310,360 298,760
1936 Gross Time Sales
Local
Total
Cumulative
March
April
March
April
Jan.-Apr.
$156,660
$261,530
$946,340
$1,126,600
$3, 676,170
953,490
928,260
1,942,870
1,696,180
6,976,320
62,700
71,550
70,680
77,600
261,570
549,320
686,450
859,680
985,210
3,253,960
Total
$2,097,400 $1,937,800
$1,722,170 $1,947,790
$3,819,570 $3,885,590 $14,168,020
Sponsor Trends in April
Declines were general in the national network field as against
March. The only increases were the following: beverages 21.9%,
confectionery 17.6%, and tobacco 14.6%. Trends were fairly
mixed with regard to regional network advertising. The principal
increase is a 31.3% gain in gasoline and accessory volume.
Declines were fairly general in the national non-network field,
though some increases of importance occurred. These were as
follows: automotive 10.6%, gasoline and accessories 13.0%, house¬
hold equipment 49.1%, and soap and kitchen supplies 13.5%.
Trends were spotty in the local field. Principal increases were
with regard to automotive, gasoline, clothing, house furnishings,
and department store advertising.
Comparison with April 1935
Trends were rather confused in the national network field as
compared with last April. Important gains were as follows: auto¬
motive 42.6%, cosmetics 21.4%, beverages 50.0%, and miscel-
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(April, 1936)
Gross Time Sales
Type of Sponsoring Business
National
Networks
Regional
Networks
National
Non-network
Local
Total
la. Amusements .
—
$1,940
$39,560
$41,500
1-2. Automobiles and accessories:
(1) Automobiles .
—
258,360
150,240
762,130
(2) Accessories, gas and oil .
. 388,052
$15,582
175,080
84,180
662,894
3. Clothing and apparel .
28,925
468
37,050
275,620
342,063
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
366,473
6,479
353,530
51,280
777,762
(5) Toilet goods .
1,076,331
5,405
71,920
21,890
1,175,546
6-8. Food products:
(6) Foodstuffs .
.... 882,926
32,264
391,920
237,170
1,544,280
(7) Beverages .
404,925
9,486
40,690
87,000
542,101
(8) Confections .
.... 142,069
2,174
24,660
10,970
179,873
9-10. Household goods:
(9) Household equipment and furnishings .
36,450
4,594
117,820
223,720
382,584
(10) Soap and kitchen supplies .
.... 318,106
11,292
68,070
11,380
408,848
11. Insurance and financial .
. 32,995
514
26,100
71,320
130,929
12. Radios .
109,507
166
12,360
16,680
138,713
13. Retail establishments .
.... -
910
10,320
150,790
162,020
14. Tobacco products .
397,829
10,890
74,720
4,660
488,099
15. Miscellaneous .
.... 292,133
13,423
273,260
511,330
1,090,146
Total .
$113,647
$1,937,800
$1,947,790
$8,829,488
1354
laneous 76.0%. Important declines included the following: drugs
33.2%, confectionery 22.2%, household equipment 57.7%, and
financial advertising 23.0%.
There was a general increase with regard to regional network
advertising. Principal gains were as follows: gasoline and acces¬
sories 40.3%, beverages 602.7%, confectionery 210.6%, soaps and
kitchen supplies 271.7%.
Increases also were fairly general with regard to national non¬
network volume. The main gains in this field were as follows:
automotive 45.2%, gasoline and accessories 54.9%, foodstuffs
34.6%, and radios 253.1%. Important declines included the fol¬
lowing: beverages 24.5%, confectionery 58.2%.
The principal gains in the local field were a rise of 25.8% in
automotive advertising and an increase of 84.1% in radio set
volume. Clothing advertising fell 2.8% below the April 1935 level,
while department store advertising decreased 6.0%.
Broadcast advertising volume during April by national and local
sponsoring groups is found in Table VI.
Details as to trends in the various fields of sponsorship are as
follows:
la. Amusements. National non-network volume 86.2% below
March and local 27.6% above. National non-network 70.0%
under last April and local down 16.8%.
1. Automotive. National network advertising 17.5% below
March. National non-network business up 10.6% and local 30.1%.
Gains compared with last April as follows: national networks
42.6%, national non-network 45.2%, and local 25.8%.
2. Gasoline and accessories. Gains over March as follows:
regional networks 31.3%, national non-network 13.0%, and local
21.4%. National network down 13.4%. Increases as compared
with April 1935 as follows: national networks 3.1%, regional net¬
works 40.3%, national non-network 54.9%. Local down 4.6%.
3. Clothing. National networks 32.4% below March and na¬
tional non-network down 16.3%. Regional networks up 34.5%
and local 10.9%. Declines from last April level as follows: na¬
tional networks 42.3%, regional networks 92.1%, and local 2.8%.
National non-network up 4.7%.
4. Drugs and pharmaceuticals. Declines from the preceding
month as follows: national networks 17.6%, regional networks
54.5%, national non-network 29.3%, and local 21.6%. Decreases
from level of April of previous year as follows: national networks
33.2%, regional networks 3.4%, national non-network advertising
2.3%, and local 62.1%.
5. Toilet goods. Regional network volume more than double
that of March. Declines in other fields as follows: national net¬
works 7.4%, national non-network 40.2%, and local 0.1%. Na¬
tional network volume 21.4% above last April and local up 2.8%.
Regional network business down 1.3% and national non-network
17.3%.
6. Foodstuffs. Regional network volume 4.1% above March.
Other declines as follows: national network 15.7%, national non¬
network 9.6%, and local 4.0%. Gains as compared to correspond¬
ing month of previous year as follows: national networks 9.9%,
regional networks 112.1%, national non-network 34.6%, and local
1.8%.
7. Beverages. Increases over preceding month as follows:
national networks 21.9%, regional networks 59.3%, and local 5.7%.
National non-network down 8.6%. Increases over April 1935 as
follows: national networks 50.0%, 602.7% for regional networks,
and local 3.8%. National non-network down 24.5%.
8. Confectionery. National network volume 17.6% above
March and local up 168.9%. Regional network advertising down
63.1% and national non-network 56.2%. Regional network busi¬
ness 210.6% above April 1935. Other portions of the medium
down as follows: national networks 22.2%, national non-network
58.2%, local 2.5%.
9. Household equipment. National and regional networks
down 29.8% and 8.4%, respectively. National non-network and
local up 49.1% and 18.4% as compared to March. Declines from
April of last year as follows: national networks 57.7%, regional
networks 53.3%, and local 1.6%. National non-network business
up 25.5%.
10. Soap and kitchen supplies. National network volume
0.7% below March and local down 4.2%. Regional network and
national nonJnetwork business up 13.5% and 13.6%, respectively.
Gains over last April as follows: national networks 7.1%, regional
networks 271.7%, and local 31.3%. National non-network busi¬
ness down 11.3%.
11. Insurance and financial. Declines from March level as
follows: national networks 37.6%, regional networks 3.9%, na¬
tional non-network 5.5%, and local 18.7%. National network
volume down 23.2% as compared to April 1935. Regional net¬
work volume gained materially. National non-network business
rose 64.5% and local 16.3%.
12. Radios. National network business 9.8% below March.
Regional network volume up materially. National non-network
business up 9.4% and local 4.6%. Gains compared to last April
as follows: national networks 15.7%, national non-network
253.1%, and local 84.1%.
13. Department and general stores. National non-network
business down 21.7% as compared to March, and local up 16.2%.
Regional network up 25.0%. Compared to April of last year,
national non-network down 24.7% and local 6.0%. Regional net¬
work business up materially.
14. Tobacco products. Gains over preceding month as fol¬
lows: national networks 4.6%, regional networks 17.9%, national
non-network 71.1%, and local 3.6%. Gains over April 1935 as
follows: national networks 14.1%, regional networks 10.0%, and
national non-network 23.0%. Local down 47.3%.
15. Miscellaneous. National networks and regional networks
below March by 34.7% and 13.4%, respectively. National non¬
network and local business up 84.1% and 20.1%, respectively.
General gains as against last April as follows: national networks
76.0%, regional networks 5.2%, national non-network 45.1%, and
local 13.9%.
Retail Broadcast Advertising
Broadcast advertising by retail establishments increased 12.3%
as compared with the preceding month. Gains were fairly gen¬
eral, the principal ones being as follows: automotive 15.5%,
clothing 11.2%, drug stores 35.7%, household equipment dealers
65.9%, furniture stores 5.6%, and hardware stores 42.6%. Grocery
stores declined 22.7% and gasoline stations and accessory stores
20.4%.
Total broadcast advertising by retail establishments decreased
0.1% as against April of last year. Trends within various groups
were spotty. Important gains were as follows: automotive 23.2%,
food retailers 9.9%, furniture stores 20.4%, and radio retailers
48.4%. Significant declines were as follows: filling stations and
accessory stores 34.8%, restaurants 18.4%, household equipment
dealers 4.5%, hardware stores 36.3%, and department stores 7.0%.
Broadcast advertising by retail establishments is found in Table
VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business
March
April
Automobiles and accessories:
Automobile agencies and used car dealers
$127,110
$146,820
Gasoline stations, garages, etc .
45,100
35,890
Clothing and apparel shops .
264,000
293,660
Drugs and toilet goods:
Drug stores .
14,020
19,020
Beauty parlors .
7,210
8,650
Food products:
Grocery stores, meat markets, etc .
81,370
62,900
Restaurants and eating places .
20,370
20,720
Beverage retailers . >. . . .
1,100
1,570
Confectionery stores .
1,320
1,350
Household goods:
Household equipment dealers .
44,960
74,610
Furniture stores .
106,060
112,030
Hardware stores .
13,800
24,030
Radio retailers .
15,900
13,430
Department and general stores .
143,728
162,020
Tobacco shops .
125
—
Miscellaneous .
86,870
116,450
Total .
$973,043
$1,093,150
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2818. Alleging unfair competition in the sale of candy,
a complaint has been issued against the Vogan Candy Corpora¬
tion, 329 N. E. Eleventh Avenue, Portland, Oregon.
1355
The complaint alleges that the respondent corporation packs
candy in assortments so as to involve a lottery scheme whereby the
ultimate purchaser may win, without additional cost, a package or
a bar of candy. The punchboard device is used, according to the
complaint.
Use of such a sales method, the complaint charges, tends to divert
trade to the respondent from competitors who do not use the same
or a similar scheme in the sale of their products.
No. 2819. Disparagement of the product of a competitor is
alleged in a complaint issued against Hoffman Beverage Co.,
402 Grove St., Newark, N. J.
In soliciting the sale of and selling its product, the respondent
corporation is said to have published disparaging representations,
among which were assertions that “The vat-fresh taste of Hoffman
Bottled Beer is due to the fact that Hoffman Beer is not heat-
treated after bottling. * * * You taste the difference at the first
sip. The only unpasteurized bottled beer in America.”
According to the complaint, labels on bottles containing Hoffman
Beer bear the statement that “Because of extraordinary biological
control pasteurizing this beer is avoided. Thus its fine vat quality
is fully retained.”
No. 2820. Jean Vivadou and Henry G. Lubin, trading as
Jean Vivadou Co., 135 W. 20th St., New York City, and engaged
in the manufacture and sale of “De Marsay” toilet sundries, are
named respondents in a complaint alleging unfair methods of com¬
petition in violation of section 5 of the Federal Trade Commis¬
sion Act.
The respondents allegedly represent in advertising matter and in
other ways that one of their products, “Lagoona,” is a “wonder”
sea sponge spawned in Southern Pacific waters and contains the
alchemy of the waters of the Pacific ocean; that it is taken to the
laboratories of a nationally known chemist, treated with ultra¬
violet rays, and becomes “an aid to good health.” The complaint
charges that all of these representations are untrue, and that “La¬
goona,” instead of being a sea sponge possessing therapeutic value,
is a vegetable known as a loofah, which grows on land and re¬
sembles a gourd.
No. 2821. Evasion of State tobacco taxes and use of counterfeit
tax stamps to obtain sales advantages over competitors, are alleged
in a complaint charging a West Memphis, Ark., tobacco firm
with unfair methods of competition in violation of the Federal
Trade Commission Act. The respondents named are Henry
Loeb, Jr., and Martha Huffman, trading as West Memphis
Cigarette Co.
Although doing business in Memphis, Tenn., where most of their
competitors are situated, the respondents are alleged to operate an
additional place of business at West Memphis, Ark., across the
Mississippi River from Memphis, Tenn., enabling them to assist
retail dealers illegally to evade the Tennessee tobacco tax, and to
disrupt, injure and destroy the business and goodwill of competitors.
Distributing well known brands of cigars also sold by competitors,
the respondents, according to the complaint, approach certain re¬
tail customers of competitors having in their possession boxes bear¬
ing the brand names of the well known cigars and cancelled Tennes¬
see tobacco tax stamps, and sell to many such retailers boxes of
these brands on which no Tennessee tobacco tax has been paid and
which do not contain the cancelled tax stamps. This practice is
alleged to enable retailers to refill their boxes containing cancelled
tax stamps with cigars on which no tax has been paid, in violation
of Tennessee laws.
No. 2822. A complaint has been issued against Martin J.
Leyden, 168^2 Thomas St., Seattle, Wash., charging unfair
methods of competition in the sale of “Leyden’s Hair Tonic.”
The complaint alleges as false and exaggerated the respondent’s
claims, made in newspaper advertisements and in advertising litera¬
ture, that his product removes dandruff completely, stops hair from
falling and starts it to grow, stops itching scalp and restores new
life to hair.
No. 2823. Alleging unfair competition in the sale of packaged
mineral salts, a complaint has been issued against Soap Lake
Products Corporation, 2013 Fourth Ave., Seattle, Wash., dis¬
tributor of “Mother Nature Soap Lake Salts,” and other products
obtained from Soap Lake, Wash.
In advertising literature and radio broadcasts, the respondent is
alleged to have asserted that its mineral products would prevent or
cure or would be beneficial in the treatment of rheumatism, neu¬
ritis, athlete’s foot, poison oak or ivy, hyperacidity, and other ail¬
ments. According to the complaint, these representations are
exaggerated and misleading, as the beneficial properties, if any, of
the respondent’s products, are limited to laxative and diuretic ac¬
tion. The complaint alleges that the packaged products have no
therapeutic value for treatment of the diseases and afflictions
named.
No. 2824. Unfair competition through use of advertising matter
falsely implying Government or State approval of products is al¬
leged in a complaint against Service Products, Inc., 125 Riving-
ton St., New York City, trading as West Point Laboratories,
and Sam, Harry and Irving Hagler, individually and as officers
of the respondent company.
Engaged in compounding toilet articles such as hair tonic, bay
rum and lotions, which they sell to dealers and the public, the
respondents are alleged to have advertised by means of the phrase
“West Point — Natural Vegetable Oil — Hair Tonic — West Point
Laboratories, N. Y.”, together with a picture of a cadet in full
military uniform. This advertising was presented in such a way,
according to the complaint, that it conveyed the impression that
the respondents’ products were made according to United States
Government specifications or adopted by the War Department for
use of the West Point cadets. Such representations were false, de¬
ceptive, and misleading, according to the complaint, and in viola¬
tion of the Federal Trade Commission Act.
No. 2826. Charles N. Miller Co., 16 Medford St., Boston,
is charged with unfair competition in the sale of candy, in violation
of the Federal Trade Commission Act, under a complaint.
Assortments of candy sold by the respondent firm are so ar¬
ranged as to involve use of a lottery scheme when sold and dis¬
tributed to consumers, according to the complaint.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01366. Albert S. Broel, trading as American Frog
Canning Co., 3800 Jefferson Highway, New Orleans, selling
canned frog products, live frogs, and a course of instruction in frog
culture, agrees to stop advertising that the supply of wild frogs
is either exhausted or has been practically exterminated. The re¬
spondent is alleged to have advertised that “We use large quanti¬
ties of frogs every year and this huge demand, together with other
markets, has exhausted the wild supply.”
Other representations to be discontinued are the assertions: That
frog meat has dietary value in treating diabetes or stomach dis¬
order; that the respondent’s system of frog culture is recognized
as the most successful in the world; that the course of instruction
is given free, so long as it is furnished only to purchasers of breeder
frogs and its cost is included in the purchase price, and other rep¬
resentations.
No. 01367. The Piso Co., Warren, Pa., agrees to stop assert¬
ing that “Piso’s for Coughs” is a competent treatment or effective
remedy for coughs, unless the allegation is limited to the prepa¬
ration’s value as an expectorant cough mixture, of benefit in coughs
due to colds and minor throat irritations.
No. 01368. Evelyn Corper, trading as Keystone Co., and
Keystone Service, Box 4026, Philadelphia, selling imitation
diamonds and rings, stipulates that she will cease advertising that
any of her products are free, unless in fact they are sent to appli¬
cants without requiring payment. The respondent also agrees to
stop alleging by pictorial representation or otherwise that a ring
is included with imitation diamonds, when the offer applies only
to imitation diamonds. Among other representations to be dis¬
continued is one to the effect that any offer made in connection
with the sale of the respondent’s products is for a limited time,
unless it is made clear that a definite time limit is fixed and ad¬
hered to by the respondent and orders are refused after expiration
of such time.
No. 01369. D. A. Prosser, an individual, operating as Old
Dominion Service, Petersburg, Va., selling a scheme recom¬
mended for winning money and bringing luck, called “The Magic
Star System,” agrees to stop representing that a “universal good
luck charm” or coin or token possesses the virtue of making the
carrier lucky, or that “The Magic Star System” is scientific and
correct in principle, or based on research. The respondent is said
to have advertised that “We give you scientific calculations and
mathematical formulas so arranged to manipulate and to forecast
winning results.”
No. 01374. Leon M. Nelson, operating as Nelson Labora-
tories, 29 North Garfield Ave., Alhambra, Calif., dealing in
“Nelson’s Dental Plate Cleaner” and “Nelson’s Dental Plate Brush”,
recommended for cleaning false teeth, agrees to stop alleging that
the dental plate cleaner sterilizes false teeth, is a scientifically com¬
pounded antiseptic or will not scratch or injure the plate, and that
use of the dental plate cleaner results in improved health. The re-
1356
spondent stipulates that in soliciting salespersons or dealers, he will
not make unmodified representations of earnings in excess of the
average earnings of his active, fulltime salespersons. He agrees also
to cease using the word “Laboratories” or “Laboratory” in his
trade name or in advertising until such time as he shall actually
own, maintain, or operate a laboratory.
No. 01375. Tayton Co., 3629 Main St., Kansas City, Mo.,
dealer in a food preparation called “Nutri”, agrees to quit making
the allegation that the preparation is an effective treatment for
nervousness, insomnia, worry and other ailments; that the average
user of the product will gain weight, and that the preparation con¬
tains all vitamins or minerals necessary to build nerves, glands,
blood, tissue, body and energy.
No. 1667. Mannington Mills, Inc., Salem, N. J., manufac¬
turing and selling felt base floor coverings, designated and adver¬
tised one of its products as “Rubbertex”. The corporation agrees
to cease using the word “rubber” alone or in conjunction with any
other word, syllable or suffix so as to imply that its products are
composed of rubber, or in substantial part of rubber, when such
is not the fact.
No. 1668. In a stipulation entered into, the Triad Manufac¬
turing Co., Inc., Pawtucket, R. I., has agreed to cease repre¬
senting in advertising or in printed matter that certain glass radio
tubes it manufactures and sells are “metal tubes”.
The stipulation of facts points out that glass tubes were in gen¬
eral use by the radio industry until 1935, when the so-called metal
tubes became popularized in the trade and by the purchasing pub¬
lic, and also describes glass tubes as having the technical elements
sealed in a vacuum in glass, while in the metal types the technical
elements are contained in a vacuum in steel.
Specifically, the respondent corporation agrees to discontinue use
of the words “metal tubes” as descriptive of its products, so as to
imply that such products are those which have become popularly
known as metal radio tubes.
The stipulation provides that if the technical elements of the
respondent corporation’s product are sealed in a vacuum in glass
which is placed within a metal shell, and if the words “metal tube”
are used to describe the shell, then such words shall be accom¬
panied by other suitable words to indicate clearly that the product
is not a tube wherein the technical elements are sealed in a vacuum
in steel.
No. 1669. A. J. King and John B. Michael, co-partners,
trading as Dr. King’s Medical Co., Cincinnati, signed a stipu¬
lation to discontinue representations to the effect that “Dr. King’s
Positive Corn Remover” is a cure for corns or a reliable remedy
for all types of corns, bunions, warts and moles, when such is not
the fact. The respondents also agree to cease using on their letter¬
heads the words “President” and “Vice-President” with the names,
respectively, “A. J. King” and “J. B. Michael”, and with their
trade name, so as to imply that their business is that of a corpora¬
tion or voluntary association; to cease use of the abbreviation
“Dr.” in their trade name and of the words “pharmacal” and
“chemists” to convey the meaning that there is a physician, phar¬
macist or chemist associated with their business, and to discontinue
use of the word “manufacturing” in a manner implying that they
compound their product or own a factory where such product is
made, when all such representations are untrue. They also will
stop representing that they have offices in Detroit, New York City
and Buffalo, when such is not the case.
No. 1670. A. Paladini, Inc., 540 Clay St., San Francisco,
engaged in the sale of fish and sea food, entered into an agreement
to cease using on invoices or in other printed matter the words
“Red Snapper” to designate a species of fish other than that known
to the trade and purchasing public as red snapper, and to cease
using such words in any manner which may have the tendency to
mislead purchasers into the belief that such fish is the species
commonly known as red snapper, when such is not the fact.
No. 1671. Cohn-Hall-Marx Co., 1412 Broadway, New York
City, selling fabrics to dress manufacturers and retailers of piece
goods, stipulates it will stop using the word “Camelspun” or any
other derivative or simulation of the word “camel” on labels af¬
fixed to its products which are not composed of camel’s hair, and
will cease using the word “Camelspun” or any simulation of the
word “camel” to imply that its products are composed of camel’s
hair, when such is not the fact.
Nos. 1672-1673. Snell Corporation, Nashville, Tenn., ac¬
cording to the stipulation of facts, blends flour and sells it to Ten¬
nessee Mill & Feed Co. in bags which it marks with the words
“Packed for Tennessee Mill & Feed Co., Birmingham, Alabama.”
In its stipulation, Snell Corporation agrees to cease marking or
stamping upon the bags in which its flour is packed and sold any
corporate or trade name containing the word “Mill,” or any other
word of similar import, to imply that the product is milled by the
purchaser, when such is not a fact.
Tennessee Mill & Feed Co., Birmingham, Ala., in purchasing
and selling flour, will discontinue use of the word “Mill” in its
trade name or in any manner tending to mislead purchasers into
the belief that it owns or operates a mill where the product it sells
is manufactured.
No. 1674. J. A. Sanborn Co., Inc., 6 Union St., Boston,
Mass., agrees to stop using the word “Whitefish” to describe any
species other than that properly known as whitefish, and to cease
using the same word alone or in connection with the words “Deep
Sea”, “Fillet”, “Cusk”, or with any other words which may imply
that the product so designated is that species of fish properly known
as whitefish, when such is not the fact.
No. 1677. Bolton-Smart Co., Inc., 19 South Market St.,
Boston, Mass., signed a similar agreement.
The stipulations point out that two species of whitefish are found
in the Great Lakes, and another off the Pacific coast, while the
cusk, allied to the cod, comes from the waters off the coasts of
Northern Europe and America.
No. 2283. F. A. Martoccio Co., trading as Hollyood Candy
Co„ 1311 Glenwood Ave., Minneapolis, Minn., has been ordered
to discontinue selling to wholesale dealers and jobbers candy so
packed and assembled that its resale to the general public may be
made by means of a lottery, gaming device, or gift enterprise.
Under the order to cease and desist, the respondent corporation
is prohibited from supplying wholesalers and jobbers with assort¬
ments of candy which may be used, without rearrangement of the
contents, to conduct a lottery in the sale of candy to the public,
and from supplying them with punch boards or push cards which
may be used in selling the candy at retail.
No. 2618. Canton Silk Mills, Inc., 469 7th Ave., New York
City, has been ordered to cease and desist representing through use
of the words “Mill”, “Mills” or “Manufacturers”, or other similar
words, that it owns, operates or controls mills in which its products
are manufactured, dyed, printed or processed.
Findings are that the respondent company, a converter of silk
and rayon fabrics, used the trade name “Canton Silk Mills, Inc.”,
and the language: “Mills: Riverside, R. I.— Phenix, R. I.”, in its
advertisements. These representations, according to the findings,
implied that the respondent operated and controlled mills for mak¬
ing silks or silk goods, when this was not true.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
While no announcement has been made and no official action
taken to this time there is a general understanding at the Com¬
mission that hearings will not be held either by the Commission
itself or by its Examiners during the months of July and August.
This will allow the Examiners who are far behind in writing their
recommendations on cases already heard to catch up with the
calendar.
HEARING CALENDAR
Monday, June 8
INFORMAL ENGINEERING CONFERENCE
Subject: New rules concerning all broadcast stations except regular
broadcast stations in the band 550 to 1500 kilocycles.
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Pacific Acceptance Corp., San Diego, Calif. — C. P., 1200
kc., 100 watts, daytime.
KMTR — KMTR Radio Corp., Los Angeles, Calif. — Renewal of
license, 570 kc., 1 KW, unlimited time.
Tuesday, June 9
HEARING BEFORE AN EXAMINER
(Broadcast)
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Olka. —
Modification of license, 1370 kc., 100 watts, unlimited time.
Present assignment: 1370 kc., 100 watts, shares with KCRC.
1357
KGFG— Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
Authority to transfer control of corporation; 1370 kc., 100
watts, shares with KCRC.
NEW— Fred A. Baxter, Superior, Wis.— C. P., 1200 kc., 100 watts,
unlimited time.
Wednesday, June 10
HEARING BEFORE AN EXAMINER
(Broadcast)
WJBO — Baton Rouge Broadcasting Co., Inc., Baton Rouge, La.- —
C. P., 1120 kc., 500 watts, specified hours (unliimted except
from 8 to 9 p. m. Mondays and Fridays).
NEW — Community Broadcasting Co., Toledo, Ohio. — C. P., 1200
kc., 100 watts, daytime.
WALR — WALR Broadcasting Corp., Zanesville, Ohio. — C. P. to
move to Toledo, Ohio ; 1210 kc., 100 watts, unlimited time.
Thursday, June 11
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-204:
NEW — Christina M. Jacobson, d/b as The Valley Electric Co.,
San Luis Obispo, Calif. — C. P., 1200 kc., 250 watts, daytime.
NEW — E. E. Long Piano Co., San Luis Obispo, Calif. — C. P., 1200
kc., 100 watts, unlimited time.
Examiner’s Report No. 1-200:
NEW — Merced Star Publishing Co., Merced, Calif. — C. P., 1040
kc., 250 watts, daytime.
Examiner’s Report No. 1-205:
WEAN — The Shepard Broadcasting Service, Inc., Providence, R. I.
, — C. P„ 780 kc., 1 KW, unlimited time.
Examiner’s Report No. 1-186:
NEW — Advertiser Publishing Co., Ltd., Honolulu, T. H. — C. P.,
11850 and 15230 kc., 2 watts, specified hours.
Examiner’s Report No. 1-216:
NEW — Mason City Broadcast Co., Emmons L. Abeles, Secy.,
Mason City, Iowa. — C. P., 1420 kc., 100 watts, unlimited
time.
NEW — Northern Iowa Broadcasting Co., Inc., Mason City, Iowa.
— C. P., 1420 kc., 100 watts, unlimited time.
NEW — Mason City Globe Gazette Co.. Mason City, l'owa. — C. P.,
1210 kc., 100 watts, unlimited time.
Friday, June 12
HEARING BEFORE AN EXAMINER
(Broadcast)
WPRO — Cherry and Webb Broadcasting Co., Providence, R. I. —
C. P., 630 kc., 500 watts, 1 KW LS, unlimited time.
NEW — North Jersey Broadcasting Co., Inc., Paterson, N. J. —
C. P., 620 kc., 250 watts, daytime.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Modification of C. P.
to extend completion date; 530 kc., 500 watts, 2J4 KW LS
(S.A. for 1 KW), unlimited time.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Modification of C. P.
to make equipment changes; 530 kc., 1 KW, 5 KW LS, un¬
limited time. Present assignment: 530 kc., 500 watts, 2 $4
KW LS (S.A. for 1 KW), unlimited time.
APPLICATIONS GRANTED
KMA — May Seed and Nursery Co., Shenandoah, Iowa. — Granted
C. P. to move transmitter and install new radiator.
WKY — WKY Radiophone Co., Oklahoma City, Okla. — Granted
C. P. to make changes in equipment; install vertical radiator,
increase power from 1 KW night and day to 1 KW night,
5 KW day ; 900 kc., unlimited time.
KGW — Oregonian Publishing Co., Portland, Ore. — Granted C. P.
to make changes in equipment.
WCAP — Radio Industries Broadcast Co., Asbury Park, N. J. —
Granted C. P. to make changes in antenna.
KGY — KGY, Inc., Olympia, Wash. — Granted C. P. to install new
equipment.
KFPY — Symons Broadcasting Co., Spokane, Wash. — Granted
modification of C. P. approving transmitter site and ap-:
proving antenna for 5 KW day.
KSCJ — Perkins Bros. Co., The Sioux City Journal, Sioux City,
Iowa. — Granted modification of C. P. approving transmitter
site northeast of Sioux City ; make changes in composite
equipment; extend commencement date to 15 days after
grant and completion date to 90 days thereafter.
WMBO — Peoria Broadcasting Co., Peoria, Ill. — Granted modifica¬
tion of C. P. to install new equipment; extend commence¬
ment date to immediately and completion date to 3 months
hereafter.
KGY — KGY, Inc., Olympia, Wash. — Granted authority to make
changes in automatic frequency control equipment.
WSAI — The Crosley Radio Corp., Cincinnati, Ohio. — Granted au¬
thority to determine operating power by direct measure¬
ment of antenna input in compliance with terms of Rule 137.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted
license to cover C. P. authorizing changes in equipment and
move transmitter and studio locations.
WKAQ — Radio Corp. of Porto Rico, San Juan, P. R. — Granted
license to cover C. P. authorizing changes in equipment,
move transmitter, install new radiating system, and change
hours of operation from one-half to unlimited time; 1246
kc., 1 KW.
WJJD — WJJD, Inc., Chicago, Ill. — Granted license to cover C. P.
authorizing move of transmitter to Des Plaines, Ill., and
erection of vertical radiator.
WEOA — Evansville on the Air, Inc., Evansville, Ind. — Granted
license to cover C. P., 1370 kc., 100 watts, unlimited time.
WHBC — Edward P. Graham, Canton, Ohio. — Granted renewal of
license on a temporary basis and designated renewal appli¬
cation for hearing.
WAML — New Laurel Radio Station, Inc., Laurel, Miss. — Granted
license, 1310 kc., 100 watts, specified hours.
WCOP — Joseph M. Kirby, Boston, Mass. — Granted consent to
voluntary assignment of license to Massachusetts Broad¬
casting Corp.
NEW — Lincoln Memorial University, Middlesboro, Ky. — Granted
C. P. for new broadcast station; 1210 kc., 100 watts, un¬
limited time.
WSPD — Toledo Broadcasting Co., Toledo, Ohio. — Granted license
to cover C. P. authorizing changes in equipment, increase
in day power from 2 J4 KW to 5 KW ; 1340 kc., 1 KW
night.
WMFN — Attala Broadcasting Corp., Clarksdale, Miss. — Granted
C. P. to move station from Clarksdale, Miss., to Grenada,
Miss.
WBBZ — Estate of Chas. Lewis Carrell, Deceased, Howard Johnson,
Representative, Ponca City, Okla. — Granted extension of
existing license on a temporary basis, 1200 kc., 100 watts,
unlimited time, pending probate of will of C. L. Carrell.
KROC — Southern Minnesota Broadcasting Co., Rochester, Minn. —
Granted renewal of license for the regular period; 1310 kc.,
100 watts, unlimited time.
WSAJ — Grove City College, Grove City, Pa. — Granted renewal of
license for the regular period; 1310 kc., 100 watts, specified
hours.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
renewal of license for the regular period; 1200 kc., 100
watts, specified hours.
KGY — KGY, Inc., Olympia, Wash. — Granted renewal of license
for the regular period; 1210 kc., 100 watts, unlimited time
except when KTW is operating.
WOCL — A. E. Newton, Jamestown, N. Y. — Granted renewal of
license on a temporary basis; 1210 kc., 50 watts, unlimited
time.
KFYO — Plains Radio Broadcasting Co., Lubbock, Tex. — Granted
renewal of license for the regular period; 1310 kc., 100
watts night, 250 watts day, unlimited time.
WMBO — WMBO, Inc., Auburn, N. Y. — Granted renewal of license
for the regular period ; 1310 kc., 100 watts, unlimited time.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Granted renewal
of license for the regular period; 1200 kc. (modification to
1390 kc. to be effective upon completion of vertical radia¬
tor), 250 watts daytime, from 6 a. m. to LS, PST.
WTHT — The Hartford Times, Inc., Hartford, Conn. — Granted
modification of C. P. approving equipment, vertical radiator
and transmitter and studio sites.
NEW — Bamberger Broadcasting Service, Inc., Portable-Mobile
(Newark, N. J.) (2 applications). — -Granted C. P., (exp.
gen. exp.), frequencies 31100, 34600, 37600, 40600 kc.,
2 watts.
NEW — Bamberger Broadcasting Service, Inc., Portable-Mobile
(Newark, N. J.) (2 applications). — Granted C. P., (exp.
gen. exp.), frequencies 31100, 34600, 37600, 40600 kc.,
10.5 watts.
1358
NEW — The Crosley Radio Corp., Portable-Mobile, Cincinnati,
Ohio (2 applications). — Granted C. P. (exp. gen. exp. serv¬
ice), frequencies 31100, 34600, 37600, 40600 kc., 30 watts,
unlimited.
W2XE — Atlantic Broadcasting Corp., near Wayne, N. J. — Granted
C. P. (exp. relay b/c) to make changes in equipment, in¬
crease power from 5 to 10 KW.
SET FOR HEARING
NEW— Voice of Detroit, Mich., Detroit, Mich. — Application for
C. P., 1120 kc., 500 watts night, 1 KW day, unlimited time.
Site to be determined.
NEW — Orrin P. Kilbourn, Albany, N. Y. — Application for C. P.,
1240 kc., 250 watts, unlimited time. Site to be determined.
NEW — J. E. Churchwell, G. O. Russell, H. O. Freeman, Jr., d/b
as Panama City Broadcasting Co., Panama City, Fla. —
Application for C. P. for new station, 1500 kc., 100 watts,
daytime only.
NEW — Brownwood Broadcasting Co., Brownwood, Tex. — Appli¬
cation for C. P. for new station, 1370 kc., 100 watts, day¬
time only. Site to be determined.
NEW — Southern Broadcasting Corp., New Orleans, La. — Applica¬
tion for C. P. for new station, 1200 lcc., 100 watts, shares-
WJBW. Site to be determined. Facilities of WBNO.
NEW — Radio Enterprises, Inc., Hot Springs, Ark. — Application
for C. P. for new station, 1310 kc., 100 watts, daytime.
Site to be determined.
NEW — Cadillac Broadcasting Co., a Michigan corporation, Dear¬
born, Mich. — Application for C. P. for new station, 1140
kc., 500 watts, daytime only.
NEW — Asheville Daily News (Harold M. Thomas, Owner), Ashe¬
ville, N. C. — Application for C. P. for new station, 1370 kc.,
100 watts, unlimited time.
WIND — Johnson-Kennedy Radio Corp., Gary, Ind.- — Application
for renewal of license, 560 kc., 1 KW night, 5 KW day, un¬
limited time.
WBNO — The Coliseum Place Baptist Church, New Orleans, La. —
Application for renewal of license, 1200 kc., 100 watts,
shares time with WJBW equally; temporary license granted
pending outcome of hearing.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KBTM, Jonesboro, Ark.; KDON, Del Monte, Calif.; WFAM,
South Bend, Ind.; WHBY, Green Bay, Wis.; WIBU, Poynette,
Wis.; WMFG, Hibbing, Minn.; WTAL, Tallahassee, Fla.
The following stations’ licenses were extended on a temporary
basis for a period of 1 month, pending receipt and/or action on
application for renewal of licenses:
WMFN, Clarksdale, Miss.; WSON, Birmingham, Ala.; and
WWAE, Hammond, Ind.
KGDE — Charles L. Jaren, Fergus Falls, Minn. — Granted renewal
of license on a temporary basis only subject to whatever
action may be taken by the Commission upon pending ap¬
plication for renewal.
KVOS — KVOS, Inc., Bellingham, Wash. — Granted renewal of
license on a temporary basis only subject to whatever action
may be taken by the Commission upon pending application
for renewal.
KWEA — International Broadcasting Corp., Shreveport, La. —
Granted renewal of license on a temporary basis only sub¬
ject to whatever action may be taken by the Commission
upon pending application for renewal.
WRBL — WRBL Radio Station, Inc., Columbus, Ga. — Granted re¬
newal of license on a temporary basis only to conform to
the Commission’s action of April 3, 1936, with reference to
this station’s application for renewal, for the period ending
July 14, 1936.
WATL — J. W. Woodruff and S. A. Cisler, Jr., d/b as Atlanta
Broadcasting Co., Atlanta, Ga. — Present license further ex¬
tended on a temporary basis only for the period June 1 to
July 1, 1936, subject to such action as may be taken upon
the pending application for renewal.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Present
license further extended on a temporary basis only for the
period June 1 to July 1, 1936, subject to such action as
may be taken upon the pending application for renewal.
WWL — Loyola University, New Orleans, La. — Special experi¬
mental temporary authority, heretofore issued stations
KWKH and WWL, further extended for the period June 1
to July 1, 1936, subject to the same conditions as contained
in the existing authorities to said stations, pending con¬
sideration of the pending petition of station WLWL and
petitions in opposition thereto.
MISCELLANEOUS
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Modifi¬
cation of license to increase power to 100 watts issued to
KPPC in conformity with Commission’s action of February
8, 1936, inasmuch as applicant has now complied with the
proviso contained therein.
NEW — Bell Broadcasting Co., Temple, Tex. — Denied petition ask¬
ing the Commission to reject the application of Eugene
DeBogory (tem-Bel Broadcasting Co.), as in cases of de¬
fault for a C. P. to operate a new broadcast station at
Temple, Tex., on the frequency 1310 kc., 100 watts, day¬
time only.
NEW — F. N. Pierce, Taylor, Tex. — Denied motion for a continu¬
ance of hearing on application for a permit for the estab¬
lishment of broadcast station at Taylor, Tex., to operate on
1310 kc., 100 watts, daytime only.
WRBC, Inc., Youngstown, Ohio. — Granted request for a con¬
tinuance of hearing now scheduled for June 2, 1936, on
application for permit to erect a new station at Youngstown,
Ohio, to operate on 890 kc., 1 KW.
Fresno Broadcasting Co., Fresno, Calif. — Denied petition for order
to retake depositions in support of application for a permit
to erect new broadcast station at Fresno.
KFPL — C. C. Baxter, Dublin, Tex. — Granted application for re¬
newal of license, also two applications for modification of
C. P. authorizing equipment changes, the removal of the
transmitter, and operation with power of 200 watts LS and
100 watts night, approval of the transmitter site, and ex¬
tension of time within which to complete construction.
KOMA — National Radio Mfg. Co., Oklahoma City, Okla.; KTAT
— KTAT Broadcasting Co., Fort Worth, Tex.; WACO —
Central Texas Broadcasting Co., Inc., Waco, Tex. — Referred
to docket section requests that a date for hearing of applica¬
tions for authority to voluntarily assign licenses to Hearst
Radio, Inc., be fixed for the month of June with instruc¬
tions to name date as the conditions of the docket will
permit.
A. W. Hayes, Erie, Pa. — Denied motion requesting the Commission
to advance the date of oral argument from September 10 to
June 4, 1936, on application for a permit to erect a station
to operate on 1270 kc., 500 watts night, 1 KW LS.
Plain Dealer Pub. Co., Monroe F. Rubin and Ruth Rubin (through
their attorneys), Cleveland, Ohio. — Granted applications
for transfer of control of the licenses of stations WHK and
WJAY of Cleveland, Ohio, to the U. B. Company, a sub¬
sidiary of the Plain Dealer Publishing Co. Reconsidered
action of December 10, 1935, when applications were desig¬
nated for hearing. WHK operates on 1390 kc., 1 KW night,
2)4 KW day, unlimited time. WJAY operates on 610 kc.,
500 watts, daytime.
Red River Valley Broadcasting Corp. of Sherman, Tex. — Recon¬
sidered action of April 24, 1936, in designating for hearing
application to erect new statiofi to operate on 1310 kc., 100
watts daytime only, and granted same without a hearing.
John E. Fetzer, Saginaw, Mich. — Granted petition for withdrawal
of application, without prejudice, for permission to estab¬
lish a broadcast station at Saginaw, Mich.
Central Broadcasting Co., Eau Claire, Wis. — Granted motion to
strike exceptions of Midway Broadcasting Co. to Examiner’s
Report No. 1-218. Order granting the request of Midway
Broadcasting Co. for oral argument was cancelled and the
application of the Central Broadcasting Co. for a permit to
establish a broadcast station at Eau Claire to operate on
1050 kc., 250 watts, daytime, was placed on the calendar for
final action by the Broadcast Division.
California Sales Contract Co., San Francisco, Calif. — Granted re¬
quest to withdraw application for C. P. to operate the
station at San Francisco on a frequency of 1280 kc., 500
watts, 1 KW LS, unlimited time. Application dismissed
with prejudice.
Steffens Ice & Ice Cream Co., Wichita, Kans. — Denied motion to
withdraw application for permit for a new station at
Wichita, Kans., and have the same dismissed without
prejudice.
1359
APPLICATIONS RECEIVED
First Zone
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
570 N. Y. — License to use old composite transmitter as an aux¬
iliary transmitter (250 watts).
WJAR — The Outlet Co., Providence, R. I. — License to cover con-
8901 struction permit (Bl-P-333) as modified for changes in
equipment, move of transmitter, and increase in power;
install directional antenna.
WCAX — Burlington Daily News, Burlington, Vt. — Authority to
1200 transfer control of corporation from Bertha Jackson to Mary
Jackson Forbes and from Mary Jackson Forbes to Bertha
R. Wells Jackson, 109 shares of common stock. Amended to
request the transfer of 109 shares of common stock from
Bertha Jackson to Mary Jackson Forbes only.
NEW — Continental Radio Co., Washington, D. C. — Construction
1230 permit for a new station to be operated on 1230 kc., 1 KW,
unlimited time.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. — Modi-
1310 fication of license to change hours of operation from daytime
to daytime until 7:30 p. m., using 100 watts power at night.
Amended to change requested hours of operation from day¬
time until 7:30 p. m. to unlimited time.
NEW — Continental Radio Co., Washington, D. C. — Construction
1310 permit for a new station to be operated on 1310 kc., 100
watts, 250 watts day, unlimited time, contingent upon WOL
being granted frequency of 1230 kc.
WNBC — William J. Sanders, New Britain, Conn. — Construction
1380 permit to make changes in equipment and increase power
from 250 watts to 1 KW. Amended to install directional
antenna for night and day use, change requested power
from 1 KW to 250 watts, 1 KW day, and hours of opera¬
tion from daytime to unlimited time.
NEW — New England Radio Corp., Bridgeport, Conn. — Construc-
1420 tion permit for a new station to be operated on 1370 kc.,
100 watts, daytime. Amended to change frequency from
1370 kc. to 1420 kc.
Second Zone
NEW — The Pottsville Broadcasting Co., Pottsville, Pa. — Construc-
580 tion permit for a new station to be operated on 580 kc.,
250 watts, daytime.
WCMI — The Ashland Broadcasting Co., Ashland, Ky. — Construc-
1310 tion permit to make changes in equipment and increase
power from 100 watts to 100 watts, 250 watts daytime.
WIBM — WIBM, Inc., Jackson, Mich. — License to cover construc-
1370 tion permit (B2-P-976) for changes in equipment.
WRAK — WRAK, Inc., Williamsport, Pa. — Construction permit to
1370 make changes in equipment (antenna) and move transmitter
from 244 West Fourth Street, Williamsport, Pa., to 1631 W.
3rd, Williamsport, Pa. Amended to change proposed trans¬
mitter site from 1631 W. 3rd Street to 1561 W. 4th Street,
Williamsport, Pa., and install a new transmitter.
WKBZ — Karl L. Ashbacker, Muskegon, Mich. — Construction per-
1500 mit to move transmitter from Occidental Hotel, Western
Ave. at Third Street, Muskegon, Mich., to Forest Ave. at
Creston Street, Muskegon, Mich., and install a vertical
antenna.
NEW- — R. Morris Pierce, Portable. — Construction permit for a
new general experimental station to be operated on 25700,
27100, 31100, 35600, 37100, 41000, 86000-400000 * kc. and
above, 100 watts. Amended to delete 31100 and 37100 kc.
and add 31600 and 38600 kc. * Also 401000 kc.
Third Zone
WDAE — Tampa Times Co., Tampa, Fla. — Modification of license
550 to change frequency from 1220 kc. to 550 kc.
WREC — WREC, Inc., Memphis, Tenn. — Modification of license to
600 increase power from 1 KW, 2 KW day, to 1 KW, 5 KW
day.
WPTF — WPTF Radio Co., Raleigh, N. C. — Extension of special
680 experimental authorization to operate from local sunset to
8 p. m., PCT, on 1 KW power for period from 8-1-36 to
2-1-37.
WPTF — WPTF Radio Co., Raleigh, N. C. — Extension of special
680 experimental authorization to use W. E. 6-B transmitter as
an auxiliary using 1 KW power, during special authoriza¬
tion to operate from local sunset to 8 p. m., PCT, for period
8-1-36 to 2-1-37.
KRLD — KRLD Radio Corp., Dallas, Tex. — Extension of special
1040 experimental authorization to operate simultaneously with
WTIC for period 8-1-36 to 2-1-37.
KFXR — Exchange Ave. Baptist Church of Oklahoma City, Okla-
1310 homa City, Okla. — Construction permit to install new equip¬
ment.
KFJZ — Fort Worth Broadcasters, Inc., Fort Worth, Tex. — License
1370 to cover construction permit (B3-P-1015) for new equip¬
ment and increase in power.
NEW — Dallas Broadcasting Co., Dallas, Tex. — Construction per-
1500 mit for a new station to be operated on 1500 kc., 100 watts,
daytime. Amended to change name from A. Earl Cullum,
Jr., to Dallas Broadcasting Co.
Fourth Zone
KWBG — The Nation’s Center Broadcasting Co., Inc., Hutchinson,
550 Kans.— Construction permit to make changes in equipment;
increase power from 100 watts to 250 w.atts; change fre¬
quency from 1420 kc. to 550 kc.; move transmitter from
101 E. Avenue “A”, Hutchinson, Kans., to Hutchinson,
Kans.; and make changes in antenna, using directional an¬
tenna at night.
NEW— Harry G. Kipke, Ann Arbor, Mich. — Construction permit
630 for a new station to be operated on 630 kc., 500 watts,
daytime.
NEW — National Battery Broadcasting Co., St. Paul, Minn. — Con-
920 struction permit for a new station to be operated on 920 kc.,
1 KW, unlimited time. Amended to make changes in equip¬
ment.
KGBZ — KGBZ Broadcasting Co., York, Nebr. — Authority to in-
930 stall automatic frequency control.
NEW — Walker Jamar, Duluth, Minn.— Construction permit for a
1200 new station to be operated on 1500 kc., 100 watts, unlimited
time. Amended to change requested frequency of 1500 kc.
to 1200 kc. and omit request for KGFK’s facilities.
WHLB — Head of the Lakes Broadcasting Co., Virginia, Minn. —
1370 Modification of construction permit (B4-P-329) for ex¬
tension of completion date.
WEHS— WEHS, Inc., Cicero, Ill.— Modification of license to
1420 change specified hours as specified on license from Central
Standard Time to Eastern Standard Time. Amended to
change specified hours.
Fifth Zone
KOB — New Mexico College of Agriculture and Mechanic Arts,
1180 Albuquerque, N. Mex. — Voluntary assignment of license
from New Mexico College of Agriculture and Mechanic
Arts to Albuquerque Broadcasting Co. (no stockholders’
liability).
KSUN — Copper Electric Co., Inc., Lowell, Ariz. — Construction
1200 permit to make changes in equipment, install a vertical
antenna, and increase power from 100 watts to 100 watts,
250 watts day.
NEW— Wyoming Radio Corp., Cheyenne, Wyo.— Construction
1210 permit for a new station to be operated on 1210 kc., 100
watts, unlimited time.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
1280 Construction permit for a new station to be operated on
1410 kc., 500 watts, unlimited time. Amended to change
requested frequency from 1410 kc. to 1280 kc.
KCRJ — Charles C. Robinson, Jerome, Ariz. — Authority to install
1310 automatic frequency control.
KBPS — Benson Polytechnic School, Portland, Ore. — Authority to
1420 install automatic frequency control.
Puerto Rican Zone
NEW — Puerto Rico Advertising Co., Mayaguez, P. R. — Construc-
1370 tion permit for a new station to be operated on 1370 kc.,
100 watts, 250 watts day, specified hours. Amended to
change name from Emilio Defillo Ramirez to Puerto Rico
Advertising Co., make changes in antenna, change specified
hours, and transmitter and studio sites from Ensanche
Martinez, Mayaguez, P. R., to site to be determined, Maya¬
guez, Puerto Rico.
1360
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyright. 1936. The National Assoolation of Broadcaster*
Vol. 4 - - No. 28
JUNE 11, 1936
IN THIS ISSUE
Page
Payne Confirmed . 1361
Radio Bill Signed . 1361
Appeal Filed in Monocacy Case . 1361
Plan for June IS Conference . 1361
Denial for New Station Recommended . 1362
Texas Broadcasters Oppose High Power . 1362
Power Increase Denial Recommended . 1362
Mountain States Radio Revenue . 1362
Two New Stations Recommended . 1362
Securities Act Registrations . 1362
Changes Recommended for WQDM . 1363
New California Station Recommended . 1363
Federal Trade Commission Action . 1363
Federal Communications Commission Action . 1365
PAYNE CONFIRMED
George Henry Payne, of New York, was confirmed on Monday
as a member of the Federal Communications Commission for a
term of 7 years from July 1. It will be recalled that Mr. Payne
has been a member of the Commission since the new body was
organized, and the law provides that all terms shall be for a period
of 7 years after the first term expires.
RADIO BILL SIGNED
President Roosevelt has signed S. 2243, the bill which repeals the
Davis amendment. The bill was originally introduced in the
Upper House by Senator Wheeler of Montana. As it became law
it reads exactly as quoted in NAB Reports dated June 4 (Vol. 4,
No. 27).
APPEAL FILED IN MONOCACY CASE
The Monocacy Broadcasting Company has filed an appeal in the
United States District Court of Appeals for the District of Colum¬
bia, from a decision of the Supreme Court of the District of
Columbia in which the latter court upheld a decision of the Federal
Communications Commission.
In this case the Communications Commission granted a con¬
struction permit to the Monocacy Company for the erection of a
new broadcasting station at Rockville, Md., but a protest was
filed against the grant. The protest was later withdrawn but the
Commission set the case for hearing. The Monocacy Company
asked the District Supreme Court to enjoin the Commission against
holding the hearing but the Court in a recent decision refused to
hold in favor of the broadcasting company. Appeal has now been
taken to the higher court but argument will not be held until the
autumn.
PLAN FOR JUNE 15 CONFERENCE
The Federal Communications Commission has announced a
tentative plan for the June IS engineering hearing. James W.
Baldwin, Managing Director, and Dr. Charles B. Aiken, Special
Technical Consultant, will appear on behalf of the NAB. The
plan as announced by the FCC follows:
The following general plan for the conduct of the informal engi¬
neering hearing beginning June IS, 1936, was approved by the
Commission. Since all the notices which are due have not as yet
been received by the Commission, the general order of witnesses
cannot be given. However, this will be done at as early a date as
possible.
The hearing will take place in the government auditorium located
at Constitution Avenue between 12th and 13th Streets, between the
Department of Labor Building and the Interstate Commerce Com¬
mission Building.
Opening statement by Chairman of Federal Communications Com¬
mission, outlining scope and procedure of hearing.
Testimony — Chief Engineer of Commission. General review of
past developments, present practices and future probabilities.
Testimony — Dr. J. H. Dellinger. Statement of requirements of
government departments.
General Testimony Relating to Broad Questions of Public Interest
and General Allocation Policies.
A. Witnesses in behalf of organizations operating in all phases and
services in the industry.
B. Witnesses in behalf of organizations operating in more than
one phase or service in the industry.
C. Witnesses in behalf of organizations operating in only one phase
or service in the industry, in following order:
(a) Operating associations.
(b) Radio manufacturing associations.
(c) Other trade associations.
(d) Individual services.
Specific Testimony ( See Notice of Hearing )
1. E. K. Jett — General Status of Radio Spectrum.
2. A. D. Ring — Present Status of Apparatus Limitations.
3. L. P. Wheeler — General Frequency Propagation Characteristics.
4-A. Witnesses in behalf of organizations operating in all phases
and services in the industry who may desire to cover all
subjects at one time.
B. Witnesses in behalf of organizations operating in more than
one phase or service in the industry who may desire to
cover all subjects at one time.
C. Witnesses in behalf of organizations operating in only one
phase or service in the industry in the order given in the
following paragraphs S to 11, inclusive. Within each serv¬
ice outlined in the following paragraphs 5 to 11, inclusive,
the order of witnesses will be as follows:
(a) Operating associations. ,
(b) Radio manufacturing associations.
(c) Other trade associations.
(d) Individual services.
S. Broadcast Service
(a) Broadcast stations (550-1500 kc.).
(b) Visual broadcast.
(1) Television broadcast.
(2) Facsimile broadcast.
(c) Special broadcast (1500-1600 kc.).
(d) International broadcast.
(e) Relay broadcast.
(f) High frequency broadcast.
(g) Experimental broadcast.
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS JULY S, 6, 7, 8, 1936
1361
(h) Other classes not now recognized in the Rules and Regu¬
lations.
6. Fixed Services
(a) Point-to-point telegraph stations.
(b) Point-to-point telephone stations.
(c) General and special experimental stations in the fixed
services.
(d) Other fixed services not now licensed by the Commission.
7. Coastal, Marine Relay and Ship Services.
(a) Coastal harbor and ship (harbor) stations.
(b) Coastal telephone and ship (telephone) stations.
(c) Coastal telegraph, marine relay and ship (telegraph)
stations.
(d) General and special experimental stations operating in the
maritime service.
(e) Other classes not now licensed by the Commission.
8. Aviation Services
(a) Aircraft stations.
(b) Airport stations.
(c) Aeronautical stations.
(d) Aeronautical point-to-point stations.
(e) Airway radio obstruction marker stations.
(f) General and special experimental stations in the aviation
service.
(g) Other classes not now licensed by the Commission.
9. Emergency Services
(a) Municipal police stations.
(b) State police stations.
(c) Zone and interzone police stations.
(d) General and special experimental stations operating as
police stations.
(e) Marine fire stations.
(f) Special emergency stations.
(g) Other general and special experimental stations operating
in the emergency service.
(h) Other emergency services not now licensed by the Com¬
mission.
10. Amateur Service
11. Miscellaneous Services
(a) Geophysical.
(b) Motion picture.
(c) General and special experimental stations not operating in
any of the aforementioned services.
(d) Other classes not identified with a particular service now
licensed by the Commission.
DENIAL OF NEW STATION RECOMMENDED
Carl S. Taylor has applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new broad¬
casting station at Dubois, Pa., to use 780 kilocycles, 250 watts and
daytime operation.
Examiner R. H. Hyde, in Report No. 1-235 has recommended
that the application be denied. He found that “the evidence re¬
lating to the application * * * particularly with reference to the
experience and financial qualifications of the applicant and the
type of programs to be rendered, does not afford reasonable as¬
surance that the granting of the application would serve public
interest, convenience or necessity.”
TEXAS BROADCASTERS OPPOSE HIGH POWER
Resolution of Texas Broadcasters Association
WHEREAS, it is the understanding of this organization that
certain applications are now pending before the Federal Commu¬
nications Commission and others are contemplated, wherein licenses
or permits are being sought authorizing the establishment of radio
broadcasting stations with transmission power of five hundred
(500) kilowatts; and
WHEREAS, such stations on account of their excessive power
cover the entire United States; and
WHEREAS, on account of the excessive cost to establish such
stations they can only be established by large accumulations of
capital and in small numbers compared with the present number
of stations of lesser power now being successfully operated; and
WHEREAS, such powerful stations tend to monopolize the
radio broadcasting industry to the detriment and injury of the
approximate six hundred thirty (630) independent broadcasting
stations now established and representing to the owners and op¬
erators thereof valuable investments; and
WHEREAS, there is no necessity for stations of such excessive
power as the country could be properly and efficiently furnished
with broadcasting service without the issuance of any further
license for such super-power stations.
THEREFORE, BE IT RESOLVED by the Texas Broadcasters
Association, in general meeting assembled at Fort Worth, Texas,
that in view of the facts related above and the certainty of the
economic injury and ultimate economic destruction of the numerous
presently established independent broadcasting stations which will
result in the establishment of even a limited number of stations
of such tremendous power, that Texas Broadcasters Association
earnestly and strenuously objects to and protests the granting by
the Federal Communications Commission of any other or further
licenses or permits for stations of power in excess of fifty (50)
kilowatts; and
BE IT FURTHER RESOLVED that the Secretary of this or¬
ganization be instructed to furnish a certified copy of this Reso¬
lution to each of the members of the Federal Communications
Commission with request that they and each of them refuse to
grant any other or further such permits or licenses.
T. FRANK SMITH,
Chairman.
ATTEST:
JAMES R. CURTIS,
Secretary,
POWER INCREASE DENIAL RECOMMENDED
Broadcasting station KFOX, Long Beach, Cal., operating on a
frequency of 1250 kilocycles, unlimited time, has applied to the
Federal Communications Commission to increase its daytime power
to 5,000 watts. It now operates with 1,000 watts day and night.
Examiner Ralph L. Walker in Report No. 1-233 recommends
that the application be denied. The Examiner found that:
“The granting of this application would permit the applicant
station to approximately double its present good service area dur¬
ing daytime hours. By far the greater part of the population which
would be served is located in the Los Angeles area wherein no
need exists for additional program service. No such need is shown
for additional program service in the area east and southeast of
Long Beach as would warrant increasing the broadcast service now
provided in the Los Angeles area.”
MOUNTAIN STATES RADIO REVENUE
Total receipts of the 42 broadcast stations in the Mountain
states from sales of radio time during 1935 amounted to $1,760,684
according to a statement of the Bureau of the Census, Department
of Commerce, in the fourth report of the new census of business
series on the broadcasting business.
TWO NEW STATIONS RECOMMENDED
Four applications have been filed with the Federal Communi¬
cations Commission for stations to be erected in California, two
of which were to be located at Sacramento, one at Santa Rosa and
one at Santa Cruz. All applications were for 1310 kilocycles, un¬
limited time and two at 100 watts, 250 watts LS, one for 100
watts and one for 250 watts.
Examiner Melvin H. Dalberg in Report No. 1-234 recommended
that the application of William B. Smullin for a station at Sacra¬
mento be denied; that the application of the Press Democrat Pub¬
lishing Company, for a station at Santa Rosa be denied; that the
application of B. A. Thompson, for a station at Santa Cruz be
granted; and that the application of Howard N. Mitchell, for a
station at Sacramento be granted. He found that the operation
of the proposed stations would not cause interference with existing
facilities.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Pictorial Paper Package Corp., Aurora, Ill. (2-2181, Form A-2)
Inland Steel Company, Chicago, Ill. (2-2182, Form E-l)
Sunray Oil Corp., New York City. (2-2183, Form A-2)
Tilo Roofing Company, Stratford, Conn. (2-2184, Form A-2)
Consolidated Aircraft Corp., San Diego, Calif. (2-2186, Form
A-2)
1362
L. C. Smith & Corona Typewriters, Inc. (2-2190, Form A-2)
The Gabriel Company, Cleveland, Ohio. (2-2191, Form A-2)
Illinois Zinc Company, Chicago, Ill. (2-2192, Form A-2)
Duro-Test Corp., New York City. (2-2195, Form A-l)
George H. Frederick Distilleries, Inc., Harrison, Ohio. (2-2196,
Form A-l)
Comstock-Dexter Mines, Inc., Prescott, Ariz. (2-2198, Form
A-l)
King-Seeley Corp., Ann Arbor, Mich. (2-2200, Form A-2)
Temblor Oil Company, Boston, Mass. (2-1991, Form A-l)
Wieboldt Stores, Inc., Chicago, Ill. (2-2202, Form A-2)
Oklahoma Natural Gas Company, Tulsa, Okla. (2-2203, Form
A-l)
Oklahoma Natural Gas Company, Tulsa, Okla. (2-2204, Form
A-l)
Securities Acceptance Corp., Omaha, Nebr. (2-2205, Form A-2)
The Standard Products Company, Cleveland, Ohio. (2-2206,
Form A-l)
Driver-Harris Company, Harrison, N. J. (2-2207, Form D-lA)
Driver-Harris Company, Harrison, N. J. (2-2208, Form A-2)
Williams Oil-O-Matic Heating Corp., Bloomington, Ill. (2-2209,
Form A-2)
The Arundel Corporation, Baltimore, Md. (2-2210, Form A-2)
Hal Price Headley et al., Lexington, Ky. (2-2211, Form F-l)
San Antonio Milam Building, Inc., San Antonio, Texas. (2-2212,
Form E-l)
Bradshaw Mines, Inc., Prescott, Ariz. (2-2213, Form A-l)
New Park Mining Company, Salt Lake City, Utah. (2-2215,
Form A-l)
North American Acceptance Corp., Chicago, Ill. (2-2216, Form
A-l)
Snowden Colorado Mines, Inc., Denver, Colo. (2-2217, Form
A-l)
Seasoned Investments, Inc., Philadelphia, Pa. (2-2218, Form
A-l)
Metropolitan Investments, Inc., Philadelphia, Pa. (2-2219,
Form A-l)
Summit Gold Mining Corp., Vancouver, B. C. (2-1576, Form
A-l)
CHANGES RECOMMENDED FOR WQDM
Broadcasting Station WQDM, St. Albans, Vt., applied to the
Federal Communications Commission to change its frequency from
1370 to 1390 kilocycles, to increase its power from 100 to 1,000
watts, and for certain specified hours of operation.
Examiner Melvin H. Dalberg, in Report No. 1-236, has recom¬
mended that the application be granted. He found that there
exists a need for additional daytime radio service in the area pro¬
posed to be served. Also, “it has been demonstrated that there
will be a considerable increase in advertising patronage to the
applicant station should the present application be granted.” The
Examiner found also that no interference would result with any
other existing station if the application were granted.
NEW CALIFORNIA STATION RECOMMENDED
Miles J. Hansen applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new broad¬
casting station at Fresno, Calif., to use 1420 kilocycles, 100 watts
power, and unlimited time on the air. Julius Brunton & Sons
Company also applied to the Commission for the erection of a
new station at Fresno to use 980 kilocycles, 250 watts and daytime
operation.
Chief Examiner Davis G. Arnold, in Report No. 1-237, recom¬
mends that the application of Miles J. Hansen be dismissed with
prejudice on motion of the counsel for the Commission and that
the application of Brunton & Sons be granted. Hansen was not
ready when his case was called and asked for continuance.
The Examiner states that there is need for additional daytime
radio service at Fresno and that the operation of the new proposed
station would not cause interference with any existing station.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2825. Use by Cushing Refining & Gasoline Co., Cush¬
ing, Okla., of false and misleading advertising to prejudice the
public against “Ethyl” gasoline and to build up a preference for
its own competitive product is alleged in a complaint issued against
that company. The respondent corporation has branch offices in
Minneapolis.
“Ethyl” gasoline, which is produced by adding the chemical
known as tetraethyl lead, or “Ethyl,” to gasoline made by the
distillation or “cracking” processes, has never been manufactured
or sold by the respondent corporation, the complaint charges.
Tetraethyl is said to be the only chemical used commercially for
mixture with gasoline for the purpose of eliminating the “knock¬
ing” encountered in high compression motors when fueled with the
usual straight run gasoline. *
Advertising in newspapers and other publications, and in radio
broadcasts, the respondent corporation is alleged to unfairly dis¬
parage and to discourage the use of “Ethyl” gasoline by making
representations which cause purchasers to believe that gasoline
treated with tetraethyl lead is dangerous, poisonous, injurious to
the life or health of users, and that the respondent’s product is
safe and superior to gasoline chemically treated.
The complaint alleges that mixing tetraethyl lead with gasoline
produces a high grade anti-knock motor fuel which functions in
an exceedingly efficient manner, is entirely safe when used as such,
is no more poisonous or dangerous than any other gasoline, and
is not narcotic in effect.
Although the respondent corporation allegedly represents that
all of its gasoline is made by a new method, the complaint charges
that only about one-third of it is produced by the new “cracking”
process, the balance being made by straight distillation, one of the
oldest methods known in the petroleum refining industry.
Among purchasers of gasoline, the complaint alleges, one of the
controlling influences is the popular opinion as to the value, de¬
sirability, effectiveness and safety of “Ethyl” as compared with
other grades, and the respondent corporation, by its representa¬
tions, is said to unfairly divert trade to itself and to other sellers
of straight or “cracked” gasoline from competitors who sell “Ethyl.”
No. 2827. Charging unfair competition in the sale of wood
fiber wall and counter coverings made to resemble tile and marble,
a complaint has been issued against Marsh Lumber Co., trading
as Marsh Wall Tile Co., 535-611 Tuscarawas Ave., Dover, Ohio,
alleging violation of the Federal Trade Commission Act.
Wall coverings for use in houses or other buildings, and counter
coverings for soda fountains and bars, were made by the respondent
company by a process of exploding pine wood chips with high
pressure steam, treating the resulting mass with oil, welding it
together and compressing it into sheets by subjection to high pres¬
sure in steam heated hydraulic presses, according to the complaint.
This material was glazed with lacquer and processed so as to pro¬
duce the appearance of tile or marble, respectively, it is alleged.
The complaint charges that purchasers observing the respondent
company’s installations of wall and counter coverings containing
graining and other outward appearances of marble and markings
imitating mortar joints in tile construction, were led to believe that
such installations were actually tile or marble and not a wood
product.
No. 2828. Charging unfair competition in the sale of furs, fur
coats and fur trimmed garments, a complaint has been issued
against Mandre, Inc., 1400 Broadway, New York City, and
Louis C. Rosenblatt, Arthur J. Rosenblatt and H. Edelman,
officers of the corporation. The complaint also names as respond¬
ents the same firm and individuals trading as M. Brooks & Co.,
1109 G St., N. W., Washington. The New York firm is a manu¬
facturer and dealer and the Washington company a dealer.
Mandre, Inc., according to the complaint, shipped to M. Brooks
& Co., Washington, and to other dealers, furs, coats and pieces
marked as “Hudson Seal,” “Russian Leopard,” “Kidskin,” “Mink,”
and by other similar designations, these words appearing in bold,
black letters and followed by small type conveying the words
“dyed coney,” “dyed muskrat,” or “dyed marmot.”
The respondents also are alleged to have advertised in magazines,
newspapers and folders, printing the advertised name of a garment,
such as “Imported French Seal Coats,” in large type followed by
explanatory words like “dyed coney” in small type and in paren¬
theses. In some instances the advertised name of the fur was not
accompanied by qualifying words.
These labels and advertisements are alleged to have been false,
deceptive and misleading, as the coats labeled and advertised with
names of high priced furs were in fact made from the skins of
rabbits, muskrats, groundhogs and other inferior skins cured,
treated and dyed to resemble higher quality skins like seals,
panthers, leopards and others.
1363
No. 2829. Harold L. Rothschild, trading as Coronado Man¬
ufacturing Co., 500 Robert St., St. Paul, Minn., has been named
respondent in a complaint alleging unfair competition in the sale
of a line of cosmetics and toilet preparations under the brand
name “Coronet.”
In the financial and business opportunity columns of newspapers,
the respondent is said to advertise for men with capital to invest
to act as his managers or representatives, and to falsely represent
in such advertisements the size of his business, the length of time
it has been established, and the profit to be derived from money
invested in it.
In order to induce applicants who answer these advertisements
to enter into an agreement to purchase his “Coronet” merchandise
for resale, the respondent, the complaint alleges, makes further
representations which tend to mislead such applicants into the
belief that there is a substantial demand for “Coronet” products
and that they will be given exclusive territories where they will
have no competition ; that they will be furnished additional supplies
of “Coronet” products on a profit-sharing plan if they fulfill the
terms of the agreement; that managers and other representatives
of the respondent have made substantial profits selling his goods,
and that any man, without experience, can do the same, and that
money invested will be refunded when unsold merchandise is re¬
turned.
No. 2830. A complaint charging unfair competition in viola¬
tion of section 5 of the Federal Trade Commission Act has been
issued against Udga Incorporated, Foot-Schulz Building, St.
Paul, Minn., and William and Mary Fraser, engaged in the sale
of “Udga Treatment” tablets, offered as a remedy for various
stomach disorders, including those caused by hyperacidity. The
Frasers are said to own virtually all of the capital stock of Udga
Incorporated.
In newspaper and magazine advertisements and through the use
of purported testimonial letters sent to prospective customers, the
respondents are alleged to make representations tending to create
the belief that “Udga Treatment” has a curative value for all the
stomach ailments specified, when, according to the complaint, the
product has no therapeutic or curative value and cannot remedy
such ailments.
No. 2831. False and exaggerated claims on the part of Buno
Co., Inc., 507 Green St., Philadelphia, as to the remedial or cura¬
tive qualities of “Buno”, advertised and sold as a competent treat¬
ment for skin and scalp ailments, are alleged in a complaint issued
against that company.
Advertising over the radio and in newspapers, magazines and
circulars, the respondent company is said to represent that its
product in all cases keeps the skin clear and healthy, gives instant
relief from sunburn and insect bites, and is an effective remedy
for dandruff, falling hair, eczema, athlete’s foot, psoriasis, and all
skin eruptions. The complaint charges that the product will not,
in all cases, cure or effectively relieve the skin and scalp diseases
named.
By reason of the respondent company’s practices, held to con¬
stitute unfair competition in violation of Section 5 of the Federal
Trade Commission Act, trade is alleged to be unfairly diverted to
the respondent from competitors who do not misrepresent their
products.
No. 2832. False and misleading representations in the sale of
packaged mineral salts and other kindred products, are alleged in
complaint charging Roxie Thorson, of Soap Lake, Wash.,
trading as Thorson’s Soap Lake Products Co., with unfair
methods of competition in violation of the Federal Trade Com¬
mission Act.
Selling “Thorson’s Soap Lake Salts”, “Thorson’s Soap Lake Lini¬
ment” and other products obtained from the waters of Soap Lake,
the respondent is alleged to have advertised that her products will
prevent and cure or are beneficial in the treatment of many diseases
such as stomach and kidney troubles, rheumatism, skin diseases,
pyorrhea, high blood pressure and arthritis.
The complaint charges that the respondent’s representations are
exaggerated, misleading and untrue, and that in fact the use of
these packaged products will not prevent and cure, nor are they
beneficial in the treatment of the various diseases mentioned.
No. 2833-2834. Unfair competition through the use of a game
of chance to promote the sale of candy is alleged in complaints
against two Seattle, Wash., corporations, Imperial Candy Co.,
800 Western Ave., and Rogers Candy Co., 4547 University Way.
The complaints charge each company sells to wholesale and
retail dealers assortments of candy so packed and assembled as to
involve the use of a lottery scheme when the candy is resold to
consumers. While the respondent companies’ sales plans and as¬
sortments of candy vary in certain details, each features a method
whereby the purchaser of a chance on a punch board or push card
may win as a prize a large piece or box of candy or other article
of merchandise, according to the complaints.
Use of the lottery method by the respondent companies is said
to constitute a practice contrary to public policy and to cause
diversion of trade to the respondents from competitors who do
not resort to the same or similar schemes in selling their products.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01376. Charles Endorf, 404 North Wells St., Chicago,
trading as Enco Products, agrees to stop advertising that “Pro-
tecto Remedies” are made in a laboratory under supervision of
registered pharmacists or compounded in accordance with the most
advanced medical practices; that they are a competent or adequate
remedy for relief of pain in certain ailments of women ; that they
are safe, non-irritating and non-poisonous, and other representa¬
tions.
No. 01377. S. Cheifetz and M. A. Jacobs, trading as Lenox
Sales Co., 303 Fourth Ave., New York City, selling cosmetics
and novelties, admit that their commodities are not offered free to
persons responding to their advertisements, as was alleged, but are
sold to the general public at regular market values or are given in
payment for services rendered. The respondents advertised “Free
Gifts,” and “How to get watches, cameras, cocktail sets, 7-piece
bed sets and many other gifts, without any cost to you.” They
agree to cease advertising that any article or premium is a gift or
is free, if the receipt of such article is contingent on the recipient’s
furnishing money or giving services.
No. 01378. Wroblewski Laboratories, Ltd., 55 Keap St.,
Brooklyn, agrees to discontinue advertising that “Kalwaryjskie
Wino Lecznicze” is a competent treatment or effective remedy for
stomach trouble, headaches, sluggishness, blotchy skin and other
ailments ; that its use will prevent loss of health and vivacity ; that
the wine is a remedy for colds, and other representations.
No. 01379. Madam White Cosmetics, Inc., 2526 Nicollet
Ave., Minneapolis, in the sale of “Madam White Cosmetics,”
agrees to ban representations that sales agents for these products
make in times of depression more money than the average pro¬
fessional person in normal times; that there is in “your community”
a large list oi permanent customers who will not buy any cosmetics
except Madam White’s, and that a $15.95 demonstration set is
sent “actually free” to sales persons, when, in fact, a cash deposit
is required to obtain it.
No. 01380. E. Haldeman-Julius, trading as Haldeman-
Julius Publications, and The American Freeman, Girard,
Kans., in selling subscriptions to the American Freeman magazine
and a booklet entitled “The Rhythm Method of Natural Birth
Control,” agrees to discontinue advertising that the booklet gives
a complete description of the Ogino-Knaus method; that this
method has been officially approved by the Catholic Church; that
the booklet is not for sale or that it may be procured only through
subscription to the American Freeman magazine, and other similar
representations.
No. 01381. Marshak Maltmolak Co., Inc., 705 Driggs Ave.,
Brooklyn, agrees to cease sponsoring advertisements to the effect
that Marshak’s Improved Malted Milk will improve the appetite,
unless these assertions are expressly limited to cases in which the
lack of appetite is due to a Vitamin B deficiency; that this malted
milk, because of the iron content, or for any other reason, con¬
stitutes a competent treatment or effective remedy for anemia, or
will prevent illness of children from developing to any “stage of
anemia,” unless the allegation is limited to cases of simple nutri¬
tional anemia caused by deficiency of iron in the diet. The re¬
spondent admitted in its stipulation that most serious cases of
anemia arise from conditions other than a deficiency of iron in the
daily diet.
No. 01382. The Wyeth Chemical Co., 15 Exchange Place,
Jersey City, N. J., selling “Freezone” for the removal of corns,
agrees to ban the representation that this product will remove
corns immediately, relieve pain of corns instantly, and remove corns
without soreness or irritation. In its stipulation, the respondent
company admits that removal of corns by any method is not totally
devoid of soreness or irritation, and that repeated applications of
its preparation and a certain amount of time are necessary to
eliminate corns.
No. 01383. E. L. Knowles, Inc., 222 Hancock St., Spring-
field, Mass., agrees to cease asserting that its product, “Rub-ine,”
will give quick relief from stubborn aches and pains; has un-
1364
usual penetrating powers, and is an effective agent for the treat¬
ment of stiff muscles or muscular lameness, unless this latter asser¬
tion is limited to conditions due to exposure or exercise. The
respondent will also cease representing that “Rub-ine” is a com¬
petent remedy for aching feet, athlete’s foot, mosquito bites, ivy
poisoning, and other specified ailments.
No. 01384. The Kite Product Co., 123 South State St.,
Salt Lake City, Utah, agrees to quit making the representation
that its product, “Stop-Rite,” will make old automobile brakes
new or as good as new; that it is more effective than new brake
lining, and will eliminate squeaks, squeals, brake adjustments, and
prevent slipping, grabbing and drum scoring. The respondent also
agrees to stop alleging that its product will make brakes serviceable
for 20,000 miles or any other definite distance in excess of the
mileage that has been demonstrated by reliable scientific tests.
Two individuals selling cosmetics and household articles in inter¬
state commerce have entered into stipulations to cease and desist
from unfair advertising practices.
No. 1675. Wayne Heckman, trading as Moon Glow Perfume
Co., 709 West Wayne St., Maumee, Ohio, agrees to stop use of
advertising phrases which imply that a wrist watch will be given
as a prize to those who “simply sell 12 bottles of our American
Girl Perfume at 25 cents a bottle and remit,” when in fact, accord¬
ing to the stipulation, the salesman, to obtain the wrist watch,
must make further sales efforts or pay additional money.
Heckman also stipulates that he will not advertise “A free gift
for your customers,” implying that valuable articles are to be given
away, when in fact their cost is included in the price paid by the
customer for perfume, and, to make use of an alleged gift, the
customer must spend additional money, although this requirement
is not disclosed in the advertisement.
No. 1676. Engaged as a wholesaler of household utilities, cos¬
metics, drugs and similar commodities, Joseph Auster, trading as
General Sales & Drug Co., 720 West Madison St., Chicago,
agrees to discontinue publishing fictitious, exaggerated representa¬
tions of selling value in his catalogues and price lists. He will also
stop asserting that he manufactures the merchandise he sells, and
will discontinue using the word “extracts” in a manner implying
that the products referred to are extracts, when this is not true.
No. 1678. Stehli Silks Corporation, 1372 Broadway, New
York City, silk manufacturer, has entered into a stipulation to
discontinue false and misleading advertising in the sale of its
products.
The stipulation sets out that the respondent corporation adver¬
tised under its trade name or under the words “Stehli Silks” certain
rayon products resembling silk and designated “Laughing Water”
and “Sugar and Spice,” but that the true character of the materials
so designated was not disclosed in such advertisements.
Under the stipulation, the respondent corporation will cease
using the word “Silks,” independently or as part of its trade name,
in advertising matter in which fabrics described and offered for
sale are not composed of silk.
No. 1679. N. Wallach & Sons, Inc., 239 Canal St., New
York City, agrees to desist from use of the word and figures “585
Fine” in branding dental products not containing 585/1000 of gold
content, and from use of the brand “22 Karat” to designate prod¬
ucts not made of 22 karat gold. The respondent corporation
stipulates it will not use any of the words or figures specified in
any manner tending to deceive purchasers as to the quantity or
quality of the gold content of its products.
No. 1680. L. D. Bader, trading as L. D. Bader & Son Candy
Co., 567 East South St., Akron, Ohio, signed an agreement to
discontinue any plan for selling his candy products which involves
use of a lottery or scheme of chance, whereby an article is given
as a prize in consideration of the purchase of any other article.
The respondent also will cease transporting in interstate commerce
advertising matter for use of dealers in soliciting the sale of his
candy products by means of a lottery method.
No. 2613. The New York State Wholesale Confectionery
Associations, Inc., with headquarters in Syracuse, eight local or
regional associations, and the Empire State Candy Club, Inc.,
a candy brokers’ and agents’ organization with headquarters in
Utica, have been served with an order to cease and desist from
combination and conspiracy in restraint of trade and certain other
practices in the sale of candy in interstate commerce.
The eight local or regional associations, occupying an important
position in the national candy trade, particularly in the Eastern
States, are: Rochester Area Wholesale Confectioners Association,
Rochester, N. Y. ; Capital District Wholesale Confectioners Asso¬
ciation, Inc., Troy, N. Y. ; Mohawk Valley Wholesale Confectioners
Association, Utica, N. Y.; Central New York Wholesale Confec¬
tionery Distributors, Inc., Syracuse, N. Y.; Northern New York
Wholesale Confectioners Association, Inc., Watertown, N. Y.;
Hudson Valley Candy Distributors Association, Newburgh, N. Y.;
Southern Tier Candy Distributors Association, Wellsboro, Pa.; and
Greater Buffalo Wholesale Confectioners Association, Buffalo, N. Y.
The order directs the State and regional association respondents
to cease and desist from combining, conspiring or uniting in a
common course of action among themselves or with others, to
prevent competing dealers in confectionery, candy or allied prod¬
ucts from obtaining such products directly from the manufacturers;
from publishing so-called “white lists” containing the names of
“recognized” dealers, members, or respondent associations, includ¬
ing only so-called legitimate, regular or “recognized” dealers,
brokers, distributors or wholesalers; conspiring or uniting to fix
uniform prices at which members of the associations or others
should sell, and using any other cooperative or coercive means to
suppress competition in price, or in the sale and distribution of
their products in New York, Pennsylvania, or any other area.
No. 2730. An order to discontinue false representations in con¬
nection with the sale of cosmetic preparations has been entered
against Keta Terrell Sloan, trading as Beta Terrell, with her
principal place of business at 513 Oakdale Ave., Chicago, and a
branch at 50 East 10th St., New York City.
The order directs the respondent to cease advertising in news¬
papers, magazines, radio broadcasts, or in any other way, that her
cosmetic products, among other things, serve as a food for, nourish,
or restore elasticity to the skin, muscles, or tissues; eliminate dry¬
ness from the skin and remove wrinkles therefrom, and penetrate
the skin beyond the epidermis so as to reach the underlying muscles
and tissues.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
No meeting of the Broadcast Division of the Commission was
held on its regular meeting day, Tuesday. It will be held later
this week.
HEARING CALENDAR
Monday, June 15
Informal Engineering Conference
Re: the allocation of frequencies above 30,000 kc. and the
review of present frequency allocations.
APPLICATIONS RECEIVED
First Zone
WSPR — Quincy A. Brackett, Lewis B. Breed, & Edmund A. La-
1140 port, d/b as Connecticut Valley Broadcasting Co., Spring-
field, Mass. — License to cover construction permit (Bl-P-
469) for a new station.
WGNY — Peter Goelet, Chester Township, N. Y. — Construction
1210 permit to install new equipment, move transmitter from
Robert Goelet Estate, Chester Township, New York, to
at or near Newburgh, New York, and move studio to site
to be determined, Newburgh, New York.
WOCL — A. E. Newton, Jamestown, N. Y. — Construction permit
1210 to make changes in equipment,' to comply with Rule 132
and increase power from 50 watts to 100 watts.
WEBR — Howell Broadcasting Co., Inc., Buffalo, N. Y. — Voluntary
1310 assignment of license from Howell Broadcasting Co., Inc.,
to WEBR, Incorporated.
WBNX — Standard Cahill Co., Inc., New York, N. Y. — Modifica-
1350 tion of construction permit (Bl-P-608) for new equipment,
increase in power and move of transmitter, requesting ap¬
proval of directional antenna for day and night use and 1
kilowatt power at present tranmitter site.
W8XX — Howell Broadcasting Co., Inc., Portable-Mobile — Assign¬
ment of license from Howell Broadcasting Co., Inc., to
WEBR, Inc.
W2XIS — Standard Cahill Co., Inc., Bronx, N. Y.— Construction
permit for a general experimental station to be operated on
31600, 35600, 38600, 41000 kc., 200 watts.
W8XY — Howell Broadcasting Co., Inc., Portable-Mobile — Assign¬
ment of license from Howell Broadcasting Co., Inc., to
WEBR, Inc.
W10XIP — Bamberger Broadcasting Service, Inc., Portable-Mobile
— Modification of construction permit to make changes in
equipment. Amended: To show increase in power to 10.5
watts and extend commencement and completion dates.
1365
WlOXIP — Bamberger Broadcasting Service, Inc., Portable-Mobile
— License to cover above.
NEW — Eugene Meyer & Co., d/b as The Washington Post, Wash¬
ington, D. C. — Construction permit for a new general ex¬
perimental station to be operated on 26100 kc., 100 watts.
Second Zone
WDBJ — Times-World Corporation, Roanoke, Va. — Authority to
930 transfer control of corporation from J. B. Fishburn to
Members of Family, 400 shares common stock.
WHIS — Daily Telegraph Printing Co., Bluefield, W. Va. — Modifi-
1410 cation of license to change power from 250 watts, 500 watts
day to 500 watts, 1 KW day.
WCHV — Community Broadcasting Corp., Charlottesville, Va. —
1420 Authority to transfer control of corporation from W. B.
Brown to other parties. Amended: Authority for relin¬
quishment of control by W. B. Brown.
NEW — Associated Radiocasting Corp., Portable-Mobile — Con¬
struction permit for a new broadcast pickup station to be
operated on 1622, 2058, 2150, 2790 kc., 200 watts.
NEW — Associated Radiocasting Corp., Portable-Mobile — License
to cover above.
NEW — Smerda’s Music House, Inc., Cleveland, Ohio — Construc¬
tion permit for a new general experimental station to be
operated on 31600, 35600, 38600, 41000 kc., 35 watts.
W8XHG — Radio Air Service Corp., Portable-Mobile — License to
cover construction permit for a new general experimental
station to be operated on 31100, 34600, 37600, 40600 kc.,
10 watts.
Third Zone
WFLA-WSUN— Clearwater Chamber of Commerce & St. Peters-
620 burg Chamber of Commerce, Clearwater, Fla. — Modifica¬
tion of license to change night time field intensity from 10
millivolts to 50 millivolts per meter.
KTHS — Hot Springs Chamber of Commerce, Hot Springs Na-
1040 tional Park, Ark. — Voluntary assignment of license from
Hot Springs Chamber of Commerce to Radio Enterprises,
Inc.
NEW — Bayou Broadcasting Co., Houston, Texas — Construction
1210 permit for a new station to be operated on 1210 kc., 100
watts, unlimited time. Amended: To change hours of opera¬
tion from unlimited time to daytime.
WJDX — Lamar Life Insurance Co., Jackson, Miss.— Authority to
1270 determine operating power by direct measurement of an¬
tenna.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla. — Modifica-
1420 tion of construction permit (B-P-73S) for new equipment,
increase in power and move of transmitter, requesting
changes in authorized equipment, approval of transmitter
site at Highland and Bryan, Shawnee, Oklahoma, aonroval
of antenna and extension of commencement and comple¬
tion dates.
WABG — Memphis Commercial Appeal, Inc., Portable-Mobile — ■
License to cover construction permit for a new broadacst
pickup station to be operated on 1606, 2020, 2102, 2760
kc., 35 watts.
Fourth Zone
WGBF — Evansville on the Air, Inc., Evansville, Ind. — Construc-
630 tion permit to change hours of operation from share-WOS.
KFRU night, simultaneous day to unlimited time, using
directional antenna and to make changes in antenna.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
1230 Construction permit to make changes in equipment.
KGNO — The Dodge City Broadcasting Co., Inc., Dodge City,
1340 Kans. — Construction permit to install new equipment and
comply with Rule 132.
WMIN — Edward Hoffman, St. Paul, Minn. — Modification of con-
1370 struction permit (B4-PB-3310) to make changes in author¬
ized equipment, for approval of antenna and to change pro¬
posed transmitter site from 80 E. 6th St. to corner Syndicate
St. and St. Anthony Ave., Lot 10, Block 4, Midway Indus¬
trial Division, St. Paul, Minn.
WGRC — North Side Broadcasting Corp., New Albany, Ind. —
1370 Modification of construction permit (B4-P-494) for a new
station, requesting approval of antenna, change requested
studio site from Vincennes and Spring Sts. to 10th and
Spring Sts., New Albany, Ind.. and for approval of trans¬
mitter site at McCullough Pike, near Silver Creek, New
Albany, Ind.
NEW — Robert Raymond McCulla, Oak Park, Ill. — Construction
1500 permit for a new station to be operated on 1500 kc,, 100
watts, unlimited. Amended to change time from unlimited
to daytime. (Amendment accepted 5-29-36 with prejudice,
hearing postponed 6 months.)
NEW — Peoria Broadcasting Co., Portable-Mobile. — License to
cover construction permit for a new general experimental
station.
NEW — Peoria Broadcasting Co., Portable-Mobile. — Construction
permit for a new general experimental station to be operated
on 31100, 34600, 37600, 40600 kc., 25 watts.
Fifth Zone
KEHE — Evening Herald Publishing Co., Los Angeles, Calif. —
780 Modification of construction permit (B5-P-599) for changes
in equipment and move of transmitter and studio, requesting
approval of antenna and approval of transmitter site near
Baldwin Hills, Los Angeles, Calif.
KCRJ — Charles C. Robinson, Jerome, Ariz. — Construction permit
1310 to install a new transmitter and antenna system and change
hours of operation from specified hours to daytime.
KGIR — KGIR, Inc., Butte, Mont. — Construction permit to install
1340 new equipment, also vertical antenna, and move transmitter
and studio from 121 West Broadway, Butte, Mont., to
west of city, Butte, Mont.
KVL — KVL, Incorporated, Seattle, Wash. — Construction permit
1370 to make changes in equipment, change frequency from
1370 kc. to 1070 kc., power from 100 watts to 250 watts
and hours of operation from Share-KRKO to daytime only.
Amended: Antenna system to be determined subject to
Rule 131.
NEW — Bottled Gas Corporation of California, San Diego, Calif. —
1420 Construction permit for a new station to be operated on
1420 kc., 100 watts, unlimited time.
NEW — Jesse G. Bourus, Everett, Wash. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, 250
watts day, unlimited time. Consideration under Section
307 (b).
NEW — R. E. Moore & Mrs. K. E. Moore, d/b as Raymond Moore,
Los Angeles, Calif.— Construction permit for a new experi¬
mental visual broadcasting station to be operated on 42000-
560000 kc., 240 watts.
NEW — Intermountain Broadcasting Corp., Portable-Mobile — Con¬
struction permit for a new broadcast pickup station to be
operated on 1606, 2020, 2102, 2760 kc., 75 watts.
1366
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - ■ No. 29
JUNE 18, 1936
IN THIS ISSUE
Effective Date of Rules Postponed
Securities Act Registrations . ; .
Caution Necessary in Performance of Song Entitled “Blue
Eyes” . .
Corrected Broadcast Station List .
Quota Facilities As of June 5 .
Federal Trade Commission Action .
Federal Communications Commission Action .
EFFECTIVE DATE OF RULES POSTPONED
The Broadcast Division of the Federal Communications Com¬
mission has postponed the effective date of Rules 970 to 1075
inclusive. In this connection the Commission has made the follow¬
ing official statement:
It appears that at the informal engineering conference held at
the offices of the Commission on June 8, 1936, with reference to
rules and regulations pertaining to relay broadcast, international
broadcast, visual broadcast, high frequency broadcast, and experi¬
mental broadcast stations, a number of interested parties had not
received these rules and regulations in sufficient time to enable them
to determine whether or not their rights were materially affected.
While the expressions of the various persons represented at the
conference were, with one exception, unanimously in favor of the
adopted change in Rule 229 concerning the assignment of frequen¬
cies to services, the detailed Rules 970 to 1075 inclusive, applying
to the aforementioned services, had not been received in sufficient
time to warrant definite decision at the conference.
Consequently, the Broadcast Division this date suspended the
effective date of Rules 970 to 1075 inclusive, for one month, so
that instead of these rules becoming effective July 1, 1936, in ac¬
cordance with the previous decision of the Division, they will be¬
come effective August 1, 1936.
In the meantime, interested parties are invited to submit to the
Commission in writing prior to July 20, 1936, any constructive
suggestions they may desire to make with respect to the efficacy
of the proposed rules and regulations mentioned herein.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities and Exchange Commission under the Securities Act:
John Gribbel, et. al., Philadelphia, Pa. (2-2221, Form F-l).
Associated American Underwriters Corp., Dover, Del. (2-2222,
Form A-l).
North Western Refrigerator Line Co., Chicago, Ill. (2-2224,
Form A-2).
Naph-Sol Refining Co., North Muskegon, Mich. (2-2225, Form
A-l).
Atlantic Realty Company, Atlanta, Ga. (2-2226, Form A-l).
Page
1367
1367
1367
1369
1371
1372
1373
NOTICE
A few of the members have failed to furnish
names of Delegate or Alternate for the NAB Con¬
vention. Please return cards at once that our rec¬
ords may be complete.
Phoenix Brass Fittings Co., Irvington, N. J. (2-2227, Form A-2).
American Power Cycle Corp., Frederick, Md. (2-2228, Form
A-l).
Seaboard Finance Corp., Washington, D. C. (2-2230, Form A-l).
Industrial Securities Corp., Middletown, Conn. (2-2233, Form
A-2).
Consolidated Biscuit Company, Mt. Vernon, Ill. (2-2234, Form
A-2).
Atlantic Oil Investment Corp., Tulsa, Okla. (2-2235, Form A-l).
Income Estates of America, Inc., Philadelphia, Pa. (2-2236,
Form C-l).
California Comstock Gold Mines, Ltd., San Bernardino, Cal.
(2-2237, Form A-l).
Otter Tail Power Company, Fergus Falls, Minn. (2-2238, Form
A-2).
Franklin Rayon Corp., Providence, R. I. (2-2239, Form A-2).
Sunshine Consolidated Inc., Kellogg, Idaho (2-2240, Form A-l).
Grand National Films, Inc., New York City (2-2241, Form A-l).
American Cereal Food Corp., Clinton, Mass. (2-2242, Form A-l).
Quaker State Oil Refining Corp., Oil City, Pa. (2-2244, Form
A-2).
Muskegon Piston Ring Co., Muskegon, Mich. (2-2245, Form
A-2).
Graham-Page Motors Corp., Detroit, Mich. (2-2246, Form A-2).
CAUTION NECESSARY IN PERFORMANCE OF
SONG ENTITLED “BLUE EYES”
The following letter received by the Managing Director from
E. C. Mills, General Manager of the ASCAP deserves your care¬
ful attention: .
“In connection with a matter passing over my desk, I just this
moment had occasion to give some information on the title
“BLUE EYES.” Thought you just might be interested to see
how many different copyrighted compositions there are under this
single title, and I, therefore, enclose a list of those of which we
have a record.
“Only those checked are presently included in the ASCAP reper¬
toire.”
The list follows:
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS
JULY 5, 6, 7, 8, 1936
1367
Blue Eyes
Composer
Glenn W. Ashleigh
Glenn W. Ashleigh (Arr-Henry Sawyer)
Paul Shultz Baker
Billy Barnes
J. Bauer
Carl Bendel
Reginald Benyon
Bigelow
K. Boyer
J. M. Bradford
Franz Breyer
James L. Brown
R. A. Browne
Raymond A. Browne
F. R. Caban
Luther A. Clark
Sylvester Long Cross
G. F. Dabney /Earl Burnett (Arr-E. Burnett)
F. Delmar Williamson
J. De Sabato
J. J. DeSanders
Cal De Voll
L. Denza
Arthur Dightman
E. B. Duffan
Verna L. Dunagan
Raymond Ellis
J. Fernsson
John Alden Finckel
Leo Friedman
Leo Friedman
Leo Friedman
W. Gable
Jerome Gibler (Arr-Robert Gibler)
B. Goetze
M. F. Goldie
George Graff, Jr.
David Gwin
Spike Hamilton
H. L. Hampton
William R. Hart
Marvin Duerr
Roy Harvey
Silvio Hein
Emil Held
Edouard Hesselberg
H. B. Hinkel
C. Hinnant (Arr-M. Davis)
Stuart Hoppin
William Howard Hobbs
E. S. S. Huntington
E. S. S. Huntington
E. S. S. Huntington
L. Jacobs
L. Jacobs/H. R. Squires
E. S. Jessup
Clifton Keith
O. W. Kellner
J. C. Kelly
Jerome Kern
Jerome Kern (Arr-H. M. Higgs)
Jerome Kern (Arr-Max Irwin)
I. B. Kornblum
John Krachtus
O. W. Lane
G. Lane
Lynn Lange
E. Lirette
Paul Luke
Walter McCray
B. C. McCubbin
Wm. MacKenzie/Richard Slevin
Madden Music Co.
E. C. Mikesell
A. Miller/J. Marinak
C. Moskowitz
Katherine Nador
E. Newhouse
Author
Paul Shultz Baker
Billy Barnes
J. Bauer
J. B. Robertson
Bigelow
K. Boyer
D. P. Arnold
L. Bria
Mrs. Bryan Burgess
A. T. W. McCaul
J. De Sabato
J. J. DeSanders
Mrs. B. Davis
Daniel Dore
E. B. Duffan
Raymond Ellis
L. Bottger
M. J. Henvis
C. S. Linden
W. Gable
Percy Heath
B. Goetze
M. F. Goldie
Luther Bates
Gus Kahn
H. L. Hampton
Roy Harvey
Geo. Hobart/Edward Paulton
C. Klatt
H. B. Hinkel
Charles Myers/Iva Fairbank
N. S. Howser
F. E. Ullrey
Harold Kirdahey/N. Cardegno
L. Jacobs
L. Jacobs
E. S. Jessup
E. J. Uebele
O. W. Kellner
Graham John
Z. Myers
O. W. Lane
Lynn Lange
E. Lirette
W. E. Boyle
Margaret Haughawout
B. C. McCubbin
Florence Yakish
E. C. Mikesell
A. Miller/J. Marinak
Katherine Nador
Bernie L. Anderlini
Publisher
V McKinley Music Co.
V McKinley Music Co.
Paul S. Baker (Unpub.)
William G. Barnes (Unpub.)
Jack Bauer (Pub.)
J. B. Robertson (Pub.)
Herman Darewski Music Pub. Co.
Dorothie Bigelow (Unpub.)
Katie Boyer (Unpub.)
F. B. Haviland Pub. Co.
Thos. Goggan & Bros.
Robert Y. Ireland (Unpub.)
D. P. Arnold (Unpub.)
L. Bria (Unpub.)
Francisco R. Caban (Unpub.)
Bessie Burgess (Pub.)
Ben Konieczka (Unpub.)
Gene F. Dabney (Unpub.)
Cary & Co.
Joseph De Sabato (Unpub.)
John Jerold DeSanders (Unpub.)
Mrs. Barney Davis (Pub.)
John Franklin Music Co.
Arthur Dightman (Unpub.)
Edward Brock Duffman (Unpub.)
V. L. Dunagan (Pub.)
Raymond Ellis (Unpub.)
Union Musical Sepanola
Martha Newman (Unpub.)
Lulu Bottger (Pub.)
M. Jane Henvis (Pub.)
C. S. Linden (Pub.)
William Gable (Unpub.)
F P. Heath (Unpub.)
Billy Goetze (Unpub.)
Marion F. Goldie (Pub.)
Luther Bates (Unpub.)
David Gwin (Unpub.)
George Hamilton (Pub.)
Harry L. Hampton (Unpub.)
William Hart-Marvin Duerr (Unpub.)
Chicago Music Pub. Co.
Harms, Inc.
Co-operative Music Co.
Clarice Kaltt (Pub.)
Howard Barton Hinkel (Unpub.)
Carl S. Hinnant (Unpub.)
Patterson McGuire (Unpub.)
Hobbs, Myers & Fairbank Music Co. (Unpub.)
Nellie Sullivan Howser (Unpub.)
Flavius E. Ullrey (Unpub.)
Harold Kirdahey & N. Cardegno (Unpub.)
Leon Jacobs & Harold Squires (Unpub.)
Leon Jacobs & Harold Squires (Pub.)
Edgar S. Jessup (Unpub.)
Edward J. Uebele (Pub.)
Quirin Kellner (Pub.)
John Cheever Kelly (Unpub.)
T. B. Harms Co. (From “Blue Eyes”)
T. B. Harms Co.
T. B. Harms Co.
Harms, Inc.
John Krachtus (Pub.)
Osborne W. Lane (Pub.)
Enoch
Violet E. Stallcup (Unpub.)
Elsie Lirette (Pub.)
William Edward Boyle (Unpub.)
Ogren & Uhe Inc.
Basil C. McCubbin (Unpub.)
Brunswick-Balke-Collender Co. (Unpub.)
F. Yakish (Pub.)
Earl C. Mikesell (Unpub.)
Alvin Miller & John Marinak (Unpub.)
Carl Moskowitz (Unpub.)
Katherine Nador (Unpub.)
Edna Newhouse (Unpub.)
1368
Blue Eyes — (Continued)
Composer
Author
Publisher
Horatio Nicholls
Godfrey Williams
V Lawrence Wright Music Co.
(F. V. Haviland, U. S. A.)
Raymond Nielson
G. R. Dixon
G. R, Dixon (Unpub.)
Ivor Novello
John Yorke
V Boosey & Co.
H. Oblinger
Harry Kelly
Harry Oblinger (Unpub.)
I. Parham
W. C. Vincent
Wm. C. Vincent-Inez Parham (Unpub.)
M. R. Pawley
M. R. Pawley
Marcia Ragsdale Pawley (Unpub.)
A. G. Plunkett
A. G. Plunkett
Annie Greenway Plunkett (Pub.)
Louis Retter
V Leo Feist Inc.
John Rich
John Rich (Unpub.)
A. Leopold Richard
Mrs. A. J. Billings
Mrs. A. J. Billings (Pub.)
A. Leopold Richard
W. Lee
Mrs. F. C. Evans (Pub.)
A. Leopold Richard
C. M. Wyler
C. Melville Wyler (Pub.)
Justin Ring
Franklin-Barrett Co.
W. Ryan
F. W. Ryan
Frank W. Ryan (Pub.)
John F. Ryan
Joseph Volpe
Joseph Volpe (Unpub.)
Dave Ringle
Dave Ringle
V Dave Ringle Music Pub.
0. St. Lys
0. St. Lys
Odette St. Lys (Unpub.)
D. A. Sarli
D. A. Sarli
Domenic A. Sarli (Unpub.)
Mae Tadrosky Schmidt
Mae Tadroskv Schmidt (Unpub.)
Genevieve Scott
Raymond D. Gadd
R. D. Gadd (Pub.)
W. C. E. Seeboeck (Arr-N. L. Frey)
V Theo. Presser Co.
*
W. C. E. Seeboeck
Mabel B. Seeboeck (Renewal)
Premo Bonfanti
Violet Sipe
Premo Bonfanti (Unpub.)
Reginald Somerville
Ella Brown
Elkin & Co., Ltd.
D. T. Stackhouse
Mary Carolyn Davies
D. Trueman Stackhouse (Unpub.)
A. V. Stock
A. V. Stock
Albert Vincent Stock (Unpub.)
Leo Matthew Trauth
Walter Gene Armour
Leo Matthew Trauth (Unpub.)
Tyler & Fisk
Gene Littlefield
Eugene E. Littlefield (Pub.)
Egbert Van Alstyne
Lee Onidas
V L. B. Curtis Music Pub.
Burrell Van Buren
E/M. Gray
Eda Milne Gray (Unpub.)
Arr-Louis Vitak
Georgi & Vitak Music Co.
Horace C. Vokoun
J. A. MacLeod
Fine Arts Pub. Co.
J. C. Wallace
J. C. Wallace
John Carl Wallace (Unpub.)
R. A. Warner
R. A. Warner
Robert A. Warner (Unpub.)
Leslie F. Watson
V White-Smith Music Pub. Co.
E. J. Watson
E. J. Watson
Edward Judson Watson (Unpub.)
Edlyn Braren Welch
Morten Eugene Weldy
V Willis Music Co.
L. V. Wiedemann
L. V. Wiedemann
Louise Vahle Wiedemann (Unpub.)
Edward Wunderlich
M. E. Christian
M. E. Christian (Pub.)
Maurice Zbriger
Maurice Zbriger (Unpub.)
CORRECTED BROADCAST STATION LIST
Following is an official list made public by the Federal Communications
Commission containing alterations and corrections
(under-
lined) to the edition of January 1 for the month of May:
Call Main Studio
Frequency Time Quota Units
Letters Location
Name of Licensee
Power ( kc ) Designation Night
Day
KBIX Muskogee, Okla.
Oklahoma Press Publishing Co.
lOOw 1500 U
C. P. covered by license
Strike out effective 2-11-36
KCMO Kansas City, Mo.
Lester E. Cox, Thos. L. Evans &
lOOw 1370 S. H. 0.05
0.05
C. C. Payne
Strike out S. A.
Charlotte Duncan, Adm. & Co-contracting parties, Lester E. Cox & Thos. L ■ Evans
KFRC San Francisco, Calif.
Don Lee Broadcasting System
lkw 610 U 0.5
0.85
5kw-LS
KFRU Columbia, Mo.
KFRU, Inc.
500w 630 Simultaneous 0.15
0.5
lkw-LS D-WGBF,
*
S-WGBF, night
KGFK Moorhead, Minn.
Red River Broadcasting Co., Inc.
lOOw 1500 U 0.1
0.1
C. P. Minnesota Point,
Strike out pending issues being determined by Court of Appeals, District of Columbia.
Duluth, Minn.
KGHL Billings, Mont.
Northwestern Auto Supply Co., Inc.
lkw 950 U 0.5
0.85
2^4 kw-LS
S. A. -780-Exp.
Effective 7-28-36 — 780
C
. P. 5kw-LS — 780
*KGBZ York, Nebr.
KGBZ Broadcasting Co.
lkw 930 S-KMA 0.25
0.37
2}4kw-LS
Date of deletion extended to 6-17-36
KMA Shenandoah, Iowa
May Seed and Nursery Co.
lkw 930 S-KGBZ 0.5
0.75
2 kw-LS
Effective 6-17-36 ... U
1369
Call
Main Studio
Frequency
Time
Quota Units
Letters
Location
Name of Licensee
Power
(kc)
Designation
Night
Day
KPPC
Pasadena, Calif.
Pasadena Presbyterian Church
lOOw
1210
S-KFXM
0.01
0.01
KRRV
Sherman, Texas
Red River Valley Broadcasting Corp.
lOOw
1310
D (C. P. only)
KTSA
San Antonio, Tex.
KTSA Broadcasting Co.
lkw
Skw-LS
SSO
U
o.s
0.85
KUTA
Salt Lake City, Utah
Jack Powers, Frank C. Carman, David
lOOw
1500
U (C. P. only)
G. Smith and Grant Wrathall, d/b as
Effective 9-8-36
Utah Broadcasting Co.
KVOL
Lafayette, La.
Evangeline Broadcasting Co.
lOOw
1310
U
WAML
Laurel, Miss.
New Laurel Radio Station
lOOw
1310
S. H.
0.02
0.07
WAPO
Chattanooga, Tenn.
W. A. Patterson
lOOw
1420
D (C. P. only)
Effective 9-8-36
WBAA
West Lafayette, Ind.
Purdue University
500w
lkw-LS
890
S. H.
0.16
WYLB
Lima, Ohio
Herbert Lee Blye
lOOw
1210
D ( C . P. only)
Effective 9-29-36
WBNX
New York, N. Y.
Standard Cahill Co., Inc.
250w
1350
S-WAWZ
0.4
0.35
T-Cliffside Park, N. J.
Effective 9-15-36 C. P. lkw
WCOP
Boston, Mass.
Massachusetts Broadcasting Corp.
SOOw
1120
D
0.3
WDWS
Champaign, III.
Champaign News-Gazette, Inc.
lOOw
1370
D (C. P. only)
Effective 8-18-36
WEOA
Evansville, Ind.
Evansville on the Air, Inc.
lOOw
1370
U
C. P. covered by license
WFBM
Indianapolis, Ind.
Indianapolis Power and Light Co.
lkw
1230
U
O.S
0.8S
T-nr. Millersville
5kw-LS
WGBF
Evansville, Ind.
Evansville on the Air, Inc.
SOOw
630
Simultaneous
D. S-KFRU,
WOS, night
0.15
0.3
WHKC
Columbus, Ohio
Associated Radiocasting Corp.
SOOw
640
L-KFI
0.1S
0.3
Call letters changed from W AIU — Effective 7-1-36
WICC
Bridgeport, Conn.
Southern Connecticut Broadcasting
500w
600
U
0.3
0.5
Corp.
lkw-LS
WJJD
Chicago, Ill.
T-Des Plaines
WJJD, Inc.
20kw
1130
L-KSL
0.17
1.3
WKY
Oklahoma City, Okla.
WKY Radiophone Co.
lkw
900
U
O.S
0.85
C. P. 5kw-LS
WKZO
Kalamazoo, Mich.
WKZO, Inc.
lkw
S90
D
O.S
Strike out C. P. 250w-lkw-LS .
U
WLIN
Middlesboro, Ky.
Lincoln Memorial University
lOOw
1210
U (C. P. only)
WMFN
Clarksdale, Miss.
C. P. Grenada, Miss.
Attala Broadcasting Corp.
lOOw
1210
U
WPAX
Thomasville, Ga.
H. Wimpy
lOOw
1210
D
0.1
Strike out C. P. 250w
i ;
;r
WPRP
Ponce, Puerto Rico
Julio M. Conesa
lOOw
1420
S. H.
C. P. covered by license
250w-LS
WQAN
Scranton, Pa.
The Scranton Times ( Co-partnership )
E. J., Wm. R., Elizabeth R. Lynett,
and Edw. J. Lynett, Jr.
250w
880
S-WGBI
0.04
0.03
WREC
Memphis, Tenn.
WREC, Inc.
lkw
600
U
O.S
0.7S
T-nr. Rugby Park
2]/2kw-LS
Strike out S. A. lkw-2l/ikw-LS-
—Exp.
WSGN
Birmingham, Ala.
The Birmingham News Co.
lOOw
250w-LS
1310
U
0.1
0.2
WSPD
Toledo, Ohio
Toledo Broadcasting Co.
lkw
1340
u
O.S
0.8S
T-Perrysburg
5kw-LS
WSPG
Portland, Maine
Portland Broadcasting System, Inc.
500w
640
L-KFI (C. P.
Effective 6-16-6
only)
0.15
0.3
WTAR
Norfolk, Va.
WTAR Radio Corp.
SOOw
lkw-LS
780
U
OJ
O.S
C. P. lkw
WWAE
Hammond, Ind.
Hammond-Calumet Broadcasting
Corp.
lOOw
1200
S-WFAM
0.09
0.06
WWJ
Detroit, Mich.
The Evening News Assn., Inc.
lkw
920
U
O.S
0.85
T-Oak Park
5kw-LS
1370
QUOTA FACILITIES AS OF JUNE 5
The repeal of the Davis amendment became effective on June
facilities by zones as of that date:
First Zone — Night
Units Percent
Over or Under
— 10
— 38
— 6
7
8
2
31
23
12
21
17
State
Due
Assigned
Over or Und
Conn .
. . 2.13
1.92
— 0.21
Del .
. . 0.32
0.20
— 0.12
D. C .
. . 0.64
0.60
— 0.04
Maine . . .
1 .06
1.14
+ 0.08
Md .
. . 2.16
1.98
— 0.18
Mass. . . .
. . 5.63
5.51
— 0.12
N. H. . . .
. . 0.62
0.43
— 0.19
N. J .
. . 5.36
4.105
— 1.255
N. Y .
. . 16.69
18.77
+ 2.08
R. I .
. . 0.91
1.10
+ 0.19
Vt .
. . 0.48
0.56
+ 0.08
+
Total
36.00
36.315
-f 0.315
+ 1
First Zone-
—Day
Units
Percent
State
Due
Assigned
Over or U nder
Over or Under
Conn .
. . 3.85
3.45
— 0.40
— 10
Del .
. . 0.57
0.33
— 0.24
— 42
D. C. ...
.. 1.16
0.90
— 0.26
— 22
Maine . . .
1.91
1.72
— 0.19
— 10
Md .
. . 3.91
4.10
+ 0.19
+ 5
Mass .
. . 10.17
7.45
— 2.72
—127
N. H. ...
1.11
0.80
— 0.31
— 28
N. J .
. . 9.67
5.055
— 4.615
— 48
N. Y .
. . 30.14
22.02
— 8.12
— 27
R. I .
. . 1.65
1.20
— 0.45
— 27
Vt .
. . 0.86
0.86
— 0.00
— 0
Total
65.00
47.885
—17.115
— 26
Second Zone-
— Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ky .
. . 3.38
3.95
+ 0.57
+ 17
Mich . . . .
. . 6.25
5.05
— 1.20
— 19
Ohio ....
. . 8.58
9.83
+ 1.25
+ 15
Pa .
.. 12.43
12.38
— 0.05
— 0
Va .
.. 3.13
4.85
4- 1.72
+ 55
W. Va. .
. . 2.23
2.19
— 0.04
— 2
Total
36.00
38.25
+ 2.25
+ 6
Second Zone — Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ky .
. . 6.10
4.25
— 1.85
— 30
Mich. . . .
.. 11.28
7.09
— 4.19
— 37
Ohio . . . .
. . 15.50
12.86
— 2.64
— 17
Pa .
.. 22.45
14.95
— 7.50
— 33
Va .
. . 5.64
6.54
4- 0.90
+ 16
W. Va. . .
. . 4.03
4.30
4- 0.27
+ 7
Total
65.00
49.99
—15.01
— 23
Third Zone-
—Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ala .
. . 3.32
2.65
— 0.67
— 20
Ark .
. . 2.32
2.77
4- 0.45
+ 19
Fla .
.. 1.84
3.65
+ 1.81
+ 98
Ga .
. . 3.64
4.46
4- 0.82
+ 22
La .
. . 2.63
5.40
+ 2.77
+105
Miss .
. . 2.52
1.32
— 1.20
— 48
N. Car. . .
. . 3.97
4.45
4- 0.48
+ 12
Okla .
. . 3.00
3.51
+ 0.51
+ 17
S. Car. . .
. . 2.18
1.30
— 0.88
— 40
Tenn .
. . 3.28
6.05
+ 2.77
+ 84
Texas ....
7.30
11.14
4- 3.84
+ 53
Total
36.00
46.70
+ 10.70
+ 30
5 when the bill was signed by the President. Following are the quota
Third Zone — Day
Units Percent
State
Due
Assigned
Over or Under
Over or Under
Ala .
. . 5.99
4.60
— 1.39
— 23
Ark .
. 4.19
4.95
+ 0.76
+ 18
Fla .
. . 3.32
5.40
+ 2.08
~j~ 63
Ga .
. . 6.58
5.10
— 1.48
— 22
La .
. 4.75
5.60
+ 0.85
+ 18
Miss .
4.55
2.42
— 2.13
— 47
N. Car. . .
7.17
4.95
— 2.22
— 31
Okla .
. . 5.42
5.65
+ 0.23
+ 4
S. Car. . . .
. . 3.93
3.20
— 0.73
— 19
Tenn .
5.92
7.75
+ 1.83
+ 31
Texas
13.18
14.12
+ 0.94
+ 7
Total
65.00
63.74
— 1.26
— 2
Fourth Zone-
—Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ill .
. 10.14
11.41
+ 1.27
+ 13
Ind .
. . 4.30
3.65
— 0.65
— 15
Iowa .
. . 3.28
5.75
+ 2.47
+ 75
Kansas . . .
. 2.50
2.49
— 0.01
— 0
Minn .
. 3.41
4.18
+ 0.77
+ 23
Mo .
. . 4.82
5.23
+ 0.41
+ 9
Nebr .
1.83
1.96
+ 0.13
+ 7
N. Dak. . .
. 0.90
1.40
+ 0.50
+ 56
S. Dak. . .
. 0.92
0.86
— 0.06
— 7
Wise. . . . .
. . 3.90
3.50
— 0.40
— 10
Total
36.00
40.43
+ 4.43
+ 12
Fourth Zone — Day
U nits
Percent
State
Due
Assigned
Over or Under
Over or Under
Ill .
18.30
16.77
— 1.53
— 8
Ind .
. . 7.77
6.54
— 1.23
— 16
Iowa ....
. . 5.93
8.63
+ 2.70
+ 46
Kansas
. . 4.51
4.12
— 0.39
— 9
Minn. . . .
. . 6.15
5.77
— 0.38
— 6
Mo .
. 8.70
9.74
+ 1.04
+ 12
Nebr .
. . 3.30
5.65
+ 2.35
+ 71
N. Dak. . .
. 1.63
2.10
— 0.47
+ 29
S. Dak. . . .
. 1.66
2.13
+ 0.47
+ 28
Wise .
7.05
6.72
— 0.33
— 5
Total
65.00
68.17
+ 3.17
+ s
Fifth Zone—
-Night
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
1.32
1.37
+ 0.05
+ 4
Calif .
17.18
19.97
+ 2.79
+ 16
Colo .
. . 3.13
4.16
+ 1.48
+ 47
Idaho . . .
. 1.35
1.60
+ 0.25
+ 18
Mont .
. 1.62
2.15
+ 0.52
+ 32
Nev .
. . 0.27
0.30
+ 0.03
+ 11
N. Mex. .
1.28
1.13
' — 0.15
— 12
Ore .
. . 2.89
4.12
+ 1.23
+ 42
Utah ...
1.54
3.30
+ 1.76
+ 114
Wash. . .
. . 4.73
7.73
+ 3.00
+ 63
Wvo .
0.68
0.40
— 0.28
— 41
Total
36.00
46.68
+10.68
+ 30
Fifth Zone-
— Day
Units
Percent
State
Due
Assigned
Over or Under
Over or Under
Ariz .
. . 2.38
1.69
— 0.69
— 29
Calif .
. . 31.02
24.18
— 6.84
— 22
Colo .
. . 5.66
5.25
— 0.41
— 7
Idaho . .
. . 2.43
2.25
— 0.18
— 7
Mont. . . .
2.94
3.05
+ 0.11
+ 4
Nev .
. . 0.49
0.30
— 0.19
— 39
N. Mex. .
. . 2.31
2.95
+ 0.64
+ 28
Ore .
. 5.21
6.19
+ 0.98
+ 19
Utah .
. . 2.78
3.30
+ 0.52
+ 19
Wash. . . .
. . 8.54
9.94
+ 1.40
+ 16
Wyo .
1.24
0.40
— 0.84
— 68
Total
65.00
59.50
— 5.50
— 8
1371
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be give an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2835. E. G. and M. W. Zellers, trading as Zellers
Laboratories, Orrton Ave. and Noble St., Reading, Pa., are
named respondents in a complaint alleging misrepresentations in
advertising in connection with the sale of medicines and remedies
for diseases in fowls.
The respondents, the complaint charges, make representations
in trade magazines, circulars and other advertising matter, to the
effect that their “Zellers Kamala Nicotine Tabs” are a powerful and
effective agency for ridding fowls of worms, releasing medication
at the seat of infection and producing results in less than six hours.
They are also alleged to represent that “Zellers Fowl Tone
Formula No. 1” contains the elements essential to the development
of future egg layers, is a special tonic for building up disease re¬
sistance, and that it and the preparation “Carbo-Zel Tablets” are
ideal antiseptics and effective treatments for certain poultry diseases,
including intestinal flu, coccidiosis, cholera, and brooder pneu¬
monia; and that “Zellers Fowl Tone Formula No. 2” is scientifically
prepared to combat the ravages of small worms and is an excellent
tonic.
No. 2836. Charging unfair competition through exaggeration
of the earnings of salespersons, a complaint has been issued against
American Products Co., manufacturer of food and toilet products
and household cleaners, and Zanol Products Co., its selling agent
and subsidiary, both of 3265 Colerain Ave., Cincinnati.
Advertising in newspapers and other periodicals and through
circular letters, the American Products Co., it is said, has sought
to obtain sales representatives for its products. In one advertise¬
ment the respondent is alleged to have said that the company “will
pay you up to $42.50 a week,” and “will furnish a car to pro¬
ducers.” Advertising a profit-sharing plan, the respondent is al¬
leged to have asserted that it had brought money to thousands of
men and women.
The complaint alleges that the respondents’ representations are
false and misleading, and that the so-called representatives, pro¬
cured in response to advertisements, are in fact retailers, and no
car is furnished to them except as a subsequent bonus given when
a representative shall have purchased from the respondent at whole¬
sale prices in a period of one year, not less than $2,500 worth of
goods.
The Zanol Products Co. is also charged with making assertions
in advertising calculated to represent large earnings to be gained
by potential representatives and to induce such persons to sell the
respondents’ goods. In fact, according to the complaint, the aver¬
age earnings of such representatives under normal conditions is but
a small percentage of the amount advertised, and consistent earn¬
ings in the due course of business in the amounts as advertised
would be impossible.
No. 2837. Unfair competition through the use of lottery
schemes in connection wih the sale of candy is alleged in a com¬
plaint issued against Ostler Candy Co., 143 South State St.,
Salt Lake City, Utah.
The complaint charges the respondent company arranges its
candy in assortments so as to involve a game of chance when the
candy is sold to the ultimate purchaser. Push cards and other
schemes in which the element of chance enters are used to attract
customers, according to the complaint.
The respondent company’s sales plans are said to be contrary to
public policy, and to divert trade to the respondent from competi¬
tors who do not use similar methods in the sale of candy.
No. 2838. Misleading representations in the sale of cosmetics
are alleged in a complaint issued against Bourjois, Inc., and its
selling agent and subsidiary, Barbara Gould Sales Corp. The
Bourjois Company operates a factory at Rochester, N. Y., and
both corporations have offices at 35 West 34th St., New York City.
Use of the trade name “Barbara Gould Irradiated Skin Food”
is alleged to have a tendency to deceive buyers into believing that
the respondents’ products give nourishment to and act as food for
the skin, when in fact, according to the complaint, this preparation
does not possess such properties.
Other representations made by the respondents are alleged to
have a capacity to deceive buyers into believing that there are
glands in the body known as “youth glands” which will be re¬
stored and revived by application of the respondents’ products.
No. 2839. Imitation of the product of a competitor, in violation
of Section 5 of the Federal Trade Commission Act, is alleged in a
complaint issued against Louis Schear and Jack Schrader, trad¬
ing as Schear and Schrader, 239 Fourth Ave., New York City,
engaged in wholesaling novelties.
The complaint sets out that S. S. Adams, trading as S. S. Adams
Co., also is a dealer in novelties, including a game designated
“Hindu Cones,” which he designs, manufactures and sells at the
wholesale price of $21 a gross. Soon after Adams introduced
“Hindu Cones” on the market, the complaint alleges, the respond¬
ents began selling a similar product, the container of which bears
the trade name “Hindu Cones” and the same language as that on
Adams’ package, the principal difference being the color of the
containers.
The insert instructing purchasers how to operate the cones in
the respondents’ container is an exact duplicate of that in Adams’
package, according to the complaint, and the name “Adams” ap¬
pears in the instructions. The wholesale price of the respondents’
product is $15 a gross less than the price at which Adams sells his
cones, the complaint charges.
No. 2840. Misrepresentation of the therapeutic value of “NoDoz
Awakeners,” a pharmaceutical preparation said to be compounded
of caffeine citrate and sugar of milk, is charged in a complaint
issued against NoDoz Laboratories, Inc., 307 Mitau Building,
Sacramento, Calif., manufacturer and seller of this product.
The complaint charges that the respondent corporation’s repre¬
sentations in various publications, in other forms of printed matter,
and in radio broadcasts, tend to lead purchasers into believing that
use of the preparation, among other things, keeps motorists awake
and enables them to avoid accidents while driving; that it over¬
comes alcoholic depression ; conquers mental dullness and adds
energy to one’s capacity for work or pleasure without apparent
fatigue, and preserves a clear head under the most difficult cir¬
cumstances.
These representations, as well as the respondent’s alleged claims
that “NoDoz Awakeners” are a pure vegetable concentrate and are
used by more than one million automobile drivers, are false or
exaggerated, the complaint charges.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01386. Elizabeth Arden Sales Corporation, Elizabeth
Arden, Inc., and Florence N. Lewis, trading as Elizabeth
Arden, 681 Fifth Ave., New York City, agree to cease repre¬
senting that either “Venetian Eyelash Grower” or “Ardena Eyelash
Grower” is a stimulant to the eyelashes or encourages the growth
of eyelashes or eyebrows. Use of the words “Grower” or “Vene¬
tian” as part of the trade names designating the products will be
stopped.
No. 01387. Bromo Aspirin Manufacturing Co., Inc., 5111
Chester Ave., Philadelphia, selling “Bromo Aspirin Capsules,”
will discontinue advertising that this product is a competent remedy
for colds, coughs, or grippe; that it will prevent pneumonia, in¬
fluenza, grippe or complications of colds, and that it reaches the
cause of any ailment.
No. 01388. R. R. Paul, trading as Wayne Manufacturing
Co., 5249 Western Ave., Detroit, in the sale of his “Wayne
Checkwriter,” agrees to cease representing that the device, adver¬
tised to sell for $12.50, accomplishes more than machines costing
hundreds of dollars, and that he makes to persons answering his
advertisements a special offer different from his usual and cus¬
tomary offer.
The respondent will discontinue representing that the maker of
a check cannot recover from the bank on which such check is drawn
any overpayment made as a result of an alteration of the check.
In advertising for salesmen he agrees not to make unmodified
claims of.^egrnings in excess of the average earnings made by his
active, full-time salesmen under normal business conditions.
No. 01389. Under a stipulation entered into, the National
Art School, Inc., 3601 Michigan Ave., Chicago, has agreed to
cease false and misleading advertising in the sale of a correspond¬
ence course in coloring photographs and miniatures in oil by a
process described as the “Koehne Method.”
The respondent corporation will cease advertising that a talent
for art is not necessary to enable a student to master the course ;
that completion of the course can be accomplished in 12 weeks,
and that it enables one to earn a steady income and to do work
that commands the highest prices; and that the “Koehne Method”
transforms photographic prints into works of art comparable to
originals worth hundreds of dollars.
No. 01390. The Tonsiline Co., Canton, Ohio, entered into an
agreement to cease advertising that “Tonsiline” affords quick re-
1372
lief for sore throat, or that it is a competent treatment for that
ailment, unless such representations are limited to sore throat due
to colds or to the inhalation of dust or fumes. The respondent
company will cease representing that the product is the “National
Sore Throat Remedy.”
No. 01391. Initial It, Inc., 500 North Dearborn St., Chi¬
cago, stipulates that in the sale of leather articles such as purses
and bill folds it will cease representing that its “Ritzi 2 -Way Bag”
or any other article offered to salesmen as a sample outfit is “free,”
if such salesmen are required to make a cash deposit to procure
the bag, or required to sell a definite amount of merchandise to
have the cash deposit returned. The respondent corporation ad¬
mits that in advertising matter it exaggerated the prospective sales
and earnings of salesmen, and agrees to discontinue such practice.
No. 01392. National Oil Products Co., Harrison, N. J.,
engaged in the sale of a poultry and animal feed designated “Nopco
Double X,” will cease and desist from representing, among other
things, that the product alone, when added to feed, produces a
balanced diet; that it improves any feed having an adequate
supply of vitamins A and D; that it eliminates soft shelled eggs
or blood spots, regardless of cause ; and that it is “guaranteed” for
results.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, June 22
HEARING BEFORE AN EXAMINER
(Broadcast)
KRE — First Congregational Church of Berkeley, Berkeley, Calif. —
Voluntary assignment of license, 1370 kc., 100 watts, 250
watts LS, unlimited time.
NEW — Jack E. Brantley, Mrs. Jack E. Brantley, and Jack E.
Brantley, Jr., Savannah, Ga. — C. P., 1310 kc., 100 watts,
unlimited time.
NEW — W. T. Knight, Jr., Savannah, Ga. — C. P., 1310 kc., 100
watts, unlimited time.
NEW— Ted R. Woodard, Kingsport, Tenn. — C. P., 1210 kc.,
100 watts, daytime.
NEW — Jonas Weiland, Kinston, N. C. — C. P., 1200 kc., 100 watts,
250 watts LS, unlimited time.
NEW — John Perkins Rabb, Lenoir, N. C. — C. P., 1370 kc., 100
watts, daytime.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. — Modi¬
fication of license, 1310 kc., 100 watts, 250 watts LS, day¬
time until 7:30 p. m. Present assignment: 1310 kc., 250
watts, daytime.
Tuesday, June 23
HEARING BEFORE AN EXAMINER
(Broadcast)
KCMO (formerly KWKC) — Charlotte Duncan, Administratrix,
Lester E. Cox, Thomas L. Evans, Kansas City, Mo. — C. P.,
1370 kc., 100 watts, specified hours.
NEW— The Tribune Co., Tampa, Fla. — C. P., 550 kc., 1 KW, 5
KW LS, unlimited time.
NEW — Black River Valley Broadcasts, Inc., Watertown, N. Y. —
C. P., 1420 kc., 100 watts, 250 watts LS, unlimited time.
NEW — Metro Broadcasting Co., Los Angeles, Calif. — C. P., 820
kc., 250 watts, limited with WHAS.
Wednesday, June 24
HEARING BEFORE AN EXAMINER
(Broadcast)
WHFC — WHFC, Inc., Cicero, Ill. — C. P., 1420 kc., 100 watts, 250
watts LS, specified hours. Present assignment: 1420 kc.,
100 watts, specified hours.
WKBI — WKBI, Inc., Cicero, Ill. — Modification of license, 1420 kc.,
100 watts, 250 watts LS, specified hours. Present assign¬
ment: 1420 kc., 100 watts, specified hours.
WEHS — WEHS, Inc., Cicero, Ill. — Modification of license, 1420
kc., 100 watts, 250 watts LS, specified hours. Present as¬
signment: 1420 kc., 100 watts, specified hours.
WJBL — Commodore Broadcasting, Inc., Decatur, Ill. — Modifica¬
tion of license, 1370 kc., 100 watts, unlimited time. Present
assignment: 1200 kc., 100 watts, share-WJBC.
NEW— A. W. Mills, Gallup, N. Mex.— C. P., 1310 kc., 100 watts,
unlimited time.
Thursday, June 25
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Mrs. C. A. S. Heaton, Las Vegas, Nev. — C. P., 1420 kc.,
100 watts, unlimited time.
NEW — Cache Valley Broadcasting Co., Logan, Utah. — C. P., 1370
kc., 100 watts, unlimited time.
NEW — Harold Johnson and Leland M. Perry, d/b as Johnson &
Perry, Cedar City, Utah. — C. P., 1310' kc., 100 watts, un¬
limited time.
NEW — E. Anthony & Sons, Inc., Pawtucket, R. I. — C. P., 1200 kc.,
100 watts, 250 watts LS, unlimited time (request facilities
ofWNRI).
WNRI — S. George Webb, Newport, R. I. — Modification of C. P.,
1200 kc., 100 watts, 250 watts LS, unlimited time.
WTHT — The Hartford Times, Inc., Hartford, Conn.— Modification
of C. P., 1200 kc., 100 watts, unlimited time (request facili¬
ties of WNRI).
Friday, June 26
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — C. A. Rowley, Ashtabula, Ohio. — C. P., 940 kc., 250 watts,
daytime.
WHAZ — Rensselaer Polytechnic Institute, Troy, N. Y. — Modifica¬
tion of license, 1300 kc., 1 KW, S-WFAB, WEVD, WBBR.
Present assignment: 1300 kc., 500 watts, S-WFAB, WEVD,
WBBR.
APPLICATIONS GRANTED
KGKB — East Texas Broadcasting Co., Tyler, Tex. — Granted C. P.
to make changes in equipment and move transmitter locally
V/2 miles from court house on North Dixie Highway, Tyler,
Tex.
KRSC — Radio Sales Corp., Seattle, Wash. — Granted C. P. to make
changes in equipment.
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — Granted modifica¬
tion of C. P. to install new equipment and extend commence¬
ment date to 2 months after grant and completion date to 6
months thereafter.
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted modification of C. P. to extend completion date
from 7-19-36 to 1-19-37.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Granted modifica¬
tion of C. P. to make changes in transmitter (tubes) ; in¬
stall vertical radiator to comply with Rule 131, exact trans¬
mitter site and height of antenna to be determined; increase
day power from 2 KW to 5 KW ; extend commencement
date to 60 days after grant and .completion date to 6 months
thereafter.
WRR — City of Dallas, Texas, Dallas, Tex. — Granted modification
of C. P. to install new equipment ; also granted license to
cover installation of new equipment and vertical radiator,
and move transmitter locally ; 1280 kc., 500 watts, un¬
limited time.
WLAK — Lake Region Broadcasting Co., Lakeland, Fla. — Granted
license to cover C. P. authorizing erection of new station;
1310 kc., 100 watts, unlimited.
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — Granted
license to cover C. P. authorizing installation of new equip¬
ment and increase in day power to 250 watts; 1210 kc.,
100 watts night.
WCBI — Scranton Broadcasters, Inc., Scranton, Pa. — Granted
license to cover C. P. authorizing installation of new equip¬
ment and increase in power from 250 watts to 500 watts;
880 kc., S-WQAN.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
Granted consent to the transfer of control of The Central
Nebraska Broadcasting Corp. from the present stockholders
to Clark Standiford and Kate S. Fisher ; 1310 kc., 100 watts,
unlimited.
1373
WHBB — Dr. Wm. J. Reynolds and Wm. J. Reynolds, Jr., Selma,
Ala. — Granted consent to voluntary assignment of license
to W. J. Reynolds, Jr., J. C. Hughes and J. S. Allen, d/b as
Selma Broadcasting Co.
KELD — T. H. Barton, El Dorado, Ark. — Granted consent to vol¬
untary assignment of license to Radio Enterprises, Inc.
WNBC— William J. Sanders, New Britain, Conn. — Granted con¬
sent to voluntary assignment of license to State Broadcast¬
ing Corp.
KGGM— New Mexico Broadcasting Co., Albuquerque, N. Mex.—
Granted consent to the transfer of control of the New
Mexico Broadcasting Co., Inc., licensee of KGGM, to Mrs.
A. R. (Goldie) Hebenstrait to A. R. Hebenstrait.
KJR — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted C. P.
to install new equipment and move transmitter to site of
station KOMO.
WCOL — WCOL, Inc., Columbus, Ohio.— Granted C. P. to make
changes in equipment.
WSYR-WSYU— Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted license to use old composite transmitter as
an auxiliary transmitter; 570 kc., 250 watts, for emergency
purposes only.
KFJI — KFJI Broadcasters, Inc., Klamath Falls, Ore.— Granted
license to cover C. P. authorizing installation of new equip¬
ment; 1210 kc., 100 watts, unlimited time.
WNYC — City of New York, Dept, of Plant and Structures, New
York City. — Granted license to cover C. P. (auxiliary) to be
used for emergency purposes only, to be used while moving
main transmitter; 810 kc., 1 KW.
KSLM— Oregon Radio, Inc., Salem, Ore.— Granted authority to
make changes in automatic frequency control equipment.
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted modification of C. P. approving new transmitter
site Y\ mile northwest of 5 Points Intersection U. S. High¬
way No. 70 and Macon Road, near Memphis; install new
directional antenna ; extend commencement date to this date
and completion date to 1-19-37.
KUOA — KUOA, Inc., Fayetteville, Ark.— Granted C. P. to move
transmitter and studio to John Brown University, Siloam
Springs, Ark., a distance of approximately 25 miles; install
new equipment and vertical radiator; increase day power
from 1 KW to 2)4 KW.
KERN — The Bee Bakersfield Broadcasting Co., Bakersfield, Calif.
— Granted C. P. to install new equipment and erect a new
vertical radiator.
KHBC — Honolulu Broadcasting Co., Ltd., Hilo, T. H. — Granted
license to cover C. P. authorizing erection of new station to
operate on 1400 kc., 250 watts, unlimited time.
WJBC — Wayne Hummer and H. J. Dee, d/b as Kaskaskia Broad¬
casting Co., Bloomington, Ill. — Granted voluntary assign¬
ment of C. P. from Wayne Hummer and H. J. Dee, d/b
as Kaskaskia Broadcasting Co., to Arthur Malcom Mc¬
Gregor and Dorothy Charlotte McGregor. (C. P. author¬
ized changes in equipment and increase in day power from
100 watts to 250 watts; 1200 kc., 100 watts night, S-
WJBL.)
KFVD — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
Granted voluntary assignment of license from Los Angeles
Broadcasting Co., Inc., to Standard Broadcasting Co. (1000
kc., 250 watts night, 250 watts day, limited time).
WRAIv — WRAK, Inc., Williamsport, Pa. — Granted C. P. to move
transmitter locally, install new equipment and new vertical
radiator.
WBNX — Standard Cahill Co., Inc., New York City. — Granted
modification of C. P. approving exact transmitter site and
directional antenna system; 1350 kc., 250 watts, S-WAWZ.
(Granted C. P. on May 1, effective September 15, to increase
power to 1 KW, employing directional antenna both day
and night.)
KDON — Richard Field Lewis, Del Monte, Calif. — Granted consent
to voluntary assignment of license to the Monterey Peninsula
Broadcasting Co., a California corporation.
KFXR — Exchange Avenue Baptist Church of Oklahoma City, Okla.
— Granted C. P. to make changes in equipment.
KWYO — Big Horn Broadcasting Co., Inc., Sheridan, Wyo. —
Granted C. P. to make changes in equipment, install new
vertical radiator, move transmitter locally, and increase day
power from 100 to 250 watts.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
Granted C. P. to make changes in equipment.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted C. P.
to install new equipment, move transmitter locally, install
new vertical radiator, increase power to 1 KW, unlimited
time.
KGNO — The Dodge City Broadcasting Co., Inc., Dodge City, Kans.
— Granted C. P. to install new equipment.
WHLB— Head of the Lakes Broadcasting Co., Virginia, Minn. —
Granted modification of C. P. to extend completion date to
9-26-36.
WNYC — City of New York, Dept, of Plant and Structures, New
York City. — Granted modification of C. P. to extend com¬
pletion date from 6-1-36 to 180 days thereafter.
KFPL — C. C. Baxter, Dublin, Tex. — Granted modification of C. P.
extending commencement date to 6-16-36 and completion
date to 12-16-36.
KCRJ — Charles C. Robinson, Jerome, Ariz. — Granted authority
to install automatic frequency control.
Standard Radio, Inc., Hollywood, Calif. — Granted authority to
transmit electrical transcriptions to foreign countries, namely
stations CBNS, CKAG, CFRN and CKPC and any other
Canadian stations which may desire these programs.
WELI — Patrick J. Goode, New Haven, Conn. — Granted consent
to voluntary assignment of license to City Broadcasting
Corp.
KFJZ — Fort Worth Broadcasters, Inc., Fort Worth, Tex. — Granted
license to cover C. P. authorizing installation of new equip¬
ment and increase in day power from 100 watts to 250
watts.
WIBM — WIBM, Inc., Jackson, Mich. — Granted license to cover
C. P. which authorizes changes in equipment and installa¬
tion of new radiating system.
KFKA — The Mid-Western Radio Corp., Greeley, Colo. — Granted
license to cover C. P. authorizing local move of station and
installing new antenna system.
WREC — WREC, Inc., Memphis, Tenn. — Granted modification of
license to increase day power from 2J/> KW to 5 KW ; 600
kc., 1 KW night, unlimited time, using two-unit directional
antenna system.
KBPS — Benson Polytechnic School, Portland, Ore. — Granted au¬
thority to install automatic frequency control.
WOEH (requested) — National Broadcasting Co., Inc., Portable-
Mobile (New York City). — Granted C. P. (temporary
broadcast pickup), frequencies 1606, 2020, 2102, 2760 kc.,
100 watts. Also granted license covering same.
NEW — Edwin H. Armstrong, New York, N. Y. (site to be deter¬
mined). — Granted C. P. (exp. gen. exp.), frequencies 86500
and 111000 kc., 40 KW, time of operation variable.
W8XAR — Westinghouse Electric and Manufacturing Co., near
Saxonburg, Pa. — Granted renewal of special experimental
station license in exact conformity with existing license, for
the period June 23 to September 23, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KABR, Aberdeen, S. Dak. ; KAST, Astoria, Ore. ; KBPS, Port¬
land, Ore.; KCMC, Texarkana, Ark.; KERN, Bakersfield, Calif.;
KFGQ, Boone, Iowa; KFIZ, Fond du Lac, Wis.; KGFI, Corpus
Christi, Tex.; KGIW. Alamosa, Colo.; KFJM, Grand Forks,
N. Dak.; KFJZ, Fort Worth, Tex.; KGAR, Tucson, Ariz.; KGFF,
Shawnee, Okla.; KGFL, Roswell, N. Mex.; KGGC, San Francisco,
Calif.; KICA, Clovis, N. Mex.; KIDW, Lamar, Colo.; KIUN,
Pecos, Tex.; KLUF, Galveston, Tex.; KMAC, San Antonio, Tex.;
KNEL, Brady, Tex.; KNOW, Austin, Tex.; KONO, San Antonio,
Tex.; KORE, Eugene, Ore.; KOTN, Pine Bluff, Ark.; KPLC,
Lake Charles, La.; KPQ, Wenatchee, Wash.; KRE, Berkeley,
Calif.; KRKO, Everett, Wash.; KRLH, Midland, Tex.; KRNR,
Roseburg, Ore.; KWYO, Sheridan, Wyo.; KXO, El Centro, Calif. ;
WAGF, Dothan, Ala.; WAZL, Hazleton, Pa.; WBTM, Danville,
Va.; WCBM, Baltimore, Md. ; WCBS, Springfield, Ill.; WCNW,
Brooklyn, N. Y.; WDAS, Philadelphia, Pa.; WEED, Rocky Mount,
N. C.; WEHS, Cicero, Ill.; WGL, Fort Wayne, Ind.; WHBB,
Selma, Ala.; WHBQ, Memphis, Tenn.; WHDL, Olean, N. Y. ;
WHEF, Kosciusko, Miss.; WIBM, Jackson, Mich.; WILM, Wil¬
mington, Del.; WKBB, East Dubuque, Ill.; WKBI, Cicero, HI. ;
WKBV, Richmond, Ind.; WKBZ, Muskegon, Mich.; WLAP,
Lexington, Ky.; WLBF, Kansas City, Kans.; WLEU, Erie, Pa.;
WMAS, Springfield, Mass.; WMBC, Detroit, Mich.; WMBH, Jop¬
lin, Mo.; WMFD, Wilmington, N. C.; WMFO, Decatur, Ala.;
WNBF, Binghamton, N. Y.; WOC, Davenport, Iowa; WPAR,
Parkersburg, W. Va.; WPFB, Hattiesburg, Miss.; WQDM, St.
Albans, Vt.; WRAK, Williamsport, Pa.; WRDW, Augusta, Ga. ;
WRGA, Rome, Ga.; WRJN, Racine, Wis.; WSVS, Buffalo, N. Y.;
1374
WSYB, Rutland, Vt.; WTMV, East St. Louis, Ill.; KFRO, Long¬
view, Tex.; KGKL, San Angelo, Tex.; KWBG, Hutchinson, Kans.;
WAGM, Presque Isle, Maine; WDNC, Durham, N. C. ; WELL,
Battle Creek, Mich.; WMSD, Sheffield, Ala.; WPAD, Paducah, Ky.
SET FOR HEARING
WGCM — WGCM, Inc., Mississippi City, Miss. — Application for
modification of C. P. to extend commencement date from
1-28-36 to 30 days after grant and completion date from
7-28-36 to 180 days thereafter.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. — Special
experimental authorization to install directional antenna,
change hours of operation from limited to unlimited time for
period ending August 1, 1936. To be heard by the Broad¬
cast Division.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Application
for modification of license to increase night power from 1
to S KW. To be heard before the Broadcast Division.
KGW — Oregonian Publishing Co., Portland, Ore. — Application for
modification of license to increase night power from 1 to S
KW. To be heard before the Broadcast Division.
KHSL — Golden Empire Broadcasting Co., Chico, Calif.— Applica¬
tion for modification of license, already in hearing docket,
amended to read: change frequency from 960 kc. to 1280
kc.; increase time of operation from 250 watts daytime to
unlimited time.
NEW — The Constitution Publishing Co., Atlanta, Ga. — Applica¬
tion for C. P. for new station, 590 kc., 1 KW, unlimited time.
Site to be determined.
NEW — Harriett N. Alleman and Helen W. MacLellan, d/b as
Cape Cod Broadcasting Co., Barnstable Township, Mass. —
Application for C. P. for new station, 1210 kc., 100 watts
night, 250 watts day, unlimited time. Site to be determined.
NEW — L. Martin Courtney, Toledo, Ohio. — Application for C. P.
for new station, 1420 kc., 100 watts, unlimited time. Site
to be determined.
NEW — Harry G. Lowe and Clara A. Lowe, DuBoise, Pa. — Appli¬
cation for C. P. for new station, 1210 kc., 100 watts, day¬
time.
NEW — Sweetwater Broadcasting Co., Sweetwater, Tex. — Applica¬
tion for C. P. for new station, 1310 kc., 100 watts, daytime.
Site to be determined.
NEW — The Escanaba Daily Press Co., Escanaba, Mich. — Applica¬
tion for C. P. for new station, 1500 kc., 100 watts, daytime.
NEW — Thomas M. Hammond, d/b as Ventura Broadcasting Co.,
Ventura, Calif. — Application for C. P. for new station, 1210
kc., 100 watts, daytime.
NEW — John C. Looney, d/b as High Fidelity Broadcasting Serv¬
ice, Milton, Mass. — Application for C. P., exp. -exp. broad¬
cast, 1570 kc., 1 KW, unlimited and variable time,
NEW— Eugene Meyer & Co., d/b as The Washington Post, Wash¬
ington, D. C. — Application for C. P. for new station, 630 kc.,
250 watts night, 500 watts day, unlimited time. Site to be
determined. (Requests facilities of WMAL.)
WMBQ — Metropolitan Broadcasting Corp., Brooklyn, N. Y. —
Application for C. P. to install new equipment, move trans¬
mitter and studio locally, and install new radiating system.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Application for C. P. to install new transmitter, erect new
vertical radiator, increase night power from 5 to 25 KW and
day power from 5 to 10 KW.
WHAS — The Courier-Journal Co. and The Louisville Times Co.,
Louisville, Ky. — Special experimental authority to increase
power from 50 KW to 500 KW, exact type of antenna and
type of equipment to be determined ; transmitter site to be
determined in Oldham County, Ky. (Case to be heard
before the Broadcast Division September 24, 1936, together
with others applying for 500 KW, i.e., KNX, WHO, WJZ,
and WGN.)
WMBQ — Metropolitan Broadcasting Corp., Brooklyn, N. Y. — Ap¬
plication for renewal of license for the regular period.
WKBB — Sanders Brothers Radio Station, E. Dubuque, Ill.— Ap¬
plication for C. P. to move transmitter to Julien Township,
Iowa, studio to Hotel Julien, Dubuque; install new radiator,
exact transmitter site and type of antenna to be determined.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
Application for C. P., already in hearing docket, amended to
request: 1280 kc., 500 watts, unlimited time, site and type of
antenna to be approved.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. — Ap¬
plication for modification of license, already in hearing
docket, amended to read: change hours of operation from
250 watts daytime to 100 watts night, 250 watts day, un¬
limited time.
NEW — Walker Jamar, Duluth, Minn. — Application for C. P.,
already in hearing docket, amended to read: operation on
1200 kc., 100 watts, unlimited time, the site to be approved.
APPLICATIONS DENIED
KPRC — Houston Printing Co., Houston, Tex. — Denied special
temporary authority to operate with power of 5 KW night¬
time for period not to exceed 30 days in order to take meas¬
urements and show results obtained by this increased power.
KCMO — Lester E. Cox, Thos. L. Evans and C. C. Payne, Kansas
City, Mo. — Denied special temporary authority to operate
unlimited time for a period of 30 days.
WELI — Patric J. Goode, New Haven, Conn. — Denied special tem¬
porary authority to operate from 7:30 to 11 p. m., EST,
June 22, in order to broadcast banquet of the New Haven
Advertising Club.
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at request of applicants:
KPOF — Pillar of Fire (a corporation), Denver, Colo. — Applied for
modification of license, 880 kc., 500 watts, 1 KW LS, shares
with KFKA.
NEW — Farmers Educational and Cooperative Union of America,
North Dakota Division, Bismarck, N. Dak. — Applied for
C. P., 550 kc., 1 KW, 5 KW LS, unlimited time.
The following applications, heretofore set for hearing, were dis¬
missed with prejudice, inasmuch as requests of applicants for with¬
drawal of the applications were received less than 30 days prior to
the hearing scheduled thereon:
NEW — Jesse H. Jay, Miami Beach, Fla. — Applied for C. P., 1500
kc., 100 watts, unlimited.
WKBZ— Marl L. Ashbacker, Muskegon, Mich. — Modification of
license, 1200 kc., 100 watts, 200 watts LS, unlimited time.
NEW — Wolverine Broadcasting Co., Ann Arbor, Mich. — Applied
for C. P., 800 kc., 1 KW, daytime.
NEW — The Steffen Ice and Ice Cream Co., Wichita, Kans. — Ap¬
plied for C. P., 1210 kc., 100 watts, unlimited.
MISCELLANEOUS
WLLH— Merrimac Broadcasting Co. Inc., Lowell, Mass. — Recon¬
sidered action of April 24, 1936, granting authority to con¬
struct a “booster” station at Lawrence, Mass., to operate
synchronously with station WLLH at Lowell, Mass., and
set the application for a hearing because of a protest by
Hildreth & Rogers Co., applicants for a new broadcast
station at Lawrence, Mass. Effective date of the Commis¬
sion’s action to which the protest is directed postponed to
the date of the Commission’s decision after the hearing.
NEW — C. G. Hill, George D. Walker, and Susan H. Walker,
Winston-Salem, N. C. — Denied motion asking Commission
to advance the date for oral argument on application for
a C. P. to erect a broadcast station at Winston-Salem,
N. C., now scheduled for September 17, 1936, to an early
date in June, 1936, as the June Docket is now congested.
NEW — Mile High Radio Corp., Denver, Colo. — Denied petition
asking Commission to reconsider action of May 14, 1936,
in designating for hearing the application for C. P. to
authorize erection and operation of a new broadcast station
at Denver, Colorado. This applicant specifies 1420 kc.,
100 watts, unlimited time.
WOWO — Main Auto Supply Company, Ft. Wayne, Ind. — Granted
request to postpone hearing on application to increase power
from 10 KW to 25 KW now scheduled for June 29, 1936,
to a date to be fixed by the Commission. This applicant
has also pending before the Commission an application to
transfer control of the station to the Westinghouse Electric
and Manufacturing Company.
WCRW— Clinton R. White, Chicago, Ill. — Reconsidered action of
May 21, 1936, designating application for renewal of license
for hearing; removed the application for renewal from the
hearing docket and granted a regular renewal of license.
KRE — First Congregational Church, Berkeley, Calif. — Overruled
petition asking Commission to reconsider and grant without
hearing application for the voluntary assignment of its
license to the Central California Broadcasters Inc. Applica-
1375
tion to proceed to hearing as originally docketed. Station
operates on 1370 kc., 100 watts night, 2S0 watts daytime.
NEW — Jefferson Broadcasting Co., Birmingham, Ala. — Granted
authority to take depositions limited to financial ability in
re application for new broadcast station to operate on 1200
kc., 100 watts night, 250 watts daytime, unlimited. Denied
petition to amend application and to continue the hearing.
NEW — Donald A. Wike and H. E. Studebaker, Baker, Oregon —
Granted request for order to take depositions in re appli¬
cation for C. P. to establish a new broadcast station at
Baker, Oregon, to operate on 1370 kc., 100 watts night, 250
watts daytime, unlimited time.
ORAL ARGUMENTS
The following cases were set for oral argument to be held October
1, 1936:
NEW — Ex. Rep. No. 1-219: J. Laurance Martin, Tucumcari, N.
Mex.
NEW — -Ex. Rep. No. 1-213: Edwin A. Kraft, Fairbanks, Alaska.
NEW — Ex. Rep. No. 213: John A. Stump, Fairbanks, Alaska.
KLO — Ex. Rep. No. 1-221: Interstate Broadcasting Corp., Odgen,
Utah.
APPLICATIONS RECEIVED
First Zone
WTIC — The Travelers Broadcasting Service Corp., Hartford, Conn.
1060 — Extension of special experimental authorization to change
frequency from 1060 kc. to 1040 kc., hours of operation
from share-WBAL to simultaneous KRLD (unlimited), for
period from 8-1-36 to 2-1-37.
WSAY — Brown Radio Service & Laboratory (Gordon P. Brown,
1210 owner) , Rochester, N. Y. — Application to reinstate construc¬
tion permit requesting authority for a new station to be
operated on 1210 kc., 100 watts, daytime, which expired
6-1-36.
Second Zone
WLW — The Crosley Radio Corp., Cincinnati, Ohio. — Extension of
700 special experimental authorization to operate with power of
500 KW day and night, using directional antenna at night,
for period from 8-1-36 to 2-1-37.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
1370 Construction permit to make changes in equipment, change
frequency from 1370 kc. to 1390 kc. ; increase power from
100 watts, 250 watts day, to 500 watts, 1 KW day; and
install directional antenna. Amended to use directional an¬
tenna both day and night.
NEW — Farnsworth Television, Inc., of Pennsylvania, Springfield,
Pa. — Construction permit for a new experimental visual
broadcasting and synchronized sound track for 6000^86000
kc. band on specific frequencies of 62750 kc. for visual
broadcasting and 66000 kc. for synchronized sound track.
Visual power 4 KW, sound track power 1 KW. Amended
to delete request for specific frequencies and request bands
42000-56000 and 60000-88000 kc.
Third Zone
NEW — W. Hanes Lancaster and J. W. Birdwell, d/b as Johnson
1200 City Broadcasting Co., Johnson City, Tenn. — Construction
permit for a new station to be operated on 1200 ltc., 100
watts, 250 watts day, unlimited time.
KFXR — Exchange Avenue Baptist Church of Oklahoma City,
1310 Oklahoma City, Okla. — Voluntary assignment of license from
Exchange Avenue Baptist Church to Plaza Court Broad¬
casting Co.
KPDN — Pampa Daily News, Inc., Pampa, Tex. — Voluntary assign-
1310 ment of license from Pampa Daily News, Inc., to R. C.
Hoiles.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla.- — Modifica-
1420 tion of construction permit (B3-P-735) for new equipment,
increase in power, and move of transmitter, requesting ex¬
tension of completion date from 6-29-36 to 8-29-36.
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Authority to
1500 transfer control of corporation from J. J. Powell, Louise
Powell, and A. E. Groom to Arthur Lucas, William K.
Jenkins, and Frank J. Miller, 80 shares common stock.
Fourth Zone
WBBM — WBBM Broadcasting Corp., Chicago, Ill. — Extension of
770 special experimental authorization to operate synchronously
with KFAB from local sunset (KFAB local sunset) to mid¬
night, for period from 8-1-36 to 2-1-37.
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — License
1210 to cover construction permit (B4-MP-297) for new equip¬
ment.
KGBX — Springfield Broadcasting Co., Springfield, Mo. — License to
1230 use 1230 kc., 500 watts, unlimited time. Directional an¬
tenna night, as authorized under B4-SA-198, for permanent
authority.
NEW — Falls City Broadcasting Corp., Falls City, Nebr. — Con-
1310 struction permit for a new station to be operated on 1310 kc.,
100 watts, unlimited time. Antenna to be determined.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — Modification of con-
1350 struction permit (B4-P-848) for new equipment and move
of transmitter, requesting changes in authorized equipment
and extension of commencement and completion dates.
KSLM — Oregon Radio, Inc., Salem, Ore. — Construction permit to
1370 install a new transmitter.
KCMO — Lester E. Cox, Thomas L. Evans and C. C. Payne, Kansas
1370 City, Mo.- — Modification of license to change hours of op¬
eration from specified hours to unlimited time, and change
studio site from Werby Bldg., 39th and Main Sts., to Com¬
merce Trust Bldg., 10th and Walnut Sts., Kansas City, Mo.
NEW — C. F. Gaarenstroom, Fairmont, Minn. — Construction per-
1420 mit for a new station to be operated on 1420 kc., 100 watts,
250 watts day, unlimited time.
W9XJM — WCBS, Inc., Portable-Mobile. — License to cover con¬
struction permit for a new general experimental station.
NEW — Zenith Radio Corporation, Portable-Mobile — Construction
permit for a new general experimental station to be op¬
erated on 31600, 35600, 38600, 41000, 86000-400000,
401000 kc. and above, 100 watts.
NEW- — Zenith Radio Corporation, Portable-Mobile — Construction
permit for a new general experimental station to be operated
on 31600, 35600, 38600, 41000, 86000-400000, 401000 kc.,
100 watts.
Fifth Zone
NEW — KLZ Broadcasting Co., Denver, Colo. — Construction per-
1210 mit for a new station to be operated on 1210 kc., 100 watts,
250 watts day, unlimited time.
NEW — W. E. Whitmore, Hobbs, N. M. — Construction permit for
1210 a new station to be operated on 1210 kc., 100 watts, un¬
limited time.
NEW — Chauncey W. Hammond, Oakland, Calif.— Construction
1280 permit for a new station to be operated on 1280 kc., 500
watts, 1 KW day, unlimited time.
KXL — KXL Broadcasters, Portland, Oregon — Consent to transfer
1420 control of corporation from H. B. Read to T. W. Symons,
Jr., and E. B. Craney, 222 shares common stock.
Alaskan Zone
KINY — Edwin A. Kraft, Juneau, Alaska — Construction permit to
1430 install new equipment, new antenna, change frequency from
1310 kc. to 1430 kc. and power from 100 watts to 250
watts.
1376
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 30
JUNE 25, 1936
IN THIS ISSUE
Page
Engineering Conference . 1377
Fitzgerald Heads Copyright Bureau . 1377
Congressional Radio Action . 1377
Broadcast Revenue in East South Central States . 1378
New Radio Employment Agency . 1378
Effective Date of Rule 177 Postponed . 1378
Middle Atlantic Broadcast Revenue . 1378
Frank A. Noble . 1378
Pat Fredericks . 1378
Lew Byrd . 1378
Federal Trade Commission Action . 1378
FTC Dismisses Complaint . 1379
Federal Communications Commission Action . 1379
ENGINEERING CONFERENCE
The informal engineering conference which has been in progress
before the full membership of the Federal Communications Com¬
mission since June IS is continuing.
The testimony of James W. Baldwin, Managing Director, and
Dr. Charles B. Aiken, technical consultant for the Association in
this case, will be printed in a special edition of NAB Reports and
mailed to the membership this week.
FITZGERALD HEADS COPYRIGHT BUREAU
Edward J. Fitzgerald, of Long Island City, N. Y., and recently
connected with broadcasting stations WLW and WSAI, Cincinnati,
as General Music Director, has been appointed Director of the
new Bureau of Copyrights of the National Association of Broad¬
casters by James W. Baldwin, Managing Director, effective June 23.
Mr. Fitzgerald will give his immediate attention to (1) the
making available to broadcasters of a complete and accurate cata¬
log or index of active musical compositions, and (2) creation of
a standard library of musical compositions taken, for the most
part, from the public domain of music. Both these projects were
contained in the Copyright Plan which has been approved by the
Board of Directors.
Mr. Fitzgerald, who is 38 years old, graduated from the Boston
Latin School in 1915, following which he had four years’ schooling
at the New England Conservatory of Music.
From 1922-1929 he was an arranger of music, a writer of special
vaudeville material and popular songs for Leo Feist, Inc., Copley
Plaza Orchestras, and Jerome Remick & Company.
From 1929-1933 he was president and managing director of
Eddie Fitzgerald, Inc., of Boston. The company was engaged in
the business of devising, writing, selling and producing advertising
style shows, vaudeville units and commercial radio broadcasts,
including the Stetson Shoe Company style show, the Kelvinator
Choirs, the Jordan Marsh Company broadcasts, the Colt Shoe
Company broadcasts and others.
From January 1934 to May of this year Mr. Fitzgerald was
associated with stations WLW and WSAI, Cincinnati, as program
idea man and arranger of music. Later he became a member of
the Audition Board and the Program Planning Board and in
August 1934 he was named General Music Director, in which
capacity he supervised the work of some 150 musicians and
vocalists.
CONGRESSIONAL RADIO ACTION
The second session of the Seventy-fourth Congress which ad¬
journed on June 20 enacted only two radio bills into law which
affect the broadcasting industry. On the other hand, it failed to
enact the Duffy copyright bill, which held special interest for
broadcasters. The Pure Food and Drug Bill was given a great deal
of consideration in the closing hours but failed of enactment.
Of the two radio bills which became law during the second
session, one repealed the Davis amendment and the other dealt with
engineers, directors of divisions and accountants of the Federal
Communications Commission and their salaries.
In connection with the end of this Congress it is to be borne
in mind that the slate is now clean and that the session of Congress
which convenes on January 5 next will start with no bills before
it on any subject.
Following is a list of all of the Senate and House radio bills and
resolutions which were left without final action having been taken
on them during the two sessions of the Seventy-fourth Congress
just adjourned:
Senate
S. 4 — Copeland, Vandenberg, Murphy bill “to prevent the pro¬
motion of fraud through interstate communication.”
S. 5 — Copeland pure food and drug bill.
S. 541 — Capper bill “to prohibit the transportation in inter¬
state commerce of advertisements of intoxicating liquors.”
S. 820 — Neely bill “relating to costs in radio proceedings before
the Federal Communications Commission.”
S. 3047 — Copyright bill.
S. 3261 — Walsh bill to have foreign government radio programs
approved by State Department.
House
H. R. 55 — Rudd bill “to amend the Radio Act of 1927” to pro¬
vide educational, religious and other facilities.
H. R. 197 — Buckbee bill “to prohibit untrue, deceptive, or mis¬
leading advertising through the use of the mails or in interstate
or foreign commerce.”
H. R. 3252 — Sauthoff bill “to prohibit the use of the mails, cer¬
tain periodicals, and broadcasting stations, having a range cover¬
ing more than one State, to the advertising of loans for which
interest in excess of 15 per cent per annum is charged.”
H. R. 8404 — Culkin bill “to prohibit advertising of alcoholic
beverages in interstate commerce.”
H. R. 8475 — Monaghan bill “to amend the Communications
Act of 1934 by establishing a Radio Commission.”
H. R. 8852 — McKeough bill to have foreign radio programs ap¬
proved by the State Department.
H. R. 9229 — Scott bill “to amend section 326 of the Communi¬
cations Act of 1934,” dealing with censorship.
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS
JULY 5, 6, 7, 8, 1936
1377
H. R. 9230 — Scott bill “to amend section 315 of the Communi¬
cations Act of 1934” laying aside time for political and other un¬
censored broadcasts.
H. R. 9231 — Scott bill “to add section 315 (a) to the Com¬
munications Act of 1934” making it obligatory for stations to keep
certain records.
H. R. 12646 — Rayburn bill “to amend section 318 of the Com¬
munications Act of 1934,” making provisions for operators.
H. J. Res. 220 — Sirovich resolution “providing for the establish¬
ment of an executive department to be known as the ‘Department
of Science, Art, and Literature.’ ”
H. Res. 52 — Dies censorship bill.
H. Res. 370 — Scott resolution providing for the establishment
of a “Broadcasting Research Commission.”
H. Res. 394 — Connery resolution asking for an investigation of
the Communications Commission.
BROADCAST REVENUE IN EAST SOUTH
CENTRAL STATES
The Bureau of the Census, Department of Commerce, has an¬
nounced that total receipts of the 34 broadcast stations in the
east south central states, including Alabama, Kentucky, Mississippi
and Tennessee, from sales of radio time during 1935 amounted to
$2,140,634. These receipts include revenue from 9 stations in
Alabama, 6 in Kentucky, 7 in Mississippi, and 12 in Tennessee.
NEW RADIO EMPLOYMENT AGENCY
The Cleveland Vocational Bureau has been established in Cleve¬
land with headquarters in the Schofield Building, whose purpose
is to act as a radio employment agency. Stanley Babington, a
former Cleveland broadcaster, is in charge.
According to the announcement the new Bureau will act as a
clearing house for the registration of artists, announcers, engineers,
salesmen and studio personnel of all types. It is stated that only
applicants with previous radio experience will be considered.
EFFECTIVE DATE OF RULE 177 POSTPONED
A protest has been received from Oswald Schuette on behalf of
the Short Wave Institute of America, Inc., against Rule 177 which
deals with the rebroadcasting of programs of broadcast and other
stations. The Rule is now effective July 1, 1936. Because of the
fact that the effective date of other rules recently adopted to be
effective July 1, 1936, has been postponed to August 1, and in order
also to allow time for study of the protest, it was decided that the
effective date of Rule 177 be also postponed to August 1, 1936.
MIDDLE ATLANTIC BROADCAST REVENUE
Total receipts of 82 broadcast stations in the Middle Atlantic
States from sale of radio last year amounted to $11,422,747, accord¬
ing to the Bureau of the Census, Department of Commerce, in the
fifth report on the new census of business series on the broadcasting
business.
The report includes all broadcast stations in the three states of
New Jersey, New York and Pennsylvania which sold time and
were in operation December 31, 1935.
FRANK A. NOBLE
Elmer G. Behler, manager of Radio Station KGEK, Sterling,
Colorado, is anxious to locate Frank A. Noble. He is about 45
or 50 years old, with black hair, and 5 feet 7 inches tall. Further
information can be obtained from Mr. Behler.
PAT FREDERICKS
W. W. Behrman, Radio Station WBOW, Terre Haute, Indiana,
is desirous of learning the whereabouts of one Pat Fredericks.
Mr. Behrman requests that members notify him by wire, collect,
should they be able to assist him in locating Fredericks.
LEW BYRD
Charles A. Baker, Radio Station KFJR, Portland, Ore., will
appreciate information as to the whereabouts of Lew Byrd. Mr.
Byrd is about 45 years old. For further information communicate
with Mr. Baker.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following companies. The re¬
spondents will be given an opportunity for hearing to show cause
why cease and desist orders should not be issued against them.
No. 2841. George H. Lee Co., 12th and Harney Streets,
Omaha, Nebr., distributor of a poultry medicine, is charged with
unfair competition in violation of the Federal Trade Commission
Act, in a complaint. Medicinal qualities of the respondent com¬
pany’s product were misrepresented, according to the complaint.
No. 2842. Trade representations unfair to competitors are
alleged in a complaint issued against Federal Enameling &
Stamping Co., of McKees Rocks, Penna., and Pittsburgh,
manufacturers of porcelain enamel kitchen utensils sold under the
trade name “Federalware.”
Advertising in metropolitan newspapers, radio announcements
and in other ways, the respondent company is alleged to have
represented its products as chip proof, stainless, and as thirty-six
times more durable than ordinary enamelware. The articles are
said to have been advertised as having covers or lids of chromium,
and as being capable of saving their cost to the ultimate purchaser
in one year or less through saving of fuel.
These representations were not true, according to the complaint,
and had a tendency to deceive the public, as there is a preference
for products of this class which do have the qualities advertised.
No. 2843. Alleging unfair methods of competition in the sale
of “Italy Brand Table Oil,” intended for use in salads, cooking
and baking, a complaint has been issued against Chicago Maca¬
roni Co., wholesale grocers, trading as A. Morici and G. Matalone
Co., 2148 Canalport Ave., Chicago.
Labels on containers describe the table oil as being composed of
“fifteen per cent imported olive oil and eighty-five per cent of
other vegetable oils” and bear statements in the Italian language
and pictorial representations characteristic of Italy, it is charged.
These representations allegedly tend to cause purchasers to
believe that the olive oil ingredient in the respondent corpora¬
tion’s product is produced in or imported from Italy, is packed
by A. Morici and G. Matalone Co., and that this company is an
Italian concern engaged in importing olive oil from Italy.
No. 2844. A complaint has been issued charging Basic Foods,
Inc., and Curtis Howe Springer, its president, of Somerset, Pa.,
with unfair trade representations in the sale of food, herb and
drug products known as “Dr. Springer’s Antediluvian Tea” and
“Dr. Springer’s Re-Hib.”
The complaint charges the respondent with misleadingly adver¬
tising that a majority of people suffer from constipation and over¬
acidity; that most aches and pains result from congestion of
glands and organs, and that “Dr. Springer’s Antediluvian Tea” acts
beneficailly upon the glands and organs of the body and that
“Re-Hib” is beneficial in treating all cases of over-acidity, so called
“heartburn,” and stomach ailments.
According to the complaint, the product “Antediluvian Tea” is
primarily a laxative, and does not act beneficially upon the glands
and organs; and “Re-Hib” is not beneficial as a corrective for all
cases of over-acidity or heartburn and should not be taken except
upon a doctor’s prescription.
The complaint also charges that although the respondent’s
advertising indicates that its products are submitted to Federal
agencies for approval, there is in fact no such agency with authority
to approve or censure in advance of shipment such products or
the advertising literature relative thereto.
No. 2848. A complaint has been issued against Frances
Brown, 4626 Lancaster Ave., Philadelphia, trading as American
Bank Machinery Company, charging unfair competition in the
business of repairing and rebuilding perforating and check endors¬
ing machines, and in selling and supplying new parts.
Practices of the respondent are alleged to deceive owners of
perforating and check endorsing machines made by old established
concerns, causing such owners to deliver such machines to the
respondent for repair and installation of new parts in connection
therewith, rather than to the original manufacturer or to others
engaged in repair or such installation work. This practice, ac¬
cording to the complaint, results in diversion of trade from com¬
petitors to the respondent.
According to the complaint, the respondent, through her sales¬
men, solicited repairing and rebuilding jobs, asserting that the
respondent was representative for the old line companies, American
Perforating Company and Cummins Perforator Company, both of
Chicago. Other representations made in the course of these sales
1378
efforts were, according to the complaint, that the respondent did
all repair work for these two companies; that American Per¬
forator Company and the respondent were one and the same con¬
cern; that the American and Cummins companies were out of
business, and that the respondent manufactured and repaired
machines sold by National Perforator Company, Inc., of Phila¬
delphia.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01385. A. C. Carlton, trading as Putinize Laboratories,
369 Pine St., San Francisco, agrees to cease representing that
“Putinize,” an eye lotion, overcomes or prevents any condition of
the eyes, keeps them brilliant and restores their natural luster,
that it is preferred by stars of the stage and screen, and that it is
a tonic or antiseptic containing no harmful ingredients. The re¬
spondent stipulates he will discontinue use of the word “labora¬
tories” in his trade name until he maintains a laboratory where
scientific tests are conducted. He admits that repeated applica¬
tion of certain ingredients such as those contained in “Putinize”
may cause corneal ulcers.
No. 01393. Pompeian Co., 60 Orange St., Bloomfield, N. J.,
will discontinue advertising that use of certain Pompeian cosmetic
preparations stops dryness of the skin, prevents blotches or scali¬
ness reduces pores, and that any specified ingredients or chemicals
not contained in Pompeian beauty products are “damaging.” It
is admitted by the respondent that reliable or scientific proof has
not been established for its claims that skin troubles increase as
the use of cosmetics increases.
These assertions will be stopped, as well as the representation
that the respondent corporation’s chemists have banished every
harmful chemical used in cosmetics, and that any offer to pur¬
chasers is limited to a stated number unless delivery is refused to
all above such number.
No. 01394. Fabrix, Inc., 325 W. Huron St., Chicago, is
engaged in the sale of rubber mats and machinery for manufactur¬
ing such mats. In its stipulation the corporation admits there is
no evidence that the mats manufactured under a license granted
by it are in greater demand than other mats, and will discontinue
such representation in advertising, as well as claims that the mats
surpass United States Government specifications and, inferentially
or otherwise, that they have been purchased by the Government.
The respondent corporation also will cease making unmodified
representations that earnings from the sale of mats produced by
its machines are in excess of the average earnings of the respond¬
ent’s licensees under normal business conditions.
No. 01395. The Reese Chemical Co., Inc., 10617 Frank
Ave., Cleveland, stipulates that in the sale of a medicinal prepara¬
tion designated “Thoxine” it will cease advertising that the product
will drive colds or fevers out of the system ; that it is an effective
remedy for sore throat, unless such representation is clearly limited
to sore throat due to colds or the inhalation of dust or fumes,
and that it is a competent treatment for coughs unless this claim
is confined to coughs resulting from colds or minor throat ail¬
ments. The stipulation prohibits the respondent corporation from
making assertions that “Thoxine” is a “famous” doctor’s pre¬
scription, and that it contains no harmful drugs and is “safe,”
unless such representation makes clear that the product is safe
when taken according to directions.
No. 01396. Modem Health Products, Inc., 1428 North
Twenty-fourth Street, Milwaukee, selling an herbal prepara¬
tion, “Swiss Kriss,” agrees to stop advertising it as a product
that will conquer or eliminate intestinal poisons, unless the asser¬
tion is limited to temporary conditions due to inadequate elimina¬
tion. The respondent stipulates that it will discontinue other
similar representations such as that its product is a tonic, is a
“modern” laxative or a “secret” of the Swiss people.
No. 01397. Chocolate Products Co., 415 Beethoven Place,
Chicago, selling “Stillicious,” a chocolate drink, agrees to cease
making representations by inference or direct statement to the
effect that the daily drinking of a quart of this liquid will promote
radiant physical health, magnetism and charm, and that only in
“Stillicious” chocolate may one get the yeast Vitamins B and G.
No. 01398. G. Muller, trading as Rowland Weil & Co.,
135 Bergen Avenue, Jersey City, N. J., will ban advertisements
to the effect that its “Mullax Tablets” are a competent treatment
or remedy for constipation, unless this representation is confined
to the relief of temporary constipation. Among other assertions
to be discontinued in the respondent’s advertising are that the
preparation is a tonic or vegetable product and that it has any
effect on intestinal muscles.
No. 2521. I. Teich and A. Makower, trading as Tee and
Emm Knitting Mills, 32 Orchard Street, New York City, have
been ordered to discontinue representing that they manufacture
the knitted goods they sell in interstate commerce.
Use by the respondents of the words “Knitting Mills,” “Mills”
or “Manufacturers” in their trade name, on letterheads, labels,
invoices, or in any other manner, to represent that they own or
operate a factory or mill in which their products are knitted or
manufactured, is prohibited under the order to cease and desist.
No. 2684. The K-W Graphite Corporation, of 3246 Holmes
St,. Kansas City, Mo., has been ordered to cease and desist from
misrepresentations in the sale of motor oil.
Among the representations to be discontinued are that “K-W
Motor Graphite” increases motor life and efficiency by any specific
percentage; that motors in which it is used require less gasoline
than those in which it is not used; and that use of this substance
reduces friction by any stated percentage.
The respondent company is also ordered to stop alleging that
only one oil change in each 3,000 miles or any specified mileage is
necessary when K-W Graphite is used, and that its use effects
any definite saving on oil bills.
The respondent’s product is described as a concentrated solution
of oil and graphite, used for addition to fuels and crank-case oils
for combustion engines and machinery.
FTC DISMISSES COMPLAINT
No. 2547. The Federal Trade Commission has dismissed a
complaint alleging unfair competition on the part of Harold C.,
Ellen J., and Louis E. Brooks, of Marshall, Mich., trading as
Brooks Rupture Appliance Company and Brooks Appliance Com¬
pany. The complaint had charged the respondents with unfair
representations in the sale of an appliance sold for use in treating
rupture.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, June 29
HEARING BEFORE THE BROADCAST DIVISION
Western Broadcast Company, Los Angeles, Calif. — Authority to
transfer control of corporation.; 1050 kc., SO KW, un¬
limited time.
Western Broadcast Company, Los Angeles, Calif. — Renewal of
license; 1050 kc., SO KW, unlimited time.
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW- — Eastern States Broadcasting Corp., Bridgeton, N. J. —
C. P., 1210 kc., 100 watts, daytime.
WJAC — WJAC, Inc., Johnstown, Pa. — C. P., 1310 kc., 100 watts,
2S0 watts LS, share-WFBG. Present assignment: 1310 kc.,
100 watts, share-WFBG.
KYA — Hearst Radio, Inc., San Francisco, Calif. — C. P., 1230 kc.,
1 KW, 5 KW LS, unlimited time. Present assignment:
1230 kc., 1 KW, unlimited time.
Tuesday, June 30
HEARING BEFORE AN EXAMINER
NEW — Power City Broadcasting Corp., Niagara Falls, N. Y.—
C. P., 630 kc., 250 watts, daytime.
NEW — The Niagara Falls Gazette Publishing Co., Niagara Falls,
N. Y. — C. P., 630 kc., 250 watts, daytime.
KUJ — KUJ, Inc., Walla Walla, Wash. — C. P., 1250 kc., 250 watts,
unlimited time. Present assignment: 1370 kc., 100 watts,
unlimited time.
KRLC — H. E. Studebaker, Lewiston, Idaho. — C. P., 1390 kc., 250
watts, unlimited time. Present assignment: 1420 kc., 100
watts, unlimited time.
NEW — Donald A. Wike and H. E. Studebaker, d/b as Wike &
Studebaker, Baker, Ore. — C. P., 1370 kc., 100 watts, 250
watts LS, unlimited time.
NEW-j-Comer Thomas, Bellingham, Wash. — C. P., 1420 kc., 100
watts, unlimited time.
WCBD — WCBD, Inc., Waukegan, Ill. — Authority to transfer con¬
trol of corporation ; 1080 kc., 5 KW, limited time, S-WMBI,
WCBD — WCBD, Inc., Waukegan, Ill. — Modification of license to
move studio ; 1080 kc., 5 KW, limited time.
1379
Wednesday, July 1
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— The Tribune Co., Tampa, Fla.— C. P., 550 kc., 1 KW,
5 KW LS, unlimited.
APPLICATIONS GRANTED
WMIN — Edward Hoffman, St. Paul, Minn. — Granted modification
of C. P. authorizing change in type of equipment to be in¬
stalled and approval of transmitter location.
WJDX— Lamar Life Ins. Co., Jackson, Miss. — Granted authority
to determine operating power by direct measurement of
antenna input in compliance with terms of Rule 137.
WSPR— Quincy A. Brackett, Lewis B. Breed and Edmund A.
LaPorte, co-partners, d/b as Conn. Valley Broadcasting Co.,
Springfield, Mass.— Granted license to cover C. P. authoriz¬
ing erection of new station, 1140 kc., 500 watts, limited
time.
WHIS — Daily Telegraph Printing Co., Bluefield, W. Va.— Granted
modification of license to increase power from 250 watts
night, 500 watts day, to 500 watts night, 1 KW day.
KCMO — Lester E. Cox, Thomas L. Evans and C. C. Payne, Kan¬
sas City, Mo.— Granted modification of license to move
studio locally, change hours of operation from specified to
unlimited.
WDNC — Durham Radio Corp., Durham, N. C. — Granted consent
to transfer of control of Durham Radio Corp. from the
present stockholders to The Durham Herald Company ;
1500 kc., 100 watts, unlimited time.
WDBJ — Times-World Corp., Roanoke, Va. — Granted consent to
transfer of control of the Times-World Corp., a newspaper
organization and licensee of station WDBJ, from J. B.
Fishburn to various members of his family.
WMEX — The Northern Corp., Boston, Mass.— Granted renewal
of license for the period ending January 1, 1937; 1500 kc.,
100 watts night, 250 watts day, unlimited.
KDB — Santa Barbara Broadcasters, Ltd., Santa Barbara, Calif. —
Granted renewal of license for period ending January 1,
1937; 1500 kc., 100 watts, unlimited time.
KSLM — Oregon Radio, Inc., Salem, Ore. — Granted renewal of
license, 1370 kc., 100 watts, unlimited time, for period end¬
ing January 1, 1937.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Granted
renewal of license, 1210 kc., 100 watts daytime, for period
ending 12-1-36.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla. — Granted
modification of C. P. to make changes in equipment and
approval of new transmitter site and antenna system. Also
to extend completion date from June 29 to August 29, 1936.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — Granted modifica¬
tion of C. P. to install new equipment and extend completion
date from August 10, 1936, to 120 days thereafter.
WAYX — E. F. Sapp and S. F. Sapp, d/b as Waycross Broadcast¬
ing Co., Waycross, Ga. — Granted modification of C. P. ap¬
proving radiator transmitter and studio sites and equipment.
WEEI — The Edison Electric Illuminating Co. of Boston, Boston,
Mass. — Granted consent to voluntary assignment of license
from The Edison Electric Illuminating Co. of Boston to
WEEI Broadcasting Corp.
KOB — New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, N. Mex. — Granted consent to voluntary as¬
signment of license from New Mexico College of Agricul¬
ture and Mechanic Arts to the Albuquerque Broadcasting
Co.
KFRU — KFRU, Inc., Columbia, Mo. — Granted consent to the
transfer of control of corporation from Luther L. Hill to
Star Times Publishing Company.
SET FOR HEARING
WJAS — Pittsburgh Radio Supply House, Pittsburgh, Pa. — Appli¬
cation for modification of license to increase power from
1 KW night, 5 KW day, to 5 KW, unlimited time. (To be
heard by Broadcast Division.)
NEW — Old Colony Broadcasting Corp., Brockton, Mass. — Applica¬
tion for C. P. for new station, 680 kc., 250 watts daytime,
time to be determined.
NEW — Amended to read: Voice of Corsicana Assn., Corsicana,
Tex. — Application for C. P. amended to read: 1310 kc., 100
watts, daytime only.
NEW — Chauncey W. Hammond, Oakland, Calif. — Application for
C. P., 1280 kc., 500 watts night, 1 KW day, unlimited time,
site to be determined.
NEW — Harry G. Kipke, Ann Arbor, Mich. — Application for C. P.
for new station, 630 kc., 500 watts, daytime only, site and
type of antenna to be determined.
NEW — R. E. Chinn, Moorhead, Minn. — Application for C. P. for
new station, 1500 kc., 100 watts, unlimited time, site to be
determined.
NEW — Amended to read: Dallas Broadcasting Co., Dallas, Tex. —
Application for C. P., 1500 kc., 100 watts, daytime only, site
to be determined.
NEW — New England Radio Corp., Bridgeport, Conn. — Applica¬
tion for C. P. amended to read: 1420 kc., 100 watts, day¬
time only, site to be determined.
WHAT — Independence Broadcasting Co., Inc., Philadelphia, Pa. —
Amended to read: C. P. requesting approval of new trans¬
mitter site; make changes in equipment; change frequency
from 1310 kc. to 1220 kc. ; increase power from 100 watts
to 1 KW ; and increase operating time from sharing with
WTEL to unlimited, using directional antenna system.
APPLICATION DISMISSED
The following application, heretofore set for hearing, was dis¬
missed at request of applicant:
NEW — George F. Bissell, Pittsfield, Mass. — C. P. for new station,
1200 kc., 100 watts, daytime.
APPLICATION DENIED
The following application, heretofore set for hearing, was denied
as in cases of default for failure to file an appearance and state¬
ment of facts in accordance with Rule 104.6(c):
NEW — John Perkins Rabb, Lenoir, N. C. — C. P. for new station,
1370 kc., 100 watts, daytime.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 1-68: George B. Bairey, Valley City, N. Dak.
— Granted C. P. for new broadcast station to operate on
1500 kc., 100 watts, unlimited time. Examiner M. H.
Dalberg sustained. Order effective July 14, 1936.
KVI — Ex. Rep. No. 1-210: Puget Sound Broadcasting Co., Inc.,
Tacoma, Wash. — Granted C. P. to move transmitter location;
install new equipment; and increase power from 1 KW to
1 KW night, 5 KW day; 570 kc., unlimited time. Examiner
R. L. Walker reversed. Order effective July 7, 1936.
WSBM — WSBM, Inc., New Orleans, La. — Granted renewal of
license, 1320 kc., 500 watts night, 1 KW day, unlimited
time. Examiner Geo. H. Hill sustained. Order effective
July 7, 1936.
MISCELLANEOUS
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Recon¬
sidered and granted application for C. P. to make changes
in equipment and increase day power from 2 y2 to 5 KW.
National Television Corp., New York City. — Denied petition ask¬
ing Commission to grant special temporary use of the fre¬
quency band 2000 to 2100 kc. for period ending July 1,
1936, for television demonstration.
KOB — New Mexico College of Agriculture and Mechanic Arts,
Albuquerque, N. Mex. — Granted application for renewal of
license and for the assignment of the license to Albuquerque
Broadcasting Co., of which T. M. Pepperdy holds all the
stock.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Reconsidered and
granted application for increase of day power to 5 KW.
Hammond-Calumet Broadcasting Corp., Hammond, Ind. — Granted
petition for rehearing of application to construct new broad¬
cast station at Hammond, Ind., to operate on 1480 kc., 5
KW daytime. Denied petition to amend the application in
respect to the site and antenna system.
KROW — Educational Broadcasting Corp., Oakland, Calif. — De¬
nied petition to intervene at hearing of application of Earl
Yates for C. P. for new broadcast station at Las Cruces,
N. Mex., to operate on 930 kc., 1 KW LS.
KIT— Carl E. Haymond, Yakima, Wash. — Denied petition for
continuance of hearing of application of KUJ, Walla Walla,
Wash., for C. P. to operate on frequency 1250 kc., 250
watts, unlimited time.
1380
NEW — Great Western Broadcasting Assn., Inc., Logan, Utah. —
Accepted answer to the appearance and statement of facts
filed by Cache Valley Broadcasting Co., Logan, Utah., in re
application for new station at Logan to operate on 1200
kc., 100 watts, unlimited time.
KRSC — Radio Sales Corp., Seattle, Wash. — Granted application
to increase its power from 100 watts to 250 watts and to
operate unlimited time. Reconsidered action of April 3,
1936.
WBCM — James E. Davidson, Bay City, Mich. — Granted request
to file brief in opposition to applications of the Saginaw
Broadcasting Co. for authority to construct new broadcast¬
ing stations at Saginaw, one to operate on 950 kc., 500
watts, day only, the other on 1200 kc., 100 watts night, 250
watts day.
WHDL — Glean Broadcasting Co., Olean, N. Y. — Reconsidered and
granted without hearing application for the transfer of the
control of station WHDL to the Olean Times Herald. This
station operates on 1420 kc., 100 watts day.
NEW — Harold Johnson and Leland M. Perry, d/b as Johnson &
Perry, Cedar City, Utah. — Denied petition asking applica¬
tion for a permit for new broadcasting station at Cedar
City, Utah, be granted without a hearing. Also denied re¬
quest for a continuance of hearing to July 25 and request
to take depositions in re application.
APPLICATIONS RECEIVED
First Zone
WGR — Buffalo Broadcasting Corp., Buffalo, N. Y. — Construction
550 permit to install new transmitter and antenna and increase
power from 1 KW to 1 KW night, 5 KW day.
WEEI — The Edison Electric Illuminating Co. of Boston, Boston,
590 Mass. — Construction permit to install a new transmitter and
directional antenna for day and night; increase power from
1 KW to 1 KW night, 5 KW day; move transmitter from
Bridge St., Weymouth, Mass., to Mystic Valley Parkway,
Medford, Mass.
WTBO — Associated Broadcasting Corp., Cumberland, Md. — Modi-
800 fication of license to change hours of operation from day¬
time until sunset at Dallas, Tex., to unlimited time, using
250 watts power.
WJAR — The Outlet Co., Providence, R. I. — License to cover con-
890 struction permit (Bl-P-333) as modified for changes in
equipment, move of transmitter, and increase in power,
using directional antenna. Amended re equipment.
WBAL — The WBAL Broadcasting Co., Baltimore, Md.- — Extension
1060 of special experimental authorization to change hours of
operation from share with WTIC to daily simultaneons
operation on 1060 kc. with KTHS, from 6 a. m. to local
sunset at Hot Springs, Ark.; from local sunset to 9 p. m.,
operate unlimited time on 1060 kc. ; from 9 p. m. on will
synchronize with WJZ on 760 kc., with power of 2*4 KW,
using directional antenna, until end of license period from
8-1-36 to 2-1-37.
NEW- — Albert O. Fenyvessy, Rochester, N. Y. — Construction per-
1210 mit for a new station to be operated on 1210 kc., 100 watts,
daytime. Amended re antenna and to request facilities of
WSAY.
WCAD — St. Lawrence University, Canton, N. J. — Voluntary as-
1220 signment of license from St. Lawrence University to The
Brockway Co.
NEW — Clarence C. Dill, Washington, D. C. — Construction permit
1310 for a new station on 1310 kc., 100 watts, unlimited, facili¬
ties WOL if WOL is granted 1230 kc. Amended: Trans¬
mitter site to be determined.
WABY — Adirondack Broadcasting Co., Inc., Albany, N. Y. — Con-
1370 struction permit to install a new transmitter; erect a verti¬
cal antenna; increase power from 100 watts to 100 watts,
250 watts day; move transmitter from Strand Theatre
Bldg., 110 N. Pearl St., Albany, N. Y., to Baintree and
Newton Sts., 500 N. of Albany City line, Colonie, N. Y.;
and studio from Strand Theatre Bldg., 110 N. Pearl Street,
Albany, N. Y., to 87 State Street, Albany, N. Y.
WNLC — Thames Broadcasting Corp., New London, Conn. —
1500 Modification of construction permit (Bl-P-549) to make
changes in authorized equipment and install a vertical
antenna.
WMEX — The Northern Corporation, Boston, Mass. — Construc-
1500 tion permit to install new equipment; change frequency
from 1500 kc. to 1470 kc., power from 100 watts, 250 watts
day, to 5 KW day and night; and move transmitter from
Powder Horn Hill, 4*4 miles from center of Boston, Chelsea,
Mass., to Saugus, Mass.; install directional antenna for day
and night use. Amended to change requested transmitter
site from Saugus, Mass., to Granite Avenue, Milton, Mass.
W2XIN — Standard Cahill Co., Inc., Portable-Mobile. — License to
cover construction permit for a new general experimental
station.
Second Zone
NEW — WRBC, Inc., Cleveland, Ohio. — Construction permit for
950 a new station to be operated on 950 kc., 1 KW, unlimited
time. Amended to install directional antenna for day and
night use; also gives transmitter and studio sites as Cleve¬
land, Ohio (no street address).
WWSW — Walker & Downing Radio Corp., Pittsburgh, Pa. — License
1500 to cover construction permit (B2-P-922) for changes in
equipment and move of transmitter.
W3XEO— -WCAU Broadcasting Co., Portable-Mobile. — Construc¬
tion permit for a new general experimental station to be
operated on 31100, 34600, 37600, 40600 kc., 50 watts.
W3XEO — WCAU Broadcasting Co., Portable-Mobile. — License to
cover above.
W8XFQ — Scranton Broadcasters, Inc., Portable. — License to cover
construction permit for a new general experimental station.
Third Zone
WPTF — WPTF Radio Co., Raleigh, N. C. — Special experimental
680 authorization to operate with 5 KW power from sunset at
KPO to 11 p. m., EST, using directional antenna after sun¬
set for period to 8-1-36.
WIS — Station WIS, Inc., Columbia, S. C. — License to cover con-
1010 struction permit (3-P-B-3258) for move of transmitter,
change in frequency, increase in power, and changes in
equipment.
KRGV — KRGV, Inc., Weslaco, Tex. — Authority to install auto-
1260 matic frequency control.
KRGV — KRGV, Inc., Weslaco, Tex. — Construction permit to make
1260 changes in equipment, install new antenna, and increase
power from 500 watts to 1 KW.
WDAH — Tri-State Broadcasting Co., Inc., El Paso, Tex. — Con-
1310 struction permit to make changes in equipment, install a
vertical antenna, and move transmitter from 200 S. El
Paso St., El Paso, Tex., to corner Texas and Stanton Sts.,
El Paso, Tex.
NEW — Isadore Goldwasser, Anniston, Ala. — Construction permit
14201 for a new station to be operated on 1420 kc., 100 watts,
unlimited time. Amended to change hours of operation
from unlimited to daytime.
KRBC — Reporter Broadcasting Co., Abilene, Tex. — Modification
1420 of construction permit (B3-P-439) for a new station, re¬
questing changes in authorized equipment, for approval of
antenna, change studio site from 151 Cypress St., Abilene,
Tex., to 984 Fourth St., Abilene, Tex., and approval of
transmitter site at 341 Ambler 9t., Abilene, Tex.
NEW — C. W. Snider, Wichita Falls, Tex. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, un¬
limited time. Amended to make changes in authorized
equipment and change power from 100 watts to 100 watts,
250 watts day.
NEW — A. Frank Katzentine, Miami Beach, Fla. — Construction
1500 permit for a new station on 1500 kc., 100 watts, unlimited
time.
W4XBW — WDOD Broadcasting Corp., Chattanooga, Tenn. —
License to cover construction permit for a new general
experimental station.
Fourth Zone
NEW — National Battery Broadcasting Co., St. Paul, Minn. —
580 Construction permit for a new station to be operated on
580 kc., 1 KW power, unlimited time.
KFRU — KFRU, Inc., Columbia, Mo. — Authority to transfer con-
630 trol of corporation from Luther Hill to Star Times Pub¬
lishing Co., 350 shares common stock.
1381
KFAB — KFAB Broadcasting Co., Lincoln, Nebr. — Extension of
770 special experimental authorization to operate synchronously
with WMMB from LS at Lincoln, Nebr., to midnight, CST,
from 8-1-36 to 2-1-37.
KFNF — KFNF, Inc., Shenandoah, Iowa. — Authority to determine
890 operating power by direct measurement of antenna.
KGBZ — KGBZ Broadcasting Co., York, Nebr. — Construction per-
930 mit to make changes in equipment. Amended re equipment.
WCAT — South Dakota State School of Mines, Rapid City, S. Dak.
1200 — Construction permit to install a vertical antenna and
move transmitter and studio 600 feet from present site,
School Campus. East St. Joe Street, Rapid City, S. Dak.
KANS — Charles C. Theis, Wichita, Kans. — Modification of con-
1210 struction permit (B4-P-500) for a new station, requesting
changes in authorized equioment, change studio site from
200 S. Broadway, Allis Hotel. Wichita, Kans., to Lassen
Hotel, First and Market St., Wichita, Kans., and for ap¬
proval of transmitter site at Lassen Hotel, First and Market
St.. Wichita, Kans.
WKBV — Knox Radio Corp., Richmond, Ind. — Modification of
1500 construction permit (B4-P-777) for move of transmitter and
changes in antenna, requesting extension of completion date.
W9XIW — WCBD. Inc., Portable-Mobile. — License to cover con¬
struction permit for a new general experimental station.
Fifth Zone
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Extension
050 of special experimental authorization to operate on 710 ko.,
1 KW, unlimited time, for period from 8-1-3S to 2-1-37.
KFEL — Eugene P. O’Fallon, Inc., Denver, Colo. — Modification of
920 construction permit (B5-P-1107) for changes in equipment,
requesting move of transmitter from 5730 West Colfax
Avenue, Edgewater, Colo., to 1900 Sheridan Blvd., near
Denver, Colo.
KFWB — Warner Bros. Broadcasting Corp., Hollywood, Calif. —
950 Modification of construction permit (B5-P-202) for new
equipment and increase in power, requesting changes in
authorized equipment, approval of antenna system, and
move of transmitter from 6425 Hollywood Blvd., Holly¬
wood, Calif., to Moynier Lane and Higuera Road, Holly¬
wood, Calif.
NEW — Peninsula Newspapers, Inc., Palo Alto, Calif. — Construc-
1169 tion permit for a new station on 1160 kc., 500 watts power,
daytime operation. Amended: Change type of equipment.
NEW — Frank F. Airey, Twisp, Wash. — Construction permit for a
1220 new station to be operated on 1220 kc., 250 watts, daytime.
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
1350 Station, Boise, Idaho. — Construction permit to install a new
transmitter, erect a vertical antenna, and move transmitter
from 1.9 miles south of Boise, Idaho, to 4 Yz miles northwest
Boise, Idaho.
NEW — Loyal K. King, d/b as Radio & Television Research Co.,
1530 Los Angeles, Calif. — Construction permit for a new experi¬
mental broadcast station to be operated on 1530 kc., 1 KW,
unlimited time.
W6XKL — Nichols & Warinner, Inc., Portable-Mobile. — License to
cover construction permit for a new general experimental
station.
1382
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * *
Copyright, 1936. The National Association ef Broadcasters
Vol. 4 ■ - No. 31
JUNE 27, 1936
Testimony of James W. Baldwin, Managing Director, and Dr. Charles
B. Aiken, Technical Consultant, on Behalf of the National Association of
Broadcasters at the Informal Engineering Conference held by the Federal
Communications Commission, June, 1936.
STATEMENT OF JAMES W. BALDWIN
MANAGING DIRECTOR
Mr. Chairman and Members of the Commission:
My name is James W. Baldwin. I am Managing Director of
the National Association of Broadcasters, the only national trade
association in the industry. The Association comprises 396 sta¬
tions of all sizes and located in every section of the country.
These constitute 64 per cent of the stations now in operation and
account for more than 80 per cent of the volume of business
done within the industry.
Certain of our member stations have noted personal appear¬
ances and these, of course, will speak for themselves.
The broadcasters appreciate this opportunity to appear at
hearings designed to develop long term planning for the most
effective utilization of American radio for the social welfare. A
long range viewpoint is particularly necessary now because of the
impending development of new services such as facsimile and
television broadcasting. In addition to their technical implications,
the imminence of such services raises important economic and
social questions regarding American broadcasting. These are far
reaching in scope. They include not only a forward looking
evaluation of the general services of broadcasting as a means of
mass communication, but in addition, raise highly fundamental
considerations such as the safeguarding of the free flow of ideas
and information which is the cornerstone of American democracy.
My purpose today is not to consume your time with a full
recital of the important social and economic services rendered by
American broadcasting. The 34,000 pages of testimony and
exhibits presented before this Commission in the hearings which
began October 1, 1934, furnish ample data in this respect. Rather,
it is my wish to present a concise but comprehensive picture of the
social and economic significance of American broadcasting, to indi¬
cate the relation of these factors to the problems which the Com¬
mission is now considering and to set forth an estimation of the
social and economic principles which must underlie any policy of
future development; and I shall leave the technical considerations
involved to another witness.
The Commission has asked for information as to “the relative
social and economic importance” of broadcasting “including safety
of life and protection of property factors.” The first radio com¬
munication concerned itself with safety of life and protection of
property at sea. With the development of aviation this was
extended to the airways. Following 1920, radio was used to
communicate with large masses of people simultaneously. This
gave rise to radio as a means of mass communication; and in a
short time broadcasting demonstrated itself to be the most impor¬
tant invention in this field since the printing press.
The first and controlling principle of radio regulation must
always be the safeguarding of life and property. However, the
highly important and, indeed, unique public service of radio
broadcasting as a medium of mass communication must also be
given the most careful consideration. This is all the more impor¬
tant because, in times of local and national emergency, a broad¬
casting system such as the American one, renders service in the
way of safeguarding life and property which cannot be dupli¬
cated by any other means.
The best indication of the relative social and economic impor¬
tance of any service is the number of people who regularly receive
and utilize its benefits. On January 1, 1936, it was estimated that
22,869,000 families in the United States possessed one or more
radio sets.1 2 This is the most accurate measure possible of the
general extent of service rendered, since the purchase of a radio
set is proof positive of the desire and the ability to listen. There
are no other reasons why a set would be purchased.
Research has shown 3 4 that there are approximately 3.3 listeners
per set. On this basis, the total potential radio audience in the
United States is approximately 75,500,000 persons.
Of the above number of radio families, approximately 3,000-
000 3 have considered the services of radio broadcasting sufficiently
important to have two or more sets in their homes while nearly
3,000,000 * automobiles are equipped with radio sets. The total
money investment represented by all of the aforementioned sets is
in excess of one billion dollars.5
Radio is sufficiently important to the American family to have
the average set utilized more than four hours daily and to cause
more than three-quarters of all radio families to turn on their
sets each day of the week. It also should be noted that these
sets are useful enough to their owners that on the average more
than 90 per cent of them are in working order at any one time.6
An idea of the extent to which the use of radio receiving sets has
permeated American society can be secured from the following
figures: number of families having radios, 22,869,000; number of
families having passenger automobiles, 17,650,000 ;7 number of
residence telephones, 11,000,000 ;8 9 number of electrically wired
homes, 21,030,000.“ It is evident, therefore, that the possession
of radio receiving sets is more widespread than is that of any
other commonly accepted standard of living factor in American
life.
Radio broadcasting reaches all sections of the country and serves
all income groups and classes. The distribution of radio sets is
continually tending to correspond more closely to the distribution
of population.10
1 Estimate of the Technical Committee appointed by the Joint Committee
of the NAB, AAAA and ANA for that purpose. It comprised some of the
country’s leading research experts.
2 The Crosley surveys, the Columbia and NBC studies, Hettinger, University
of Pennsylvania.
3 Radio Today, January, 1936, p. 7.
4 Radio Today, January, 1936, p. 7.
6 Based on Radio Today figures, the average set price in 1935 was $57.
This seems high. Therefore, arbitrarily assuming an average price of $35
we get an investment on 28,869,000 sets of $1,010,415,000.
6 The Clancy’s and Delaney’s, CBS, November, 1934, pp. 21-27.
7 Total passenger car registrations, according to the National Automobile
Chamber of Commerce were 22,450,000 as of January 1, 1936. The estimate
of auto families is that of the R. H. Donnelly Company, long recognized as
a standard source of information on this subject.
8 A. T. & T. estimates.
9 Radio Today, January, 1936.
10 Distribution of Total Population and Radio Families by Geographical
Districts.
Geographical District
New England .
Middle Atlantic States....
East North Central States.
West North Central States.
South Atlantic States . . .
East South Central States.
West South Central States
Mountain States .
Pacific States .
% Total *
% Radio **
Population
Families
6.6 %
7.9%
21.3%
26.6%
21.4%
23.3%
10.8%
10.8%
11.7%
8.8% ***
7.5%
4.4% ***
9.7%
6.6% ***
3.0%
2.7%
8.0%
8.9%
* 1930 Census
** “Lost and Found” CBS (1935) p. 7 as of January 1, 1935.
*** These sections have limited radio ownership due to limited buying power,
high proportion of negroes and tenant farmers.
1383
In 1935, 72 per cent of the families with incomes between two
and three thousand dollars annually owned radios, while the pro¬
portion of radio families rose to 90 per cent in the case of those
having incomes of more than $10,000 per year.u During the same
year 33.9 per cent of all farm families owned radio sets.
These few figures serve to indicate quite clearly the extent to
which radio broadcasting intimately affects the lives of every
class and segment of the community. This, however, is but the
quantitative aspect of radio broadcasting service. The question
now is, “What is the nature of the service rendered to these
millions of listeners?”
Perhaps the best way to introduce this subject is to quote from
the Report of the President’s Research Committee on Social
Trends.13 This Committee, composed of the leading students of
American social life, described the effect of radio broadcasting upon
the community as follows: “certain it is that the radio tends to
promote cultural levelling — residents outside of the large cities who
never have seen the inside of an opera house can become familiar
with the works of the masters; communities where no hall exists
large enough for a symphony concert can listen to the largest
orchestras of the country ; and the fortunes of a negro comedy pair
can provide social talk throughout the nation. Isolation of back¬
ward regions is lessened by the new agency of communication, and
moreover, by short wave transmission, national as well as local
isolation is broken, for events in foreign nations are thereby brought
to the United States. The radio, like the newspaper, has widened
the horizons of the individual, but more vitally, since it makes
him an auditory participant in distant events as they transpire and
communicates to him some of the emotional values that inhere
in them.”
The regular day-to-day service of radio broadcasting as a
medium of mass communication is three-fold: to entertain, to in¬
form, and to inspire. Broadcasting renders unique services in
each of these three fields which cannot be duplicated by any other
means.
Broadcasting also fulfills an important economic function. It
facilitates the process of distribution through its activities as an
advertising medium. Moreover, the service which it renders makes
possible the existence of the radio set manufacturing industry and
allied fields of business. Again in times of emergency it becomes an
irreplaceable medium of immediate communication with large
masses of people; as evidenced in the banking crisis of 1933 and
in the floods of this past spring.
It may be said that to entertain is a principal function of radio
broadcasting. It is a most worthy one. To take people out of
themselves, make them forget their troubles and petty annoyances,
aid them in relaxing from the strain of modern life — is a social
function of first magnitude. For millions of our people radio is
the only source of entertainment. Society instinctively recognizes
the importance of this function, and it is not without reason that
it always has given particular recognition and tribute to those who
entertain it.
The information service of radio broadcasting is highly varied.
In the past several years it has become one of the services most
appreciated by listeners. Broadcasting furnishes purely vocational
information such as market reports. It supplements the formal
instruction furnished by our school system. It has become a most
important agency for the dissemination of news. It adds materially
to the general cultural background of listeners. In the United
States, where free competitive broadcasting exists, it has constituted
an instrument of civic education unparalleled in the modern world.
Broadcasting has rendered these services to a wide variety of
people. It has provided the farmer with a great deal of highly
essential business information which would lose much of its
value if not disseminated immediately upon receipt. Commodity
prices, crop, market, weather, irrigation and similar reports are
examples to point. It provides the farmer with educational
material regarding new developments in agricultural methods.
The appeal which radio possesses in the use of the human voice
enables the presentation of this material in a much more per-
11 Ownership of Radio Sets by Income Classes.
% Families % Total
Income Class having radios Families
Over $10,000 . 90% 3.6%
5—10,000 . 85% 10.6%
3— 5,000 . 79% 16.7%
2— 3,000 . 72% 30.2%
1— 2,000 . 52% 12.1%
Total . 69.4% 100.0%
* “Lost and Found” CBS. 1935, p. 11. The calculations in the second
column are based upon this data plus Census of Population Information.
12 Recent Social Trends in the United States, McGraw-Hill Company, Inc.,
p. 215.
suasive and entertaining manner than possible merely in pamphlet
form ; so that broadcasting serves to heighten the farmer’s curios¬
ity in the various developments and to stimulate his interest in
securing further information. Broadcasting also has increased
the social consciousness of the farmer and has made him more
aware of the problems which he faces. In a comparable degree
it serves all classes of our people.
In rendering these services broadcasting has exerted an influence
entirely out of proportion with the number of sets available in
rural areas. This is accomplished by the gathering of groups to
listen to broadcasts which are of special interest to them.13
Fifty years from now some social historian will probably write
a learned treatise on the effect of the development of radio
broadcasting upon the civic and political consciousness of the
average American citizen. I do not doubt for a moment but
that he will state that this constituted the major contribution
on the part of radio. Free, competitive broadcasting in the
United States has made radio a political forum for both local
and national causes and elections. It has made one big town
meeting of the American people, and has in a large measure re¬
vived that personal interest in civic problems which is so
important to the successful functioning of a democracy. The im¬
mediacy of contact, dramatic power and personal appeal of radio
make both issues and their pleaders live in a way which can be
accomplished by no other medium. Dr. Robert M. Millikan,
Chairman of the Executive Council of the California Institute
of Technology, summarized the situation aptly when speaking
before you at the October, 1934 educational hearing when he
said, “The radio is obviously one of the great, new, unifying,
educative forces which can be and which should be one of the
chief factors in insuring the success of ballot governments the
world over.”
I have said that a function of radio is to inspire. It is neces¬
sary only to refer to the many religious broadcasts carried by
all stations to indicate the service which radio is rendering in
this field. Also I should mention the inspirational value of good
music, good drama and high class entertainment.
Now with regard to the economic services of radio broadcast¬
ing. President Roosevelt concluded his message to the broadcasting
industry at its convention at Cincinnati in 1934 with the follow¬
ing comment: “I am not unmindful of another benefit which
radio gives all the people and to all classes of business, that is
a stimulation of buying power and its assistance to commerce
generally.”
Last year advertisers spent approximately $87,523,000 for
broadcasting facilities alone and probably added another $25,-
000.000 for talent and program material. The efficacy of radio
as an advertising medium can best be judged by the fact that
1935 volume was 53.3 per cent above the estimated 1933 de¬
pression low point and that radio advertising has shown a
greater relative gain from its depression low point than has any
other major medium.
The use of radio as an advertising medium has resulted in
several important benefits. In functioning as an advertising med¬
ium it has aided in stimulating mass production through the
creation of mass demand, and as such, has assisted in maintaining
and increasing employment and in facilitating the processes of
commerce. Its advertising function in itself has been a construc¬
tive one; for advertising assists the public in developing new
and better standards of living.
The support of radio broadcasting by adertisers also has made
possible the existence of the radio set manufacturing industry.
This industry, comprising several hundred manufacturers, ap¬
proximately 3,500 wholesalers and nearly 30,000 retail outlets of
various types,14 last year did a business estimated at $298, 600,000“
It is estimated that the total volume of business given rise
to by radio broadcasting during 1935 was $700,000,000. This
included set sales, tube replacements, electric power charges,10
repairs and service, broadcasting time sold and talent costs.
Moreover, by means of functioning as an advertising medium,
broadcasting has achieved a comparatively high degree of editorial
freedom; certainly more than exists in other countries of the
world. And let me note specifically that freedom of the air is
absolutely essential to all freedom of speech; for the freedom
of the press would be materially hampered if the immediacy and
13 “Radio and the Farmer.” The Annals of the American Academy ot
Political and Social Science, January, 1935, pp. 142, 143: Testimony E. E.
Kennedy, National Secretary of the Farmers Union before the F. C. C.
October, 1934, R. p. 12, 939.
II Paul Klugh, RMA, before FCC R., p. 12727.
15 McGraw-Hill Company.
1(J Radio Today, January, 1936, p. 5.
1384
widespread contact of broadcasting could be utilized selfishly by
any political, governmental or other concentrated power.
We now come to the services rendered by broadcasting in the
protection of life and property in times of emergency. A noted
research organization has estimated that during one of the early
broadcasts of President Roosevelt following the banking crisis
of 1933, nearly 50,000,000 people were listening. During the
course of several broadcasts in that troubled period, the national
psychology was changed from one of confusion and fear to one
of hope and enthusiasm. I frankly believe that without radio
this would have been impossible.
I want to refer briefly to the floods of this last spring. The
story of broadcasting stations becoming the sole source of con¬
tact between civic authorities and the citizens of numerous com¬
munities; of their acting as relays of information between families
separated by the disaster; of the manner in which radio broad¬
casting constituted often the only source of contact with the
outside world; of the service rendered in obtaining supplies for
those in stricken areas; and their usefulness in giving warnings
of impending danger, is more thoroughly illustrative of the part
which radio can play in a great disaster than anything in the
annals of the medium. Along with other radio services such as
Marine, Aviation and Amateur broadcasting has earned the right
to be considered as a really great means for the protection of life
and property.
So much for the services of radio. The question now arises,
in the words of the Commission, as to “the dependence of the
service on radio rather than wire lines.” There are two kinds of
wire lines that can technically be used to carry radio service —
the telephone lines and the power lines. Both are controlled
by powerful monopolies; one of which is the subject of investi¬
gation by this Commission. To divert the service of radio
broadcasting from the air to wire lines would be to deny radio
service to all who are without telephones or electric lights and
to subject those who do have telephones or electric lights to
costs which would place wired radio service beyond the reach of
the great majority. This would amount to a denial of what
ought to be considered one of the necessities of life.
It must be remembered that about 75 per cent of our citizens
have incomes of less than three thousand dollars per year and
that 91.1 per cent have incomes less than five thousand dollars
annually.17 Most people, therefore, have a limited sum of money
to spend on recreation and entertainment. It is estimated that
the average person having income of between one and two thou¬
sand dollars annually has 5.3 per cent of his total income available
for expenditure on recreation and all forms of social activity.
On a two-thousand-dollar income this would amount to $106.00
and to $79.00 on a $1,500 income. In the case of families with
an income of $3,000, 7.7 per cent is available for recreation and
social activity. This would allow a total of $225 for motion pic¬
tures, books, magazines, picnics, vacations, home entertainment,
church functions, club memberships, radio set operation and the
like.18
Studies made by the University of California in November, 1931,
indicated that for a worker with a family of five making $1,631
a year, $6.00 was available annually for the theatre; $32.50 for
motion pictures and other entertainment; $6.00 for radio upkeep;
$2.00 for books and periodicals and $9.00 for the daily newspaper;
a total of $55.50. Likewise it was estimated that a clerical
worker with a family of five earning an income of $2,175 annually
had but $76.56 available for the same items; all the rest of his
income being taken for necessities of various sorts. In neither
case was there any allowance made for the maintenance of an
automobile.19
It is obvious that people in such circumstances can hardly
afford to duplicate the varied offerings of the radio by actual
attendance of the theatre, concert hall, lecture forum and similar
functions or by subscribing to a large number of varied magazines.
It is only logical, therefore, that the services of radio broad¬
casting should be such an important factor in the lives of these
people and that it should render a service which for them could
not be duplicated in any other way. The cost of operating a
radio set is comparatively low. It is estimated that approximately
$253,000,000 was spent last year for the maintenance and oper¬
ation of the 28,869,000 receiving sets in use in this country. This
would average $8.75 per set per year or two and two-fifths cents
17 Statistics of Income for 1933, Bureau of Internal Revenue, U. S. Treasury
Department, p. 6.
18 The American Consumer Market, McGraw-Hill Publishing Company, 1932.
19 Recent Social Trends, in the U. S. Report of the President’s Research
Committee on Social Trends. Vol. II, p. 895. McGraw-Hill Book Co., 1933.
per day.20 Undoubtedly, the operation of many small sets, is
considerably less than that amount.
When one considers that the usual monthly telephone service
charge is $2.50 or $30.00 per year it is easy to see why radio set
ownership exceeds residence telephones to such a great degree.
It is also easy to see how wired radio cannot be expected to
render service at a charge which can be met by the great majority
of present-day receiving set owners, even assuming they would
be willing to gay it.
Again wire lines are so often interrupted by storms, floods,
fires, etc.; that radio broadcasting’s present value for the pro¬
tection of life and property would be destroyed. Moreover, the
utilization of wire lines for broadcasting into the homes would
in all probability result in fewer programs of local color. This
would be the natural and logical result of minimizing competition.
And it would place in the hands of too few the responsibilities
which accompany the rendition of a service of such great social
value as that of broadcasting.
This brings us to the problem of providing additional radio
broadcasting facilities which I shall divide into three parts—
Aural broadcasting; facsimile broadcasting and television broad¬
casting.
Aural Broadcasting
Aural broadcasting is today restricted to those channels avail¬
able in the frequency band beginning at 550 kc and ending with
1600 kc. A total of 654 stations (including approximately 30
construction permits) have been provided for in this band. Not¬
withstanding this number of stations there is a large percentage
of the total area of the United States and a smaller percentage of
the total population that is without consistent and reliable day
and night service. Doubtless improvements can be made in the
allocation of frequencies and in the location and construction of
stations so as to extend existing service over greater rural areas.
But any such enlarged service must be balanced against possible
demands by Mexico for the exclusive use of channels now devoted
primarily for broadcasting in the United States. The need for
additional facilities exists and such needs are certain to grow
with an expansion of broadcasting on the North American conti¬
nent.
In our proposals we have named certain frequencies below
550 kc for broadcasting. Such use is in agreement with the policy
of other nations of the world. The propagation characteristics
of these long waves are such as would enable broadcasters to
greatly improve the service in rural areas. This will be discussed
in detail when we present our technical testimony. Also, in
our proposals we have endeavored to provide for sound broad¬
casting on certain of the high frequencies. We need to know
more about them before reaching final conclusions on all their
characteristics. Based on the information we have, it is believed
they may be utilized for local broadcasting. The specific frequen¬
cies requested have been named with the view of making maximum
use of receiving sets that may be manufactured for high-frequency
reception, with a minimum of interference with other services
and consistently with your expressed ideas of “experimentation
and evolution.”
There is one difference between the proposals of the Radio
Manufacturers Association and our own in this regard. We
proposed that the frequencies in the bands of 36 to 38 me and
62 to 64 me be allocated for aural antj facsimile broadcasting.
Agreeably with the change which has been made in the RMA
proposals, as first submitted, we will discuss when we offer our
technical testimony, the feasibility of modifying our proposals so
as to ask for 40 to 42 me instead of 36 to 38 me. The RMA
propose that the frequencies 37 to 42 me be allocated for aural
broadcasting and they have objected to our proposal in respect
of 62 to 64 me because it would interrupt a continuous band for
television. Our purpose in asking for the two bands are two¬
fold: First, we do not know where long-distance interference ends.
We do know, however, that the probability of troublesome long¬
distance interference, now or in the future, is very much less on
60 me than on 40 me. Adequate opportunity should be given
to obtain reliable data concerning operation on the various high
frequencies. Secondly, we do not consider it should be objection¬
able to anyone to provide for sound broadcasting in the television
band. We know of no reason why the purchaser of a television
set should be limited to the sound broadcasting service receivable
on the television channels. Moreover, we know from experience
20 The dollar volume is found in Radio Today, January, 1936, having keen
based on the table appearing on page 5 and the chart on page 11.
1385
that in the manufacture of receiving sets, quality of reception
is often sacrificed at either end of the receiver band. It is, there¬
fore, highly desirable that provision be made near the middle
of the television band for aural broadcasting.
International Broadcasting
A word about international broadcasting. We have proposed a
widening of the international bands with but one view in mind.
The existing conditions are chaotic. It would seem that this
country either should make provision for an international broad¬
casting service of the highest quality and free from interference
or give it up as a bad job. A sufficient number of frequencies,
the maintenance of better standards, and more effective inter¬
national regulations with regard to hours of operation, we believe,
can be employed to improve our commerce with the other nations
of the world.
Miscellaneous Services
Our proposals also provide for the allocation of frequencies
for aural, facsimile and frequency modulation, auxiliary broad¬
cast service such as point-to-point relay for broadcasting, synchro¬
nization, mobile voice and facsimile pickup. These will be
discussed in detail by another witness.
Facsimile Broadcasting
Facsimile broadcasting is an impending new service. It is a
method of record broadcasting. It is a service that can be
supplied through the utilization of existing broadcast frequencies
and broadcast transmitters. It is our contention that all fre¬
quencies allocated for aural broadcasting should be available for
facsimile broadcasting as well. There is every reason to believe
that facsimile broadcasting can supplement sound broadcasting.
It is an economic waste to deny the broadcasters the opportunity
to develop this new service through the use of existing broad¬
casting facilities. Moreover, the utilization of existing broadcast
facilities will permit of the kind of competition that has made
American broadcasting the greatest in the world. Prevent the
development of facsimile on the frequencies that are used today
and tomorrow for sound broadcasting and you may guide this
new service into monopolistic hands.
Television
Now as to television. Some day we will have television. I
do not know when that day will be. But it will come. When
it arrives it will introduce into the American homes a most power¬
ful instrument for good or evil. It can and probably will project
the school blackboard into a majority of the homes. Who will
control it? Who can control it? Who does now control it?
I appreciate we are concerned here with the technical problem
of finding a place in the radio spectrum for its introduction.
And we have endeavored to cooperate with other interested parties
to suggest bands of frequencies which might be used for television
broadcasting. The requirements for a television channel are very
great. As far as we know now one television channel will require
a path almost six times as wide as that now devoted to all sound
broadcasting in the United States. We have been able to suggest
a plan of allocation which would provide eight television channels
below 100 me. This is not enough. A great many technical
considerations are involved and a discussion of these will be
left to another witness.
There are, however, more than technical considerations in¬
volved here. The American Broadcasting System is a competitive
system. It is a great system because it has been competitive.
Men have been spurred on to present better programs and to
render a greater public service. It has meant a freedom of the
air unmatched anywhere in the world. And our plea today is
that you allow television to develop on the same basis. Better
we delay the introduction of television than, in enthusiastic haste,
inaugurate it and find that through the control of patents, so
powerful an instrument is in the hands of too few people. Indeed
this expression is but declaratory of the spirit of the Communi¬
cations Act.
Again, if television is ready to be inaugurated and if you can
allocate sufficient frequencies to permit it to grow on the basis of
a national competitive service then it seems to me you have a
very great responsibility in determining in advance, whether for
all practical purposes, the ownership of basic patents, and agree¬
ments, if any, between patentees, will permit competition in the
construction of television transmitters and receiving sets. We
should also know in advance what relationship, if any, may be
established between the sending and receiving apparatus. Will
there be freedom in the selection of receiving sets or will the
use of terminal facilities be controlled in a manner comparable
with the telephone? Surely everyone will agree that those who
own television patents are entitled to a rich reward for their
creative work, but because of the public service inherent in tele¬
vision, patentees should be denied the right to control its use.
Keep it free from the hands of monopoly and allow it to develop
only on a national competitive basis.
I thank you, Sirs, for your attention.
1386
Index
SECTION A: Page
General Discussion: . 1387
Rural Coverage . 1387
Expansion of Broadcasting and Development of New
Services . 1388
General Points of View . 1388
Facsimile Broadcasting . 1388
Television . 1388
International Broadcasting . 1388
Chart of Proposed Allocations . 1388
SECTION B:
An Analysis or the Problems oe Long-Wave Broad¬
casting in North America: . 1389
Suitability of the Various Frequencies to Broadcast
Service . 1389
Broadcasting at 200 k.c . 1390
Ground Wave Range . 1390
Atmospheric Noise on 200 k.c . 1390
Radius of the Fading Zone . 1391
Blanketing Area . 1391
National Coverage . 1392
Further Comparisons of 200 k.c. with the Present
Broadcast Frequencies . 1392
Receiving Equipment . 1392
Section B — References . 1392
SECTION C:
The Problem of Fitting a 200 k.c. Broadcast Band
Into the Present Allocation Structure: . 1393
The Frequency Interval from 175 to 225 k.c . 1393
The Army Assignments . 1395
SECTION D:
The Frequency Interval Just Below 550 k.c . 1396
Interference to Naval Services . 1397
SECTION E:
The Ultra-High Frequencies: . 1397
Variation of Coverage with Frequency . 1398
Man-Made Interference . 1398
Interference Range . 1398
Spacing Between Stations Operating on the Same
Frequency . 1399
Widths of Channels to Be Transmitted . 1399
Frequency Separation of Local Assignments . 1399
Ultra-High Frequency Receivers . 1400
Possibility of Reduction in Width of Television
Channels . 1400
Section E — References . 1401
SECTION F:
The Proposed Ultra-High Frequency Broadcast
Bands: . 1401
SECTION G:
Auxiliary Broadcast Services: . 1402
Broadcast Pickup Services at Longer Wavelengths . 1403
STATEMENT OF DR. CHARLES B. AIKEN
TECHNICAL CONSULTANT
Dr. Aiken was born in New Orleans in 1902. He has a B. S.
degree from Tulane University and an M.S., M.A., and Ph.D.
from Harvard. During the summers of 1918-1921 he was a radio
marine operator and was assistant operator of Station WAAB,
Tulane University, 1922-1923.
In 1926-1928, Dr. Aiken was engaged in the development of
apparatus for geophysical exploration and in field work with
Mason, Slichter and Hay at Madison, Wisconsin. He was a mem¬
ber of the technical staff of the Bell Telephone Laboratories from
1928 to 1935. From 1930 to 1935 he was supervisor in charge of
broadcast receiver development and was also engaged in work on
air-craft communication, field strength measurements, centralized
radio systems, synchronized and shared channel broadcasting, tele¬
vision receivers, studies of the effect of receiver band width on
background noise, volume compression and expansion and various
special studies. He was in responsible charge in the design of the
Western Electric 10a and 17a radio receivers and of the la, 2a
and 3a centralized radio systems. He also developed a radio com¬
pass for air-craft and a special laboratory model television receiver.
Early in 1934 he became Lecturer in Electrical Engineering at
Columbia University. In 1935 he went to Purdue University
where he is Associate Professor of electrical engineering in charge
of communication and is also technical advisor to the University’s
broadcast station, WBAA. He obtained temporary leave of ab¬
sence from the University in order to accept the NAB assignment.
Dr. Aiken is the author of papers dealing with amplifiers, de¬
tectors, frequency measurement, shared channel broadcasting, syn¬
chronized broadcasting, band width and receiver noise, and radio
compass for aircraft. He is a member of the Institute of Radio
Engineers, American Institute of Electrical Engineers, Phi Beta
Kappa, and Sigma Xi.
SECTION A
General Discussion
It must be admitted that the present American broadcast band
is overcrowded, and yet the clamor for new frequency assignments
steadily increases. The public has enthusiastically supported the
majority of the stations in existence, and would certainly support
more. There are many rural parts of the country that need ad¬
ditional service, especially during the day, when signals from a
distance cannot be heard. Such regions can be served only by
more stations or more power, or both.
Some time ago, the Commission published tables showing the
minimum separations that should be allowed between stations of
various powers working on the same frequency. One of these
applied to night-time operation and the other to day. We have
made no exhaustive study of the technical assumptions underlying
these tables, and will not, therefore, offer a conjecture as to
whether they should be modified to take account of recent develop¬
ments in receiver design. But it will be of interest to use these
tables as an index of overcrowding.
An examination of existing frequency assignments has shown
that, of 382 stations not included in the “local” classification, 182
or 47.6% are involved in violations of the minimum distances for
night-time operation on the same frequency; while 60 shared
channel stations violate the specifications of the day-time table.
The night violations involve 38 out of a total of 83 frequencies,
while those occurring during the day involve 23 channels. In com¬
piling these figures, no stations operating outside the borders of the
United States were considered, nor was the use of directive antennas
taken into account. Allowance for the effect of such antennas
would modify these figures to only a limited extent.
One of the results of this overcrowding is that the type of inter¬
ference best described as “flutter” is extremely serious on many
channels, particularly at night. In some rural areas reception,
which would otherwise be satisfactory, is often entirely ruined by
interference of this sort, while in others the qaulity of service is
seriously impaired.
Overcrowding is a serious matter, not only because it tends to
stop the growth of a service that has come to be regarded as a
public necessity, but also because it means that if a few channels
were to be lost to American broadcasting, the effects would be
disastrous. That such losses may occur in the next few years seems
all too likely. For some time we have been made painfully aware
of the fact that certain other North American countries, particularly
Mexico, regard their present frequency assignments as hopelessly
inadequate and have every intention of insisting upon additional
channels. This situation constitutes a very serious threat to the
broadcast structure of the United States. If it is not adequately
met by an expansion of the broadcast band, it may well result in
aggravation of the present difficulties, and in the choking of normal
and justified growth.
Another fault to be found with the present system of allocation
arises from the fact that broadcasting has been forced to use certain
frequencies not well suited to its needs. While aware of the
technical shortcomings of these frequencies, the Industry has made
every effort to utilize them as fully as possible, and, under direction
of the Federal Communications Commission, has built up a system
unequaled anywhere in the world.
Rural Coverage. — Obviously, rural areas should receive as good
service as it is possible to give them. Not only the United States,
but Canada and Mexico as well, contain large regions which can
best be served by relatively longdistance broadcasting. It would
appear therefore, that our needs for longrange transmission are
better established than are those of any European nation except
Russia. Although faced with the difficult problems raised by the
clash of national interests, these nations have succeeded in allocat¬
ing their broadcast services where they can be most effective, while
1387
the North American nations have completely failed in efforts to
secure such allocations.
Expansion of Broadcasting and Development of New Services. —
A more satisfactory broadcast structure can be obtained only by
the assignment of new groups of frequencies in two widely sepa¬
rated portions of the spectrum. One group below SSO k.c. would do
much to improve rural coverage in the United States and Canada,
but would be of less use to Mexico because of the relatively high
noise levels in low latitudes. Other groups, in the ultra-high fre¬
quency range, would do much to improve strictly local services and
to relieve serious congestion on shared channels.
Not only should provision be made for the normal growth of
aural broadcasting, but it seems likely that facsimile and television
must be accommodated before very long. It is at least possible
that these newcomers to the broadcast field may prove extremely
important, and every opportunity should be provided for experi¬
mentation and commercial growth. Should successful services be
instituted, they would probably be of tremendous value to the
public, and would undoubtedly be stimulants to research and to
industrial activity.
General Points of View. — The testimony which is contained in
the various sections of this report has been prepared on the basis
of several general premises, a mention of which is appropriate at
this time.
We believe that all the radio services should now adopt a long-
range point of view, and, setting aside considerations of temporary
expediency, should try to examine the technical possibilities for
future development and growth. Certainly the difficult problems
of frequency allocation, and of coordination of the conflicting de¬
mands of various services can best be solved by adherence to scien¬
tific principles, and by careful evaluation of all of the technical
factors involved. Where complete technical data are lacking, as
in the case of the ultra-short waves, assignments should be made
with the realization that they may have to be changed. Steps
should be taken to guard against premature entrenchments that
might later be detrimental to the proper balance and high efficiency
of all radio communication services. Wherever uncertainties exist a
policy of “evolution and experimentation,” which has been recom¬
mended by the Commission, seems to be the only safe and logical
one to follow.
In view of the increasing need for radio channels of different
kinds, and the difficulty of coordinating the requirements of the
various services, it is contended that all frequency assignments
should be used in a highly efficient manner. This means that ap¬
paratus capable of furnishing good service, without requiring an
unnecessarily wide band, should always be employed. It also means
that the minimum power to be allowed a station on a given
channel should not be too small, although just what this minimum
should be will vary with the frequency and the type of service.
In particular, no station of low power should be allowed to occupy
a channel which is especially well suited to high-power work,
unless that station performs an essential service that cannot be
accommodated elsewhere.
Facsimile Broadcasting. — This service requires a frequency chan¬
nel having a width depending upon the speed of sending. Generally
speaking, we may say that a 10 k.c. broadcast channel is entirely
adequate for the transmission of facsimile signals.
It is recommended, therefore, that all frequencies which are, or
will be, assigned to aural broadcasting be made available for use
by facsimile. The use of existing facilities would undoubtedly aid
experimentation and the development of a facsimile service for
home use.
While midnight to morning would probably be best for experi¬
menting with this new service, it seems likely that there may ulti¬
mately be occasion to alternate facsimile and aural broadcasting on
some channels, or even to make the former a 24-hour service.
Television. — Should television service be established on a large
scale, it would of course be a matter of great interest to the broad¬
casting industry. It is not within our province to consider all
the problems which must be overcome before this can happen, and
we shall merely assume that the Commission will try to make pro¬
vision for visual broadcasting. In keeping with this assumption,
we shall recommend certain frequency assignments for television
and, in a later section, shall discuss some of the allocation problems
which must be dealt with.
International Broadcasting. — Mr. Baldwin has already suggested
that it will either be necessary to provide more frequencies for in¬
ternational broadcasting or to admit that the United States cannot
compete in this field. The bands at present provided for this serv¬
ice are, as you know, quite narrow. Moreover, because of the
peculiar propagation characteristics of short waves, these bands
cannot all be used at the same time with equal success. Con¬
sequently, the effective number of channels available is less than
the total of assignments in the several bands.
Nor is this all. International broadcasting, by its very nature,
is subject to serious long-range interference. The stations of not
one, but several, nations must operate simultaneously, and hence
the number of the channels available to any one country is neces¬
sarily small.
There is now wide distribution of receivers capable of bringing
in short wave signals, and popular interest in international broad¬
casting is increasing. The service rendered to the owners of these
sets is frequently spoiled by the congestion in the international
bands. So active are the countries of Europe and South America
in this type of broadcasting that conditions are tending to become
chaotic. In fact, we understand that some South American coun¬
tries are now building stations without Berne registration and with¬
out any regard for international agreements.
It is our feeling that this type of broadcasting should not be
abandoned. It is of value in allowing an interchange of inter¬
esting programs between the nations of the world and in bringing
into American homes reports of important foreign events. More¬
over, it furnishes a means of reaching United States citizens living
abroad and of giving broadcast service to our territorial posses¬
sions. If such services are to continue and are to be allowed a
chance for any reasonable growth, there will have to be inter¬
national agreement for widening of the existing bands. Because
of the treaty relations involved, it is entirely beyond our province
to suggest specific frequencies for improved allocations, and the
recommendations submitted to the Commission on June 1 must be
regarded as merely representative of the kind of expansion desired.
The recommended bands are still none too liberal in width, and
it is possible that the nations of the world may see fit to provide
still more frequencies for international service.
Chart of Proposed Allocations. — As a matter of record, our pro¬
posals of June 1 are repeated here. It is recommended:
A. That frequency assignments be made as follows:
Frequency Service
180 to 210 k.c. incl . Aural and Facsimile
520 to 1600 k.c. incl . Aural and Facsimile
25.6 to 26.6 m.c . Aural and Facsimile
36 to 38 m.c . Aural and Facsimile
38 to 56 m.c . Television
62 to 64 m.c . Aural and Facsimile
64 to 94 m.c . Television
94 to 100 m.c . Aural, Facsimile, and frequency modu¬
lation
100 to 120 m.c . Auxiliary broadcast service such as
point-to-point relay for broadcast¬
ing, synchronization, mobile voice
and facsimile pickup.
B. That a minimum of 25 experimental television channels of
6 m.c. width be set aside in a manner consistent with the
needs of other services beginning at about 130 m.c.
C. That the existing international broadcast bands be enlarged
as follows:
6 m.c. band to .5 m.c. width
9.5 m.c. band to .3 m.c. width
11.7 m.c. band to .4 m.c. width
15.1 m.c. band to .4 m.c. width
17.75 m.c. band to .3 m.c. width
21.45 m.c. band to .3 m.c. width
As has been said, the proposals for international broadcasting
are not meant to be specific, but are merely indicative of the type
of allocation desired.
We must also point out that the beginning of the television band
at 38 megacycles was suggested merely with the idea of providing
as many bands for television as possible. It may be that the
lowest channel is not desirable, in which case the aural band from
36 to 38 should be moved up so as to remain adjacent to the tele¬
vision band. This will be discussed in detail later. We believe
that assignments above 120 megacycles should be kept flexible as
long as possible, and that in providing for other services the prob¬
able requirements of television should be kept in mind.
Recommendations for frequencies for auxiliary broadcast services
between 100 and 120 m.c. will be discussed in a later section.
The frequencies below 100 m.c. have been shown on the chart
of Figure 1. At the lower left is a narrow line representing the
proposed broadcast band of from 180 to 210 k.c. Immediately to
1388
the right of this line is a small block extending from 520 to 1600
k.c. This latter, which is only slightly wider than the present
broadcast band, shows the very small part of the spectrum below
100 m.c. which is now allocated to broadcasting. Even if the sug¬
gested ultra-high frequency bands are assigned to aural broadcast¬
ing, this service will still occupy a small percent of the total fre¬
quency range.
Our recommendations inevitably conflict with those made by
Dr. Dellinger for the Government Services. It is obvious, of
course, that if the latter are put into effect, the well founded needs
of all the non-Government services will have to be denied to such
an extent as to greatly reduce their possibilities of service. This
is particularly true in the case of television. If blocks of frequen¬
cies are to be cut out of the spectrum at intervals of a few mega¬
cycles throughout the range, it will be impossible to provide a
visual band wide enough to make television commercially prac¬
ticable.
Everyone must realize that such mangling of the spectrum would,
in a broad sense, profoundly inconvenience the people of the
United States. Moreover, it would greatly curtail the research
and development which would otherwise be carried on by non-
Government units. The apparatus and techniques developed for
industrial application are often of great use in the Government
services, and if commercial development is curtailed the latter will
inevitably suffer.
SECTION B
An Analysis of the Problem of Long-Wave Broadcasting
in North America
The suitability of various frequencies for the different classes
of radio service has long been a subject of discussion. At first, the
propagation characteristics of radio waves were so little known
that questions of frequency allocation were solved, in many cases,
on the basis of temporary expediency or of limited experience,
without reference to fundamental scientific principles.
The present allocation structure contains many weak points, due
to this early distribution of frequencies, most of which could be
remedied now only by a complete reshuffling of the wavelengths.
This would probably be too great an undertaking, but it seems,
nevertheless, that the most needed readjustments are entirely pos¬
sible, and would greatly benefit the communication services of the
world.
In discussing even a few of these desirable changes it will be
necessary to adopt two premises, the soundness of which is be¬
lieved to be obvious.
1. Services which cannot be supplied by non-radio means should
receive priority of consideration consistent with their legiti¬
mate needs and with sound engineering estimates of how
those needs may best be met.
2. Radio services having peculiar technical requirements should
be assigned frequencies best suited to those requirements, and
other services not needing these important frequencies should
be allocated elsewhere. Furthermore, when assignments of
particular value have been made, they should be used as
efficiently as the development of the art will allow.
It is with these two premises in mind that the analysis of the
problem of long-wave broadcasting has been made.
Suitability of the Various Frequencies to Broadcast Service. —
The various problems of broadcast coverage have received a tre¬
mendous amount of attention from engineers and physicists the
world over, and as a result a mass of information has been col¬
lected concerning the utility of the various wavelengths. The
general conclusions are so well known that it seems unnecessary
to deal with them in in detail and we shall content ourselves with
summarizing certain of the high points, and then proceeding to
the development of the case for long-wave broadcasting.
The range of clear-channel stations is very long at night, and
large numbers of people are able to receive such stations in their
secondary coverage areas, which are!- reached only by sky waves.
In daytime sky waves are so much weaker that secondary coverage
may be regarded as non-existent. Thus, one of the records published
by Norton, Kirby and Lester15 on WLW shows an average day¬
time field strength neaif Washington of about 20 microvolts per
meter, while at night the signal rises as high as 25 millivolts per
meter.
The result of this weakening ef the sky wave is that very large
rural areas, which depend upon Relatively distant stations for eve¬
ning reception, cannot hear them at all in daylight. In fact, many
regions are without daylight service of any kind. The great use
of long-wave broadcasting stations would be to furnish daytime
coverage over very extended areas. Furthermore, the night-time
primary service area lying within the zone of objectionable fading,
is very much larger at low frequencies than it is at high.
It is well known that, for a given radiated power, the radius of
ground-wave coverage decreases rapidly as the frequency is in¬
creased, and that the zone of serious fading also draws in toward
the transmitter. As a convenient summary of the data relating to
ground-wave coverage, there have been plotted in Figure 2 the
radii of certain field strength contours as a function of frequency,
for two different values of the ground conductivity. The data for
these curves have been taken from the Report of the Committee
Preparing Material for Question 7 for the Fourth Meeting of the
C. C. 1. R. We see that there is a tremendous change in ground-
wave coverage with frequency, and it is therefore not surprising
that there should be general agreement that the higher frequencies
are not well suited to broadcasting, and that high power in the
neighborhood of 1500 k.c. is not economically justified. The high
frequencies can be used for local coverage only, and the problem of
delivering a satisfactory service to large suburban regions and to
rural areas can be solved only by the efficient use of longer waves,.
The United States, Canada, and Mexico, are large countries
having well developed needs for rural coverage. The longest waves
are perhaps less interesting to Mexico, because of the high noise
levels which commonly exist on the low frequencies in southern
latitudes, but Canada and the northern part of the United States
present coverage problems which can best be solved by the use
of low-frequency broadcasting. The European countries have long
recognized the advantages of such services, even though no one
nation except Russia has anything like such distances to cover as
are regularly met with in North America. In spite of conflicting
national interests and in spite of the great value which is accorded
to the military services by all European countries, their administra¬
tions have realized the tremendous importance of broadcasting and
the technical value of long waves for rendering efficient service.
As a result, a continent which has less need for it, has evolved a
fairly satisfactory structure employing frequencies from 153 to
546 k.c., while the continent which, from the standpoint of national
boundaries, geographical distances, and economic capabilities, has
the most obvious need for low-frequency broadcasting stations has
succeeded in acquiring none below 520 k.c. That this is an un¬
fortunate state of affairs can hardly be denied.
In Table I is given a list of broadcast stations of the world that
operate below 550 k.c. This table, which was made up from the
Berne List dated March 1936, shows a total of 78 transmitters, of
which 36 are in the USSR. Russia, which is also a country of
vast distances, seems to have taken full advantage of the long
waves for broadcasting. Of the stations listed, three are under
construction, one is projected, one is provisional, and one is a Press
broadcast station. Two are in Canada on frequencies of 530 and
540 k.c., while the projected unit on 520 k.c. is also to be in Canada.
A station on 546.8 k.c. is located in Yucatan. Table I follows:
TABLE I
List of Broadcasting Stations Below 550 K.C.
Frequency
in k.c.
Location
Power
Remarks
92.2
Prague, Czechoslovakia
1.5
Press
153
Ankara, Turkey
5
155
Kaunas, Lithuania
' 7
Valstybes radiofons
160
Huizen, Holland
5
160
Radio Romania, Roumania
150
166
Lahti, Suomi, Finland
220
172
Moskva Imeni, Kominierna,
USSR 500
174
Radio-Paris, France
75
183
Reykjavik, Iceland
30.16
185
Istanbul, Turkey
5
187.5
Irkoutsk, USSR
20
191
Zeesen, Germany
60
200
Bakou, USSR
10
200
Droitwitch, England
150
207.5
Tour Eiffel, Paris
13
208
Minsk, USSR
35
212.5
Warszawa Raszyn, Poland
150
216
Motala, Sweden
150
217.5
Novosibirsk, USSR
100
224
Warszawa Raszyn, Uoland
500
227
Iakoutsk, USSR
10
230
Poland (no city specified)
150
232
Kharkov, USSR
10
1389
TABLE I — Continued
List of Broadcasting Stations Below 550 K.C.
Frequency
in k.c.
Location
Power
Remarks
238
Kalundborg, Denmark
60
245
Leningrad, USSR
100
253
Alesund, Norway
10
256.4
Tachkent, USSR
25
260
Oslo, Norway
60
271
Moskva (Moscow) RCZ, USSR
100
280
Tromso, Norway
0.1
283
Tiflis, USSR
35
310
Alma-Ata, USSR
10
333.3
Achkhabad, USSR
4
333.3
Krasnoiarsk, USSR
1
340
Igarka, USSR
2
340
Khabarovsk, USSR
10
Under construction
340
Saratov, USSR
20
350
Arkhangelsk, USSR
10
350
Ouland-Oude, USSR
10
350
Tourtkoul, USSR
2
355
Finnmark, Norway
10.5
355
Rostov Don, USSR
20
359.5
Budapest, Hungary
18
359.5
Budapest, Hungary
0.75
364
Smolensk, USSR
2
375
Sverdlovsk, USSR
40
380
Erivan, USSR
10
390
Makatch-Kala, USSR
4
390
Oirot-Toura, USSR
1
392
Boden, Sweden
0.6
392
Banska Bystrica, Czechoslovakia
30
Under construction
401
Radio Geneva, Switzerland
1.25
401
Moscow VCSPS, USSR
100
413.5
Ostersund, Sweden
0.6
413.5
Voronej, USSR
10
421.3
Stalinabad, USSR
2
422
Pinsk, Poland
20
431
Oulu, Finland
10
Under construction
436
Oufa, USSR
10
450
Oirot-Toura, USSR
1
461.5
Orenbourg, USSR
1
471.7
Omsk, USSR
1
471.7
Syktyvkar, USSR
1
471.7
Tcheboksary, USSR
5
517.2
Tartu, Esthonia
0.5
519
Hamar, Norway
0.7
520
Caron, Saskatchewan, Canada
—
Projected
522
Stalingrad, USSR
10
527
Grenoble, PTT, France
3.5
Provisional
527
Viipuri, Finland
10
527
Ljubljana, Yugoslavia
5.25
530
Kirkland Lake, Ontario, Canada
1
531
Brzesc n/B, Poland
5
536
Bolzano, Italy
1
536
Wilno, Poland
so
540
Belle Plain, Saskatchewan, Can.
1
546
Budapest, Hungary
120
546.8
Merida de Yucatan, Mexico
0.105
The foregoing figures should indicate that we are far behind
the European countries in long-range broadcast facilities, and it
is only reasonable to feel that the United States should bend every
effort toward remedying this situation.
Broadcasting at 200 k.c. — An examination of the Berne List
has shown that it should be possible to locate a broadcast band
extending on either side of 200 k.c. without much inconvenience
to other services. That such a band would have valuable charac¬
teristics is well known, and proposals for its use in this country
have been made by Wenstrom,20 Gillett and Eager4 and others,
all of whom have indicated the great possibilities of long-wave
coverage. In order to see just what might be done to improve
rural service in the United States, let us examine the properties
of 200 k.c. waves in some detail.
Ground Wave Range — The ground wave range can be readily
estimated by the use of the charts prepared by the Committee
Preparing for the Fourth Meeting of the C. C. I. R. With the help
of these charts Figures 3 and 4 have been drawn, showing the
estimated three millivolt (Figure 3) and one millivolt (Figure 4)
contours for stations located in various parts of the United
States. It is assumed that each station radiates 1,000 k.w. at a
frequency in the vicinity of 200 k.c. The contours for stations
1, 2, and S have been corrected for variations in the average
conductivity of the soil, while those for stations 3 and 4 are
based on an assumed constant conductivity of approximately
6 x 10' 14.
Perhaps station 1 is the most interesting from the standpoint
of population coverage. Based on the census of 1930, there are
within the 3 mv/m contour approximately 8,000,000 families, or
about 25,000,000 people. The area within the 3 millivolt limit
includes a great many cities of medium to large size, among them
St. Louis, Chicago, Milwaukee, Indianapolis, Detroit, Toledo,
Cleveland, Columbus, Cincinnati, Dayton, Youngstown, Louis¬
ville, Nashville, Chattanooga, Charlestown, W. Va., Wheeling,
Pittsburgh, and Erie, while Buffalo is just outside this contour.
As will be shown later, the three millivolt line probably repre¬
sents the useful limit of satisfactory coverage in summer, be¬
cause of the high noise intensities, and should also coincide roughly
with the night-time limit set by fading. The field strength within
the entire region bounded by this contour is sufficiently great to
furnish high-grade service in the residential areas of all cities and
towns lying within its borders. The provision of so high a field
to override atmospheric noise would also take care of man-made
interference in practically all residential zones.
The one millivolt contour includes a considerably larger area,
and it cannot be denied that rural and suburban homes lying
within this boundary would receive excellent daylight service in
winter. In fact, it is probable that many listeners located between
100 and 150 miles beyond the one millivolt line would then find
reception very satisfactory.
It is a remarkable fact that this one station could serve listeners
in the country near such widely separated cities as Washington,
Birmingham, Memphis, Jefferson City, Missouri, La Crosse, Wis¬
consin, Cheybogan, Michigan, Oswego, New York, and Reading,
Pennsylvania. And yet there is every reason to believe that this
would be the case. The charts from which the cotours have been
computed are based on the most reliable data available and
have been checked against actual measured values in many cases.
As an example of such a case it may be pointed out that the
field strength of WLW, as calculated from these charts, should
be about 25 to 30 microvolts per meter in the vicinity of Wash¬
ington. Measurements reported by Messrs. Norton, Kirby and
Lester15 show a daylight field strength of approximately 20 micro¬
volts for this station.
These same authors state that the daytime field of WLW at
Washington does not change appreciably with the season of the
year, although marked changes are noted at the upper end of
the broadcast band. This fact appears to be due to the relative
importance of sky waves at the higher frequencies and their
unimportance at lower frequencies, since in the latter case the
attenuation of the ground wave is much less pronounced. We
may therefore take it as evident that at 200 k.c. the sky wave
will be very small during daylight, as compared with the ground
wave, up to distances of at least 600 miles, or beyond the range
of our one millivolt contour.
Atmospheric Noise on 200 k.c. — The average noise level due
to atmospherics increases at the lower frequencies. While there
is not as much information available as we could wish, the
measurements of Potter17, 16 throw a good deal of light on the
question. These measurements have been checked in the broad¬
cast band by Byrne,4 and through theoretical calculations by
Norton. Available data have been studied by the Committee
Preparing Material for Question 9, Proposed for the Fourth
Meeting of the C. C. I. R. The charts of this Committee show that
night-time noise is inversely proportional to frequency in the
range from 100 to 1000 k.c., while the day-time noise varies
somewhat more rapidly than the inverse square of the frequency
in the same range. The noise intensity will, of course, change
greatly from place to place and from time to time, but these
curves may be taken as indicative of the variation with frequency
at any given time and place. Curve B of the Committee’s report
indicates that a day-time field strength at 200 k.c. of approxi¬
mately 300 pv/m is necessary, on the average, for barely satis¬
factory broadcast reception, and hence a field of 3 mv/m should
be entirely satisfactory under average conditions. It is for this
reason that the three millivolt contour has been taken as the
limit of the high-grade service area in summer.
At night, the average noise levels would be considerably higher;
in fact, the Committee’s curve C indicates that a field of about
6 mv/m should be required for barely satisfactory broadcast
reception. However, the plotted points shown on this graph all
lie below the curve ; in fact, the point for 200 k.c. is at 0.5 mv/m.
1390
Moreover, if we assume that 1 mv/m will furnish reasonably
satisfactory night-time service at 600 k.c., it follows from the
inverse proportionality of noise level to frequency that 3 milli¬
volts will be satisfactory on 200 k.c. Hence, it may be ques¬
tioned whether the curve is not somewhat high in this area. It
is certain that during the winter 3 mv/m would furnish satis¬
factory reception most of the time, and that in mid-summer it
would often be adequate even at 200 k.c. More extensive data
on noise levels are needed.
We may assume, then, that the 3-millivolt contour will furnish
satisfactory broadcast reception during most of the daylight hours
throughout the year, and that the service rendered at night, while
of a lower order of excellence, will nevertheless be of distinct
value throughout the winter and during part of the time in
summer. These arguments apply primarily to the northern part
of the United States and Canada, and with less force to the
southern United States.
Radius of the Fading Zone — Here again, there is need for more
information, but enough material is available to show that the
radius of fading-free service would be large, even at night. Let
us first estimate the zone on the assumption that 200 k.c. sky
waves behave in the same manner as those in the present broad¬
cast band.
The very extensive studies of Norton, Kirby, and Lester15 show
that, for distances of from about 300 to 600 miles, the maximum
night field due to waves reflected from the Heaviside layer is
approximately that which might be expected from the inverse
distance relation; and that for 1 k.w. of radiated power the
maximum night field at a distance of 400 mi. is of the order of
0.S mv/m. An examination of the ground wave propagation
charts previously referred to shows that 1 k.w. of radiated power
will produce a ground wave field of only about one-fourth this
value at 400 miles, and that the half-millivolt level is reached
at about 21S miles. This refers to a ground conductivity of 10‘13.
If, then, we accept this picture, we must suppose that serious
fading would occur at a little over 200 miles from a transmitter
located in Ohio, which is much farther than for frequencies above
SS0 k.c. These latter ordinarily begin to fade at distances from
20 to 100 miles.
It seems very likely that the situation on 200 k.c. is actually
much better than is suggested by the above outline, since the sky
wave intensity probably falls off rather sharply at frequencies as
low as 200 k.c. Thus, Monroe and Green, in their studies of
200 k.c. propagation phenomena in Australia, report a value of
0.1 mv/m for 1 k.w. radiated, and point out that T. L. Eckersley
found a value of 0.3 for the higher broadcast frequencies in
Europe. Accepting this three-to-one ratio, but assuming the
0.S mv/m figure as correct for 1,000 k.c. on this continent, we
should have a considerable increase in the radius of the fading-
free area. Thus in the Middle West, 1 k.w. of radiated power
would give a field strength of 1.67 mv/m for both ground and
sky waves at about 300 miles, and it is likely that this is more
representative of the actual radius of the fading ring than is
the 200-mile figure.
Wenstrom estimates the fading radius for “hilly to broken
terrain, the general American average,” to be about 330 miles.
He quotes A. H. Taylor of the Naval Research Laboratory to
the effect that night fading will not occur very frequently inside
of 500 miles. He also makes the following interesting statement:
“From another authoritative source it was learned that actual
broadcast transmission on 200 k.c. in the United States has shown
no pronounced fading ring within 350 miles, the limit of effective
signal strength at the power employed (20 k.w.).”
During the past winter and spring, I have had occasion to
make a number of night observations on Air Commerce stations
operating between 200 and 300 k.c., at distances up to 250 miles.
A receiver without automatic volume control was used, so that
fading, had it occurred, would have been readily apparent. While
no regular schedule was kept, a good many observations were
made, and no case of fading can be recalled.
We must also consider the fact that fading on 200 k.c. will
be much slower than at broadcast frequencies. Selective fading
is always more serious when the carriers of the interfering waves
are of the same magnitude and are at, or near, phase opposition.
Since the sidebands may not balance out to the same degree, an
effective over-modulation is produced, causing very violent dis¬
tortion of the received signal. It seems likely that, when the
carriers are not near to phase opposition, selective fading will
produce little distortion of 200 k.c. signals.
This distortion-producing fading could occur only at those points
at which the sky wave amplitude was very nearly equal to that
of the ground wave. If either component were a few d.b. larger
than the other, the fading should be substantially distortionless,
and could therefore be smoothed out by the use of automatic
volume control in the receiver. This fact should considerably
reduce the importance of fading effects and should limit the zone
of destructive interference to a relatively small percentage of
the total service area. Both within, and, in considerable areas,
without this zone, it should be possible to get very satisfactory
night-time reception.
To sum up: It would appear that the radius of destructive
fading for a station located in a reasonably high conductivity
area may be expected to be between 250 and 400 miles. The
fading should have a long period, and selective fading should
occur only in relatively limited regions.
As a result of these considerations, it may be assumed that a
200 k.c. station would serve a very large area at night as well as
during the day, although the two areas might not be entirely
coincident.
Blanketing Area. — The blanketing area of a 1000 k.w. station on
200 k.c. would not necessarily be large insofar as reception of
stations above 500 k.c. is concerned. In fact, when obsolete receiv¬
ing equipment has been discarded, the blanketing area should be
rather small. In order to see what may be expected, let us estimate
the interfering signal that might be tolerated without resulting in
objectionable cross modulation in the first R.F. amplifier of a
radio receiver.
The first tube of a well designed receiver should be a variable-mu
pentode having an approximately exponential characteristic of
plate current versus grid voltage. Calculations of the cross modu¬
lation to be expected in an ideal tube of this sort show that an
interfering voltage of 1.54 volts could be applied to the grid
before the modulation of the desired signal by the interfering pro¬
gram would be as much as 1 percent.
The characteristics of commercial variable-mu tubes are not
strictly exponential, however, but depart from this theoretical form
in such a way as to increase the cross modulation. In order, there¬
fore, to allow a factor of safety, let us assume that the interfering
signal of the first amplifier tube should not be more than half a
volt.
Even a badly designed receiver, tuned to a frequency above 500
k.c. should attenuate a 200 k.c. carrier at least 60 d.b., and the
majority of receivers should do better than this. By attenuation
is meant the ratio of the signal on the grid of the first tube to that
induced in the antenna. If we assume an effective antenna height
of about 3 meters, then the interfering field strength that could
be tolerated would be more than 100 v/m. It is of course possible
that, with so high a field, direct pickup in the other parts ol the
set might cause the introduction of rectified signals into the audio¬
amplifier, but it is reasonable to suppose that with a properly de¬
signed receiver a field of the order of 100 v/m could be tolerated.
To be extremely conservative we might take 10 volts per meter as
the boundary beyond which cross modulation would be negligible.
With a 1000 k.w. radiated this field should occur at about seven-
tenths of a mile from the antenna.
At frequencies near that of the transmitter, cross modulation
would, of course, be more troublesome, although even here it
would not be serious if properly designed equipment were used.
It is reasonable to suppose that a listener located not far from the
transmitter, and receiving a nearby frequency, would be content
to use a narrow passed band with a consequent increase in
selectivity.
In addition to difficulties due to cross modulation, trouble may
be expected from extra-band radiation by the interfering trans¬
mitter falling within the passed band of the receiver. On adjacent
channels this latter would undoubtedly be the more serious limita¬
tion. It is perhaps idle to speculate as to just what sort of extra¬
band field a 1000 k.w. transmitter designed for 200 k.c. operation
would lay down, but it is possible that the reception of low inten¬
sity telephone signals in the next channel might be seriously
affected.
In the case of broadcast reception this would not be serious, for
a listener located within the 100 mv/m contour, could not reason¬
ably expect service from other low-frequency broadcast stations
more than 600 miles away. In the case of telegraph on adjacent
frequencies, conditions could be improved by the use of a narrow
band in the receiver. In order to eliminate interference with this
latter service, it might be necessary to use a high-pass filter, or a
band-rejection filter, in the transmission line feeding the antenna
of the station on the upper edge of the proposed long-wave broad¬
cast band. The one on the lower edge could, of course, receive
similar treatment if required. It should then be possible to free
1391
neighboring frequencies from any appreciable interference. While
such filters would be moderately expensive, their use would doubt¬
less be justified, and the difficulty of design might be reduced by
permitting a certain amount of attenuation in the sideband adja¬
cent to the filter cut-off frequency without causing objectionable
degradation of quality.
There remains the question of interference caused by the spurious
responses of superheterodyne receivers. This is hard to estimate
since it is dependent upon many different factors. In the case of
operation on channels near to that of the interfering station the
image-frequency would be too far away to fall within the long¬
wave broadcast band. Consequently, spurious responses would
have to be due to higher order modulation in the converter tube or
to other less important factors. In the case of reception in the
broadcast band it would also be impossible to get image-frequency
interference, since the unwanted signal would have to be above
the desired signal in frequency. It is evident then that troubles
from spurious superheterodyne responses might be somewhat less
pronounced than when the interfering station operates in the regular
broadcast channel.
Because of the variability of these spurious responses it is im¬
possible to predict the field strengths that can be tolerated without
interference, but it is probably safe to assume that 100 to 200
mv/m would do little harm to well designed receiving equipment.
This latter field would occur about 30 miles from the transmitter.
Closer in, interference might be experienced when the receiver was
tuned to certain frequencies, but would be absent on others. These
troubles are not sufficiently serious to constitute any argument
against the use of a 1000 k.w. station.
National Coverage. — The five stations indicated in Figure 2
should give satisfactory service to a large part of the United
States. New England and the Atlantic seaboard in general would
not receive satisfactory service from them, but it is these very
regions that are already best provided with broadcast facilities,
and so this should not be a serious matter.
While five frequencies would clearly be necessary for proper
national coverage, only four are being requested. This is done
solely with the intention of cooperating with other radio services
and cannot but be regarded as a distinct concession on the part
of the Broadcast Industry.
It is supposed that, should long waves be allocated to broad¬
casting, the first station or stations would be built at or near one
of the northern sites indicated in Figure 3, since the relative free¬
dom from atmospheric noise in the upper latitudes would make
these locations more valuable. After obtaining a considerable
amount of operating experience with these northern stations, it
would be possible to locate one in the south to the best advantage.
On the other hand, if the international situation required it, the
fourth frequency might be assigned to Canada or Mexico, although
it would not be well suited to the needs of the latter.
Further Comparisons of 200 k.c. with the Present Broadcast
Frequencies. — In order to further emphasize the improvement in
coverage that might be obtained by the use of long-wave broad¬
casting, the one millivolt and three millivolt contours have been
drawn around the hypothetical station No. 1 for three different
frequencies, a 1000 k.w. radiated power being assumed in each case.
These contours are shown in Figure 5. The solid lines represent
the three millivolt contours for frequencies of 1000, 600, and 200
k.c., while the dashed lines show the one millivolt contours for the
same three frequencies. The region enclosed by the three millivolt
line is nearly ten times as large at 200 k.c. as at 1000 k.c. Compar¬
ing the area enclosed by the one millivolt line for 1000 k.c. with
that enclosed by the three millivolt line for 200 k.c. (which might
be a reasonable comparison on many summer days), it is evident
that the long waves will still do a better job. Even at 600 k.c.
the one millivolt limit lies well within the three millivolt 200 k.c.
contour.
Presumably the cost of radiating a given amount of power at
200 k.c. would differ from that at higher frequencies chiefly insofar
as it was affected by the cost of the antenna system. In the exist¬
ing broadcast band considerable success has been had with vertical
radiators between five and six-tenths of a wavelength high, but it
seems unlikely that such antennas would prove in at 200 k.c. The
reduction in sky wave which can be obtained is less marked at three
to four hundred miles than it is at fifty to one hundred. This is
due to the fact that the difference in the vertical radiation pattern
of a half wave and a quarter wave antenna is not pronounced at
the rather low angles at which this long distance sky wave leaves
the radiator. Consequently, the “anti-fading” characteristics of
the high mast would be less marked at long wavelengths, and it is
doubtful if the rather small increase that can be obtained in the
ground wave could possibly justify the cost of a mast some 2400
feet high. On the other hand, a quarter-wave mast about 1200 feet
high is not out of the question, and, with the steadily falling prices
of such structures, should not be an undue economic burden. Its
effective electrical height could be increased as much as 30 per¬
cent by loading with a capacity hat at the top, although this might
not be economically justified.
Receiving Equipment . — There are in the possession of the public
today a great many receivers equipped with a so-called “X” band,
which covers a range of about 160 to 420 k.c. These sets could be
used for tuning in long-wave broadcasting stations without any
modification whatever.
Because of the high field strengths involved and the long distances
to be covered, it would probably be desirable to cut off the audio
program fed to the transmitters sharply at 5 k.c., thereby avoiding
any sibeband overlap. A coupled circuit capable of faithfully re¬
ceiving an over-all band width of 10 k.c. at a mid-frequency of 200
k. c. can be readily built for use in the receiver. Design data show
that a pair of circuits can be adjusted to have a peak 3 d.b. above
the center of the band, a response at S k.c. equal to that at the cen¬
ter, and a discrimination against 10 k. c. of approximately 14 d.b.
Under unfavorable receiving conditions the width of this filter
could easily be reduced and with an over-all width of 5 k.c. the
discrimination against a frequency 10 k.c. off the center of the
band could be increased to about 26 d.b.
It would probably be desirable to use two such coupled circuit
filters, one ahead of and one immediately following the R.F. ampli¬
fier tube. The second filter would be connected to the grid of the
converter tube, and the remaining selectivity would be provided
in the I.F. amplifier.
The use of an intermediate frequency of about 460 k.c. would
present no serious difficulties, as is evidenced by the performance
of the existing “X band” receivers.
References
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Wave Transmission.” Bell Sys. Tech. Jrn., Oct. 1935, pp. 680-699.
2. Ballantine and Snow, “Reduction of Distortion and Cross¬
talk in Radio Receivers by means of Variable-Mu Tetrodes.”
l. R. E., Dec. 1930, pp. 2102-2127.
3. Beverage, H. H., and Kendrick, G. W., “Low-Frequency
Transmission over Transatlantic Paths.” I. R. E., Mar. 1936, pp.
472-483.
4. Byrne, J. F., “Noise Intensity due to Atmospherics, Measured
at Different Parts of the Broadcast Spectrum.” Radio Eng., Mar.
1933, Vol. 13, No. 3, p. 10.
5. Eckersley, P. P., “The Calculation of the Service Area of
Broadcast Stations.” I. R. E., July 1930, 18, pp. 1160-1193.
6. Eckersley, T. L., “Direct Ray Broadcast Transmission.”
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the Attenuation of Electromagnetic Waves and the Distances
reached by Radio Stations in the Wave Bands from 200 to 2000
Meters.” I. R. E., Aug. 1931, pp. 1446-1471.
8. Gillett, Glen D., and Eager, Marcy, “Some Engineering and
Economic Aspects of Radio Broadcast Coverage.” I. R. E., Feb.
1936, pp. 190-207.
9. Higgy, R. C., and Shipley, E. D., “A Study of Ground-Wave
Radio Transmission.” I. R. E., March 1936, pp. 483-487.
10. Jansky, C. M., Jr., and Bailey, S. L., “On the Use of Field
Intensity Measurements for the Determination of Broadcast Sta¬
tion Coverage.” I. R. E., Jan. 1932, pp. 62-77.
11. Judson, E. B., “Low-Frequency Radio Receiving Measure¬
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Sept. 1933, pp. 1354-1364.
12. Kendrick, G. W., and Pickard, G. W., “Phase Interference
Phenomena in Low-Frequency Radio Transmission.” I. R. E.,
Mar. 1934, pp. 344-359.
13. Kirby, S. S., and Norton, K. A., “Field Intensity Measure¬
ments at Frequencies from 285 to 5400 k.c. per Second.” I. R. E.,
May 1932, pp. 841-863.
14. Munro, G. H., and Green, A. L., “Measurements of Attenua¬
tion, Fading, and Interference (by atmospherics) in Southeastern
Australia, at 200 k.c. Per Second.” Journ. Inst. Eng., Australia,
June 1933, Vol. 5, No. 6, pp. 193-199.
15. Norton, K. A., Kirby, S. S., and Lester, G. H., “An Analysis
of Continuous Records of Field Intensity at Broadcast Frequen¬
cies.” I. R. E., Oct. 1935, Vol. 23, No. 10, pp. 1183-1200.
16. Potter, R. K., “High-Frequency Atmospheric Noise.” I. R. E.,
Oct. 1931, 19, 10, pp. 1731-1765.
17. Potter, R. K., “An Estimate of the Frequency Distribution
of Atmospheric Noise.” I. R. E., Sept. 1932, 20, 9, pp. 1512-1518.
1392
18. “Report of Committee on Radio Propagation Data.” I. R. E.,
Oct. 1933, Vol. 21, No. 10, pp. 1419-1438.
19. Van der Pol, Balth., Eckersley, T. L., and Dellinger, J. H.,
“Propagation of Waves of ISO to 2000 k.c. per second (2000 to 150
meters) at Distances between SO and 2000 k.c.” I. R. E., July
1933, pp. 996-1003.
20. Wenstrom, Wm. H., “Low-Frequency High Power Broad¬
casting as Applied to National Coverage in the United States.”
I. R. E., June 1931, pp. 971-984.
SECTION C
The Problem of Fitting a 200 K.C. Broadcast Band Into
the Present Allocation Structure
Past suggestions regarding the allocation of certain long waves
to broadcasting have not found favor, because of their failure to
provide a definite plan for dealing with the services now occupying
the needed channels. We have, therefore, studied the present
allocations with a view to developing a plan which would cause
a minimum of inconvenience to other radio services, and which
would not be detrimental to safety of life and property at sea and
in the air, or to national defense. We do not contend that the
suggestions about to be made are the only ones for which a sound
technical case can be built; in fact, four channels are certainly
inadequate and are out of keeping with the requirements of ex¬
tensive rural coverage. The frequencies requested have been re¬
duced to four with full realization that we are thereby perma¬
nently penalizing the development of long-wave broadcasting by
making it impossible for this country ever to have a long-wave
system comparable with that of Europe or sufficient for the well
understood needs of rural United States and Canada. Our reasons
for this sacrifice are based entirely on a desire to cooperate with
the other services which must use the low frequencies, particularly
the military branches and the commercial air groups. We have not
attempted to pick the exact frequencies which would necessarily
give the best balance between coverage and economic considera¬
tions, but have chosen a band which can, as we shall attempt to
show, be allocated to broadcasting with little inconvenience to
existing services and without detriment to their essential character.
Let us contrast this proposal with those which have been made
in Europe. An article entitled “Report of the Mixed Judicial and
Technical Commission of the International Broadcasting Union,”
which appeared in the Journal of Radio Law, Vol. 1, 1931, pp. 241-
263, states in part:
“In evaluating the needs of the different services in regard to
wavelengths, the fact must be taken into consideration that in
certain circumstances a single transmitter can assure a national
service capable of reaching several millions of listeners, if the trans¬
mitter has a suitable wavelength at its command. One thus reaches
the conclusion that the advantage conferred upon the community
by the extension of the potentialities of broadcasting is likely to
surpass in weight considerably the sacrifices which might possibly
result from a corresponding diminution of the bands left at the
disposal of other services.”
“. . . It would therefore seem logical to decide that, in principle,
services which can employ no other means of communication should
have a priority when radio-electric channels are being allocated.
“It is perfectly evident, for example, that communication with
ships at sea and with aeroplanes, and the broadcasting services,
should enjoy this priority.
“When two or more different services, of which none can employ
any other means of communication, claim channels for radio¬
electric liaison, that which has the greater importance to society
should have priority.”
Proceeding upon these assumptions the Commission suggested
the following bands of frequencies be assigned to broadcasting:
ISO-285 k. c.
370-460 k. c.
540-1500 k.c.
3500-4000 k. c.
A band 150 k. c. wide in the neighborhood of 17800 k. c.
Presumably because of the undeveloped state of the short-wave
art, no further recommendations for aural high-frequency bands
were made.
These proposals show the realization, by informed European
authorities, of the needs of broadcasting and of the possibility for
satisfying these needs. While the recommendations have not been
adopted in toto, examination of Table I will indicate that a great
deal has been gained for the broadcasting service.
The Frequency Interval from 175 to 225 k.c. — It is in this range
that four broadcast channels could be placed. It is evident that
while there is more than one possible arrangement, a system of
four adjacent channels would be preferable to one in which they
were interlaced with other services. Therefore, we should have
assignments of either 180, 190, 200, and 210 k.c., or of 190, 200,
210, and 220 k.c. Let us discuss the first case.
In studying the existing frequency assignments, use has been
made of the Berne Frequency List dated March 1936, as well as
of certain other documents that will be mentioned at the proper
place. It is realized that some little time must have elapsed since
the last registrations shown in this List were made, and that conse¬
quently the assignments in use today will differ slightly from those
that we shall discuss. However, it is inevitable that such a lag
should occur, and any suggestions that would have been satisfac¬
tory six to ten months ago, could be brought up to date without
great modification. It is suspected that the Berne List does not
contain complete data with regard to military and naval stations,
but lacking better information we have to develop our suggestions
on the basis of this List, and hope that secret assignments are not
numerous enough to appreciably affect our analysis.
The frequency 175 k.c. is used by the International Ice Patrol
in the North Atlantic, as well as by three Coast Guard stations on
the Great Lakes. If a broadcast station operating on 180 k.c. were
placed not far from the western edge of the United States, it would
be some 3000 miles from the scene of activity of the Ice Patrol.
The maximum night-field law developed by Norton, Kirby, and
Lester 815 indicates a quasi-maximum intensity at this distance of
about 10 microvolts per meter, for one kilowatt of radiated power.
If the station actually radiated 1000 kilowatts, this would result
in a field strength of approximately 320 microvolts per meter.
Certainly a carrier of this magnitude should in itself cause no
interference to services 5 k.c. removed.
That the presence of the side frequencies would cause a negligible
amount of trouble may be seen from the following argument: If
the station were continuously modulated one hundred percent with
a five thousand cycle tone, an interfering field of not more than
160 microvolts per meter, maximum night-time value, would be
laid down directly on the Ice Patrol frequency. However, it is
well known that when a station modulates one hundred percent on
peaks the average is much lower and is, in fact, nearer thirty per¬
cent. Moreover, the modulation factor of the higher frequencies
is invariably far less than that of the lower. Taking these facts
into account it is estimated that the interference would hardly be
greater than that caused by a C. W. signal of about 25 microvolts
per meter at a frequency near 175 k.c.
The foregoing is based on the assumption that the sky wave at
180 k.c. is as strong as in the existing broadcast band. As has
already been pointed out, this is probably not the case, and the
interference would therefore be less than that estimated above.
It is evident that effective interfering fields of only a few micro¬
volts per meter, and intermittent in character, could hardly cause
any appreciable trouble to ships receiving the Coast Guard broad¬
cast, provided those ships were equipped with receivers having
adequate selectivity.
Aside from the theoretical considerations of interference which
might be caused by a station situated in the western part of the
United States, we have the fact that there is a 75 k.w. broadcast
station in Paris on a frequency of 174 k.c., only 1 k.c. removed
from that used by the Ice Patrol. As long as this station can be
tolerated it is idle to talk of possible interference by an American
station on 180 k.c.
In the Executive Order of December 1935, there are listed Coast
Guard stations at Wilmette, Illinois, Cleveland, Ohio, and Buffalo,
New York, on 175 k.c. These stations, which are not shown on
the Berne List, are presumably of low power, since they are in¬
tended for operation over the relatively short distances involved in
communication on the Great Lakes, and it seems reasonable to
suppose that in view of these distances, the shore stations and ships
might tolerate a small amount of interference from a distant broad¬
cast station 5 k.c. removed. If this is not so, these stations could
certainly be moved to high frequencies. It does not seem that the
Great Lakes services, with their limited distances of operation, can
possibly have as great a need for the low frequencies as services
on the oceans. Therefore, if any serious cooperative effort is made
it should be possible to re-allocate certain low-power stations now
occupying these channels. This would apply as well to the Great
Lakes lighthouse tenders operating on 180 and 190 k.c.
There is a 2 k.w. station in southern Mexico on 176.5 k.c. and
a 5 k.w. station on the same frequency in lower California. This
latter would probably have to be moved by arbitration with
Mexico.
There is a group of six Coastal Telegraph stations on 177 k.c.
located at various points on the shores of the Great Lakes and
using powers of 1 k.w. or less. Here again it is our feeling that
1393
low-power short-range stations need not occupy valuable low
frequencies, but could properly discharge their functions by opera¬
tion above the broadcast band. This also applies to a 100 watt
station on this wavelength located in British Columbia.
178 k.c. is assigned to the Army. This will be discussed in con¬
nection with the other Army frequencies that must be dealt with.
On 179 k.c. are two Canadian stations of 1.6 k.w. each, operated
by the Department of Marine. Arbitration would be required
here, but it is hard to believe that the existence of such stations
could block a re-allocation which will be advantageous to Canada
as well as to the United States.
There are two Canadian stations of 300 watts each on 182 k.c.
operated by the Hydroelectric Power Commission, Ontario. On
this same frequency is a 500 watt station in British Columbia
operated by the Canadian Fishing Company. The service ren¬
dered by these low-power transmitters could certainly be carried
out on other wavelengths with, possibly, an increase in power. As
has been said before, such low-power operation cannot be con¬
sidered an efficient use of valuable long-wave assignments. The
same applies to the three point-to-point telegraph stations on this
frequency located in the United States and to the Canadian station
on 183 k.c. at Yakoo Bay, British Columbia.
185 k.c. is listed as a Canadian ship channel. Since it lies directly
between two of the proposed broadcast assignments it might con¬
tinue in partial use, especially on the eastern coast of Canada.
There it would be subject to more interference than would the
175 k.c. channel, already discussed, but operation should still be
possible.
185 k.c. is assigned by Executive Order to Naval coast and fixed
stations. The Berne List shows one kilowatt units at Jupiter and
at Key West, Florida, as well as a 200 watt transmitter at Parris
Island, So. Carolina, and comments made with respect to the
Canadian ship frequency apply equally to these stations. However,
if there were some interference, it should be possible to move them
to one or more of the following channels now assigned to the
Navy: 132, 128, 115, 108, 104, 102. Key West already has an
assignment on 113 k.c. and presumably the 185 k.c. channel is un¬
necessary. 115 k.c. is a naval assignment with no stations in the
continental United States shown in the Berne List.
There are sixteen Canadian stations on 187 k.c., mostly of low
power, although there is one of 2 and one of 5 kilowatts. The
fact that so many of these transmitters are on the same frequency
indicates that they do not operate continuously. An examination
of the Berne List shows no good reason why they could not be
transferred to 145 k.c., which is also a Coastal Telegraph frequency.
There is a 2.5 k.w. station in southern Mexico on 187.5 k.c.
Presumably this station would not be seriously affected and would
cause negligible interference in the United States.
On 190 k.c. is a fairly large group of low-power stations, none
more than 300 watts, all located in Ontario, and all operated by
the Hydroelectric Power Commission of Ontario. There can cer¬
tainly be no justification for filling up this important frequency
with a group of small stations which could be operated at almost
any part of the frequency spectrum.
190 k.c. is also used by five stations of the Pennsylvania State
Police, but, as these have a maximum power of 250 watts and the
distances to be covered are presumably limited to those within the
borders of the State, it is evident that these stations could be
accommodated on the higher frequencies.
On 193 k.c. is a group of Canadian stations operated by the
Department of National Defense. These will be discussed later in
connection with the United States Army assignments.
The Department of Commerce Frequency List, dated February
28, 1936, and a bulletin entitled “Bureau of Air Commerce Radio
Facilities and Broadcast Schedules,” corrected to May 7, 1936, show
that there are 20 stations engaged in aircraft services on frequencies
below 230 k.c. These are listed in Table 2 below. Of these, six
are low-power marker beacons of very limited range, and are
therefore capable of being accommodated elsewhere without great
difficulty.
TABLE II
Bureau of Air Commerce Radio Facilities and Broadcast Schedules
Below 230 k.c. (as of February 1, 1936)
Frequency
in k.c.
Location
Power
Type
206
Las Vegas, New Mexico
—
MRLW
206
Roanoke, Virginia
.15
MRA
209
McConnellsburgh, Pa.
.15
MRL-DT
209
Saugus, California
.15
MRL-DT
209
St. Louis, Missouri
1.2
B-RLZ-DT
212-320
Adair, Iowa
.005
MT
212
Des Moines, Iowa
2.0
RA-T
212
Mercer, Pennsylvania
.5
ML-DT
212
Montezuma, Iowa
.005
MT
224
Bellefonte, Pennsylvania
1.2
BRA-DT
224
Birmingham, Alabama
1.2
BRAP-D
224-344
Brookville, Pennsylvania
.005
MT
224
Davenport, Iowa
1.2
BRA-DT
224
Livingston, Montana
.15
MRAP
224
Mt. Shasta, California
.8
RA-VT
224-260
Oceanside, California
.005
MT
224
San Diego, California
.75
RL-T
224
Sunbury, Pennsylvania
.005
MT
224
Tacoma, Washington
.15
RL
224
Woodward, Pennsylvania
.005
MT
It is realized that these aircraft stations are part of a very
important service to a growing and highly essential industry, and
that their contribution to the safety of life and property in the
air is a most important one. We would not consider any pro¬
posal calling for the restriction of these stations, but merely sug¬
gest that a few of them might be transferred, without impairment
in operating efficiency, to one or more of the following frequen¬
cies: 403, 414, 421, or 432 k.c. In order to show that such trans¬
fers would be possible let us examine conditions on these
frequencies.
400 k.c. is a ship telegraph channel for ocean service, and is
not used on the Great Lakes. Many of the Air Commerce
stations have powers ranging from 150 down to 5 watts, and
it is contended that such stations operating on 403 k.c. could be
located at points not less than 600 miles from the Atlantic and
Pacific coasts, without undue interference with any of the marine
services. Because of the higher noise levels pervading in the
Gulf, it would seem reasonable to allow low-power stations at
distances 400 miles or more from the Gulf Coast. Since
410 k.c. is used for distress and calling on the Great Lakes it
might be necessary to keep 403 k.c. beacons 100 miles from their
shores. From Figure 6 may be determined the area which would
be available for the location of low-power Air Commerce stations
under these conditions, and it will be seen to include the states
of Wyoming, North Dakota, South Dakota, Nebraska, Kansas,
Missouri, nearly all of Colorado, and large portions of Minne¬
sota, Illinois, Oklahoma, Texas, New Mexico and Montana.
Let us determine the field from a 150-watt transmitter to be
expected at the coast. Assuming that fifty per cent of the power
supplied to the antenna is radiated, which is probably much too
high an estimate, the quasi-maximum night field would be about
100 microvolts at 600 miles. Since coastal stations intended for
communication with ships can gain nothing by having a high
receiving efficiency in the direction of the interior, it seems only
reasonable to suggest that they should use a moderate amount
of directivity in their receiving antennas, and we might assume
a 6 d.b. lower receiving efficiency on the inland side than on
the seaward side. This would reduce the quasi-maximum night
interference to 50 microvolts per meter. It is believed that such
weak interference, three k.c. removed from the assigned channel,
would not be objectionable, even without the use of directive
antennas at the shore stations.
The antenna used on shipboard would not in general have
directive receiving characteristics. However, when the ship is
well out to sea, so that the signal from the coast station has
fallen to about 100 microvolts, the distance from the ship to the
beacon will be very much greater than 600 miles. Consequently
the maximum interference to be expected would be very low,
probably less than 20 microvolts per meter.
The foregoing refers to a 150- watt station. Many of the
marker beacons used by the Bureau of Air Commerce are of
considerably lower power and would cause negligible interference
at any coastal point.
There are no North American stations in the interval between
410 and 417 k.c. On the latter frequency there are only two,
one being at Yarmouth, Nova Scotia, and the other, of 100
watts power, at Cape Lazo on the western coast of Canada.
Consequently^ it should be possible to locate air beacons on a
frequency of 414 k.c., now officially allocated to aircraft, with
great advantage to the Air Commerce services, and without dis¬
advantage to other groups.
The Frequency Allocation List shows that 421 k.c., which is
suggested for air beacon service, is assigned to coastal telegraph,
but actually the Berne List gives very few stations on the North
American continent in the interval between 418 and 425 k.c.
XAJ at Tampico, Mexico, operates at 419.58 k.c., with a power
1394
of l.S k.w. This station is far enough away so that there could
be no mutual interference between it and beacons operated on
42 l.S k.c., especially if no such beacons were located in southern
Texas. There is a 100-watt Canadian Marconi station at Grosse
Isle, Quebec, which should neither interfere with beacon services
nor be interferred with by air beacon operation.
There are Canadian ship stations on 423 k.c. The same remarks
apply here as to the marine stations on 400 k.c.
432 k.c. has been allocated to coastal telegraph, but actually
there are no stations in North America in the interval between
428 and 43S k.c., exclusive, and consequently there seems no
reason why air beacons might not be advantageously located on
432 k.c. Keeping these stations 600 or more miles from the coast,
it should still be possible to utilize 432, or its immediate vicinity,
for certain types of coastal telegraph service.
These four frequencies of 403 , 414, 421 and 432 k.c. should
more than compensate for the loss of assignments below 230 k.c.
and should allow room for future expansion.
In connection with the possibility of expansion, it should also
be noted that there is still a good deal of room on some of the
existing Air Commerce frequencies, although many are already
well filled. Specifically, the relatively uncrowded frequencies, as
indicated by the Frequency List of February 28, 1936, are as
follows:
Number of Stations
K.C. as of February, 1936
284 S
290 4
296 2
302 3
308 5
314 2
326 5
359 4
379 3
385 5
Some of these are limited in their usefulness by being shared
with various services on the coast, particularly marine beacons.
However, it is obvious that there is room for a great many
more low-power stations in the interior of the country.
With regard to interference by marine beacons, it is suggested
that the crowding in the general vicinity of 300 k.c. might be
materially reduced by moving to high frequencies all low-power
marine beacons intended for operation over a range of only 15 or
20 miles. These beacons greatly congest the low frequencies along
the coast, and their removal would prove a benefit to the marine
services as well as to aeronautics. They might be placed next
to some of the high-frequency marine bands, and could be
located at, say, 2180 or 2740 k.c. Commercial radio-compasses
intended for marine use at low frequencies have already been
on the market for some time. At the distances involved no
trouble from night error or other undesirable effects is to be
anticipated.
In laying plans for possible expansion of the commercial air¬
craft services, it should be borne in mind that the “homing
devices,” or visual indicator radio compasses, that have been
developed in the past few years, may well become so popular as
to render unnecessary a considerable number of the radio range
beacons now in existence. These compasses furnish a service
which cannot be obtained from the range beacons alone, in that
they permit a plane to fly directly toward any radio station,
be it beacon, broadcast or otherwise, within the tuning range
of the equipment. On the other hand, the range beacons lay
down a few definite courses and are of little use in the sectors
between them. When we consider the wide distribution and
relatively high power of broadcast stations, these advantages of
the “homing device” are seen to be of considerable importance.
In fact, a radio guidance system for aircraft use might well be
developed around the broadcast facilities. Were this done, it
would probably be necessary for the stations involved to radiate
a tone-modulated carrier, perferably of reduced power, during the
hours that were not filled by their regular programs. The ob¬
jection that broadcast stations are not always located conven¬
iently with respect to nearby landing fields could be met by
using low-power marker beacons to guide planes from the
broadcast antenna to the field. Because of the extremely small
power requirements of such markers, they could be duplicated,
on the same frequency, at numerous points in the country. In
evaluating the requirements of commercial aviation services, it
is urged that these suggestions be given serious consideration.
The Army Assignments — The Army has by far the largest
number of assignments in the frequency band being suggested for
broadcast use. Before discussing these in detail, it may be well
to list all the frequencies that are allocated to the Army by
Executive Order of December 19, 1935. They are as follows:
TABLE III
Army Assignments Without Limiting Classification, and
Therefore Presumably Exclusive
75, 83, 94, 100, 159, 196, 197,198-204,216-222,343,396,428,444,
446, 470, 480, 2604, 3497.5, 4020, 4025, 4030, 4080, 4085, 4090,
4255, 4300, 4305, 4310, 4365, 4370, 4375, 4380, 4440, 4445, 4565,
5930, 5995, 8040, 8050, 8060, 8160, 8170, 8180, 8510, 8600, 8610,
8620, 8730, 8740, 8750, 8760, 8880, 8890, 12060, 12075, 12090,
12240, 12255, 12765, 12900, 13095, 13110, 13125, 13140, 13290,
13320, 13335, 16080, 16100, 16120, 16320, 16340, 17020, 17460,
17200, 17480, 17500, 17720, 20125, 20150, 20400, 24120, 24150,
24180, 24480, 24510, 24540, 25530, 26190, 26220, 26250, 26280.
Total: 90 frequencies plus 2 low-frequency bands of 6 k.c. each.
TABLE IV
Frequencies Available for Use Provided No Interference Is
Caused to Any Other Existing Service
166% 178f, 1652, 1666, 1682, 1712, 2206, 2310, 2624, 2960c, 2970%
2980c, 3105, 4035, 4215, 4220, 4225, 4590, 4595, 4600, 5920% 5940%
5960% 6210, 6940, 9120.
Total: 26 frequencies.
Superscript c indicates that it may be used by the Army pro¬
vided no interference is caused with Air Commerce Stations.
Superscript f indicates that the frequency is not to be used in
the vicinity of the Great Lakes.
TABLE V
Available for Non-Government Assignments
120, 133, 454, 476, 550-1500, 2628-2632, 2708-2712, 4610, 6250,
8330.
Total: 7 frequencies plus 1 band of 950 k.c. and 2 bands of
4 k.c.
It will be noted that this classification includes almost the
entire broadcast band which is open to use by the Army.
TABLE VI
Frequencies Available for Use by Government Stations Provided
No Interference Is Caused to Non-Government Operation
2522, 2994, 4130% 4360% 5835% 5875%
Total: 6 frequencies.
Superscript h indicates available for use provided no inter¬
ference is caused to any other existing service.
TABLE VII
Frequencies Available for Non-Government Assignments in Alaska
172, 192, 225, 272.
Total: 4 frequencies.
Evidently the Army is fairly well supplied with assignments,
and it is not unreasonable to suppose that some of the stations
now operating between 175 and 215 k.c. might be accommodated
on other existing Army frequencies. This should be particularly
true of at least some of the many 300-watt United States Army
stations which appear in the Berne List. Such stations must
necessarily have a very limited range and could presumably op¬
erate on shorter wavelengths.
We have proposed no broadcast station on 220 k.c., despite
the fact that a fifth frequency is obviously needed for national
coverage, in order that there may be a clear band available for
use by the Army air services. It should be possible to accom¬
modate the air service stations now operating on 192, 200, and
206 k.c. in this range. According to the Berne List, these three
frequencies are the only ones extensively used by the Army at
present. While there are no doubt many military stations which
do not appear in the Berne List, some of these could be accom¬
modated between 215 and 228 k.c., while others might be moved
to Army assignments at 172, 159, 120, 94, 83, or 75 k.c.
The use of the various Army frequencies below 225 k.c., as
shown by the Berne List, is summarized in the following Table.
1395
TABLE VIII
Army Stations Below 230 K.C.
Frequency
Number of
Maximum Power
in k.c.
Stations
in k.w.
Remarks
225
2
.1
Alaska
222
1
.3
Philippines
221
2
2.0
220
24
2.0
19 are .3 k.w.
219
11
2.0
8 are .3 k.w.
218
2
.75
Alaska
217
6
.3
216
3
2.0
206
11
2.0
Only 4 in continental
United States
203
1
.75
Alaska •
202
3
.3
200
36
2.0
31 are .3 k.w.
197
1
.3
196
1
.3
192
20
2.0
17 are .3 k.w.
172
22
2.0
13 are .3 k.w.
159
10
2.0
133
2
4.0
Alaska
120
1
4.0
Alaska
94
1
.5
Alaska
83
1
10.0
Seattle, Wash.
75
1
10.0
Alaska
The Canadian stations operated by the Department of National
Defense on 193, 200, 207, and 214.3 k.c. would presumably have
to be moved, in part, to the 215-230 k.c. band, but it is unlikely
that they would cause any more interference to the United States
Army stations than they do at present. In fact, it might be pos¬
sible for some of these stations to operate on 1 75, 185, 205, or
215 k.c. without great trouble, since the distances between the
interfering American broadcast stations and certain parts of
Canada would be large. Similar allocations, based on wide
geographical separation, might also be used by the United States
Army.
In view of the foregoing analysis, it is believed that a satis¬
factory system can be worked out for the military services of the
United States and Canada, and for the broadcasters as well, if
the problem is attacked in a spirit of reasonable cooperation.
SECTION D
The Frequency Interval Just Below 550 KC
This region was intended originally as a guard band for the
international calling and distress frequency of 500 k.c. A band of
this width was doubtless essential in the past and a portion of it
may be necessary today, but since our discussions are directed en¬
tirely toward trying to decide what should be done in the future,
it is unnecessary to consider here the characteristics of present-day
equipment. On the contrary, we must be free to make estimates
based on performance data derived from high-grade equipment, or
from sound engineering estimates of what can reasonably be done.
In order to show the lack of need for a guard band extending
up to 545 k.c., let us assume that the marine transmitters of the
future will be crystal-controlled. It should be evident that the
use of such control would be a great benefit to all the radio serv¬
ices, and particularly to the marine services themselves. The
chaotic conditions which exist on the marine frequencies, and which
are a menace to safety at sea, could be greatly improved if all ships
and shore stations used crystal-controlled C. W. or I. C. W. sets.
At present, the frequency stability of many marine transmitters is
so poor, and we may so unjustifiably poor, that it is essential
to use receiving equipment having a very wide passed band. This
wide band is ordinarily obtained not by using the best modern
design which would give the maximum selectivity compatible with
a specified band width, but it is often realized by using broadly
tuned receivers of very inferior selectivity.
That this is the case may be seen by referring to Figures 1, 3,
4, and 6, appended to document No. 85, issued by the Committee
Studying Question 1 for the Fourth Meeteing of the C. C. I. R.
The same report shows much sharper characteristics for marine
receivers employing regeneration. It seems questionable whether
this is the best way to get selectivity, and in any event it is not
necessary to use it.
Other figures in the report show characteristics of low-frequency
aircraft receivers having much greater selectivity than that of
many of the older marine sets. Still higher selectivity is often
desirable in marine work, and it should probably be obtained by
means of a crystal filter in the intermediate frequency amplifier,
rather than by the use of regeneration, as the former would un¬
doubtedly give more stable operation. Characteristics of a crystal
filter receiver will be discussed later.
With crystal-controlled transmitters it would be possible to
use receivers having adjustable band width. A superheterodyne
having a crystal filter in the I. F. amplifier, could be used to cut
out a vast amount of interference from other stations in the same
band. The best practice in receivers used by radio amateurs is far
ahead of that now ordinarily found in marine services, and has
clearly demonstrated what may be done by the latter in the future.
We cannot urge too strongly the advantages that would accrue
to marine communication from the realization of such proposals.
In order to show clearly the possibilities let us speculate on what
the 500 k.c. marine picture may be in years to come.
Since a large number of ships must be simultaneously accomo¬
dated in a given area, the transmitter should obtain its carrier
wave in a manner permitting the operator to tune to any frequency
from 485 to 515 inclusive, with an uncertainty of much less than
a kilocycle. In order to do this a master oscillator would operate
with crystal-control at, say, 480 k.c. A stable low-frequency oscil¬
lator having a tuning range from 5 to 35 k.c. would furnish a tone
to be mixed with the output of the crystal oscillator, the resultant
difference frequency being rejected by a high-pass filter, while the
sum frequency would be used to actuate the transmitter. Since a
high degree of stability (in terms of actual cycles deviation) may
be obtained with an oscillator of such low frequency, the radiated
carrier could be held to the desired value within an error that
should certainly not exceed ± 400 cycles. The nominal frequency
could be shown on a calibrated dial, and two stations experiencing
“jamming” could agree to shift to a part of the band which was
free from interference at the time. Since the receivers would also
be calibrated in kilocycles, it would be possible for one man to
tune over the band until he found a clear space, and then instruct
the other to tune his transmitter to that frequency.
With the short-period stability that can be had with modern
design, it would be possible for the receiver, employing a crystal
filter, to use a band only a few cycles wide when working with a
particular station. On the other hand, when a listening watch was
being kept, a substantially constant response over an interval of
say 15 k.c. could be had.
The improvement in marine services which would result from
the use of equipment of this type would be so great as to com¬
pletely change the whole marine operating problem, since the same
principles could also be applied to operation in the other bands.
This would require no great complication in either transmitting
or receiving equipment, but would call for separate crystals for
each band.
It must be emphasized that the scheme which has been out¬
lined would not require unreasonably expensive apparatus, nor is
there anything about operation on shipboard which would pre¬
vent the realization of the suggestions which have been made.
Any statements to the contrary, based on experience with the ex¬
tremely crude apparatus used in the past, are simply not in keep¬
ing with facts recognized by present-day engineering.
Having the foregoing picture in mind, let us now see what might
be expected in the way of interference from broadcast services on
adjacent bands. Before going into this, however, we should
present the proposition that, with high stability of frequency
control, it would be unnecessary to use a general listening band as
wide as 30 k.c. All calling could be done within ± 5 k.c. of 500
k.c., and distress calls could be transmitted squarely on the inter¬
national frequency. Consequently, it should be permissible to
regard 507.5 as the maximum frequency involved in general listen¬
ing conditions, and 515 as the maximum to be used for working.
No broadcast interference should be tolerated on 507.5 k.c., but a
small amount, in certain areas near the coast, might be allowed
at 515, since in these areas another working frequency could be
chosen.
Figure 7 shows a selectivity curve which has been calculated
from the well-known theory of tuned-coupled circuits. It will
be noted that the response at 507.5 k.c. is only slightly below that
at 500, while at 520 k.c. it is down 80 d.b. If there were a broad¬
cast station on 520 k.c., it would require a field strength of 10
millivolts per meter to produce an interference equal to that caused
by a one microvolt per meter signal having a frequency within the
passed band. This curve has been computed on the assumption
that five coupled circuit transformers are used in the receiver, a
perfectly reasonable number.
1396
When working in a congested area, a crystal filter is obviously
needed. If the transmitter has satisfactory stability, the use of
such a filter will often make possible long-distance working through
a tremendous amount of interference. The published character¬
istics of a modern receiver designed for operation above 1S00 k.c.
show that a carrier one k.c. off tune is attenuated 26 d.b., and that
S k.c. off tune it is down 60 d.b. This set uses a 750 k.c. I.F. ampli¬
fier. With a lower intermediate frequency slightly greater selec¬
tivity could, if desired, be obtained.
When this performance is compared with the selectivity curves of
the older marine receivers, we see enormous contrast between per¬
formance standards of ten to twenty years ago and those recom¬
mended by the best modern engineering. It is on the latter that
future allocation structures should be built.
In connection with these selectivity curves, it may be mentioned
that there is danger, under certain circumstances, of interference
resulting from cross-modulation in the first tube of the receiver.
When this interference occurs, it may result in an effective two-
carrier selectivity curve broader than the usual single curves which
have been discussed. But, as has already been pointed out in Sec¬
tion B, interference due to cross-modulation falls off in proportion
to the square of the field strength of the interfering transmission,
and is a source of trouble only at quite high fields. With receiver
inputs of a few tenths of a volt or less, disturbances of this sort
can be entirely neglected.
A fifty kilowatt station located in the north-central part of the
United States would lay down a quasi-maximum night field at the
coast of less than onemillivolt per meter. From what has been said
it should be evident that such stations could operate on frequen¬
cies of 520, 530 and 540 k.c. without in any way disturbing marine
communication, provided modern equipment were used on ships
and at coastal stations.
It has been claimed in the past that even though American ships
were equipped with up-to-date apparatus, it would be unfair to
submit foreign ships crusing near our shores to interfering fields
on the low frequencies since these vessels might not be equipped
with selective receivers and would therefore be placed in a hazard¬
ous position in case of emergency. This argument can be met in
two ways: first, there is no reason why the development of Ameri¬
can communication systems should be handicapped by the unwill¬
ingness of foreign operating companies to equip their ships with
modem receivers ; and second, there are already in existence several
broadcast stations between 550 and 500 k.c. as can be seen by
reference to Table I. Data on stations between 500 and 550 k.c.
in possible interfering distance of the coast are shown in the fol¬
lowing table:
Frequency
in k.c.
Location
Power
Distance from Seacoast
517.2
Tartu, Esthonia
0.5
75 miles from Gulf of
Finland ; 80 miles from
Gulf of Riga.
519
Hamar, Norway
0.7
115 miles from Skager-
rak; 220 miles from
North Sea.
522
Stalingrad, USSR
10
266 miles from Caspian
Sea; 265 miles from
Sea of Azov (Gulf of
Taganrov).
527
Grenoble, France
3.5
130 miles from Mediter¬
ranean.
527
Viipuri, Finland
Ljubljana, Yugoslavia
10
On Gulf of Finland.
527
5.25
45 miles from Gulf of
Trieste; 45 miles from
Gulf of Quarnero.
531
Brzesc, Poland
5
235 miles from Baltic
Sea.
536
Wilno, Poland
SO
180 miles from Baltic
Sea.
536
Bolzano, Italy
1
90 miles from Adriatic.
546
Budapest, Hungary
120
290 miles from Adriatic.
546.8
Merida, Mexico
0.105
30 miles from Gulf of
Mexico.
It will be seen that none of these stations are anything like as
far from the coast as stations located in the north-central part of
the United States would be. Thus, Budapest, on 546 k.c. with a
power of 120 k.w., is capable of causing much more interference
to obsolete receivers in the Adriatic than a 50 k.w. station on 540
k.c. located near St. Paul or Des Moines could cause on the Atlantic
Ocean. Tartu and Hamar, although of low power, are not far
from salt water and are both below 520 k.c. Stalingrad, with a
power of 10 k.w. on 522 k.c. is only 260 miles from salt water and
would be more apt to cause interference with marine services than
would a 10 k.w. station on 520 k.c. located at, say, Bismark, North
Dakota.
Aside from the stations listed in Table IX, we must consider
the use of this frequency range by Canada. There are already
stations on 530 and 540 k.c. of 1 k.w. power, and another station
is planned for 520 k.c. Either Canada should be allowed to em¬
ploy increased power on these three frequencies, thereby making
them completely useful to her as exclusive channels; or she should
give up one or more of them to relatively high-power stations in
the interior of the United States; or these channels should be
shared with low-power American stations. It is believed that one
of the first two possibilities is to be preferred to the third, since
the longer waves should not be wasted on low-power (i.e., local)
stations.
If the United States refuses to use the valuable properties of
these frequencies, it is only a question of time before Canada, and
perhaps Mexico, will either increase the power or the number of
their stations operating in this band. Such action might easily
subject our maritime services to interference over which the Amer¬
ican government would have no control, and which might become
much more serious than that resulting from a well engineered sys¬
tem of allocations laid out either for the United States alone, or
for the three countries together.
Interference to Naval Services. — Assuming that long-wave broad¬
casting stations might be located in the interior of the country, let
us see first what interference would be expected with naval air¬
craft services working between 500 and 550 k.c. Suppose that a
transmitter radiating 50 k.w. (a station rated at 50 k.w. of course,
radiates less than this amount) is situated at a distance of 1000
miles from the seacoast. The quasi-maximum night field strength
would be approximately 0.7 mv/m, and hence we may say that a
station supplying 50 k.w. to the antenna would lay down a quasi¬
maximum night field of about y2 mv/m.
It should be possible to operate aircraft receivers on frequencies
of 525, 535, and 545, and to use a total band width of about 3600
cycles, which is adequate for telephone communication. Follow¬
ing the reasoning before used in considering interference with 175
k.c., we are led to expect a disturbing field, due to the sidebands
of the transmitter of from 30 to 100 microvolts per meter, maxi¬
mum night value. However, such a field would be highly inter¬
mittent and most of the time would be considerably weaker
than 30 pv/m. It would decrease in intensity as the planes passed
out to sea, or as they travelled toward the southern Atlantic and
Pacific seaboards, and would, of course, be entirely absent in day¬
light. It is felt that such interference to the naval services would
be rather mild and should be tolerable in peacetime operation. The
effective interference level for C. W. transmission would be con¬
siderably less, since a much narrower receiver band could be used.
The report of the Committee on Question 9 contains an estimate
of 2240 microvolts per meter as the night field strength required
for barely satisfactory aviation telephone service on 300 k.c. At
500 to 550 k.c. this figure would be lowered to about 1200 micro¬
volts per meter, which seems quite large as compared with the
estimated interfering fields of 30 to 100 microvolts. It is, of course,
realized that the services affected may not be willing to accept the
figures laid down by this technical committee, but they are quoted
to show that low interfering fields are actually of small con¬
sequence.
It is contended, therefore, that the proposed operation of broad¬
casting stations would not interfere with the efficient functioning
of our naval air services. Since the Army use of frequencies in
this range is understood to be confined largely to communication
with naval craft, it may be supposed that such use is chiefly in the
coastal areas, and that, consequently, it would be affected in much
the same way as the naval communications themselves.
SECTION E
The Ultra-High Frequencies
The great possibilities of ultra-high frequencies for aural and
facsimile broadcasting, television, and other radio services are now
generally realized, and constantly increasing technical and com¬
mercial attention is being directed toward the quasi-optical waves.
The sum total of knowledge concerning the characteristics of these
waves is much greater than it was a few years ago and is increasing
rapidly, but every new advance creates new problems, and it can¬
not be denied that we should have more information before the
best distribution of frequency assignments can be finally made.
For this reason it is felt that growth by “evolution and experi¬
mentation,” as recommended by the Commission, is vastly to be
preferred to any inflexible development of an allocation structure.
1397
At present we do not know what the best frequencies are for
any given class of service. At 30 to 35 megacycles, long-distance
interference is known to occur quite often, while at 50 megacycles
it is very rare. On the other hand, the progress of the sun spot
cycle may increase the frequency with which long-range transmis¬
sion occurs, and what is now regarded, from the standpoint of
practical operation, as an interference-free wavelength may be
subject to serious “jamming” in a few years.
Because sky wave transmissions are returned to earth only at
long distances, it does not follow that they are incapable of affect¬
ing the service area of an ultra-high frequency station. It is
inevitable that listeners in suburban regions who are fortunate
enough to have relatively noise-free receiving conditions will fall
into the habit of using rather low field strengths; but even so, they
will often get high-quality programs from their local transmitters.
Long-range transmissions from stations of equal or greater power
may at times be almost as strong as the local fields, and for con¬
siderable periods may make the nearby station practically useless.
We are all too familiar with this unfortunate state of affairs on
shared channels of the present broadcast band. An ideal broad¬
casting system would be free from such interference, and its rela¬
tive unimportance at the very high frequencies (above 50 to 60
me.) should be kept in mind when deciding just what bands to
assign to the new broadcast service. To obtain dependable in¬
formation, it will be necessary for the Industry to go through a
period of experiment and research, thus building up a mass of
data on long-range interference, static disturbances, man-made
noise, coverage and apparatus capabilities and limitations, at a
number of different high frequencies.
Variation of Coverage with Frequency. — There is enough evi¬
dence on hand to show that, with a given amount of power, in a
half-wave antenna or other simple structure having no horizontal
directivity, the effective service area of a station goes down as the
frequency is increased, although transmission over particular paths
may show the reverse trend. Just how great this falling off in
coverage will be is dependent upon many factors such as the height
of the transmitting and receiving antennas above surrounding
objects, the extent of departure from an optical path between the
transmitter and receiver, and the character of the intervening land.
If the receiving antenna is not carefully located, an increase in
frequency is apt to cause a greater falling off of the signal than
will be the case if the antenna is properly installed. Thus there
is often much more difference between the field strengths outside
and inside a house at 100 megacycles than there is at 30. On the
other hand, if antennas appropriate to the two wavelengths are
installed on the roof and are connected with the receiver by a high-
frequency transmission line, the disparity between reception on the
different frequencies is less marked.
The field strength that will occur at a given distance from a
transmitter is dependent upon so many factors that it is almost
impossible to predict it accurately. If an optical path exists, the
field is likely to be higher than if some large object, such as a hill,
is interposed between the transmitter and receiver. But there are
many cases in which relatively high fields occur without-line-or-
sight transmission while lower fields are found within full view of
the sending station. The average field, taken over a reasonably
large area, is not usually subject to such great variation as is the
field at any given point, but even here there are many uncer¬
tainties.
In the case of transmission over flat ground, a simple theoretical
argument can be developed to show that the field strength should
fall off as the inverse square of the distance. This is confirmed, for
average field strengths, by the studies of Burrows, Decino and
Hunt in Boston,1 which show that the average intensity of a fre¬
quency of 34.6 me. falls off in accordance with this law in the
range from one-half to ten miles. In any given area the results
are, of course, greatly modified by local reflections and by shadows
due to hills and high buildings.
Measurements by Jones13 on transmissions from the Empire
State Building at 61 me. show an average falling off approximately
proportional to the inverse square of the distance over a range of
some 10 to 50 miles. At 44 me., transmitted from the same point,
the law is obeyed from about 12 to 100 miles. The field strengths
at short distances are much lower than might be expected due,
perhaps, to the densely built-up nature of the terrain.
Somewhat less extensive measurements by Holmes and Turner 10
in the Camden-Philadelphia area, indicate a somewhat less rapid
attenuation at 30 me. and a more rapid one at 100 me. Instead
of obtaining a negative slope of two from the plot of their data
on logarithmic paper, they find a slope of — 1.84 for the lower
frequency and — 2.5 for the higher. The result is that at distances
of 10 miles from the transmitter, there is a tremendous difference
between average field strengths laid down by the two frequencies.
As a result of the studies made by these and other workers, we
are probably justified in taking the inverse of the square of the
distance law as the best practical guide in estimating average
coverage of reasonably level country, at distances up to about 30
miles and at a frequency range from 30 to 70 m.c., or perhaps
higher. In doing this we must remember that wide departures
from the average are to be expected and that hills, high buildings
and local absorptions will usually have a more damaging effect on
frequencies in the higher part of this band.
Reduced range in built-up or hilly regions, and a greater inability
to bend around small obstacles must be set against relative free¬
dom from long-distance interference, and a decreased susceptibility
to atmospheric noise. Just what the best compromise is will no
doubt depend upon the location. Thus, a small city, built chiefly
on one slope of a valley and having no high buildings, might be
very well served by a 100 megacycle transmitter located near the
top of the slope on the opposite side of the valley and employing
a directional antenna to concentrate its radiation in the direction
of the town. On the other hand, a city built on broken or sharply
rolling land having no dominant high point would undoubtedly be
much better served by a transmitter working on 40 megacycles, or
on an even lower frequency.
Man-made Interference. — Man-made interference is perhaps one
of the most serious problems confronting high-frequency broad¬
casting today, The automobile seems to be the most ubiquitous
source of high-level noise, and it may be that the cooperation of
automobile manufacturers will have to be enlisted if disturbances
of this sort are ever to be reduced to unimportance. However,
there are many other noise generators to which less attention has
been paid because of the even greater trouble caused by automo¬
biles; and if the motor vehicles are quieted, these other sources
will doubtless take on added importance.
Frequently modulation systems might be an answer to the noise
problem, at least in the case of television, and they should certainly
be given an opportunity to show what they can do. But until the
technical and economic implications of these systems are completely
understood, it is essential that a full program based on amplitude
modulation should receive every encouragement.
When super-regenerative receivers are used, the disturbances
occurring at high frquencies are greatly reduced in effect. On the
other hand, such receivers are badly adapted for use by the public,
tend to have very poor selectivity, and are often the source of
much trouble from reradiation. Hence, it seems unlikely that they
will be of help in solving the noise problem, so far as broadcasting
is concerned.
There is a possibility that types of noise-suppression circuits
recently developed may be very useful in lessening the effects of
high-frequency disturbances. These circuits are extremely effective
in reducing ignition and similar types of noise, even in the broad¬
cast band, and it has been observed that their efficiency of opera¬
tion tends to increase with frequency, being much greater at 15
megacycles than at 1000 k.c. Just what results will be obtained at
40 to 100 megacycles cannot be accurately predicted, but it would
appear that the operation will be at least as good as at 15 mega¬
cycles, and probably better.
Should this prove to be the case, the difficulties facing ultra-high
frequency broadcasting, both aural and visual, will be considerably
reduced, and the service range will probably be greatly increased.
In fact, with a satisfactory noise suppression circuit system, the
service range might often be extended considerably. Except at
very long distances where transmission is due entirely to at¬
mospheric refraction, selective interference cannot occur at these
wavelengths with aural broadcasting, and is not often serious in
the case of television. Consequently, if the noise problem could
be reasonably well handled, automatic volume control in the re¬
ceiver would take care of a considerable range of variation in field
strength. There would then no longer be any temptation to use
super-regenerative receivers, and stable, well designed super¬
heterodynes would be used instead.
Pending developments of this sort, it will probably be necessary
to count on rather strong fields, of one to several millivolts per
meter for high-grade reception. At least, a great many homes will
require such field strengths. On the other hand, semi-rural listen¬
ers may often take advantage of low fields to a greater extent than
is possible at ordinary broadcast frequencies, since there will be
no appreciable trouble from natural static. We shall then have
an admittedly high-grade service area of limited extent, with an
outlying zone that theoretically receives no service, but in which
a great deal of listening is done never-the-less.
Interference Range. — Variations in transmission efficiency are
even more marked at long distances than at short, and, conse¬
quently, prediction of the interfering range is subject to greater
probable errors than is that of the service range. Transmission
1398
over paths of more than 100 miles will be greatly affected by the
elevation of intervening land and often by changes in atmospheric
conditions. There is, unfortunately, a considerable range of dis¬
tances in which the signal is capable of causing interference but
cannot possibly furnish satisfactory service. The result is then
that the ratio of service area to nuisance area is apt to be small,
and in thickly settled portions of the country this may prove to be
a serious difficulty.
Evidently, the decision as to what should be the minimum per¬
missible distance between two stations operating on the same fre¬
quency will depend largely upon the field strength that is to be
protected from interference. In view of the troubles caused by
noise, there is probably not much point in protecting field strengths
of less than about 0.5 microvolts per meter. Such a field might
occur at perhaps 20 miles from the transmitter, although, of course,
this will vary widely with local conditions, the power radiated,
antenna height, etc. If the antenna is very favorably located the
field strength at 100 miles may be roughly given by the inverse
square of the distance law which would in this case predict a value
of 20 microvolts per meter. At longer distances the average may
fall off more rapidly, due to the effect of earth curvature, although
diffraction will be a counterbalancing factor. However, we must
keep in mind that atmospheric refraction is sometimes the cause
of very pronounced increases in signal strength at distances in
excess of 100 miles and that consequently the interfering range of
a station may sometimes be abnormally long.
Should the average high-frequency noise levels be appreciably
lessened by the use of suppressor-circuits, or by “anti-noise cam¬
paigns,” etc., field strengths below y2 mv/m would doubtless be¬
come very useful, and listeners in suburban areas would come to
depend upon fields of perhaps 50 to 100 microvolts per meter.
Under these circumstances interference from nearby transmitters
operating on the same frequency, would be much more annoying
and it might be necessary to employ increased spacings. Only a
large accumulation of operating experience can definitely show
what the most satisfactory spacings are likely to be, and how they
will depend upon such factors as transmitting antenna heights,
local topography, and frequency. Here again it appears that
assignments should be made so as to allow for final adjustments as
more becomes known about the problem.
In the case of congested areas, such as those along the Atlantic
seaboard between Washington and Boston, it may be necessary to
duplicate assignments at rather frequent intervals, at least in the
case of television. Some interference will inevitably occur and it
may be necessary to educate the public into using reasonable care
in the installation of receiving antennas. It has long been custom¬
ary to assume that the average listener will not tolerate technical
restrictions on the type or location of his antenna ; but this is
almost certainly a far-fetched point of view. Many listeners have
put up doublet antennas and transmission lines for use with their
short-wave receivers, and it would certainly be possible for the
Industry to show the user of an ultra-short-wave set how he could
improve reception by installing the proper antenna. Thus a hori¬
zontal doubtlet could in many cases be pointed so as to get rid of
an interfering signal without greatly affecting reception from the
desired station. For example, a listener located in Morristown,
New Jersey, could easily cut out a Philadelphia program and still
get excellent reception from a transmitter on Manhattan Island.
The shorter the wavelengths used, the greater will the possibility
of improving reception by the use of special types of receiving an¬
tennas. Simple cardioids, and even more effective directive pat¬
terns, might be obtained by the use of inexpensive antenna arrays
that could be readily installed by the average service man. It is felt
that the Commission and the Industry should keep in mind the
possibilities of such developments, and should take the position
that the listener can reasonably be expected to cooperate in solving
the problem of satisfactory ultra-high frequency service.
Spacing Between Stations Operating on the Same Frequency.—
In view of the situation just outlined, it is recommended that
aural broadcasting stations operating on the same frequency be
separated by not less than 250 miles. Closer spacing would no
doubt be possible in many cases, but since only a narrow band is
required for an aural broadcast, it will be possible to accommodate
a large number of stations in various parts of the country without
taking up much of the available spectrum, and without reducing
the separation to that at which interference is really troublesome.
In the case of television the extremely wide band width will
make it essential to duplicate assignments with as small geograph¬
ical separations as possible, if an adequate number of stations is to
be provided. It is believed that the minimum permissible separa¬
tion of two stations operating on the same frequency should be
specified only tentatively, and that wherever possible local peculiar¬
ities of topography, population distribution and noise-levels, be
taken into account in deciding how closely two stations may be
spaced. In any given case, it will be necessary to determine just
how far from a transmitter a television station may be dependably
received, and then to allocate other stations at distances sufficient
to avoid interference. The dependence of range upon height of
transmitting antenna is so marked that the Commission might well
attempt to establish a distance table based upon such heights, but
allowing for modifications that may be required by local topo¬
graphic conditions. Pending the development of such a table, it
would seem that spacings of not less than 150 miles would insure
considerable interference-free areas around each transmitter, and
yet would allow the operation of many more stations in the Atlan¬
tic seaboard area than would, for instance, spacings of 250 or 300
miles.
Taking the Empire State transmissions as an example, we should
expect an antenna some 1300 feet above the ground level, supplied
with 2 kw power, to lay down a field of around 20 to 100 micro¬
volts per meter at a distance of 100 miles. At 130 miles the field
would probably be not more than one-half as great, since curvature
of the earth begins to be of increasing importance here. At this
distance we might therefore expect a field of between 10 and 25
microvolts per meter, while that from a local transmitter 20 miles
away (assuming 150 miles spacing) would be about 1 millivolt.
This ratio should be adequate for most cases, but where it is not,
special antenna equipment, or merely mounting the antenna on
the proper face of a building, would usually clear up the difficulty.
In many localities it would be impossible to obtain so lofty a point
at which to install the transmitter, and hence the interfering field
at 130 miles would be considerably weaker.
Widths of Channels to be Transmitted. — There is not complete
agreement between radio engineers as to what constitutes the best
band width for use in aural broadcasting. Recommendations have
been made for the transmission and reception of frequencies up to
15000 cycles, but many engineers, and I am inclined to agree with
them, believe that it is quite impossible to justify so wide a band.
Many persons are relatively deaf at these frequencies, only a few
instruments give off any appreciable energy above 10,000 cycles,
and the use of so wide a band increases the noise output of the
receiver. Moreover, the manufacture of both transmitting and
receiving equipment having characteristics substantially flat up to
15,000 cycles is expensive. In the case of high-frequency apparatus
the technical difficulties are somewhat reduced, but the cost of the
audio-frequency amplifiers, and particularly of the loud speaker,
remains high.
It is our belief that 10,000 cycles is the maximum audio band
width that can be justified in a radio system, and that where fre¬
quency space is at a premium (which is not the case at ultra-high
frequencies), a somewhat narrower band, extending to perhaps
7500 cycles, is sufficient.
The band that must be passed by the intermediate frequency
amplifier used in a receiver is determined not only by the fidelity
to be realized, but also by the frequency stability of the local
oscillator. In order to take care of oscillator draft in an ultra-
high frequency receiver, a very broad I. F. amplifier is often em¬
ployed. While this is convenient, it should not be carried too far,
and it seems likely that frequency stabilization or automatic tuning,
will have to be employed in future ultra-high frequency broadcast
receivers. If this is done it should be possible to use an I. F. ampli¬
fier band width of only a little more than 20 k.c. However, since
it will probably be sometime before any ultra-high frequency bands
assigned to aural broadcasting become seriously congested, it is
recommended that a spacing between chdnnel assignments of about
50 k.c. be adopted. This will avoid undue inconvenience in experi¬
mental work and will not place too rigorous requirements on re¬
ceivers to be built in the near future. When the need arises this
spacing can be cut in half.
The RMA has recommended a channel width of 6 megacycles
for a combined television and voice band, and we are in agreement
with this as a temporary figure. Future developments may call
for either an increase or a decrease in the band width, but it would
no doubt be advisable to standardize on 6 megacycles for the
present.
Frequency Separation of Local Assignments. — In the case of
aural broadcasting, the position may again be taken that there is
no need at present for crowding stations up to the limit that is
technically possible. The more closely stations in the same area
are spaced, the more expensive the receiving equipment will have
to be. If the recommended aural broadcast bands not less than 2
megacycles wide are adopted, it should be possible to use 200 k.c.
spacings between stations separated by only a few miles. Stations
farther apart, even though located in the same metropolitan area,
could often be assigned to frequencies only 100 k.c. apart. Thus,
1399
a station in Newark on 40.2 m.c. should not affect the service area
of a station in Long Island City on 40.3 m.c.
In the case of television stations, the frequency separation prob¬
lem is more troublesome, and will have to be treated with due
regard to the various combinations of local conditions that may
occur. Because of the small number of channels available, it will
probably be necessary to allow operation, in the same area, on
alternate channels. This will tend to make more rigorous the re¬
quirements placed upon receiving equipment, but unless some such
plan is adopted there seems to be no way of furnishing even par¬
tially adequate program selections to the larger metropolitan areas.
In order to make such spacings work reasonably well, the Commis¬
sion might insist that some definite pattern be followed in locating
the various transmitters involved. For instance, if the antennas of
several stations using approximately the same power were to be
located very close together, it should be possible to operate them on
adjacent channels if necessary. Or again, stations located near
opposite edges of a metropolitan area that is too large to be satis¬
factorily covered by a single station might be operated on adjacent
channels. In any event, care should be exercised to see that one
station is not placed a few miles from another in such a way that
each exerts a blanketing action over a considerable portion of the
other’s service area.
In some instances it will be possible to locate a transmitter on
the edge of, or outside the community to be served, and to use
a directive transmitting antenna that will greatly cut down
interference in the opposite direction. In this way duplication
of assignments could be increased, while still allowing every sta¬
tion to serve important and densely settled areas. Thus a trans¬
mitter located to the southwest of Boston might operate on the
same frequency as one located northeast of Providence, without
mutual interference. This is an advantage of the ultra-high fre¬
quencies that cannot be matched in the ordinary broadcast band.
In less extreme cases only enough directivity might be used to
reduce the radiation in a relatively narrow angle.
Ultra-High Frequency Receivers. — If the public is to obtain
widespread service from ultra-high frequency broadcasting, it is
necessary that the economic burden resulting from the purchase
of new receiving equipment shall not be too great. Television re¬
ceivers will necessarily be more expensive than will those designed
to handle aural broadcast only. We should look, therefore, toward
the manufacture of reasonably inexpensive units capable of cov¬
ering the ultra-high frequency aural bands, or of converters that
will make it possible to reach these bands with an ordinary broad¬
cast receiver. On the other hand, the general usefulness of a
television receiver will undoubtedly be increased if it is made
to cover the two aural bands that will, it is hoped, bracket the
television range.
If frequencies up to 100 me. are to be handled, it will un¬
doubtedly be necessary to have either special ultra-high frequency
receivers, or converter units. On the other hand, it is possible
to extend the tuning range of an ordinary multi-band broadcast
receiver to include aural channels in the vicinity of 40 me.; in
fact, some of the receivers now on the market go almost as high
as this. Too great sharpness of tuning and rather serious drifting of
the local oscillator are the outstanding faults of such receivers.
If broadcast stations were segregated in a limited band it would
be possible to provide the receiver with a tuning range of only
slightly greater width. This could be easily done by switching out
some of the stator plates of the variable condenser, and would
largely do away with objectionable sharpness of tuning.
Oscillator drift is a somewhat more serious problem, but the
progress which has been made with systems of so-called auto¬
matic tuning indicates that it is by no means insoluble. Another
promising attack would involve the use of an oscillator stabilized
against the effects of voltage fluctuation, combined with a broad
band I. F. amplifier. Methods of stabilization are now well
known, and many of them are inexpensive. The widening of the
I. F. amplifier band could be effected by tightening the coupling
between the circuits of the tuned transformers, and at the same
time adding damping resistance. A decrease in sensitivity of the
receiver would be entirely permissible if we made no effort to
receive field strengths of less than 0.5 mv/m. Thus a trans¬
former originally having an over-all band width of 10 k.c. could
be widened to 30 k.c. with a loss in gain of about 9 d.b. A set
using three I. F. transformers would usually have a high initial
sensitivity and a decrease of 27 d.b. in the over-all gain should be
permissible, even if we allow several d.b. more for reduction in
I. F. amplification in the ultra-high frequencies. If only two
I. F. transformers were used the loss in gain would, of course,
be smaller.
Possibly a reduction in sensitivity as great as that involved
in the above process would not be satisfactory to all set users.
Certain receiver models might therefore be provided with an
extra stage of I. F. amplification, which could be switched into cir¬
cuit only when the broad band was used. There are on the market
today sets having an extra R. F. amplifier in the highest tuning
range and this costs more than the use of an additional I. F. stage.
If ease of tuning and small oscillator drift were achieved, there
would still remain troubles due to lack of image-frequency se¬
lectivity. When the frequency of an I. F. amplifier is very low
as compared with the signal frequency, image interference is
bound to be serious, and this would place a limit upon the use¬
fulness of all-wave receivers. However, if local assignments were
spaced by 200 k.c. the image-frequency might well be free from
interference. Thus, if the I. F. amplifier were tuned to 460 k.c.,
the image signal would differ from the desired by 920 k.c., thereby
falling 80 k.c. from a local station. Even allowing for oscillator
drift and a 30 k.c. I. F. band width, there would still be a fair
amount of protection against image interference. Of course this
protection, which is due to the wide spacing of local stations,
would not occur when the image frequency was outside of the
broadcast band, and hence considerable trouble might be expected
from adjacent television stations.
If only two television channels are placed below the amateur
band, the tuning range of a television receiver would have to
cover the interval from 42 to 100 me. in order to include the
aural bands. This is a tuning ratio of 2.38:1. On the other
hand, if three television channels were provided at the low end
of the range, the receiver would have to tune from 36 to 100 me
which is a tuning range of 2.77:1. The less severe technical re¬
quirements imposed by the smaller tuning ratio constitute an
argument in favor of starting the television band at 44 me. Of
course it would always be possible to cover the total range with
two separate tuning bands, but this would increase the price of
the receiver somewhat.
The performance of broadcast receivers has not always been
entirely satisfactory at the two ends of the band. Some sets
cut sidebands severely at the low-frequency end and fall off in
sensitivity at the opposite end. It is hoped that television re¬
ceivers will be designed so thai they will perform efficiently in
aural bands adjacent to the end of the television tuning range.
As indicated by Figure 1 we are asking for a voice band inside
the television range, for reasons that will be discussed later. It
should be pointed out here that since the aural band would be
used for broadcast services, it should not be objectionable to the
public to have it sandwiched in to the visual broadcast range.
Moreover, efficient performance of the receiver in this band should
be assured by its position between two television bands.
The problem of receiving antennas may give some trouble. Effi¬
cient reception on three aural broadcast bands could be accom¬
plished by using three separate doublet antennas, all coupled to
the same transmission line. In the case of television, however,
it will be necessary to get reasonably uniform reception over a
very wide band (that is from about 40 to 100 m.c.) and this may
prove to be difficult. Undoubtedly a compromise between sen¬
sitivity and uniformity will have to be adopted.
Possibility of Reduction in Width of Television Channels. —
When it is considered that a single television channel takes up ap¬
proximately six times as much room in the spectrum as does the
entire present-day broadcast band, it is evident that much thought
will be given to the possibility of reducing the channel width.
In the present state of the Art it is impossible to say how promis¬
ing the various proposals for band width reduction are, but since
we are definitely trying to look ahead it is felt that some of these
proposals ought to be at least mentioned. Should any of them
prove successful, the allocation difficulties of visual broadcasting
might be appreciably reduced.
Single side band transmission offers one of the most obvious
and attractive possibilities. If the width of the actual picture
channel could be cut in half great gains would result. It would
be very difficult to obtain true single sideband operation, but a
system might be developed allowing the transmission of all of one
sideband and a small portion of the other, thus saving very nearly
the same amount of frequency space and at the same time re¬
ducing the difficulties that are met in filtering out the unwanted
frequencies. Problems of picture-distortion will have to be solved
in developing such a system, but it must be regarded as one of
the more interesting fields for investigation.
In the case of aural broadcasting, single sideband transmission
would be of very little value unless it were of the carrier-sup-
pressed type, which requires expensive and complicated receiving
equipment. In television, on the other hand, the importance of
band width reduction is so great that even a carrier -transmitted
1400
system should be very much worthwhile, and this would avoid
the use of such complicated receivers.
Further information should be made available on the possibility
of using interlaced scanning in such a way as to reduce the band
width. Thus, if a frame frequency of 30 per second is employed
it is possible to use alternate scanning so that each line is actually
scanned fifteen times per second. This should give far less flicker
than straight scanning at a frame-frequency of fifteen per second,
but would require no greater band width. It might be possible
to go even a step further and to scan only one-third of the lines
in each frame, thus reducing the band width to that corresponding
to ten frames per second. We hope that conclusive technical data
on such arrangements will be made available.
Another possibility of saving frequency space lies in the reduction
of the guard bands used in each television channel. The present
proposals of the RMA call for a picture channel width of 5 me
with a guard band of practically 1 me. Part of this guard is re¬
quired by the problems involved in separating the visual and
aural signals in the radio receiver. Difficulties of this sort might
be avoided by transmitting all of the sound-tracks at one end of
the whole television band instead of assigning each voice channel
to a position immediately adjacent to the corresponding picture
band. This last arrangement is, of course, desirable, since it in¬
sures the same coverage for both components of a broadcast, but
it is not believed to be essential.
With the sound-tracks removed from the vicinity of the picture
channel, it should be possible to practically eliminate the guard
band if the proper care were taken in locating the transmitting
antennas. As has already been pointed out, this might be done
in such a manner that all important receiving areas would be
supplied with field strengths of about the same magnitude from
several stations. This would make the selectivity requirements
placed on the receiver very light, and should make it possible to do
away with the guard bands which have been suggested.
References
1. Burrows, C. R., Decino, A., and Hunt, L. E., “Ultra-Short
Wave Propagation: Mobile Urban Transmission Character¬
istics.” B.S.T. J., Apr. 1935, Vol. XIV, No. 2, pp. 253-272.
2. Burrows, C. R., Decino, A., and Hunt, L. E., “Ultra-Short
Wave Propagation: Over Land.” I.R.E., Dec. 1935, pp.
1507-1536.
3- Eades, N. H., “The Relation Connecting Skip-distance, Wave¬
length, and the Constants of the Ionized Layers.” I.R.E.,
Sept. 1931, pp. 1663-1675.
4. Englund, C. R., Crawford, A. B., and Mumford, W. M„ “Some
Results of a Study of Ultra-Short Wave Transmission Phe¬
nomena.” I.R.E., Mar. 1933, pp. 464-493.
5. Fay, C. E., and Samuel, A. L., “Vacuum Tubes for Generating
Frequencies Above One Hundred Megacycles.” I.R.E., Mar.
1935, Vol. 23, No. 3, pp. 199-213.
6. Ferris, W. R., “Input Resistance of Vacuum Tubes as Ultra-
High-Frequency Amplifiers.” I.R.E., Jan. 1936, 24, pp.
82-105.
7. Hallborg, H. E., “Terrestrial Magnetism and Its Relation to
World-Wide Short-Wave Communications.” I.R.E., Mar.
1936, Vol. 24, No. 3, pp. 455-471.
8. Harrington, W. I., and Hansell, C. W., “The Hawaiian Radio¬
telephone System.” Elec. Eng., Aug. 1935, 54, 8, pp. 822-828.
9. Hollingsworth, J., “Some Characteristics of Short-Wave Prop¬
agation.” Journ. Inst. Elec. Eng., 1933, Vol. 72, p. 229.
10. Holmes, R. S., and Turner, A. H., “An Urban Field Strength
Survey at Thirty and One Hundred Megacycles.” I.R.E.,
May 1936, pp. 755-771.
11. Hulbert, E. O., “The Ionosphere, Skip-distances of Radio
Waves, and the Propagation of Microwaves.” I.R.E., Dec.
1935, pp. 1492-1507.
12. Hull, R. A., “Air-Mass Conditions and the Bending of Ultra-
high Frequency Waves.” Q.S.T., June 1935.
13. Jones, L. F.. “A Study of the Propagation of Wavelengths
Between Three and Eight Meters.” I.R.E., Mar. 1933,
pp. 349-387.
14. Jouaust, R., “Some Details Relative to Propagation of Very
Short Waves.” I.R.E., Mar. 1931, pp. 479-489.
15. Lindenblad, N. E., “Development of Transmitters from Fre¬
quencies Above 300 Megacycles.” I.R.E., Sept. 1935, Vol.
23, No. 9, pp. 1013-1048.
16. Munro, G. H., “The Attenuation of Short Wireless Waves on
the Surface of the Earth.” Journ. Inst. Elec. Eng., 1932,
Vol. 71, p. 135.
17. Muyskens, Henry, and Kraus, John D., “Some Characteristics
of Ultra-High Frequency Transmission.” I.R.E., Sept. 1933,
pp. 1302-1317.
18. Potter, R. K., “High-Frequency Atmospheric Noise.” I.R.E.,
Oct. 1931, 19, 10, pp. 1731-1765.
19. Potter, R. K., and Friis, H. T., “Some Effects of Topography
and Ground in Short-Wave Reception.” I.R.E., Apr. 1932,
pp. 699-722.
20. Schelleng, J. C., Burrows, C. R., and Ferrell, E. B., “Ultra-
Short Wave Propagation.” I.R.E., Mar. 1933, pp. 427-464.
21. Taylor, A. Holt, “Note on Skip-distance Effects of Super-
Frequencies.” I.R.E., Jan. 1931, pp. 103-106.
22. Trevor, Bertram, and Carter, P. S., “Notes on Propagation
of Waves Below Ten Meters in Length.” I.R.E., Mar.
1933, pp. 387-427.
23. Trevor, Bertram, and George, R. W., “Notes on Propagation
at a Wavelength of Seventy-Three Centimeters.” I.R.E.,
May 1935, Vol. 23, No. 5, pp. 461-470.
24. Wenstrom, Wm. H., “Historical Review of Ultra-Short Wave
Progress.” I.R.E., Jan. 1932, pp. 95-113.
SECTION F
The Proposed Ultra-High Frequency Broadcast Bands
We have seen that there are many uncertainties regarding such
factors as: dependable radius of coverage of an ultra-high fre¬
quency station, variation of this radius with frequency, variation
of sky wave interference with frequency and its possible modifi¬
cation by the sun spot cycle, the program to be adopted in
combatting man-made interference, the effective interfering range,
and the preferred mileage separation of television stations on the
same frequency. In view of these uncertainties it is strongly
urged that aural broadcasting be given assignments in various
parts of the ultra-high frequency spectrum, in order that full
knowledge may be gained of the properties of several different
bands. It is believed that only thus can we hope to have a
thoroughly satisfactory high-frequency broadcast system, and
that any other procedure might seriously penalize a development
that should be of the greatest importance to the people of the
United States.
The question as to just what bands should be assigned is
inherently a difficult one. It is obvious that the needs of the
country can best be served by a well-balanced growth of aural
broadcasting, of television, and of certain essential non-broadcast
services. There is inevitably some conflict between the needs of
these three groups and in suggesting a possible allocation struc¬
ture, we have attempted to recognize these needs and to allow
for them.
Referring to Figure 1, the space alloted to television provides
for eight channels below 100 m.c. This number is obviously
insufficient for a fully developed television system, but it is un¬
reasonable to suppose that more can be provided in the frequency
range covered by the chart. No doubt these channels will have
to be heavily loaded in the manner which has been outlined, and
we should look forward to supplementing them, in time, with
additional television assignments above 100 m.c.
The proposed television range is split by the amateur band
running from 56 to 60 m.c. It is realized that the amateurs,
by their long-continued and enthusiastic work in radio, have prob¬
ably earned a right to some such assignment, and that the
continued activity of this group is a potential asset to the mili¬
tary services. Consequently, no proposals are made for the
shifting of this band.
It must also be pointed out that, were the 56 to 60 m.c. ama¬
teur band to be abolished, it would probably be of very little
use to broadcasting, be it aural or visual. There is another
amateur band from 28 to 30 m.c. and presumably there will in
time be a considerable number of amateur transmitters scattered
through exactly the same areas in which ultra-high frequency
broadcast receivers will be used. The harmonics of these trans¬
mitters would fall squarely in the 56-60 m.c. interval, and would
be a terrific nuisance to the general listener. Because of the
negligible geographical separations involved, no amount of effort
on the part of the amateurs could reduce the radiation to the
point at which it would do no harm. It is believed that har¬
monics from amateur stations would cause considerably more
trouble than those from commercial and government stations,
because of the large number of the former and their location
in exactly those areas in which general listening is done. The
non-amateur transmitters, on the other hand, are often located
at some distance from residential zones; not infrequently use
1401
highly directive antennas; and, in any case, are in a better position
to reduce their harmonic radiation when local conditions make
it necessary.
Not only would second harmonics of the 28 to 30 m.c. send¬
ing sets be troublesome, but harmonics from the lower frequency
amateur bands also might be very annoying. Thus the fourth
harmonics of the 14 m.c. band would cover the interval from
56 to 57.6 m.c., the eighth harmonics of the 7 m.c. band would
lie between 56 and 58.4 m.c., while the 16th harmonics of the
3.5 m.c. band would spread from 56 to 64 m.c. Presumably the
lower frequencies would cause less trouble, and in any event it
would be easier to reduce the radiation of higher order harmonics.
These low-frequency amateur assignments will cause harmonic
interference at many of the other frequencies. For example, the
third harmonics of the 14 m.c. band will cover the region from
42 to 43.2 m.c., while the fifth harmonics of the same band will
extend from 70 to 72 m.c. Evidently, complete freedom from
harmonic interference by amateur stations cannot be expected,
but it is logical to suppose that second harmonics of the 28 to
30 m.c. range are capable of causing more trouble, and might be
harder to get rid of, than those of any other.
If the 56-60 m.c. amateur band is permitted to remain, no
additional harm can be done to the television assignments by
allowing other services, requiring relatively narrow frequency
ranges, to take advantage of the properties of 60 m.c. waves.
Consequently, it is suggested that the interval from 60 to 62 m.c.
be reserved for non-broadcast services and that another from 62
to 64 m.c. be set aside for aural broadcasting. Five television
channels would then occupy the space from 64 to 94 m.c., and
there is no reason to suppose that the use of this region would
introduce any technical difficulties not met with in using that from
60 to 90 m.c.
We have proposed three television channels below 56 m.c., with
an aural broadcast band adjacent to the lowest visual channel.
However, it is understood that the RMA believes the lowest
visual channel to be of little value, because of the probability of sky
wave interference. Such interference would, of course, be equally
objectionable to aural broadcasting, and a band running from
36 to 100 m.c. has been chosen only with the Durpose of allowing
room for a third television channel. Should it be decided that
two channels below 56 m.c. are all that television needs, or is
justified in having, then the aural band should unquestionably
be moved upward.
Since the recommendations are for television channels 6 m.c.
wide, it would be possible either to have two channels in the
interval of 42 to 54 m.c., with non-broadcast services occupying
the range from 54 to 56; or the television channels might run
from 44 to 56. In the first case the aural broadcast band should
extend from 40 to 42 m.c., while in the second it should be from
42 to 44 m.c. From the standpoint of the Broadcast Industry
the latter arrangement is to be preferred.
A band from 94 to 100 m.c., has been recommended for the
use of aural and facsimile broadcasting, and for experimental
work with frequency modulation. The importance of this region
will undoubtedly increase as apparatus for use at 100 m.c. is
improved. Satisfactory equipment for operation in this range
will certainly be forthcoming, and the freedom from atmospherics,
the somewhat lower levels of man-made noise, and the complete
lack of long-range interference, may make this band an important
one. Directive antennas could also be utilized to the fullest ad¬
vantage here, and certain non-broadcast services might use parts
of this range, on a restricted basis, without mutual interference.
It is not suggested that frequency modulation experiments be
limited entirely to the interval 94-100 m.c. As long as the lower
aural broadcast bands are relatively uncongested, there is no
reason why a certain amount of experimental work could not be
done in them. However, when such congestion does arise, and
the bands can be efficiently used by broadcasting of a more or
less commercial nature, the experimental work should be moved
to higher frequencies.
In addition to the bands which are recommended, we are pro¬
posing one for “auxiliary broadcast service” which will be discussed
later. We must also point out that if television ever becomes
popular with the public, it will be necessary to provide additional
visual channels above 100 m.c., just as soon as the apparatus
problems can be satisfactorily solved. Only in this way can
we hope ever to develop a really satisfactory television system,
based on free competition, and capable of serving the needs of the
nation. It is therefore urged that in making assignments above
100 m.c., a way be left open for providing a considerable number
of additional television channels.
In addition to the bands just discussed, we have shown in
Figure 1 a block from 25.6 to 26.6 m.c. We do not believe that
this will prove to be a particularly useful band for aural broad¬
casting, but it has been included because the Commission has
already assigned channels in this interval. In fact, the allocations
made in the recent modification of Rule 229 include assignments
for both domestic and international broadcasting. If there is
any possibility of successful use of these frequencies for the latter
services, it follows that they will be unsatisfactory for the former.
Interference from Central and South America, as well as between
stations in this country, could easily do great damage to domestic
broadcasting. On the other hand, the erratic transmission which
is obtained at 26 m.c. will probably make this band of very little
use for international broadcasting.
In laying definite plans for the development of an ultra-high
frequency broadcast structure, it should be recognized that much
more satisfactory service can be rendered the public if broadcast¬
ing is segregated into certain exclusive bands which can be held
free from interference by other services. There is no reason for
forcing the listener to pass through large numbers of telegraph
and commercial or emergency telephone channels, in tuning from
one broadcast station to another within the same band. It is,
therefore, strongly urged that the present practice of scattering
ultra-high frequency broadcast assignments in between those made
to other services be discontinued.
The advantages to be obtained from the use of continuous
bands apply also to television, and the proposed television assign¬
ments have been split at 60 m.c. only because of the existence of
the amateur band and the desirability of allowing other services
to take advantage of the particular properties of waves of this
frequency. This has already been discussed in detail.
SECTION G
Auxiliary Broadcast Services
Opening up of the high frequencies will allow the development
of certain auxiliary services of considerable value, and it is believed
that some place should be provided for them in the spectrum.
Many special uses of radio, as an adjunct to the main business of
broadcasting, will require only narrow frequency bands, and can
employ directive antenna systems, with the result that the chance
of their causing interference to other assignments would be small.
We have therefore recommended that the interval from 100 to
120 me. be made available for broadcast pickup, studio-to-station
radio links, inter-station program circuits (either with or without
repeaters) synchronizing frequency links, facsimile pickup (and
probably television pickup) and other special uses which will in¬
evitably develop.
Broadcast pickup can well make use of frequencies in this range
under many conditions. Thus, very short distance transmission
from pack sets, or from boats or airplanes travelling within plain
sight of the receiver point, might well be accommodated here. The
freedom from long-distance interference, and in some cases the
possibility of using small directive antennas at the receiver (if not
at the transmitter) , should be of considerable value.
In many instances there is a good optical path between a broad¬
casting studio and its associated transmitter. The telephone lines
may or may not run directly between the two points, and in some
cases line charges are distinctly high. It seems only logical that
these two parts of a radio system should be tied up by an ultra-
short wave radio link, since the interference caused would usually
be negligible. Directive antennas would of course be used at both
terminals of the path, and, with a little care in choosing their loca¬
tion, noise troubles could generally be avoided. The chief objection
to such operation at present is that satisfactory transmitting and
receiving equipment is not available on the open market, but there
is no technical reason why this condition should continue, nor do
we believe that it will.
As ultra-short wave broadcasting develops, there will often be
occasion for supplying the same program to transmitters located in
towns not far apart. The inexpensive, direct and obvious way of
tying such transmitters together is by means of ultra short wave¬
lengths. Often no repeaters would be necessary, but in some cases
one or two might be justified. Again the use of sharply directive
antennas at all terminals would greatly reduce the interference cap¬
abilities of the system, and would make it possible to assign large
numbers of connecting links to the same frequency.
In large metropolitan areas, or in cities built on very rough
ground, it may be impossible to get adequate coverage with a
single transmitter. Under such circumstances the use of one or
more booster stations synchronized with the main transmitter may
be justified. It has been shown that if the proper conditions are
1402
fulfilled it should be possible to synchronize two or more stations
at distances of less than IS or 20 miles from each other, with very
little distortion in the middle zones. These conditions involve the
distribution to the several stations of a modulated radio-frequency
wave, and this could be done most economically by the use of
ultra-short wavelengths. This type of synchronization may come
to be of some importance in ultra-high frequency broadcasting, and
provision for its development should be made now.
There will be many occasions, in press and other work, where it
is desirable to take a picture in the field, develop it, and transmit
it by radio to a central point. For instance, photographs of boat
races could be most rapidly delivered to a transmitter for rebroad¬
casting. While such service will no doubt need longer waves when
considerable distances are to be covered or where optical paths
cannot be obtained, it is believed that they will also require assign¬
ments in the ultra-high frequency range.
In time we can expect to see television pickup used in somewhat
the same way that broadcast pickup is at present. The accommo¬
dation of the former service is more troublesome than that of the
latter because of the wide frequency band which must be used.
However, it would seem that at least a few experimental assign¬
ments should be made at frequencies that are not too high. Pre¬
sumably apparatus for 100 m.c. operation will be developed before
very long, while equipment for considerably higher frequencies may
not appear for some time.
These several auxiliary services will grow to be of great im¬
portance if they are given a chance to develop, and it is urged that
provision be made for them in approximately the frequency band
that has been mentioned.
Broadcast Pickup Services at Longer Wavelengths. — It will of
course be necessary to continue the use of certain frequencies, above
the present broadcast band but lower than 30 m.c., for bdoadcast
pickup. This use will in time extend to facsimile pickup, and it is
urged that provision for this latter service be made. We shall not
try to suggest the exact frequencies that should be used, since their
choice is so much a matter of correlation with existing assignments.
It is however recommended that the Commission allow the fre¬
quencies allocated to aural pickup, to be also used for facsimile, and
that the total number of assignments for such services be augmented
from time to time as the need for them increases.
1403
NON BROADCASTING SERVICES
1404
FIG. I
PROPOSED ALLOCATION CHART
NATIONAL ASSOCIATION OF BROADCASTERS
JUNE 1936
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1410
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 32
JULY 2, 1936
IN THIS ISSUE
Page
Broadcast Revenue in West North-Central States . 1411
Recommendation Against St. Louis Changes . 1411
Notes to the Sales Staff . 1411
Recommends Denial of WTJS Changes . 1411
Securities Act Registrations . 1411
Recommendations for Arizona Station . 1412
Asks Commission to Reaffirm Action . 1412
Recommends Against WOL Change . 1412
New California Station Recommended . 1412
Recommends Denial of Two Ohio Stations . 1412
Recommends New Florida Station . 1412
Broadcast Advertising in May . 1412
Federal Trade Commission Action . 1415
FTC Dismisses Complaints . 1418
Federal Communications Commission Action . 1418
BROADCAST REVENUE IN WEST NORTH-
CENTRAL STATES
Total receipts of 63 broadcast stations in the West North-Central
states from sale of radio time during 1935 was $5,689,765, acord-
ing to the Bureau of the Census in the seventh report of the new
census of business series on the broadcasting business. The report
includes 14 stations in Missouri, 10 in Nebraska, 10 in Iowa, 9 in
Kansas, 8 in Minnesota, 6 in North Dakota, and 6 in South Dakota.
RECOMMENDATION AGAINST ST. LOUIS
CHANGES
Broadcasting Station WIL, St. Louis, Mo., applied to the Federal
Communications Commission to change its frequency from 1200
to 1250 kilocycles, and to increase its power from 100 watts and
250 watts LS to 1,000 watts. At the same time the Star-Times
Publishing Company applied to the Commission for the erection
of a new station at St. Louis to use 1250 kilocycles, 1,000 watts
power and unlimited time on the air.
Examiner R. H. Hyde, in Report No. 1-246, recommends that
both of these applications be denied. It was found by the Ex¬
aminer that the record does not show public need for additional
radio facilities in the proposed area. The Examiner found also
that “the service of the new station proposed in either application
would be restricted by interference during nighttime hours.”
RECOMMENDS DENIAL OF WTJS CHANGES
Broadcasting Station WTJS, Jackson, Tenn., applied to the
Federal Communications Commission to increase its power from
100 watts and 250 watts local sunset, to 250 watts and 500 watts
local sunset, and to change its frequency from 1310 to 920 kilo¬
cycles. It asked that its unlimited hours of operation be left with¬
out change.
Examiner Ralph L. Walker, in Report No. 1-244, recommended
that the application be denied. The Examiner states that “operat¬
ing as proposed at night, WTJS will be limited to approximately
its three millivolt contour as compared with the normally protected
NOTES TO THE SALES STAFF
Broadcast advertising showed greater gains over
the preceding year in May than were experienced
in April. (See Developments of the Month, page
1412.)
The continued showing of strength on the part of
national non-network volume, and its rise in May,
contrary to the usual seasonal downswing, is indica¬
tive of further sales opportunities in this field. (See
Total Broadcast Advertising, page 1413.)
Lagging local sales volume in recent months con¬
stitutes a problem with which every sales staff
should be concerned. Business conditions do not
warrant the degree of lag which has occurred.
(See Total Broadcast Advertising, page 1413.)
Live talent national non-network business has re¬
sumed its upward movement of the past year or
more, following several uncertain months. (See
Non-network Advertising by Type of Rendition,
page 1413.)
Transcriptions are going strong in both the na¬
tional and local fields. (See Non-network Advertis¬
ing by Type of Rendition, page 1413.)
one millivolt contour of stations as of the regional class. . . . The
nighttime coverage of WTJS would be distinctly less than that
normally expected from a regional assignment.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Gold Hill Operating Company, Tacoma, Wash. (2-2248, Form
A-l)
Eastern Blenders, Inc., Wilmington, Del. (2-2249, Form A-l)
Hoberg Paper Mills, Inc., Green Bay, Wis. (2-2250, Form A-2)
Basin Gold Mines, Ltd., Montreal, Canada. (2-2252, Form A-l)
Stanley Gold Mines, Ltd., Montreal, Canada. (2-2253, Form
A-l)
Douglas Aircraft Company, Inc., Santa Monica, Calif. (2-2254,
Form A-2)
Mutual Management Company, Jersey City, N. J. (2-2255,
Form C-l) <
Gar Wood Industries, Inc., Detroit, Mich. (2-2256, Form A-2)
Albuquerque Natural Gas Co., Chicago, Ill. (2-2257, Form E-l)
Copper District Power Company, Ontonagon, Mich. (2-2258,
Form A-l)
Northern Illinois Finance Corp., DeKalb, Ill. (2-2259, Form
A-2)
Wesleyan College Committee, Savannah, Ga. (2-2260, Form
D-l)
Display Products, Inc., Detroit, Mich. (2-2261, Form A-l)
Royal Petroleum Company, Yakima, Wash. (2-2263, Form A-l)
FOURTEENTH ANNUAL NAB CONVENTION
STEVENS HOTEL, CHICAGO, ILLINOIS
JULY 5, 6, 7, 8, 1936
RECOMMENDATIONS FOR ARIZONA STATION
Application was filed with the Federal Communications Com¬
mission for the construction of a new broadcasting station at
Prescott, Ariz., by the Southwest Broadcasting Company and also
by W. P. Stuart. Both asked for 1500 kilocycles, with unlimited
time on the air. Stuart asked for 100 watts power, while the
broadcast company asked for 100 watts and 250 watts LS.
Examiner P. W. Seward, in Report No. 1-245, recommended that
the application of the Southwest Broadcasting Company be granted
but that the application of W. P. Stuart be denied. The Examiner
found that the need for additional radio service there does exist
and there is adequate talent available. Examiner Seward says
that “a need for two radio broadcast stations at Prescott, Ariz.,
does not exist, and from a consideration of the entire record, the
applicant, Southwest Broadcasting Company, seems better qualified
to construct and operate the proposed radio station, that the
facilities requested by this applicant will render better service to
the city of Prescott, and will provide greater coverage for the
surrounding area than the facilities requested by the applicant,
W. P. Stuart.”
ASKS COMMISSION TO REAFFIRM ACTION
The Federal Communications Commission granted KDYL, Salt
Lake City, Utah, a construction permit for the erection of a
station to use 1290 kilocycles, 1,000 watts and 5,000 watts LS, with
unlimited time. In the meantime protest against granting this
application was filed with the Commission by Paul R. Heitmeyer,
an applicant for a construction permit for a station at Salt Lake
City, and KLO, Ogden, Utah, and the grant was suspended. The
matter was set for hearing before an Examiner.
Examiner P. W. Seward, in Report No. 1-242, recommends that
the Commission reaffirm its action granting this station application.
At the hearing duly called protestants and applicant appeared.
The Examiner states that “the protestants, Paul R. Heitmeyer and
KLO, offered no evidence in support of the allegations set out in
the protest.”
RECOMMENDS AGAINST WOL CHANGE
Broadcasting Station WOL, Washington, D. C., applied to the
Federal Communications Commission to change its frequency from
1310 to 1230 kilocycles, and increase its power from 100 to 1,000
watts. It now has unlimited time on the air and asked that that
be allowed to remain as it is.
Examiner Melvin H. Dalberg, in Report No. 1-247, recommends
that the application be denied. The Examiner states that “the
granting of this application would obviously cause objectionable
interference to Station WFBR in the daytime hours.” It is further
contended by the Examiner that “although this applicant requests
the use of a regional frequency with increased power, there would
be severe interference at night to the service of WOL should this
application be granted.”
NEW CALIFORNIA STATION RECOMMENDED
The Ventura County Star, Inc., and the Merced Star Publishing
Company, Inc., filed an application with the Federal Communica¬
tions Commission asking for a construction permit for the erection
of a new broadcasting station at Ventura, Calif., to use 1170 kilo¬
cycles, 250 watts power, and daytime operation.
Examiner P. W. Seward, in Report No. 1-239, has recommended
that the application be granted. He found that there is a need
for daytime service in the area proposed to be served and “no
applications are pending which would necessarily prevent the grant¬
ing of the instant application.”
RECOMMENDS DENIAL OF TWO OHIO
STATIONS
The Continental Radio Company applied to the Federal Com¬
munications Commission for construction permit for two broad¬
casting stations, one at Columbus, Ohio, to use 1310 kilocycles,
100 watts power, and unlimited time on the air, and the other at
Toledo to use 1200 kilocycles, 100 watts power, and daytime opera¬
tion. In both cases the Examiners recommended that the applica¬
tion be denied.
In the case of the proposed Columbus station Examiner Robert
L. Irwin, in Report No. 1-240, found that “it is not shown that
there is need for the service proposed to be rendered by the appli¬
cant.” The Examiner found also that the proposed station would
cause objectionable interference with the normally protected serv¬
ice of Stations WLBC and WCMI.
In the case of the proposed Toledo station, Examiner P. W.
Seward, in Report No. 1-241, found also that the need for this
additional radio service in the area proposed to be served was not
shown and that the granting of the application “would result in
objectionable interference,” and also that the granting of the
application would not serve public interest.
RECOMMENDS NEW FLORIDA STATION
Bathan N. Bauer applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new broad¬
casting station at Miami, Fla., to use 1420 kilocycles, 100 watts
power, and unlimited time.
Examiner P. W. Seward, in Report No. 1-243, recommended that
the application be granted. *He says that “a need does exist in the
proposed service area for additional radio service, particularly of
a local nature and to provide additional advertising facilities.” He
found also that the proposed new station would not adversely affect
any existing station, “nor are there any pending applications in
conflict with this application.”
BROADCAST ADVERTISING IN MAY
Developments of the Month
Broadcast advertising during May amounted to $8,545,-
594, a decline of 3.2% from the previous month’s level.
Though the usual trend at this time of the year is a down¬
ward one, several contra-seasonal tendencies manifested
themselves during May. Regional network and national
non-network advertising rose contrary to the usual season
downswing, while local broadcast advertising declined
instead of rising as usual.
Non-network advertising as a whole rose 2.3% during
the month, due to a national non-network increase of
5.1%. Local station volume showed the most pronounced
gain, increasing 14.0%, while clear channel non-network
volume declined slightly. Non-network advertising on
the Pacific Coast showed the greatest gain over April,
while that in the South declined the most markedly.
In the rendition field, the outstanding development of
importance was an increase of 21.4% in national live
talent volume. Local non-network advertising by type
of rendition remained practically unchanged from the
preceding month.
Principal gains during the months included the follow¬
ing: in the national network field — financial advertising;
in the national non-network field — soap, radio, tobacco
and food volume for regional networks — tobacco and bev¬
erage sponsorship; in the local field — gasoline and acces¬
sories, drugs, and beverages.
Comparison with May 1935
Radio broadcast advertising experienced a somewhat
greater gain in May as compared to the corresponding
month of 1935 than was the case in April. The May
increase over the same month of last year was 13.2% as
against 9.5% in April. Regional network and national
non-network volume continued to register the most
marked increases. National magazine advertising con¬
tinued to gain more rapidly than radio, rising 19.0%
above the previous May’s level. _
Non-network advertising as a whole rose 17.7 % . The
most marked gain occurred in the local station field,
where non-network volume increased £3.5% over the
preceding May. Non-network business in the South
gained 41.0% as compared to last year. New England-
Middle Atlantic volume alone declined, dropping 3.8%.
A material increase was registered in the national field
by both transcriptions and live talent business, the latter
after several months of comparative sluggishness. In
the local field, transcription volume continued to exceed
last year’s level to a material degree. Announcement
volume decreased both locally and nationally.
Broadcast advertising by various sponsoring groups
was generally strong when compared to last May, few
declines of importance taking place. National network
drug, food and housefurnishing volume, national non¬
network clothing, beverage and confectionery advertising
and local drug and pharmaceutical advertising constituted
the principal declines. On the other hand, important
gains were experienced in all phases of automotive ad¬
vertising, in national network beverage, confectionery
and tobacco business, regional network accessory and
gasoline, food, beverage and soap advertising, national
1412
non-network gasoline, drug, food, housefurnishing and
tobacco volume and in local beverage and financial ad¬
vertising.
Total Broadcast Advertising
Total broadcast advertising during the month is set forth in
Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
1936 Gross Time Sales
Cumulative
Class of Business April May Jan.-May
National networks . $4,830,251 $4,445,346 $24,202,213
Regional networks . 113,647 124,648 538,613
National non-network . 1,937,800 2,035,680 9,644,030
Local . 1,947,790 1,939,920 8,499,590
station as compared to the corresponding period of 1935. Clear
channel station volume rose 10.2%, regional 15.6%, and local
53.5%. Total non-network advertising increased 17.7%.
Non-network advertising by power of station is set forth in
Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1936 Gross Time Sales
Cumulative
Power of Station April May Jan.-May
Over 1,000 watts . $1,745,470 $1,717,240 $8,321,230
250-1,000 watts . 1,574,800 1,613,150 7,091,130
100 watts . 565,320 645,210 2,731,260
Total
$3,885,590 $3,975,600 $18,143,620
Total . $8,829,488 $8,545,594 $42,884,446
Gross billings for stations and networks declined 3.2% as com¬
pared to the preceding month. National network volume declined
7.9%, and local advertising 0.4%. Regional network advertising
rose, contrary to the usual seasonal downswing, by 7.6%, while
national non-network volume showed a similar contrary tendency,
increasing 5.1%. The local decline was compared to a usual rise
at this time of the year.
Compared to May of 1935, total broadcast advertising increased
13.2%. The most marked gains were in the regional network and
national non-network fields, which rose 29.8% and 34.2%, re¬
spectively. National network advertising gained 8.9% and local
advertising 4.2%. The last-mentioned field is again showing
strength, following several months of uncertainty.
Comparison with Other Media
Advertising volume by major media during the month in question
is found in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting .
National magazines 1 . . . .
National farm papers1. . .
Newspapers 2 .
1936 Gross Time and Space Sales
Cumulative
April May Jan.-May
$8,829,488
14,527,792
721,304
50,498,000
$8,545,594
14,927,513
658,935
52,691,000
$42,884,446
62,432,930
3,206,457
227,222,000
Total
$74,576,584 $76,823,042 $335,745,833
1 Publishers’ Information Bureau, Inc.
2 Estimated.
Magazine volume increased 2.8% as against April, while news¬
paper lineage rose 4.3%. Both of these were in the nature of
seasonal increases. National farm paper advertising declined 8.5%.
Compared to May of last year, national magazine advertising in¬
creased 19.0%, farm paper volume 16.0%, and newspaper lineage
9.8%.
Non-network Advertising
Non-network advertising as a whole rose 2.3% during the month,
due to the increase in national volume. Clear channel and high-
powered regional station non-network business dropped 1.7%.
Regional station volume rose 2.4% and local station advertising
gained 14.0%. Non-network advertising gained on every class of
Non-network advertising in various portions of the country is
found in Table IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1936 Gross Time Sales
Geographical District
April
May
Cumulative
Jan.-May
New England-Middle Atlantic
Area .
$861,840
$866,250
$3,963,540
South Atlantic-South Central
Area .
799,590
710,250
3,575,510
North Central Area .
1,545,580
1,573,200
7,203,510
Pacific and Mountain Area .
678,580
825,900
3,401,060
Total .
$3,885,590
$3,975,600
$18,143,620
Non-network advertising showed conflicting tendencies through¬
out various portions of the country when comparison is made with
April. Eastern volume remained practically unchanged, while
southern advertising declined 11.1%. Mid- western gross time bill¬
ings rose 1.1%, while those in the Mountain and Pacific States
increased 21.6%. With the exception of the New England-Middle
Atlantic States, where non-network advertising declined 3.8% as
against the previous May, all portions of the country experienced
gains over 1935. Southern advertising rose 41.0%, North Central
State volume 27.7%, and Mountain and Pacific advertising 25.4%.
Non-network Advertising by Type of Rendition
The principal development in the rendition field, as compared
to the previous month, was the rise in national live talent business.
This form of rendition gained 21.4% over April. National tran¬
scription volume decreased 7.0% from the preceding month’s level,
while announcements dropped 2.6%. With the exception of a
2.0% drop in announcement business, local broadcast advertising
remained practically unchanged from April.
Following several comparatively sluggish months, national live
talent volume again experienced a marked increase over the corre¬
sponding month of the preceding year, gaining 56.7%. National
transcription business also showed marked strength, rising 29.3%
above the May 1935 level. Announcements dropped 4.9%.
Transcriptions continued to experience the greatest relative gain
in the local field, exceeding the preceding May by 48.3%. Live
talent business rose 5.6% and records 16.6%. Announcements
declined 9.9%.
Broadcast advertising by various types of rendition are found
in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
1936 Gross Time Sales
National N on-network Local Total
Type of Rendition
April
May
April
May
A pril
May
Electrical transcriptions ....
... . $865,070
$803,600
$261,530
$261,050
$1,126,600
$1,064,650
Live talent programs .
767,920
932,950
928,260
935,850
1,696,180
1,868,800
Records .
6,050
8,090
71,550
70,460
77,600
78,550
Announcements .
298,760
291,040
686,450
672,560
985,210
963,600
Total .
. . . . $1,937,800
$2,035,680
$1,947,790
$1,939,920
$3,885,590
$3,975,600
1413
Cumulative
Jan.-May
$4,740,820
8,845,120
340,120
4,217,560
$18,143,620
Sponsor Trends in April
The usual seasonal declines were experienced in the national net¬
work field, though some gains were recorded. Automotive adver¬
tising rose slightly, while financial volume increased 14.2%. In
the regional network field, gasoline and accessory volume increased
37.5%, tobacco advertising 13.4%, and beverage volume 70.2%.
National non-network advertising increased 48.7% in the soap
and kitchen supply field, radio set volume rose 51.6%, tobacco
advertising 17.4%, and foodstuff business 12.5%. Local gasoline
business increased 26.7%, drug volume 19.8%, and beverage ad¬
vertising 38.4%.
Comparison with May 1935
Several fields experienced marked gains in national network
volume. These were as follows: automotive 64.8%, beverages
45.0%, confectionery 66.5%, and tobacco 35.2%. A number of
significant decreases likewise occurred. Drug advertising declined
20.4%, food volume 11.5%, and housefurnishing business 55.6%.
In the regional network field, more important gains were as
follows: gasoline and accessories 126.0%, foodstuffs 35.4%, soap
and kitchen supplies 82.1%, and beverages from $820 in May 1935
to $16,200 during the month under review.
In the national non-network field significant gains were as fol¬
lows: automotive 96.3%, gasoline and accessories 39.5%, drugs and
pharmaceuticals 17.0%, foodstuffs 65.1%, housefurnishings 26.3%,
and tobacco 56.5%. National non-network clothing advertising
decreased 43.6%, beverage volume 35.4%, and confectionery 59.4%.
Local advertising showed comparatively little change in either
direction from May of the preceding year.
Broadcast advertising by various product and service groups is
presented in Table VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(May, 1936)
Gross Time Sales
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oil .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
(7) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
National Regional National
Networks
Networks
Non-networks
Local
Total
—
$325
$13,190
$31,030
$44,545
$360,483
_
267,200
146,320
774,003
370,420
21,525
187,500
106,650
686,095
31,015
—
39,050
260,420
330,485
371,639
6,544
302,990
61,350
742,523
895,551
3,005
65,560
19,760
983,876
825,422
34,237
440,650
238,500
1,538,809
333.582
16,200
39,250
120,440
509,472
98,130
200
21,770
9,500
129,600
31,185
4,260
120,600
222,490
378,535
325,015
8,782
102,200
10,630
446,627
37,694
642
20,560
81,200
140,096
113,696
830
18,630
14,330
147,486
—
728
7,650
148,880
157,258
393,394
12,370
85,630
13,400
504,794
258,120
15,000
303,250
455,020
1,031,390
$4,445,346
$124,648
$2,035,680
$1,939,920
$8,545,594
Details as to the trends in various product and service fields are
as follows:
la. Amusements. Marked increase in national non-network
volume over April, resulting in 7.0% rise in total. Decline of
12.3% in total volume, due mainly to local drop.
1. Automotive. Compared to April, national network up
1.9% and national non-network 4.2%. Local down 2.6%. Marked
gains over previous May: national network 64.8%, national non¬
network 96.3%, and local 44.8%.
2. Gasoline and accessories. National network business
4.7% below April. Other gains as follows: regional networks
37.5%, national non-network 7.1%, and local 26.7%. National
network business 1.0% under May 1935. Other gains as follows:
regional networks 126.0%, national non-network 39.5%. Local
down 5.3%.
3. Clothing. Gains over April as follows: national networks
7.1%, national non-network 5.4%, and local 5.8%. Declines from
previous May’s level as follows: national networks 11.5%, national
non-network 43.6%. Local up 5.5%.
4. Drugs and pharmaceuticals. National network down
1.1% from April level and national non-network 14.3%. Regional
network volume up 1.4% and local 19.8%. Compared to last
May, declines as follows: national network 20.4%, regional net¬
work 6.1.%, and local 22.9%- National non-network up 17.0%.
5. Toilet goods. Declines from April level as follows: national
networks 16.5%, regional networks 44.0% national non-network
7.4%, and local 8.0%. National network business unchanged from
preceding May. Regional network volume down 33.0% and local
16.1%. National non-network up 5.5%.
6. Foodstuffs. National network business 6.5% below April.
Regional network business up 6.1% and national non-network
12.5%. Local unchanged. Compared to corresponding month of
1935, national non-network up 65.1% and regional network 35.4%.
National network down 11.5% and local 6.7%.
7. Beverages. National network 17.7% below April and na¬
tional non-network 3.6%. Regional network up 70.5% and local
38.4%. Increases above last May as follows: national networks
45.0%, local 17.7%, and regional networks from $820 to $16,200.
National non-network down 35.4%.
8. Confectionery. Declines from April level as follows: na¬
tional networks 31.0%, national non-network 11.5%, local 11.5%.
National network business 66.5% above previous May and regional
network business unchanged. National non-network down 59.4%
and local 42.8%.
9. Household equipment. National networks down 14.4%
from previous month and regional networks 7.2%. National non¬
network up 2.4% and local unchanged. Declines from May 1935
as follows: regional networks 82.7 % and local 7.4%. National
non-network up 26.3%.
10. Soaps and kitchen supplies. Increases over April as
follows: National networks 2.2%, national non-network 48.7%.
Regional networks business down 22.8% and local unchanged.
National network volume 8.5% above May of last year and regional
network 82.1%. National non-network up 3.1%. Local down
49.0%.
11. Insurance and financial. National network up 14.2%
and local 13.8%. Regional network down 25.6% and national
non-network 21.3% from April. Gains as follows when compared
to May 1935: national networks 34.5%, regional networks 37.0%,
national non-network 15.4%, and local 49.9%.
12. Radios. Gains over April as follows: national networks
3.6% and national non-network 51.6%. Regional networks up
materially and local down 14.0%. National networks 37.4% above
May of last year. National non-network up from $1,620 to
$18,630. Local down 10.4%.
13. Department and general stores. National non-network
down 26.2% from April and local 1.3%. National non-network
down 43.4% from May 1935 and local 6.7%.
1414
14. Tobacco products. National network volume 1.0% below
Aprii. Other gains as follows: regional networks 13.4%, national
non-network 17.4%, and local up threefold. National network
business 35.2% above same month of last year and national non¬
network 56.5%. Regional network business down 19.5% and local
15.8%.
15. Miscellaneous. National network business 11.7% below
April and local down 18.6%. Regional networks up 11.1% and
national non-network up 11.3%. Gains as compared to previous
May as follows: national networks 13.5%, regional networks
70.6%, national non-network 39.7%, and local 10.4%.
Retail Broadcast Advertising
Retail broadcast advertising as a whole remained comparatively
unchanged from the April level, rising but 0.8%. This was less
than during the two preceding years. Total broadcast advertising
by retail establishments, however, showed an increase of 4.4%
over the May 1935 level.
Outstanding increases during the month, as compared to April,
were as follows: gasoline filling stations more than doubled, grocery
and delicatessen stores 31.4%, restaurants 13.4%, and hardware
stores 36.1%.
Compared to May of last year, a number of significant increases
occurred. These were as follows: auto dealers 40.3%, clothing and
apparel shops 7.2%, grocery and delicatessen stores 61.9%, furni¬
ture stores 9.2%. Department store volume decreased 9.0%.
Broadcast advertising volume by various types of retail estab¬
lishments is found in Table VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business April May
Automobiles and accessories:
Automobile agencies and used car dealers $146,820 $142,610
Gasoline stations, garages, etc . 35,890 73,670
Clothing and apparel shops . 293,660 266,700
Drugs and toilet goods:
Drug stores . 19,020 16,300
Beauty parlors . 8,650 16,350
Food products:
Grocery stores, meat markets, etc . 62,900 82,620
Restaurants and eating places . 20,720 23,400
Beverage retailers . 1,570 1,320
Confectionery stores . 1,350 2,250
Household goods:
Household equipment dealers . 74,610 63,770
Furniture stores . 112,030 104,600
Hardware stores . 24,030 32,700
Radio retailers . 13,430 10,870
Department and general stores . 162,020 157,258
Tobacco shops . — —
Miscellaneous . 116,450 99,780
Total . $1,093,150 $1,094,198
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2845. E. Frederics, Inc., 235 E. 45th St., New York City,
engaged in the manufacture and sale of apparatus and supplies for
use in hair and scalp treatments, is charged in a complaint with
fixing and maintaining the prices at which its products are sold
through jobbers to beauty shop owners.
The respondent corporation is said to restrict sales of its perma¬
nent waving machines, hair driers, pads, and tonics to those jobbers
who enter into contracts with it, and who, in turn, are limited to
reselling such products to beauty shop owners who also enter into
contracts with the respondent.
The complaint points out that beauty shop owners do not sell
the products manufactured by the respondent, but use them in
giving permanent waves and other hair treatments, and they are
permitted to use service names belonging to the respondent, namely,
“Frederics,” “Vita Tonic,” and “Vitron.”
No. 2847. A complaint has been issued against Quality Prod¬
ucts Co., 382 Jefferson St., Brooklyn, alleging unfair methods of
competition in connection with the sale of “Hormonique Glandular
Skin Treatment.”
In magazines, newspapers, and other advertising material, the
respondent corporation allegedly makes representations to the effect
that its product penetrates the skin and stimulates into action the
hormone producing glands; nourishes the skin and causes dis¬
appearance of wrinkles; gives new elasticity to sagging muscles, and
banishes blackheads, whiteheads, and enlarged pores.
These representations as to the nature and effect of “Hormonique
Glandular Skin Treatment,” the complaint charges, are false and
exaggerated, and tend to divert trade to the respondent corporation
from competitors who truthfully advertise their products.
No. 2848. Unfair competition through placing in the hands of
others the means of conducting a lottery is alleged in a complaint
issued against Glade Candy Co., 232 South Fifth East Street, Salt
Lake City, Utah.
The respondent company, according to the complaint, sold to
wholesalers and retailers packages or assortments of candy so
packed and assembled as to involve use of a lottery scheme when
sold to consumers. Sales are alleged to have been made by punch
board and push card devices. These practices are deemed to be in
violation of the Federal Trade Commission Act and contrary to
public policy.
No. 2849. Prendergast-Davies Company, Ltd., 601 W. 26th
St., New York City, wholesale and retail liquor dealer, is charged
with unfair competition in violation of the Federal Trade Com¬
mission Act in a complaint.
Representations made by the respondent company are alleged
to have a tendency to deceive dealers and buyers into the erroneous
belief that the “Scotch whiskey” sold by the respondent is the
product of an actual distillery located in Scotland and is a dis¬
tinctive product of Scotland, imported from there.
The complaint charges that the respondent company, by use of
the designation “Scotch whiskey” on its labels, together with the
phrases, “McNab Distilleries, Ltd.,” “Bottled in Scotland,” and the
address, “266 Clyde St., Glasgow, Scotland,” represents to cus¬
tomers and furnishes them with a means of representing to vendees,
that the whiskey sold is a true Scotch whiskey, when in fact this
is not true and the McNab Distilleries, Ltd., is an English company
with headquarters in London. Further, according to the complaint,
the so-called “Sandy McNab Scotch Whiskey” sold by the re¬
spondent company is produced by W. H. Holt & Sons, Ltd., dis¬
tillers, of Chorlton-Cum-Hardy, England, under an agreement with
McNab Distilleries, Ltd. The complaint points out that this
whiskey is not a distinctive product of Scotland, being neither
manufactured nor bottled there, nor is it Scotch whiskey in fact
nor in accordance with the standards of the Federal Alcohol
Administration.
No. 2850. Charging unfair trade representations in the sale of
liquor, a complaint has been issued against United Distillers
Products Corporation, 5599 Hudson Blvd., North Bergen, N. J.
Engaged as a rectifier and wholesaler of liquors, the respondent
company, according to the complaint, has upon its premises a still
or stills for production of gin by a rectification process whereby
alcohol, purchased but not produced by the respondent company,
is redistilled over juniper berries and other aromatics. Such rectifi¬
cation of alcoholic spirits, it is alleged, does not constitute the
respondent a distiller under the statute regulating internal revenue,
nor as commonly understood by the public and the liquor industry.
The complaint alleges that the respondent company does not distill
the liquor which it bottles, labels, and sells, and that its use of
the word “Distillers” in its corporate name tends to deceive buyers.
No. 2851. Van Ogden, Inc., 1905 West Van Buren Street,
Chicago, selling chemicals, extracts and food products, and its
president and treasurer, Frederick T. Gordon, are named respond¬
ents in a complaint charging unfair methods of competition, in¬
cluding practices by which employees of a competing firm were
induced to quit their positions to accept employment with the
respondent corporation.
The respondents are alleged to have falsely represented to em¬
ployees of Gemac Sales Corporation, Chicago, that Van Ogden,
Inc., would provide them increased compensation, promotions and
additional responsibility, and thereby persuaded large numbers of
experienced and skillful employees to leave Gemac Sales Corpora¬
tion and to take employment with Van Ogden, Inc. The respondent
also unfairly disparaged the business policy and financial standing
of their competitor, the complaint alleges.
No. 2854. Allura, Inc., 626 I Street, Sacramento, Calif., has
been served with a complaint charging unfair competition in the
1415
sale of an eye lotion advertised by means of radio broadcasts,
pamphlets and testimonials.
Among representations of the respondent company’s product
were: That it constituted a substitute for glasses, a relief for astig¬
matism and general eye weakness, a cure for irritation, painful eye
conditions, and other ailments. These allegations were not true,
according to the complaint, and their publication resulted in a
tendency to deceive buyers, in violation of the Federal Trade
Commission Act.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 01399. J. W. Marrow Mfg. Co., Inc., 3037 N. Clark St.,
Chicago, selling a scalp treatment and shampoo designated “Mar-
O-Oil,” agrees to cease advertising that the product is a competent
remedy in the treatment of stubborn cases of dry and oily hair and
dandruff, or any other scalp trouble, and that it has been proved
by laboratory tests to be 97J4 per cent effective as a cleanser, while
other shampoo methods in common use are only 5 per cent effective.
Certain other false representations as to the product’s therapeutic
properties and effects will be stopped.
No. 01400. W. F. Clark, trading as Electrical Research
Laboratories, Warren, Pa., is engaged in the sale of an apparatus
known as “Warren’s Infra-Red Sitz Bath,” offered as a therapeutic
agent. He stipulates he will discontinue representing that the
apparatus is an effective remedy for arthritis, neuralgia, kidney
trouble, colds, asthma, alcoholism, or any other condition, “re¬
gardless of the type of ailment from which any member of the
family may suffer.”
The respondent admits the apparatus is used to supply warm,
moist air, impregnated with fumes from volatile oils, and that
the effects from its use are no more beneficial than those obtained
from other methods of promoting heat, particularly a warm bath.
Under the stipulation, the respondent will stop using the words
“Research Laboratories” or “Laboratories” in his trade name or
in advertising literature, until he owns or operates a laboratory,
and will not use the words or abbreviation “Doctor” or “Dr.” to
represent that his business is conducted by a physician.
No. 01401. Pankoka Products, Inc., 16 Beaver St., New
York City, in the sale of a food preparation designated “Pankoka,”
will cease and desist from representing in advertising that the
products balances all diets, aids in effecting increased ambition and
endurance, in promoting sleep, and in restoring the appetite;
that it is manufactured by an exclusive process and is indispen-
sible to the human body; and from making other claims of like
import.
No. 01402. Frank Spors, 834 Corine St., Le Center, Minn.,
signed a stipulation to discontinue using the names “Hollywood
Star Face Powder” and “Hollywood Star Perfume” to designate
his products, and representing inferentially by use of these names
that the products so designated have any connection with Holly¬
wood or are used by cinema stars living there.
The stipulation prohibits the respondent from making unmodified
claims of earnings in excess of the average earnings of his active
full-time salespersons or dealers under normal busines conditions.
No. 01403. Indo-Vin, Inc., 105 W. Third St., Cincinnati,
selling “Indo-Vin,” recommended for treatment of stomach, liver,
and kidney troubles, will stop representing that the product is a
new kind of medical preparation made from a formula doctors
respect; that it helps to throw off stomach poisons and clears
skin eruptions caused by impurities of the body ; that any definite
number of doses removes gases and impurities from the system;
and that every person who suffer may expect to benefit from
its use.
The therapeutic properties of “Indo-Vin” are limited to those
of a general tonic laxative, the respondent corporation admits.
No. 01404. Richard Smile, 515 E. 47th St., Chicago, deals
in cosmetics, medicinal preparations, and incense, and trades under
the names of Hindu Laboratories, Hindu Labortories of Incense,
Hindu Perfume Co., and Oriental Incense Co. He agrees to cease
advertising that “Nimola Wonderful Herb Life Tonic” is com¬
petent as a treatment for disorders of the blood, nerves, kidneys,
liver, and certain other ailments specified in his advertisements,
and that use of the preparation brings results when the limbs
become paralytic. Representations by the respondent that “Smile’s
Hindu Pine Balm” relieves rheumatism, backache, whooping
cough, and croup are to be stopped, as are assertions that his
various brands of incense create an atmosphere of success, pros¬
perity, or happiness
The respondent stipulates that he will refrain from asserting
that he maintains an office in Bombay, India; will cease including
as part of his trade name, or in the name of any of his products,
the terms “Hindu” or “Oriental,” implying that his preparation
are imported from those localities, until such is a fact; and will
discontinue use of the word “Laboratories” as a part of his trade
name, until he operates a laboratory.
No. 01405. Irresistible, Lnc., 71 Fifth Ave., New York City,
in the sale of “Irresistible Lip Lure,” will desist from representing
in advertising that this cosmetic penetrates the skin surface and
produces four gorgeous, permanent shades, or has any permanent
effect on the lips.
No. 1681. Best & Co., operating a department store at
Fifth Avenue and 35th Street, New York City, will cease rep¬
resenting in advertisements and on labels that the “Viyella” brand
of hosiery it sells does not shrink, and will not use any words
tending to mislead purchasers into the belief that such products
are unshrinkable, when such is not the fact.
No. 1682. In a related case, William Hollins & Co., Inc., 450
Seventh Avenue, New York City, selling “Viyella” Hosiery to
Best & Co., signed a similar agreement. The hosiery in question
is manufactured in England by William Hollins Co., Ltd., ac¬
cording to the stipulation.
No. 1683. Peat Import Corporation, 155 John Street, New
York City, engaged in the importation and sale of peat moss,
signed a stipulation to discontinue in advertising matter disparag¬
ing representations concerning the business or products of any
competitor, either by printed words, pictorial representations, or
by both. The stipulation sets forth that the respondent corpora¬
tion circulates an advertising folder in which it asserts that “the
best moss peat bogs are in Germany or Holland.” The folder
contains illustrations of a sample of German or Holland peat
moss and a sample of Swedish peat moss, and these pictures and
the printed matter accompanying them are said to constitute dis¬
paragement of the Swedish product.
No. 1684. Abe and Irving Fogel, operating three Army and
Navy stores in Washington, D. C., will discontinue use of the
words “Army and Navy” on signs or in advertisements. They
agree to cease using the words in any way to imply that the mer¬
chandise sold in their stores consists of Army and Navy surplus
goods, when such is not the fact. The stores are known as Fogel’s
Army and Navy Store, 945 D Street, N. W., Peoples’ Army and
Navy Store, 506 Ninth Street, N. W., and Irving’s Army and
Navy Store, 1001 E Street, N. W.
The stipulation points out that for some time past surplus
products held by the Army and Navy have been practically ex¬
hausted, and the only classes of such military goods now procur¬
able by dealers are certain obsolete or damaged goods and a few
salvaged surplus items such as canteens, mess kits, pup tents and
leggings.
No. 1685. Pacific Kelp Products Co., Inc., 1430 S. E. 35th
Street, Portland, Ore., under its stipulation is prohibited from
advertising that its remedies sold under the brand name “Kalp-O-
Lite” are a cure or competent remedy for a wide variety of ail¬
ments, including skin diseases, catarrh, sinus trouble, sore throat,
colds, pyorrhea and colitis. The respondent corporation also
will discontinue representing that use of its remedies prevents
cancer, and that it has a staff of licensed physicians or specialists.
No. 1686. George Boardman, trading as Vermel Company,
211 North Prairie Avenue, Sioux Falls, S. D., sells a skin
balm for humans and animals under the designation “Vermel Skin
Balm — Ozark Ripley Formula.” He will discontinue representa¬
tions, the effect of which is to imply that, as to dogs or other
animals, his product is a remedy or cure for all forms of mange,
or effective in the treatment of any form of eczema and skin
diseases; that it stops irritation due to acute forms of eczema
and skin diseases, and prevents infection and keeps the feet in
perfect condition, when such are not the facts. The respondent
also is to stop representing that his product is a competent remedy
for eczema among human beings, or in the treatment of dandruff.
No. 1687. Irving Mills Corporation, 456 Broadway, New
York City, distributor of cotton and rayon fabrics, agrees to stop
employing the word “Mills” as part of its corporate or trade name
under which to operate its business or in any way implying that
the corporation actually owns and operates a mill or factory in
which the articles it sells are made, when this is not true.
No. 1688. Poloris Co., Inc., 79 East 130th Street, New
York City, manufacturer of a remedy of the aspirin type, “Poloris
Tablets,” agrees, in the sale of its product in interstate commerce
or to wholesalers in New York State who resell to purchasers in
various states, to cease making the following or similar represen-
1416
tations without proper qualification or explanation: That its
preparation does not affect the heart or stomach ; leaves no ill
after effects; gives safe, positive relief, and will allay nervous
tension.
The respondent also stipulates that it will not assert that its
medicine is chemically broken up in the duodenum rather than in
the stomach, and therefore gives quicker relief; does not affect
the heart or irritate the stomach, and is neither habit-forming nor
narcotic. The respondent also will not represent that the com¬
modity is an adequate treatment for the pathology underlying
the conditions which produce pain and that it will relieve, check,
remove or cure such conditions.
No. 1689. The Northwestern Chemical Co., Marietta, Ohio,
manufacturing paints, varnishes, enamels and lacquers, agrees to
stop using the word “Shellac” to describe a product not com¬
posed wholly of shellac, and use of the word “Shellac” as part
of its trade name for any product not containing shellac in
substantial quantity. The words “Shellac Compound” will not
be used by the respondent company in advertising or in any way
implying that the product referred to contains shellac in sub¬
stantial quantity, when this is not true.
No. 1690. Irving H. Myers, 131 Third Street, Troy, N. Y.,
trading under his own name and the names “Mailbox” and Irving
H. Myers Publications, publishes a magazine, newspaper and book¬
lets. The respondent agrees to stop advertising that a set of
booklets, “Library of Selected Opportunities,” is a $2.98 or $3
set, or has been sold at either of such prices, or that such prices
have been paid by thousands of purchasers. Other representa¬
tions to be discontinued are: That the original edition of the set
of booklets was bound in cloth ; that the respondent has had ten
years experience in the mail order business, or that he is an
authority in such field, or has been employed as a business expert
by mail order houses, or paid from $10 to $50 a report for his
work, when this is not true.
No. 1691. Gimbel Bros, Inc., 33rd Street and Broadway,
New York City, selling wine products purchased from the Bur¬
bank Winery Division of The John McClure Estate, Inc., 210
West 7th St., Los Angeles, Calif., agrees to stop using the descrip¬
tion “1928 Blend” on labels or in advertising matter relating to
such products. These products, according to the stipulation, do
not contain wine of the vintage of 1928 in sufficient quantity to
be designated as of that vintage.
No. 1692. The John McClure Estate, Inc., also (see Stipula¬
tion 1691) agrees to cease and desist from use of the “1928 Blend”
designation in the sale of products not containing wine of 1928
vintage in substantial quantity.
No. 1693. William Russell Briggs, 307 North Michigan Ave.,
Chicago, trading as Russell Paint Co. and as Blackhawk Paint &
Varnish Works, in the sale of a paint product, agrees to discon¬
tinue use in advertising of the words “White Lead” to describe
a product the pigment content of which is not composed of
white lead. The respondent agrees to eliminate the word “Works”
from his trade name. The stipulation points out that Briggs did
not own or control a factory in which the products he sold were
made or compounded.
No. 1694. Union Oil Co., 617 West Seventh St., Los Angeles,
manufacturer of petroleum products, including an insecticide desig¬
nated “Bif,” stipulates that it will cease advertising its prepara¬
tion by use of the phrases, “Thirty Per Cent More Fly-Killing
Power than Government Requirements” or “Tests prove Bif to
have thirty per cent more killing power than the Government
specifications for commercial fly sprays.” The stipulation points
out that the United States Government provides no standard
specifications or requirements for insecticides.
No. 1695. United Enterprises, Inc., 124 Main St., Evansville,
Ind., cosmetics manufacturer, entered into a stipulation to cease
advertising or labeling its preparations with language purporting
to indicate that its products, applied externally to the skin, will
penetrate or be absorbed by it so as to nourish, revive, vitalize
or revitalize, rebuild or rejuvenate the underlying tissues or cells,
thereby preventing wrinkles and flabbiness, and building up sunken
features, and other like accomplishments.
The respondent agrees to stop employing “Turtle Oil” as a trade
name for its products not composed wholly of turtle oil. How¬
ever, when the preparation does contain turtle oil in substantial
part, the term “Turtle Oil,” if used to designate the product, shall
be accompanied by other words in conspicuous type to show
clearly that the preparation contains both turtle oil and other
ingredients.
Use of phrases implying that the respondent’s “Acne Lotion”
is an effective remedy in all cases of pimples or skin eruptions,
will be discontinued, under the stipulation.
No. 1696. Reliable Merchandise Co., Inc., 657 West Madi¬
son Ave., Chicago, operating part of its business under the names
“Gold Seal Laboratories” and “Gold Seal Spice Mills,” and selling
at wholesale several specialties for the peddler trade, known as
“flash merchandise,” agrees to ban use of the words “laboratories”
and “mills” as part of a trade name, when in fact it did not own
or control laboratories or factories; and to cease advertising to
the effect that it is able to sell at low prices because of its large
buying power, when such is not the fact.
The respondent company agrees not to use the expressions
“Extra Strength” or “Triple Strength” to advertise preparations
not of extra or triple strength; or the words “strawberry” or
“orange” to designate synthetic products or products not com¬
pounded of the fruit or juice of the fruit named. However, the
stipulation provides that when the preparations simulate the flavor
of certain fruits, the name of such flavor, if used, shall be accom¬
panied by the word “Imitation” in conspicuous type.
No. 2480. Representations tending to falsely disparage aluminum
cooking utensils sold by competitors are prohibited under an order
to cease and desist entered against Glenn Leach, trading as G.
Leach and Co., Post Office Box 7297, Oakland Station, Pitts¬
burgh, engaged in the sale of earthenware kitchen utensils.
Findings are that Leach, in advertising matter and through
salesmen, defamed the products of competitors by falsely repre¬
senting that the use of aluminum cooking utensils is deleterious to
the health, and that the consumption of food prepared or kept
in such utensils causes ulcers, cancers, and various other ailments.
He was ordered to discontinue such representations.
The order directs the respondent to cease advertising that his
earthenware utensils will never break when placed directly in or
over an open flame, and that the regular and customary selling
price of his products is a special or advertising price or their
factory cost, or that only a few sales are made at such special price.
No. 2505. Abraham Platell, trading as Platell Shoe Co.,
158 Duane St., New York City, has been ordered to stop repre¬
senting that his shoes are made in accordance with the design
or under the supervision of a doctor, when such is not the fact.
The order directs the respondent to cease employing the word
“Doctor” or the abbreviation “Dr.” in any way tending to deceive
buyers of his shoes, and to discontinue use of the word “Manu¬
facturing” or words of similar import, implying that he is a
manufacturer, when such is not the fact.
No. 2512. An order to cease and desist has been issued against
National Silver Co., 61-65 W. 23d St., New York City, pro¬
hibiting unfair competition in the sale of silverware.
The respondent company is directed to cease representing
through use of the term “sectional overlay” or terms of like
meaning used in advertising or in branding its product, that such
silverware has extra deposits of silver at the points of wear, when
such is not the fact.
Findings are that through long usage the term “sectional over¬
lay,” when used in association with silverware, has come to mean
an extra deposit of silver at the points of wear, and to denote
additional value in silverware.
In promoting the sale of its “Martha Washington” pattern of
silverware, the respondent company is said to have stamped its
pieces with the words “sectional overlay,” when in fact the orna¬
mental pieces of these sets did not have an extra deposit of silver
at the points of wear so as to be properly so designated.
No. 2559. Dispensary Supply Company, Inc., 551 Fifth Ave.,
New York City, has been ordered to cease and desist from unfair
competition in the sale of a preparation offered as a cure for
excess weight.
The respondent company is directed to discontinue advertising
its “Dr. McCaskey’s Prescription Tablets” as a cure or remedy
for obesity. These tablets, under the order, are not to be repre¬
sented as harmless or safe to take and it is not to be asserted
that users will reduce five pounds in a week, or any number of
pounds in any stated time, or that users will obtain results similar
to those obtained by a certain Dr. McCaskey in his practice as a
physician or by any other physician in his practice.
Two doctors of medicine, one of them also a pharmacologist,
testified to the general effect that a preparation of the constituency
of the respondent company’s tablets taken in the dosage recom¬
mended does not constitute a treatment or remedy for obesity
and will not of itself reduce excess fat. Their testimony was not
contradicted by that of any other witness.
1417
No. 2560. David Rubenstein and Herman Schwartz, trad¬
ing as Nu -Way Shoe Co., 142 Duane St., New York City, have
been ordered to stop representing that their shoes are made in
accordance with the design or under the supervision, of a doctor,
when such is not the fact.
Findings are that the respondents’ use of the fictitious names
such as “Dr. Carol’s Health Shoes” and “Dr. Martin’s Walk-O-
Pedic” had a tendency to mislead some of the shoe trade and
ultimate customers into believing that the respondents’ makes of
shoes had been fashioned by a doctor.
No. 2741. Fifteen tin plate manufacturing companies have
been ordered to cease and desist from entering into agreements not
to sell or quote prices on “stock plate” to jobbers and manufac¬
turers of tin cans and other containers. Findings are that these
companies made such agreements resulting in suppression of com¬
petition and a tendency toward monopoly in the interstate sale of
tin plate.
The respondent companies are: American Sheet and Tin Plate
Company, Pittsburgh; Bethlehem Steel Company, Bethlehem, Pa.;
Canton Tin Plate Corporation, Canton, Ohio; Columbia Steel
Company, San Francisco, Calif.; John Follansbee, George T. Ladd,
and Isaac M. Scott, trustees in bankruptcy for Follansbee Brothers
Company, Pittsburgh; Granite City Steel Company, Granite City,
Ill.; Inland Steel Company, Chicago; Jones & Laughlin Steel Cor¬
poration, Pittsburgh; McKeesport Tin Plate Company, McKees¬
port, Pa.; Republic Steel Corporation, Cleveland; N. & G. Taylor
Company, Cumberland, Md. ; Washington Tin Plate Company,
Washington, Pa.; Weirton Steel Company, Weirton, W. Va.;
Wheeling Steel Corporation, Wheeling, W. Va.; and Youngstown
Sheet & Tube Company, Youngstown, Ohio.
No. 2749. Trading as Warner Studios, Eugene D. Petry,
who operates a photograph and portrait studio at 1317 F St.,
Washington, D. C., and does business in other cities, has been
ordered to discontinue unfair methods of competition in the con¬
duct of such business.
Under the Commission’s order to cease and desist, Petry and the
canvassers he employs are prohibited from representing, directly
or by implication, that photographs and portraits made in his
studio have actual and regular values and customarily sell for
sums in excess of the prices actually charged.
The respondent is directed to cease representing through adver¬
tising literature containing the language “Goldtone Colored in Oil,”
or in similar language, or in any other manner, that sepia print
photographs are Goldtones or Goldtones colored in oil.
No. 2778. Misrepresentations in the interstate sale of cameras
and film and a sales promotion plan are prohibited as unfair com¬
petition in an order to cease and desist against Vaughn C. Salter
and Paul Tesson, trading as Falcon Camera Co., 8277 De Sota
Ave., Detroit.
The respondents are directed to stop advertising that they manu¬
facture Falcon cameras and film, and that their sales promotion
plan is operated chiefly to increase the sale of film used in such
cameras. Findings are that the respondents do not manufacture
Falcon cameras or film, and are not interested in selling film, but
concentrate on the sale of cameras and the sales promotion plan
to retailers.
FTC DISMISSES COMPLAINTS
No. 2646. The Federal Trade Commission, after hearing, has
ordered dismissal of its complaint against DeLuxe Manufacturing
Company, 5736 12th St., Detroit, which had been charged with
unfair methods of competition in the sale of bar fixtures and equip¬
ment because of the use of the word “Manufacturing” in its cor¬
porate name.
No. 2754. The Commission has entered an order dismissing its
complaint against Laird & Co., Scobeyville, N. J., engaged in the
manufacture and sale of applejack brandy. The complaint charged
that the respondent company, by acquiring the outstanding capital
stock and gaining control of the Hyland Distilling Corporation,
Haskel, N. J„ also manufacturing and selling applejack, violated
Section 7 of the Clayton Act.
The complaint was dismissed because Laird & Co., after the com¬
plaint was issued and before testimony was taken in the case,
bought all the assets of the Hyland Corporation and surrendered
to it the outstanding capital stock previously purchased. Subse¬
quently, the Hyland Corporation was dissolved, and this was a
further reason for dismissal of the complaint.
Section 7 of the Clayton Act makes it unlawful for one corpora¬
tion to acquire the capital stock of a competitor where the effect
may be to substantially lessen competition between the two, but
it does not prevent consolidations or mergers of competitors
brought about by the acquisition of the physical assets of such
competitors.
As authority for dismissing the complaint, the Commission’s
order cites the Supreme Court decision in the case of Arrow-Hart
& Hegeman Electric Company against the Federal Trade Com¬
mission.
No. 2615. The Commission has dismissed a complaint charging
the American School, 58th Street and Drexel Avenue, Chicago,
with unfair competition in the sale of a correspondence school
course in high school subjects.
Dismissal of complaints alleging unfair competition on the part
of two New York dealers in steel wool cleaning pads and dry
cleaning fluids, respectively, have also been ordered by the Com¬
mission.
No. 2657. E-Z Kleener Manufacturing Co. and others, 590
East 161st Street, New York City, had been charged with unfair
representations in the sale of steel wool cleaning pads. Dismissal
of the complaint was ordered on the ground that the evidence
failed to sustain the allegations.
No. 2567. In the case of D. Blum & Co., Inc., 316 West 31st
Street, New York City, selling a dry cleaning fluid, dismissal was
ordered because certain practices charged in the complaint had
been abandoned by the respondent and because there was failure
of proof as to other practices charged.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
No hearings are scheduled by the Commission for the week begin¬
ning Monday, July 6.
The Broadcast Division of the Commission did not meet at its
usual time this week. It will meet later in the week.
APPLICATIONS RECEIVED
First Zone
WELI — City Broadcasting Corp., New Haven, Conn. — Modifica-
900 tion of license to change hours of operation from daytime to
unlimited time, requesting 250 watts, 500 watts day, change
frequency from 900 kilocycles to 930 kilocycles, and install
directional antenna. Amended to change name from Patrick
J. Goode to City Broadcasting Corp.
WCOP — Massachusetts Broadcasting Corp., Boston, Mass. — Modi-
1120 fication of license to change frequency from 1120 kc. to
1130 kc. ; change hours of operation from limited until local
sunset at KSL, Salt Lake City, Utah, using 500 watts power.
Amended to change name from Joseph M. Kirby to Massa¬
chusetts Broadcasting Corp.
WDRC — WDRC, Inc., Hartford, Conn. — Modification of license
1330 to increase power from 1 KW, 5 KW day, to 5 KW day and
night.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Construc-
1410 tion permit to make changes in WNAC’s present licensed
transmitter to reduce maximum rated carrier power so as to
be used as transmitter for WAAB when WNAC is author¬
ized to use their 5-KW transmitter, under File No. Bl-P-
1083.
W2XMN — Edwin H. Armstrong, New York, N. Y. — Modification
of construction permit to add frequency of 41600 kc.
Second Zone
WJR — WJR, The Goodwill Station, Detroit, Mich. — Construction
750 permit to install new equipment and increase power from
50 KW to 500 KW.
WGBI — Scranton Broadcasters, Inc., Scranton, Pa. — Modification
880 of license to increase power from 500 watts to 500 watts, 1
KW day.
NEW — United States Broadcasting Co., Toledo, Ohio. — Construc-
1200 tion permit for a new station to be operated on 1200 kc.,
100 watts, daytime only.
NEW — United States Broadcasting Co., Columbus, Ohio. — Con-
1310 struction permit for a new station to be operated on 1310
kc., 100 watts, unlimited time.
WCMI — The Ashland Broadcasting Co., Ashland, Ky. — Construc-
1310 tion permit to make changes in equipment and increase
power from 100 watts to 100 watts, 250 watts day. Amended
in regard to equipment changes.
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WLAP — American Broadcasting Corp. of Kentucky, Lexington,
1420 Ky. Authority to transfer control of corporation from T. C.
Rush to J. Lindsay Nurn, 2S6 shares of common stock.
NEW — John E. Fetzer, Benton Harbor, Mich. — Construction per-
1500 mit for a new station to be operated on 1500 kc., 100 watts,
unlimited time. Amended to change hours of operation
from unlimited to daytime only, using 100 watts power.
W8XIK — The Crosley Radio Corp., Portable-Mobile. — License to
cover construction permit for a general experimental station
to be operated on 31100, 34600, 37600, 40600 kc., 30 watts.
W8XIL — The Crosley Radio Corp., Portable-Mobile. — License to
cover construction permit for a general experimental station
to be operated on 31100, 34600, 37600, 40600 kc., 30 watts.
Third Zone
WBNO — The Coliseum Place Baptist Church, New Orleans, La. —
1200 Construction permit to install new equipment, vertical
antenna; change hours of operation from share-WJBW to
unlimited; move studio from New Orleans Hotel, 1300
Canal St., New Orleans, La., to St. Charles Hotel, 211 St.
Charles St., New Orleans, La., and transmitter from 1376
Camp St., New Orleans, La., to Thalia and South Broad St.,
New Orleans, La. Requests facilities of WJBW. (Filed in
name of Pelican State Broadcasting Co.)
WBNO — The Coliseum Place Baptist Church, New Orleans, La.—
1200 Voluntary assignment of license from The Coliseum Place
Baptist Church to Edward R. Musso. Amended to change
name of transferee from Edward R. Musso to J. E. Rich¬
ards, John R. Maddox and Edward R. Musso, d/b as
Pelican State Broadcasting Co.
WDSU — WDSU, Inc., New Orleans, La. — Construction permit to
1250 make changes in equipment.
NEW — Ernest Edward Ruehlen, Great Bend, Kans. — Construc-
1370 tion permit for a new station to be operated on 1370 kc.,
100 watts, unlimited time.
KRLH— Clarence Scharbauer, Midland, Tex.— Modification of
1420 license to change frequency from 1420 kc. to 1210 kc.
NEW — Dixie Broadcasting System, Stokes Gresham, Jr., Presi-
1500 dent, Valdosta, Ga. — Construction permit for a new station
to be operated on 1500 kc., 100 watts, daytime.
NEW — C. S. Gooch, d/b as Amarillo Broadcasting Co., Amarillo,
1500 Tex. — Construction permit for a new station to be operated
on 1500 kc., 100 watts, daytime.
Fourth Zone
WCFL — Chicago Federation of Labor, Chicago, Ill. — Construction
970 permit to install new equipment and increase power from
5 KW to 50 KW.
WJBC — Arthur Malcolm McGregor and Dorothy Charlotte Mc-
1200 Gregor, Bloomington, Ill. — License to cover construction
permit (B4-P-571) to install new equipment and increase
power. Amended to change name from Wayne Hummer
and H. J. Dee, d/b as Kaskaskia Broadcasting Co., to
Arthur Malcolm McGregor and Dorothy Charlotte Mc¬
Gregor.
WMFG — Head of the Lakes Broadcasting Co., Hibbing, Minn. —
1210 Construction permit to make changes in equipment and in¬
crease power from 100 watts to 100 watts, 250 watts day.
KOIL — Central States Broadcasting Co., Council Bluffs, Iowa.—
1260 Construction permit to make changes in equipment.
NEW — Homer D. Banta, Burlington, Iowa. — Construction permit
1310 for a new station to be operated on 1310 kc., 100 watts,
unlimited time.
KGDY — Voice of South Dakota, Huron, S. Dak. — Authority to
1340 transfer control of corporation from F. Koren, Robert J.
Dean and M. W. Plowman to Greater Kampeska Radio
Corp., 221 shares stock.
NEW — Central States Broadcasting Co., Council Bluffs, Iowa. —
1500 Construction permit for a new station to be operated on
1500 kc., 100 watts, unlimited time.
W9XAA — Chicago Federation of Labor, Chicago, Ill. — Construc¬
tion permit for increase in power and replace transmitter.
Fifth Zone
NEW — A. W. Mills, Gallup, N. Mex. — Construction permit for a
1500 new station to be operated on 1310 kc., 100 watts, un¬
limited time. Amended to change frequency from 1310 kc.
to 1500 kc.
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The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W, BALDWIN, Managing Director
NAB REPORTS .....
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 33
JULY 9, 1936
IN THIS ISSUE
Engineering Hearing Called .
Denial of Texas Application Recommended .
Station Revenue in Six States .
Recommends License Renewal for KSEI .
Securities Act Registrations .
Increased Power Recommended for WPRO .
Rules Deleted and Modified .
Changes Recommended for KTFI .
Hearing of S00 KW Cases Continued .
Denial of Tennessee Station Recommended .
Federal Trade Commission Action .
FTC Closes Cases .
Federal Communications Commission Action .
ENGINEERING HEARING CALLED
Pa(e
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The Broadcast Division of the Federal Communications Com¬
mission has directed that an informal engineering hearing be held
on October 5, to determine what changes, if any, or improvements,
if any, are desirable and necessary in the public interest with re¬
spect to the engineering principles of allocation within the broad¬
cast band 550 to 1600 kilocycles. Notice will be furnished all
stations setting out the issues for discussion at the informal hear¬
ing. The Division directed the Engineering and Law Departments
to prepare the necessary notices setting forth the issues.
DENIAL OF TEXAS APPLICATION
RECOMMENDED
The Voice of Marshall Association applied to the Federal Com¬
munications Commission for a construction permit for the erection
of a new broadcasting station at Marshall, Texas, to use 1500 kilo¬
cycles, 100 watts and specified hours.
Examiner George H. Hill in Report No. 1-251 recommended that
the application be denied. The Examiner found that a showing for
a need of a station at Marshall was made “however, the operation
of the proposed station would result in serious and objectionable
interference to Station KGKB, at Tyler, Texas, and Station KPLC
at Lake Charles, La.” For that reason he recommended that the
application be denied.
STATION REVENUE IN SIX STATES
station is the only one rendering consistent service in its area and
“a need for the continued operation of the station exists.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Imco Participating Co., London, England. (2-2265, Form El)
The Youngstown Steel Door Company, Cleveland, Ohio. (2-2266,
Form A-2)
Hotel Plaza, Inc., Corpus Christi, Texas. (2-2267, Form A-l)
Hedley Chief Mines, Ltd., Vancouver, B. C. (2-2268, Form A-l)
U. S. Hoffman Machinery Corp., New York City. (2-2269, Form
A-2)
Camaguey Sugar Co. Committee, New York City. (2-2270,
Form D-l)
Empire Properties Corp., Newark, N. J. (2-2271, Form E-l)
Regal Textile Co., Inc., Barnesville, Ga. (2-2272, Form A-l)
Ace Re-Insurance Co., Elizabeth, N. J. (2-2274, Form A-l)
Motors Securities Co., Inc., Shreveport, La. (2-2275, Form A-l)
Pacific Can Company, San Francisco, Calif. (2-2276, Form A-2)
Gilbert Klinck Brewery Corp., Buffalo, N. Y. (2-2277, Form
A-l)
Seversky Aircraft Corp., Farmingdale, L. I., N. Y. (2-2278,
Form A-l)
American Bantam Car Company, Butler, Pa. (2-2279, Form
A-l)
Mining & Development Corp., Wilmington, Del. (2-2280, Form
A-l)
Durbar Gold Mines, Ltd., Toronto, Canada. (2-2281, Form A-l)
Kable Brothers Company, Mount Morris, Ill. (2-2282, Form A-l)
Forest Lawn Company, Glendale, Calif. (2-2283, Form A-2)
Kingsport Press, Inc., Kingsport, Tenn. (2-2284, Form A-2)
American Investment Co., of Illinois, Springfield, Ill. (2-2285,
Form A-2)
New York Stocks, Inc., Jersey City, N. J. (2-2286, Form A-l)
Vertienties Sugar Co. Committee, New York City. (2-2288,
Form D-l)
Indiana Asphate Paving Co., Ltd., Indianapolis, Ind. (2-2289,
Form A-2)
INCREASED POWER RECOMMENDED FOR
WPRO
Total receipts of 87 broadcast stations in Indiana, Michigan,
Ohio, Wisconsin, Arkansas and Oklahoma, from the sale of radio
time during 1935, amounted to $10,111,645 according to the new
census of business series on the broadcasting business made by the
Bureau of the Census, Department of Commerce. The report in¬
cludes 14 stations in Indiana, 17 in Michigan, 19 in Ohio, 14 in
Wisconsin, 11 in Arkansas and 12 in Oklahoma.
RECOMMENDS LICENSE RENEWAL FOR KSEI
Broadcasting station KSEI, Pocatello, Idaho, applied to the
Federal Communications Commission for a license renewal. The
station operates on 900 kilocycles, 250 watts and 500 watts LS,
and unlimited time.
Examiner George H. Hill in Report No. 1-250 recommends that
the license be renewed. The Examiner found that the technical
operation of the station “has been conducted with an almost total
disregard of the Communications Act of 1934 and the rules and
regulations of the Commission.” He found, however, that the
rules were violated “without the knowledge or consent of the offi¬
cers of the corporation.” According to the testimony “these officers
bear excellent reputations and are men of the highest integrity and
character.” They have promised better operation in the future and
the offending employee has been removed from the station. The
Broadcasting station WPRO, Providence, R. I., applied to the
Federal Communications Commission for an increase of power
from 250 watts to 500 watts and 1,000 watts LS. The station
operates unlimited time on 630 kilocycles.
Examiner P. W. Seward in Report No. 1-248 has recommended
that the power increase be granted. He found that the granting
of the request “would not interfere with the fair and efficient serv¬
ice of any existing licensed radio station.” The Examiner found
also that the directional antenna which the applicant proposes to
use complies with good engineering practice and with the rules and
regulations of the Commission and will render proper service.
RULES DELETED AND MODIFIED
The Broadcast Division of the Federal Communications Com¬
mission has deleted from its Rules and Regulations Rules Nos.
6, 109 as amended, 110 as amended, 111 as amended, 112 and 114.
The Broadcast Division modified Rules 116 and 119 to read as
follows:
116. The following frequencies are designated as clear channels
and are allocated for use by clear channel stations:
640, 650, 660, 670, 680, 700
710, 720, 740, 750, 760, 770
790, 800, 810, 820, 830, 850
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860, 870, 970, 980, 1000, 1020
1040, 1050, 1060, 1070, 1080
1090, 1100, 1110, 1130, 1140
1150, 1160, 1170, 1180, and 1190 kcs.
119. The following frequencies are designated as high power
regional frequencies and allocated for use by high power
regional stations, permitted to operate simultaneously with
a power not less than 5 kilowatts:
1460, 1470, 1480, 1490 kcs.
CHANGES RECOMMENDED FOR KTFI
Broadcasting station KTFI, Twin Falls, Idaho, applied to the
Federal Communications Commission for license renewal and to
change its frequency from 1240 to 630 kilocycles. The station
operates on unlimited time 500 watts and 1,000 watts LS and asks
no change in either time or power.
Examiner George H. Hill in Report No. 1-249 recommended that
the application be granted. The Examiner states that programs
of the type of the “Friendly Thinker” do not serve the public inter¬
est but the applicant, the Examiner states, has assured the Com¬
mission that “doubtful medical programs are not in the future to be
broadcast over the station.” The entire record considered, the
Examiner recommended that the license of the station be renewed.
He found that no objectionable interference “would result to the
primary service area of Station KFI by the proposed operation.”
HEARING OF 500-KW CASES CONTINUED
The Federal Communications Commission has announced that
applications for 500 kilowatts which have been heretofore desig¬
nated for hearings before the Broadcast Division on September 24,
are continued until after informal engineering hearing set for Octo¬
ber 5. The Commission will announce at a later date the hearing
date on these applications.
DENIAL OF TENNESSEE STATION
RECOMMENDED
The Chattanooga Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new broadcasting station at Chattanooga, Tenn., to
use 590 kilocycles, 1,000 watts power and unlimited time on the
air.
Examiner Ralph L. Walker in Report No. 1-252 recommended
that the application be denied. The Examiner found that while
only two persons are named in the company a third really will have
an interest and that a corporation will be formed to take over the
license. He found also that “the proposed station may be ex¬
pected to cause objectionable interference within the normal good
service area of one existing station, and such interference will re¬
strict that station beyond the point to which it is now restricted
by any existing station located in the United States.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2852. Unfair competition in the sale of certain waterproof
garments is alleged in a complaint issued against I. B. Kleinert
Rubber Co., 485 Fifth Avenue, New York City.
According to the complaint, a waterproof garment for infants
sold by the respondent company under the name “Softex” was ad¬
vertised as “rubberless” and “absolutely free from latex or any other
form of gum rubber,” when, in fact, this product had a waistband of
elastic fabric made from gum rubber and an elastic banding at the
leg openings made of rubber.
Those representations are alleged to have a tendency to deceive
purchasers and to be in violation of the Federal Trade Commission
^ct
No. 2853. A complaint has been issued charging F. L. Mc-
Wethy, 329 Michigan Avenue, Marshall, Mich., with making
false and misleading representations regarding the alleged curative
value and effect of “McWethy’s Home Treatment,” advertised as a
diuretic stimulant for the kidneys.
No. 2855. False representations in advertising are alleged in a
complaint issued against A. 0. Leonard, Inc., 70 Fifth Avenue,
New York City, manufacturing “Leonard Ear Oil” and selling it
in interstate commerce.
Advertised in testimonials, pamphlets and on safety match box
containers as an ear oil having curative properties capable of re¬
lieving deafness, the respondent’s product, according to the com¬
plaint, is not an ear oil, nor does it have such therapeutic properties
as to relieve deafness. The complaint describes the preparation as
being composed of an emulsion of mineral oil, soft soap, glycerine
and eucalyptol.
No. 2856. False and misleading representations in the sale of
cosmetics and toilet preparations by means of alleged puzzle con¬
tests are charged in a complaint against G. Fred Stayton and the
Betty White Corporation, 1912 Grand Avenue, Des Moines,
Iowa. Stayton is president and general manager of the respondent
company, successor to Paramount Products Company and Para¬
mount Products, Inc.
Selling the “Betty White” products, consisting of some 29 items,
the respondent company is alleged to have made fraudulent adver¬
tising representations to obtain salesmen for its articles.
Magazine advertisements purporting to present puzzle contests
are said to have announced that a first grand prize of an automobile
sedan would be given the winner and additional cash prizes would
be awarded if the winner were the first person sending the correct
answer. No money would be necessary, according to the advertise¬
ment, and the only requirements to win a prize would be prompt
solution of the puzzle.
No. 2857. A complaint has been issued against Florida Build¬
ing Material Institute, Inc., of Orlando, Fla., its officers,
directors, and members, alleging violation of the Federal Trade
Commission Act through suppression of competition in the sale of
lumber and other building materials.
Members of the institute, according to the complaint “constitute
a group so large and influential in the trade as to be able to control
and influence the flow of trade and commerce in lumber, lumber
products, building materials and builders’ supplies within, to and
from the State of Florida.” The complaint charges that these
members, as allied and banded together in the institute, are enabled
more effectively to exercise control and influence over this trade to
promote and enhance their own volume of trade and profits. They
are charged with entering into an agreement, combination and con¬
spiracy.
No. 2858. Unfair trade practices in the sale of latex bandages
in interstate commerce are alleged in a complaint issued against
Roy C. Greenberg and Sarah J. Rosenheim, trading as Neway
Manufacturing Company, 30 South Clinton St., Chicago.
The respondents are said to have advertised in various magazines
usually read by canvassers and sales agents, seeking to induce the
purchase of “Neway Latex Bandages” by persons suffering from
bodily ailments and malformations, and to obtain canvassers and
sales agents.
No. 2859. Charging violation of the Federal Trade Commission
Act in the interstate sale of “Bell-Ans,” a proprietary remedy for
indigestion, a complaint has been issued against Bell & Company,
Inc., of Orangeburgh, N. Y.
The complaint charges that the respondent company, in its ad¬
vertising, is creating upon the public the impression that “Bell-Ans”
has beneficial curative effects, will relieve and cure digestive dis¬
turbances due to acid conditions, and will relieve and cure indiges¬
tion, when, in fact, according to the complaint, this preparation
will not relieve or cure digestive disturbances and indigestion.
No. 2860. The Gulf Coast Oil Company of Mississippi,
Inc., 3331 St. Charles Avenue, New Orleans, and Anthony
Paciera, its president, have been served with a complaint alleging
unfair competition through imitation of signs, colors and other
advertising features used by Gulf Refining Co., of Pittsburgh,
which has built up an extensive reputation and goodwill among
users generally.
The complaint alleges that the respondent New Orleans firm,
among other things, painted its stations, gasoline pumps, tank
trucks and other equipment with the same shade of orange color
as used by Gulf Refining Co., featured the word “Gulf” in its dis¬
play advertising in a manner resembling that of Gulf Refining Co.,
and simulated some of the Gulf Refining Company’s trade names
for its gasoline and oil products.
No. 2861. Schwabacher Brothers & Co., Inc., a Seattle,
Wash., candy distributor, is charged with unfair competition in a
complaint. The respondent company is alleged to have sold its
products in Washington and Alaska through use of a lottery
scheme, employing a punch board device.
No. 2862. Misrepresentation in advertising of the therapeutic
1422
value of “Zimmer Radium Emanator” is alleged in a complaint
issued against H. R. Zimmer, 636 West 77th St., Los Angeles.
Zimmer’s product is described in the complaint as a metal holder
purported to contain pure, refined radium which, when placed in
drinking water, renders the water radioactive.
No. 12863. Trading under the names Jenner Manufacturing
Company and Jenner Sales Company, R. C. Jenner and Wil¬
liam DeLapp, 31 Allison St., Pontiac, Mich., have been served
with a complaint charging unfair competition in the sale of a small
electric water heater..
Advertising in “Help Wanted” columns of newspapers, the re¬
spondents are alleged to have executed a scheme to extract money
from persons in need of employment by falsely representing to them
the nature of respondents’ business and the character and value
of their product, and the work to be performed. A cash deposit
was required, which, according to the complaint, was turned by the
respondents into payment for heaters furnished applicants, or was
sometimes retained by the respondents.
No. 2864. Morris Gottsegon and David Jacoby, trading in
interstate commerce as Mills Sales Company, 901 Broadway,
New York City, have been served with a complaint charging
unfair competition.
By means of false and misleading advertising, the respondents,
according to the complaint, made representations tending to mis¬
lead customers into believing that various catalogued items of
merchandise, such as tooth brushes, dental creams and razor blade
hones, because of the price stamped thereon, were superior prod¬
ucts; that the respondents were manufacturers and large scale
operators able to assure purchasers of superior quality and closer
prices, and that certain products were made in accordance with
the design or under the supervision of a doctor, containing special
scientific features.
No. 2865. Atlantic Coast Oil Company of New York, Inc.,
of Glendale, Queens, New York City, is named respondent in a
complaint alleging unfair methods of competition in the sale of
motor oils and greases.
One allegation is that the respondent corporation sells its prod¬
ucts in containers bearing the emblem of the Pennsylvania Grade
Crude Oil Association and certain lettering and numbers implying
that the content is a pure, unadulterated Pennsylvania oil, or an
oil produced in the Pennsylvania strata of oil fields, and that the
respondent is a member of the Pennsylvania association, when,
according to the complaint, such are not the facts.
No. 2866. Charging unfair competition in the sale of imitation
diamonds and rings, a complaint has been issued against J. R.
Stone, of Wheeling, W. Va., trading as Spanish Diamond Co.,
Chinese Ring Co., and National Jewelry Co.
In his advertising literature, the respondent, according to the
complaint, made representations to the effect that the sets or stones
in the rings he sells are gems that baffle and deceive experts, look
like diamonds worth $250 or $300 each, and cannot be told from
genuine diamonds costing many hundreds of dollars. Other rep¬
resentations of like import were made, according to the complaint,
such as the assertions that the ring mountings have a “platinum-
effect finish” or are “white gold-appearing sterling.”
No. 2867. Alleging unfair competition in connection with the
sale of bird feed and medicines, a complaint has been issued against
Hartz Mountain Products, Inc., 32 Cooper Square, New York
City.
Through use in its corporate and trade names of the words “Hartz
Mountain,” either alone or in connection with the word “Genuine,”
on labels, in newspaper advertisements, radio broadcasts, and in
other ways, the respondent corporation, the complaint alleges,
represents to purchasers that its products so labeled and adver¬
tised originate in the Hartz, or Harz, Mountain district of Ger¬
many, which is said to be well known among bird fanciers as the
locality where a high grade species of canary has been bred for
many years.
No. 2868. Associated Rubber Corporation, 517 West 57th
Street, New York, is charged in a complaint with unfair com¬
petition in the sale of rubber tires.
The respondent company is alleged to have advertised certain of
its tires as “Standard Brand,” “First Line,” or “Heavy Duty,”
when in fact, according to the complaint, such tires were not of
such quality as to be accurately described by these terms. The
descriptions used are said to be well known in the trade as denoting
first quality tires.
No. 2869. Belmont Laboratories, Inc., 4430 Chestnut St.,
Philadelphia, is charged in a complaint with unfair methods of
competition in the sale of “Mazon” and “Mazon Soap,” prepara¬
tions offered as treatments for skin diseases.
In magazines, medical journals and in other forms of advertising,
the respondent corporation allegedly makes representations to the
effect that the two preparations are prescribed by prominent
physicians and afford quick and permanent elimination of eczema,
ring worm, athlete’s foot, and many other skin disorders; that
“Mazon” is the original treatment of its character for the skin
diseases specified in the respondent’s advertising, and that it has
no substitute.
No. 2870. False and exaggerated representations as to the bene¬
fits to be derived from the use of “Shaddy’s Hair Rejuvenator,”
sold in interstate commerce, are alleged in a complaint issued
against Kelly J. Shaddy, trading as Magic Chemical Company,
370 Turk St., San Francisco.
Among the respondent’s assertions, allegedly made in radio
broadcasts, in advertising matter and in testimonials, and which
the complaint charges are untrue, are claims that his preparation
eradicates dandruff, keeps the hair organs functioning normally in
accordance with nature, stops falling hair, promotes the growth of
hair, and is the world’s safest hair dressing.
No. 2871. South Bend Distributing Co., Inc., 210 East
Jefferson St., South Bend, Ind., is charged with unfair competi¬
tion in the sale of candy, in a complaint. The company is said to
have sold candy to wholesalers and jobbers in assortments arranged
to promote a game of chance.
Stipulations
The Commission has issued the following cease and desist orders
and stipulations:
No. 1697. Joseph Beim, Max Ivler, and Samuel Breiter,
trading as Beim, Ivler & Breiter, 558 Broadway, New York
City, are engaged in wholesaling shoes under the brand “Dr.
Wainer’s Health Shoes.” They will cease using this brand name
for shoes which are not made in accordance with the design and
under the supervision of a doctor and which lack orthopedic fea¬
tures that are the result of medical advice. The respondents agree
to cease using the word “Doctor” or the abbreviation “Dr.” either
alone or with the word “Wainer,” or in any manner to imply that
their shoes are manufactured under the supervision of a doctor and
contain orthopedic features, when such is not the fact.
No. 1698. Masterpiece Cigar Co., 333 Commerce Ave.,
S. W., Grand Rapids, Mich., in the sale of cigars will discontinue
marking them with exaggerated prices in excess of the prices at
which they are sold or intended to be sold, and contrary to the
price indicated by the internal revenue stamps on the boxes con¬
taining such cigars. The stipulation points out that the respondent
company, in selling its “Mi Alvina” brand of cigars, displayed the
price mark on the boxes to which were affixed Class A tax
stamps, which are used only for cigars retailing at 5 cents each.
The respondent company stipulates that it will not use on labels
or elsewhere the names of the former manufacturers of “Mi
Alvina” cigars to imply that such former manufacturers make the
cigars, and will discontinue the word “Manufacturers” in connec¬
tion with the name of any firm which does not actually make the
“Mi Alvina” brand.
It is also stipulated by the respondent company that it will stop
using the words “Habana” or “Havana” to describe its cigars, when
they are not made from Havana tobacco or from tobacco imported
from the island of Cuba.
No. 1699. General Leather Products, Inc., 30 Wilsey St.,
Newark, N. J., engaged in the manufacture and sale of leather
luggage, entered into a stipulation to cease stamping the words
“Genuine Cowhide” on its products not made from the top or grain
cut of the leather, and to desist from using the word “cowhide”
in any manner tending to mislead purchasers into the belief that the
products so stamped are manufactured from the top or grain cut
of the leather, when such is not the fact.
No. 1700. Health Products Corp., 113 N. 13th St., Newark,
N. J., agrees to stop advertising that “Dillard’s Aspergum,” an
aspirin product which it manufactures and sells, “works faster”
and “does not harm the heart,” and will not make any other asser¬
tions tending to cause purchasers to believe that use of the product
is not harmful to the heart in any instance regardless of the dosage
taken.
No. 1701. E. C. Hurd, P. O. Box 211, Ashland, Ore., trad¬
ing as Medico Minerals Company and selling “Medico Mineral
Water,” signed a stipulation to cease representing that his product
has value or possesses therapeutic properties especially beneficial
in cases of the kind described in his advertising matter, and that it
has any curative properties other or greater than those usually
obtained from the use of ordinary drinking water. According to
1423
the stipulation, the respondent claimed that “Medico Mineral
Water” is highly beneficial in cases of indigestion, stomach and
kidney disorders, rheumatism, and gland troubles, and is valuable
in removing the causes of many human ailments.
No. 1702. Bergdorf & Goodman Co., Inc., 754 Fifth Avenue,
New York City, a member of the Uptown Creators’ Guild of
millinery designers and dealers, has entered into a stipulation to
discontinue trade practices having the tendency and effect of estab¬
lishing a boycott in the millinery business, and to otherwise restrain
interstate trade in millinery.
The Commission has issued a complaint against the Millinery
Quality Guild, Inc., and Uptown Creators’ Guild, both of New
York City, and 27 members who design, manufacture and sell
ladies’ hats of high quality, alleging unfair practices in restraint
of trade. Bergdorf and Goodman Company, Inc., having executed
a stipulation which was accepted by the Commission, was not
included as a respondent in the complaint.
In its stipulation, Bergdorf & Goodman Co., Inc., agrees to cease
and desist from soliciting or obtaining from its fellow members’
customers any agreement or “declaration of cooperation” wherein
the signers agree to refrain from or refuse to purchase commodities
of manufacturers not members of such guild or association.
No. 1703. R. O. W., Inc., 57 East 52nd Street, New York
City, engaged in the importation and sale of alcoholic beverages,
agrees to discontinue labeling whiskey with the words “MacNab
Distilleries Limited,” either alone or in connection with the address
“266 Clyde St., Glasgow, Scotland,” or with the words “Produce
of Scotland,” to imply that the product is produced by MacNab
Distilleries Limited, at the Glasgow address, or that MacNab Dis¬
tilleries Limited owns or operates a distillery in which such whiskey
is manufactured. The stipulation sets out that MacNab Distilleries,
Limited, does not exist.
No. 1704. Shulton, Inc., 358 Fifth Avenue, New York City,
will stop using on labels for its soap products the words “Royal
York,” independently or in connection with a picture of a crown,
or in any manner implying that its soap products are made in
England or are of British origin, when such is not the fact. The
respondent corporation also agrees to desist from use on billheads
or other printed matter of the word “Soapmakers,” to imply that
it manufacturers soap or owns the plant where its soap products are
made, when such is not the fact.
No. 1706. W. J. Ross and George H. Hyland, trading as
Dr. W. J. Ross Company, Los Alamitos, Calif., stipulate that
in the sale of prepared food for dogs and cats they will discontinue
advertising that their products constitute a balanced ration, and
are made under the same sanitary conditions as foods intended for
human consumption, when such is not the fact. The respondents
also agree to cease representing that their products consist of choice
cuts of lean, rich meat, to imply that such meat is the sole or pre¬
dominating content of their products.
No. 1712. Monopolistic trade practices tending toward main¬
tenance of a uniform price level will be abandoned by twelve com¬
panies manufacturing decalcomanias or transfer pictures, under a
stipulation entered into. Nine of these companies are said to do
about 90 per cent of the total business in these pictures in the
United States. The respondent companies are:
Meyerconl Company, Rayner Decalcomania Company,
American Decalcomania Company, all of Chicago; Palm-
Fecliteler & Co., New York City; Commerfortl-Price Com¬
pany, and Consolidated Decalcomania Corporation, both of
Brooklyn ; National Decalcomania Corporation, Philadel¬
phia; Palm Brothers Decalcomania Company, Cincinnati;
Di-Noc Manufacturing Company, and International Trans¬
parency Company, Cleveland; Borden Decalcomania Com¬
pany, San Francisco, and Kalasign Company of America,
Kalamazoo, Mich.
These companies stipulate that they will cease and desist from
collectively agreeing upon uniform prices, terms, discounts, or
differentials, or adopting methods which tend to fix the prices,
terms, discounts, or differentials at which their products shall be
sold, or which are designed to equalize or make uniform such
prices, terms, discounts or differentials.
Nos. 2375-2388-2396. Three corporations have been ordered
to discontinue representing that they are the distillers of whiskies
and other spirituous beverages they sell in interstate commerce until
such is the fact.
The respondent corporations are Old Gold Distillers, Inc.,
3748 West 26th St., Chicago; Liberty Distilleries, Inc., 18
South Hanover St., Baltimore, and Rex Distilling Co., 369
Fountain St., Providence, R. I.
The orders to cease and desist prohibit the respondents from
using the words “Distillers,” “Distilleries” or “Distilling” in their
corporate names, on labels, in advertising matter, or in any other
manner to represent that their beverages are manufactured by the
process of distillation, or that they own or operate places where
such beverages are distilled, unless they actually own or operate
distilleries.
No. 2421. Grove Distillers & Wine Co., Inc., 347 Grove St.,
Jersey City, N. J., has been ordered to cease and desist from rep¬
resenting itself as a distiller of liquors unless and until it actually
owns and operates a distillery.
With a place of business in a one-story and basement building,
the respondent company operated no distilling apparatus, had
never applied for a distiller’s permit, and engaged only in rectifying
liquors and selling them at wholesale, according to findings.
No. 2461. Lawrence F. Milan, a wholesale liquor dealer, of
C'atonsville, Md., trading as Catonsville Distilling and Dis¬
tributing Company, has been ordered to cease and desist from
representing, through use of the word “Distilling,” that he is a dis¬
tiller or owns and controls a distillery, unless and until he shall
actually own and control such a place of business.
No. 2676. Dennison Brothers, Inc., 437 11th Ave., New
York City, dealers in groceries, drugs and sundries, have been
ordered to stop representing, by means of advertising, photographs
or price fists that it manufactures the commodities it sells.
The respondent company is also directed to cease labeling a par¬
ticular soap as “Butt R Milk Soap,” when buttermilk is only a
minor ingredient thereof, and from representing through use of
labels or other identifications upon containers of oil, that a product
is “Russian Mineral Oil” or some other type of “heavy oil,” or
that it complies with the United States Pharmacopoeia specifica¬
tions for liquid petroleum, when these are not the facts.
No. 2729. Conducting a correspondence school business under
the names Commercial Extension University, Commercial Ex¬
tension of Omaha, and Commercial Extension College, E. F.
Agee, Hillcrest Building, Omaha, Nebr., has been ordered to
discontinue representing through the use of trade names, or in any
other manner, that his business is a college or university, or a
branch or extension of such an institution.
No. 2811. An order to cease and desist has been issued against
Dr. J. E. Cannaday, 316 South Ohio Avenue, Sedalia, Mo.,
dealer in a medicinal preparation, directing him to discontinue
representing such product in interstate sales as being capable of
effecting a cure or permanent relief in all cases of eczema. The
respondent admitted the material allegations of the Commission’s
complaint to be true, and waived further proceedings.
FTC CLOSES CASES
The Federal Trade Commission has announced the closing or
dismissing of the following cases:
No. 2132. An order directing Progressive Education Society,
Inc., 407 Hillington Way, Madison, Wis., and its president,
Irving Roy Jacobson, to discontinue unfair methods of competi¬
tion in sale of books and an extension service, has been vacated by
the Commission.
At the same time the Commission issued a second amended and
supplemental complaint against the corporation and Jacobson,
and allowed them until August 7 to show cause why an order to
cease and desist from the practices complained of should not be
issued.
No. 2392. The Commission has issued an order closing its case
against Western Distillers Corporation, Los Angeles, former whole¬
sale liquor dealer, charged with unfair competition through use of
the word “Distillers” in its corporate name when not engaged in the
distilling business.
Supplemental investigation by Commission examiners shows that
the respondent company appears to have been adjudged a bank¬
rupt, to have discontinued business following sale of its assets to
San Angelo Wine and Spirits Corporation, Los Angeles, and to have
discontinued the practices alleged in the complaint.
No. 2595. Dismissal of a complaint against Henry S. Blumen-
thal and the Ribbonew Corporation of America, 3332 7lst
Street, Jackson Heights, Queens, New York, selling a device for
renewing or renovating worn-out typewriter ribbons, has been or¬
dered by the Commission.
The complaint charged the respondents threatened to bring pat¬
ent infringement suits against purchasers of the products of com¬
petitors, and that the threats were not made in good faith.
The Commission dismissed the complaint upon the authority of
a Circuit Court of Appeals decision in the case of Flynn & Emerich
Company against the Federal Trade Commission. In this case the
1424
court held that the question of public interest was not involved,
and that the record showed no basis for the action of the Com¬
mission in finding the respondent had acted in bad faith in
threatening to sue a competitor for alleged patent infringement.
No. 2627. Dismissal of a complaint charging unfair competition
in the sale of medicated cleansing tissue has been ordered by the
Commission in the case of Tissue Brands, Inc., 27 West 24th
Street, New York City. The complaint treated to representations
made by the respondent concerning its product “Sankerchief,”
manufactured from paper and impregnated with various medica¬
ments commonly used in treating colds.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, July 14
HEARING BEFORE THE COMMISSION EN BANC
NEW — National Television Corp., New York, N. Y. — C. P. (fur¬
ther hearing), 2000^2100 kc., 500 watts, unlimited time.
NEW — National Television Corp., New York, N. Y. — Supplemen¬
tal petition for special temporary authorization.
National Television Corp., New York, N. Y. — Petition for hearing
on Rule 229, as amended, filed in accordance with Commis¬
sion Order No. IS.
W9XG — Purdue University, Lafayette, Ind. — Protest to Commis¬
sion Order No. 14 amending Rule 229 in accordance with
Commission Order No. 15.
APPLICATIONS GRANTED
NEW— The Exponent Company, Clarksburg, W. Va. — Granted
C. P. for new broadcast station at Clarksburg to operate on
1370 kc., 100 watts, daytime only, site to be determined.
WCNW — Arthur Faske, Brooklyn, N. Y. — Granted C. P. to move
transmitter locally and install vertical radiator. Present
assignment: 1500 kc., 100 watts night, 250 watts day,
specified hours.
KCRJ — Charles C. Robinson, Jerome, Ariz. — Granted C. P. to
install new equipment, new transmitter and antenna system,
and change hours of operation from specified to daytime.
Present assignment: 1310 kc., 100 watts day, specified hours.
WGNY — Peter Goelet, Chester Township, N. Y. — Granted C. P.
to change equipment, erect an approved antenna system and
move transmitter to Newburg, N. Y., site to be determined.
KRGV — KRGV, Inc., Weslaco, Tex. — Granted authority to install
automatic frequency control.
KFEL — Eugene P. O’Fallon, Inc., Denver, Colo. — Granted modifi¬
cation of C. P. to move transmitter to location of new
vertical radiator at 1900 Sheridan Blvd., near Denver, Colo.
KVCV — Golden Empire Broadcasting Co., Redding, Calif. —
Granted modification of C. P. approval of transmitter site
and studio locations, also changes in equipment and ap¬
proval of vertical radiator.
WWSW — Walker & Downing Radio Corp., Pittsburgh, Pa. —
Granted license to cover C. P., 1500 kc., 100 watts night,
250 watts day, unlimited time.
WJAR — The Outlet Company, Providence, R. I. — Granted license
to cover C. P., 890 kc., 1 KW, unlimited time, to employ
directional antenna day and night.
WCHV — Community Broadcasting Corp., Charlottesville, Va. —
Granted renewal of license for period ending January 1,
1937 ; 1420 kc., 100 watts night, 250 watts day. Daytime
unlimited. Shares nighttime with WEED.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted renewal of license, 1420 kc., 100 watts, daytime
only, for period ending January 1, 1937.
WSGN — Birmingham News Co., Birmingham, Ala.— Granted re¬
newal of license, 1310 kc., 100 watts night, 250 watts day,
unlimited time, for period ending December 1, 1936.
KSLM — Oregon Radio, Inc., Salem, Ore. — Granted C. P. to install
new equipment.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Granted modifi¬
cation of C. P. to install new equipment and to delete au¬
thorization to install a vertical radiator as authorized in
C. P.
KFNF — KFNF, Inc., Shenandoah, Iowa. — Granted authority to
determine operating power by direct measurement of an¬
tenna input in compliance with the terms of Rule 137.
KGBX — Springfield Broadcasting Co., Springfield, Mo. — Granted
license to cover special authorization to operate on 1230 kc.,
500 watts night with directional antenna, 500 watts day with
non-directional antenna, unlimited time.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
Granted renewal of license on temporary basis for 90 days,
1370 kc., 100 watts.
WATL — J. W. Woodruff and S. A. Cisler, Jr., d/b as Atlanta
Broadcasting Co., Atlanta, Ga. — Granted extension of license
for 90 days, 1370 kc., 100 watts, unlimited time.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Granted consent
to transfer control of company from W. M. Robertson and
W. H. Spurgeon to Joplin Globe Publishing Company.
KMMJ — The M. M. Johnson Co., Clay Center, Nebr. — Granted
consent to voluntary assignment of license from M. M.
Johnson Co. to KMMJ, Inc.
WNBR — Memphis Broadcasting Co., Memphis, Tenn. — Granted
consent to transfer of control of the Memphis Broadcasting
Company from the present stockholders, Francis S. Cham¬
berlin, Mallory Chamberlin, Charles W. Brunner, and Cey¬
lon B. Frazer to the Memphis Commercial Appeal, Inc.
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Granted au¬
thority to transfer control of company from J. J. Powell,
Louise Powell, and A. E. Groom to Arthur Lucas, William
K. Jenkins and Frank J. Miller.
WEBR — Howell Broadcasting Co., Inc., Buffalo, N. Y. — Granted
consent to the voluntary assignment of license of WEBR
from Howell Broadcasting Co. to WEBR, Inc.
W8XY — Howell Broadcasting Co., Inc., Portable-Mobile. —
Granted consent to the assignment of license for W8XY
from Howell Broadcasting Co., Inc., to WEBR, Inc.
W8XX — Howell Broadcasting Co., Inc., Portable-Mobile. —
Granted consent to assignment of license for W8XX from
Howell Broadcasting Co., Inc., to WEBR, Inc.
KIUJ — W. C. Irvin, Santa Fe, N. Mex. — Granted consent to the
voluntary assignment of license of KIUJ from W. C. Irwin
to J. Laurance Martin.
W10XIP — Bamberger Broadcasting Service, Inc., Portable-Mobile.
4 — Granted modification of C. P. to make changes in equip¬
ment and increase power to 10.5 watts and extend com¬
mencement date from 10-29-35 to 4-29-36 and completion
date from 6-29-36 to 10-29-36.
W10XIP — Bamberger Broadcasting Service, Inc., Portable-Mobile.
— Granted license to cover C. P. modification of relay broad¬
cast station W10XIP on an experimental basis under the
provisions of Rules 1000, 1001 (b) and 1003 (d) to be used
to relay programs where wire facilities are not available to
be broadcast by applicant’s station WOR.
NEW — O. Lee Stone, Florence, S. C. — Granted C. P. for a new
station to be operated on 1200 kc., 100 watts day, daytime
only.
KWG — Portable Wireless Telephone Co., Inc., Stockton, Calif. —
Granted consent to voluntary assignment of license from the
Portable Wireless Telephone Co., Inc., to the McClatchy
Broadcasting Co.
KERN — The Bee Bakersfield Broadcasting Co., Bakersfield, Calif.
— Granted consent to voluntary assignment of license from
the Bee Bakersfield Broadcasting Co. to the McClatchy
Broadcasting Co. '
KFBK — James McClatchy Co., Sacramento, Calif. — Granted con¬
sent to voluntary assignment of license from James Mc¬
Clatchy Co. to the McClatchy Broadcasting Co.
KMJ — James McClatchy Co., Fresno, Calif. — Granted consent to
voluntary assignment of license from James McClatchy Co.
to the McClatchy Broadcasting Co.
WDSU — WDSU, Inc., New Orleans, La. — Granted C. P. to make
changes in equipment.
WCMI — The Ashland Broadcasting Co., Ashland, Ky. — Granted
amendment to C. P. to read: Make changes in equipment,
install vertical radiator, and increase day power to 250
watts. Present assignment is 1310 kc., 100 watts, unlimited
time.
WTAG — Worcester Telegram Publishing Co., Inc., Worcester,
Mass. — Granted C. P. to increase power to 1 KW, employ¬
ing directional antenna system both day and night, and
move station locally from 20 Franklin St., Worcester, to
Shrewsbury St., Holden, Mass.
WEEI — The Edison Electric Illuminating Co. of Boston, Boston,
Mass. — Granted C. P. to install new equipment and direc-
1425
tional antenna to be used day and night, and to increase day
power from 1 KW to 5 KW.
KOIL— Central States Broadcasting Co., Council Bluffs, Iowa. —
Granted C. P. to make changes in equipment.
WKBV — Knox Radio Corp., Richmond, Ind. — Granted modifica¬
tion of C. P. to extend completion date from 6-1S-36 to
7-15-36.
WMCA — Knickerbocker Broadcasting Co., Inc., New York, N. Y.
— Granted modification of license to increase power from
500 watts to 1 KW, with directional antenna.
WIS — Station WIS, Inc., Columbia, S. C. — -Granted license to cover
C. P. to operate on 560 kc., 1 KW night and 5 KW day,
unlimited time. Directional antenna to be used at night.
NEW — Juan Piza, Portable (San Juan, P. R.). — Granted C. P. to
construct broadcast pickup station for temporary purposes;
frequencies 1622, 2060, 2150, and 2790 kc., 50 watts, A3
Emission, unlimited time.
KXL — KXL Broadcasters, Portland, Ore. — Granted authority to
install automatic frequency control.
WNEL — Juan Piza, San Juan, P. R. — Granted modification of
permit to make changes in equipment, and extension of
commencement date from 2-10-36 to 30 days after grant
and completion date from 8-10-36 to 120 days thereafter.
KGIR — KGIR, Inc., Butte, Mont. — Granted C. P. to move both
studio and transmitter locations and install vertical radiator
and install new equipment.
WGRC — North Side Broadcasting Corp., New Albany, Ind. —
Granted modification of C. P. for approval of transmitter
site at McCullough Pike, near Silver Creek, New Albany,
and studio at 10th and Spring St., New Albany; also ap¬
proval of vertical radiator.
WSAY — Brown Radio Service & Laboratory, Rochester, N. Y. —
Granted C. P. to reinstate C. P. which expired 6-1-36; also
extension of commencement date to date of approval and
completion date to 90 days thereafter.
WFLA-WSUN — Clearwater Chamber of Commerce & St. Peters¬
burg Chamber of Commerce, St. Petersburg, Fla. — Granted
modification of license to change the specified nighttime field
intensity at the designated monitoring station from 10 to
50 mv/m. Normally licensed 620 kc., 1 KW night, 5 KW
day, unlimited time, employing directional antenna system
nighttime.
W8XHG — Radio Air Service Corp., Portable-Mobile.— Granted
license to cover C. P. heretofore granted under the old Rules
and which are still effective until 8-1-36 for new relay
broadcast station on an experimental basis. Emissions A3
and Special; frequencies 31100, 34600, 37600 and 40600 kc.,
10 watts, unlimited.
SET FOR HEARING
NEW — Bayou Broadcasting Co., Houston, Tex. — Amended appli¬
cation for C. P. for a new station to operate on 1210 kc.,
100 watts, daytime only.
WGPC — Americus Broadcast Corp., Albany, Ga. — Application for
renewal of license, 1420 kc., 100 watts, unlimited time, for
period ending 1-1-37.
WGPC — Americus Broadcast Corp., Albany, Ga. — Application for
C. P. to move transmitter and studio locations and install
new equipment.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Application for
C. P. to make changes in equipment, install directional an¬
tenna for nighttime operation and move transmitter and
studio ; to change frequency from 1420 kc. to 1380 kc., and
increase night power from 100 watts to 500 watts, day power
from 250 watts to 500 watts.
KVL — KVL, Inc., Seattle, Wash. — Application for C. P. amended
to read: Authority to change frequency from 1370 kc. to
1070 kc.; to make changes in equipment; to delete night¬
time operation; and to increase day power from 100 watts
to 250 watts, subject to compliance with Rule 131.
NEW — The Courier-Post Publishing Co., Hannibal, Mo. — Applica¬
tion for C. P. for new station to operate on 1310 kc., 100
watts, unlimited time, site to be determined.
NEW — George P. Allison and Thomas R. Waters, Jr., d/b as
Skagit Broadcasting Assn., Whitney, Wash.- — Application for
C. P. for new station to operate on 1420 kc., 100 watts, un¬
limited time.
WDAE — Tampa Times Co., Tampa, Fla. — Application for modifi¬
cation of license to change frequency from 1220 kc. to
550 kc.
WCAP — Radio Industries Broadcast Co., Asbury Park, N. J. —
Application for modification of license to increase power
from 500 watts to 1 KW.
NEW — The Pottsville Broadcasting Co., Pottsville, Pa. — Applica¬
tion for C. P. for a new station to operate on 580 kc., 250
watts, daytime only.
NEW — C. F. Gaarenstroom, Fairmont, Minn. — Application for
C. P. for a new station to operate on 1420 kc., 100 watts
night, 250 watts day, unlimited time.
NEW — W. Hanes Lancaster and J. W. Birdwell, d/b as Johnson
City Broadcasting Co., Johnson City, Tenn. — Application
for C. P. for a new station to operate on 1200 kc., 100 watts
night, 250 watts day, unlimited time.
NEW — Clarence C. Dill, Washington, D. C. — Application for C. P.
for a new station at Bethesda, Md., to operate on 1390 kc.,
1 KW, unlimited time, and to use directional antenna both
day and night.
NEW — State Capitol Broadcasting Assn. (R. B. Anderson, pres.),
Austin, Tex. — Amended application for C. P. for a new
station at Austin, Tex., to operate on 1120 kc„ 500 watts
night, 1 KW day, specified hours, and to install a direc¬
tional antenna for nighttime operation only.
NEW — C. W. Snider, Wichita Falls, Tex. — Application for C. P.
amended to read: To erect a new station in Wichita Falls,
Tex., to operate on 1500 kc., 100 watts night, 250 watts
day, unlimited time, site and type of antenna to be deter¬
mined. Hearing with other applications pending.
NEW — John C. Looney, d/b as High Fidelity Broadcasting Serv¬
ice, Milton, Mass.— Application for C. P. for a new station
at Milton, Mass., to operate on 1570 kc., 1 KW, unlimited
time, using vertical wire radiator supported by wooden
tower.
NEW — Peninsula Newspapers, Inc., Palo Alto, Calif. — Amended
application for C. P. for a new station in Palo Alto to
operate on 1160 kc., 500 watts, daytime only, site and type
of antenna to be determined.
NEW — Valley Broadcasting Co., Cleveland, Ohio. — Application for
C. P. for new station in Cleveland to operate on 890 kc.,
1 KW, unlimited time, site and antenna to be determined.
NEW — Frank F. Airey, Twisp, Wash. — Application for C. P. for
a new station in Twisp, Wash., to operate on 1220 kc., 250
watts, daytime only.
NEW — H. A. Hamilton, Asheville, N. C. — Application for C. P.
for a new station in Asheville, N. C., to operate on 1200 kc.,
100 watts, unlimited time.
NEW — The Southwestern Broadcasting Co., La Junta, Colo. —
Application for C. P. for a new station in La Junta, Colo.,
to operate on 1370 kc., 100 watts, unlimited time.
KINY — Edwin A. Kraft, Juneau, Alaska. — Application for C. P.
to install new equipment, erect a vertical radiator, change
frequency from 1310 kc. to 1430 kc., increase power from
100 watts to 250 watts.
NEW — Valley Broadcasting Co., Youngstown, Ohio. — Application
for C. P. for a new station at Youngstown, Ohio, to operate
on 780 kc., 1 KW, unlimited time. Site and antenna design
to be determined.
WDAS — WDAS Broadcasting Station, Inc., Philadelphia, Pa. —
Application for C. P. to install new equipment and direc¬
tional antenna for both day and night; change frequency
from 1370 kc. to 1390 kc.; increase night power from 100
watts to 500 watts and day power from 250 watts to 1 KW.
NEW — A. Frank Katzentine, Miami Beach, Fla. — Application for
C. P. for new station at Miami Beach, Fla., to operate on
1500 kc., 100 watts, unlimited time, site to be determined.
APPLICATION DENIED
NEW — Mrs. E. M. Watkins, Eagle Pass, Tex. — Denied authority
to transmit programs relative to the Texas Centennial
Pageant from 8 to 12 p. m., EST, July 4, 1936, from a float
on the streets of Eagle Pass, Tex., through the facilities of
the A. T. & T. Co., and the Mexican Tel. & Tel. Co. to
Station XEPN, Piedras Negras, Coahuila, Mexico.
SPECIAL AUTHORIZATIONS
W6XAI — Pioneer Mercantile Co., Bakersfield, Calif. — Granted
special temporary authority to operate without an approved
frequency monitor for a period of 30 days. Will be held
responsible for deviations of more than 50 cycles from as¬
signed frequency even though permitted to operate without
approved frequency monitor.
1426
WOI — Iowa State College of Agri, & Mechanic Arts, Ames, Iowa-
Granted special temporary authority to remain silent July 4,
1936, in order to observe holiday.
WSFA — Montgomery Broadcasting Co., Inc., Montgomery, Ala.—
Granted extension of special temporary authority to operate
without an approved frequency monitor for a period be¬
ginning June 24, 1936, and ending in no event later than
July IS, 1936.
WRAW — Reading Broadcasting Co., Reading, Pa. — Granted special
temporary authority to operate station without antenna
ammeter for a period not to exceed ten days, provided, the
readings of the plate voltmeter and ammeter are maintained
at current values.
WNBF — Howitt-Wood Radio Co. Inc., Binghamton, N. Y. —
Granted special temporary authority to operate a 100 watt
portable test on the frequency of 1460 kc. for a period not
to exceed 30 days, during daylight hours from one hour
after sunrise until one hour before sunset in order to de¬
termine new transmitter site.
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
Station, Boise, Idaho — Granted extension of special tempo¬
rary authority to operate with temporary antenna for a
period beginning June 23, 1936, and ending in no event later
than July 22, 1936, pending action on application to install
new antenna system, move transmitter, install directional
antenna.
KARK — Arkansas Radio & Equipment Co., Little Rock, Ark. — -
Granted special temporary authority to operate a SO watt
portable test transmitter between the hours of 12:00 mid¬
night and 6:00 a. m., CST, in order to determine new trans¬
mitter site, for a period not to exceed 30 days.
W.HAZ — Rensselaer Polytechnic Institute, Troy, N. Y. — Granted
special temporary authority to remain silent on Monday
nights during the month of August and on the first Monday
night in September, due to summer vacation.
KGGF — Hugh J. Powell and Stanley Platz, d/b as Power and
Platz, Coffeyville, Kans. — Granted special temporary author¬
ity to operate from 7:15 to 9:15 p. m., CST, July 2, 7, 9,
14, 16, 21, 25, 28, and 30, 1936, and from 8:15 p. m. to
9:15 p. m., CST, July 1, 5, 15, 22 and 29, 1936, provided
station WNAD remains silent.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted spe¬
cial temporary authority to operate station without ap¬
proved frequency monitor for a period not to exceed three
days.
KFDY — South Dakota State College, Brookings, S. Dak. — Granted
special temporary authority to remain silent July 4, 1936,
in order to observe national holiday.
KFJR — Ashley C. Dixon — KFJR Inc., Portland, Ore. — Granted
special temporary authority to operate station without an
approved frequency monitor for a period not to exceed 30
days.
KPDN — Pampa Daily News, Inc., Pampa, Tex. — Granted special
temporary authority to operate from 2:00 a. m. to 3:00
a. m., CST, July 3, 17; August 3, 17; September 2, 17;
October 3, 17; and November 3 and 17, 1936, in order to
broadcast Canadian DX and Newark News DX programs.
WHDF — The Upper Michigan Broadcasting Co., Calumet, Mich. —
Granted special temporary authority to operate from 6:30
p. m. to 10:00 p. m., CST, July 11, 1936, in order to broad¬
cast special program.
KFNF — KFNF, Inc., Shenandoah, Iowa — Granted special tempo¬
rary authority to use the time assigned to station KUSD
(but not used by that station, KUSD has authority to re¬
main silent) for the period ending in no event later than
3:00 a. m., EST, September 1, 1936.
WPTF — WPTF Radio Co., Raleigh, N. C. — Granted special tem¬
porary authority to operate unlimited time July 4, 1936
only, in order to broadcast North Carolina Democratic pri¬
mary election returns.
WTAW — Agricultural and Mechanical College of Texas, College
Station, Tex. — Granted special temporary authority to op¬
erate from 11:00 a. m. to 11:25 a. m., CST, July 20, 21,
22, 23 and 24, 1936.
WHDF — The Upper Michigan Broadcasting Co., Calumet, Mich.—
Granted special temporary authority to operate from 6:30
p. m. to 8:30 p. m., CST, July 3, 1936, in order to broad¬
cast addresses from the Calumet Armory at the Upper Penin¬
sula Convention and reunion of Spanish American War
Veterans.
WOCL— A. E. Newton, Jamestown, N. Y. — Granted special tem¬
porary authority to remain silent July 4, 1935, in order to
observe legal holiday.
KGCA — Charles Walter Greenley, Decorah, Iowa — Granted special
temporary authority to remain silent from June 26, 1936,
to July 31, 1936.
WMBG — Havens and Martin, Inc., Richmond, Va. — Granted ex¬
tension of special temporary authority to operate from 5:30
p. m. to 7:00 p. m. EST, on Sundays, for the period be¬
ginning July 1, 1936, and ending in no event later than
July 3, 1936, provided WBBL remains silent) in order to
broadcast special programs
KTAT — KTAT Broadcast Co. Inc., Fort Worth, Tex. — Granted
special temporary authority to operate without a plate
voltmeter for a period of 10 days; provided that the read¬
ings of the plate ammeter and antenna ammeter are main¬
tained at current values.
KIUM— Lee Tracy, aboard Yacht “ADORE”— Granted special
temporary authority to operate ship transmitter WIFW lo¬
cated aboard Yacht ADORE as a broadcast pickup station
for the period beginning July 4, 1936, and ending in no
event later than August 2, 1936, to broadcast Trans-Pacific
yacht race to Hawaii.
RATIFICATIONS
The Commission ratified the following acts authorized on dates
shown:
WIEW — National Broadcasting Co. Inc., New York, N. Y. _
Granted temporary authority to operate broadcast pickup
station WIEW as licensed on June 10th aboard Airliner, in
connection with broadcast program flying time. (Action
taken 6-8.)
W2KKI — National Broadcasting Co. Inc., New York, N. Y. _
Granted authority to conduct tests in accordance with Rule
218. (Action taken 6-19.)
KUH — KFAB Broadcasting Co., Lincoln, Nebr.— Granted tem¬
porary authority to operate broadcast pickup station KIIH
as licensed from Airplane on June 20, to broadcast flight of
Roscoe Turner. (Action taken 6-19.)
KNEF— Radio Service Corp. of Utah, Salt Lake City, Utah-
Granted temporary authority to operate broadcast pickup
station KNEF as licensed June 21, to broadcast golf tourna¬
ment. (Action taken 6-19.)
KIKK S. H. Patterson, Colorado Springs, Colo.— Granted tem¬
porary authority to operate broadcast pickup station KIKK
as licensed June 26 to June 28, inclusive, to broadcast Pikes
Peak or Bust celebration. (Action taken 6-23.)
WOEG— General Electric Co., Schenectady, N. Y.— Granted tem¬
porary authority to operate broadcast pickup station as
licensed June 27 and 28 in Goodyear Blimp, broadcasting
fTTTTT^ Great Lakes Exposition Opening. (Action taken 6-23 )
WHDL— Radio Station WHDL, Olean, N. Y.— Granted temporary
authority to operate without approved frequency monitor
period not to exceed 3 days. (Action taken 6-23.)
WJAR— The Outlet Co., Providence, R. I.— Granted authority to
extend program test period for 30 days from June 27. (Ac¬
tion taken 6-24.)
EID Radio Station KID, Idaho Falls, Idaho — Granted extension
temporary authority to employ temporary antenna for 30
days pending action on application. (Action taken 6-24.)
WTBO— Associated Broadcasting Corp., Cumberland, Md.—
Granted special temporary authority to operate from 7:30
p. m., CST, until the conclusion of President Roosevelt’s ad¬
dress, on June 27, 1936, in order to broadcast this address.
(Action taken 6-22).
WSMK — WSMK, Inc., Dayton, Ohio — Granted special temporary
authority to operate from 9 p. m. to 10 p. m., EST, simul¬
taneously with station KQV, for the period beginning June
23, 1936, and continuing for the duration of the Demo¬
cratic National Convention. (Action taken 6-23.)
KOTN — Universal Broadcasting Corp., Pine Bluff, Ark. — Granted
special temporary authority to operate unlimited time for
the period beginning June 25, 1936, and ending in no event
later than 30 days thereafter, in order to broadcast special
Arkansas Centennial Programs each night. (Action taken
6-25.)
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
special temporary authority to operate simultaneously with
station KVOO from 8 p. m., CST, to the end of the Louis
Schmeling fight, June 19. (Action taken 6-19.)
1427
KABG — Ben S. McGlashan, Aboard Yacht EL PERRITO —
Granted special temporary authority to operate ship trans¬
mitter WDFL aboard Yacht EL PERRITO as a broadcast
pickup station to broadcast paddle boat races between Cata¬
lina Island and Santa Monica on June 27 and 28. (Action
taken 6-26.)
The Broadcast Division granted a petition filed by A. W. Mills,
requesting permission to amend his application for a new station
at Gallup, New Mexico by changing the frequencies from 1310 kc.
to 1500 kc. (Action taken 6-23.)
The Broadcast Division granted a petition filed by Lester E.
Cox, Thomas L. Evans and C. C. Payne (Station KCMO) request¬
ing that the Division reconsider its action of March 17, 1936, in
designating for hearing their application for C. P. and grant same
without a hearing. Said grant to be subject to the requirement
that the antenna be marked in accordance with Rule 13 Id.
WWSW — Walker & Downing Radio Corp., Pittsburgh, Pa. —
Granted extension program test period for 30 days from
June 13. (Action taken 6-29.)
KABF — James McClatchy Co., Sacramento, Calif. — Granted tem¬
porary authority to operate broadcast pickup station KABF
as licensed (rebroadcast KOH), July 4, to broadcast cele¬
bration from Rodeo grounds, Reno, Nev. (Action taken
6-29.)
W2XF-W2XK — National Broadcasting Co. Inc., New York, N. Y.
— Granted temporary authority to extend equipment tests
period ten days beginning June 27. (Action taken 6-26.)
WKBV — Knox Radio Corp., Richmond, Ind. — Granted temporary
authority to extend program test period for 30 days from
July S. (Action taken 6-26.)
KIIQ — KMTR Radio Corp., Los Angeles, Calif. — Granted tem¬
porary authority to operate broadcast pickup station KIIQ
as licensed July 3 and 4, to broadcast start Trans-Pacific
Yacht Race. (Action taken 6-26.)
W9XJI— The Reynolds Radio Co. Inc., Denver, Colo. — Granted
temporary authority to extend equipment tests for 10 days.
(Action taken 6-30.)
KNEF — Radio Service Corp., Salt Lake City, Utah — Granted tem¬
porary authority to operate broadcast pickup station KNEF
as licensed July 2 to 7, inclusive, to broadcast speed trials.
(Action taken 6-30.)
WNAD — University of Oklahoma, Norman, Okla. — Granted special
temporary authority to remain silent during month of July
in order to observe summer vacation. (Action taken 6-30.)
W3XEX — WTAR Radio Corp., Norfolk, Va.— Granted special
temporary authority to conduct service tests at its new loca¬
tion at the WTAR Transmitter Bldg., located 1.7 miles east
of Norfolk, Va., on the Beach Blvd., for a period not to
exceed 30 days, pending receipt and action on formal appli¬
cation for modification of C. P. and license to cover same.
(Action taken 6-30.)
WMFJ — W. Wright Esch, Daytona Beach, Fla.— Granted extension
special temporary authority to use RCA Victor, Type 100-E
transmitter pending completion of construction as author¬
ized by C. P. authorizing installation of such transmitter,
but for the period beginning 3 a. m., EST, July 1, 1936,
and ending in no event later than 30 days thereafter. (Ac¬
tion taken 6-30.)
WOEH — National Broadcasting Co. Inc., Aboard Douglas Air¬
plane, NC-223-Y — Granted special temporary authority to
operate broadcast pickup station WOEH on plane NC-223-Y
piloted by Howard Hughes and accompanied by NBC
operator announcer, as pickup station on frequencies in ad¬
dition to licensed frequencies to describe flight from Los
Angeles to Nome to Siberia and return to New York via
Nome and California for delivery to NBC national net¬
work., Operation for the period beginning June 30 and end¬
ing in no event later than July 29. Frequencies 1606, 2020,
2102, 2760, 4797.5, 6425, 8655, 12862.5 kc., 100 watts.
(Action taken 6-30.)
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted ex¬
tension temporary authority to operate 560 kc., with power
of 1 KW night, during the month of July 1936, pending
the filing of an action on license to cover C. P. for this
authority. (Action taken 6-30.)
KSTP — National Battery Broadcasting Co., St. Paul, Minn-
Granted special temporary authority to operate a 50 watt
portable test transmitter on frequency of 1460 kc., in the
vicinity of St. Paul, between hours of 12 midnight and
6 a. m., CST, for period not exceeding 30 days in order to
determine new transmitter site. (Action taken 6-30.)
KGFG — Oklahoma Broadcasting Co. Inc., Oklahoma City, Okla. —
Granted special temporary authority to operate station with¬
out an approved frequency monitor for a period not to
exceed 30 days. (Action taken 6-30.)
WSYB — Philip Weiss, tr/as Philip Weiss Music Co., Rutland, Vt. —
Granted special temporary authority to operate EDS time
instead of EST as licensed during the time that EDST is
recognized as official time in Rutland but for a period end¬
ing in no event later than 3 a. m., EST, January 1, 1937.
(Action taken 6-30.)
WOW — Woodmen of the World Life Ins. Assoc., Omaha, Nebr. —
Granted extension special temporary authority to operate
with power of 5 KW night, period beginning July 1, 1936,
and ending in no event later than 30 days thereafter. (Ac¬
tion taken 6-30.)
WDBO — Orlando Broadcasting Co. Inc., Orlando, Fla. — Granted
extension special temporary authority to operate additional
power of 750 watts night for the period beginning June 30,
1936 and ending in no event later than July 29, 1936. (Action
taken 6-30.)
KCMO — Lester E. Cox, Thomas L. Evans, and C. C. Payne, Kan¬
sas City, Mo. — Granted extension special temporary author¬
ity to use and operate the 100 watt transmitter formerly
used by station KGBX in Springfield, Mo., transmitter to
be located in Commerce Trust Bldg., in Kansas City, Mo.,
for period beginning 3 a. m., EST, July 1, 1936, and ending
in no event later than July 30, 1936. (Action taken 6-30.)
KGKB — East Texas Broadcasting Co., Tyler, Tex. — Granted spe¬
cial temporary authority to operate from 7:00 a. m. to 2
p. m. and 4 p. m. to 10 p. m., CST, during the month of
July, instead of hours now licensed pending compliance with
Rule 131. (Action taken 6-30.)
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Granted
extension special temporary authority to operate with power
of 50 watts from local sunset to 11 p. m., EST, Tuesdays,
Thursdays, Saturdays and Sundays, during the month of
July, 1936, pending action on application for modification
of license reauesting this authority. (Action taken 6-30.)
KEC-KEI-KKL — RCA Communications, Inc., Bolinas, Calif. —
Granted special temporary authority to operate point-to-
point telegraph stations KEC, KEI, KKL to communication
with broadcast pickup station WOEH aboard plane NC-
223-Y for the period beginning June 30 and ending in no
event later than July 29, for contact control service to facili¬
tate reception of program material by Pt. Neyes receiving
station for delivery to NBC network. Frequencies KEC
5265 kc., KEI 9490 kc., KKL 15475 kc., 40 KW. (Action
taken 6-30.)
WKP-WQP — RCA Communications, Inc., Rocky Point, N. Y. —
Granted special temporary authority to operate point-to-
point telegraph stations WKP and WQP to communicate
with broadcast pickup station WOEH aboard NC-223-Y
for the period beginning June 30 and ending in no event
later than July 29 for contact control service to facilitate
reception of program material by Riverhead, N. Y., receiv¬
ing station for delivery to NBC network. Frequencies for
WKP 6950 kc., WQP 13900 kc., 40 KW. (Action taken
6-30.)
WQDM — E. J. Regan and F. Arthur Bostwick, d/b as Regan &
Bostwick, St. Albans, Vt. — Granted extension special tem¬
porary authority to operate EDST instead of EST as
licensed during period that EDST is recognized as official
time in St. Albans, Vt., but for the period beginning 3 a. m.,
EST, July 1, 1936, and ending in no event later than 3
a. m., EST, Jan. 1, 1937. (Action taken 6-30.)
WADC — Allen T. Simmons, Village of Tallmadge, Ohio — Granted
modification of C. P. to change type of equipment. (Action
taken 6-30.)
The Broadcast Division granted the petition of Independence
Broadcasting Co. Inc. (Station WHAT), to intervene in the hear¬
ing on the application of Eastern States Broadcasting Corp., Bridge-
ton, N. J. (Docket No. 3012) and denied the answer in opposi¬
tion to petition by the Eastern States Broadcasting Corp. (Action
taken 6-26.)
The Broadcast Division granted the petition filed in behalf of
station KVOS requesting authority to participate in the proceedings
relative to the application of Gomer Thomas for a C. P., Belling¬
ham, Wash., and denied that part of their petition requesting that
said application be heard in consolidation with the pending KVOS
1428
application for renewal of license and the application of the Skagit
Broadcasting Association. The Broadcast Division also denied peti¬
tion seeking relief similar to that in connection with station KVOS
filed in behalf of the Whatcom County Democratic Central Com¬
mittee, the Laundry Workers Local Union No. 127, the Board of
County Commissioners of Whatcom County, the Bellingham Cen¬
tral Labor Council, the Culinary and Beverage Workers Union
No. S29, the General Teamsters Local Union No. 231 of Belling¬
ham, Wash., and the International Longshoremens’ Assoc. Local
38-98. (Action taken 6-26.)
The Broadcast Division denied the petition filed by WCBD, Inc.,
to correct Commission’s records and dismiss its application for
transfer of control (Docket No. 3895). (Action taken 6-26.)
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 189: Golden Empire Broadcasting Co., Sacra¬
mento, Calif. — Denied C. P. for new broadcast station to
operate on 1310 kc., 100 watts, unlimited time (site to be
determined). Chief Examiner Arnold sustained. Effective
Sept. 8, 1936.
NEW — Ex. Rep. No. 189: Royal Miller, Sacramento, Calif. —
Granted C. P. for new broadcast station to operate on
1310 kc., 100 watts, daytime (site to be determined) . Chief
Examiner Arnold sustained. Effective Sept. 8, 1936.
NEW — Ex. Rep. No. 191: F. W. Atkinson, Watsonville, Calif. —
Granted C. P. for new broadcast station to operate on
1310 kc., 250 watts, daytime (site to be determined). Ex¬
aminer Bramhall reversed. Order effective Aug. IS, 1936.
Ex. Rep. No. 216: Mason City Broadcast Co., Mason City, Iowa —
Denied C. P. for new broadcast station to operate on
1420 kc., 100 watts, unlimited time. Examiner M. H. Dal-
berg sustained.
Northern Iowa Broadcasting Co. Inc., Mason City, Iowa — Denied
C. P. for new broadcast station to operate on 1420 kc., 100
watts, unlimited time. Examiner M. H. Dalberg sustained?
Mason City Globe Gazette Co., Mason City, Iowa — Granted C. P.
for new broadcast station to operate on 1210 kc., 100 watts,
unlimited time. Examiner M. H. Dalberg sustained. Order
effective August 1, 1936.
NEW- — Ex. Rep. No. 218: Central Broadcasting Co., Eau Claire,
Wis. — Denied C. P. for new broadcast station to operate on
1050 kc., 250 watts, daytime (site to be determined, subject
to Commission’s approval). Examiner M. H. Dalberg re¬
versed. Order effective August 15, 1936.
WDBO — Ex. Rep. No. 224: Orlando Broadcasting Co. Inc., Orlando,
Fla. — Granted modification of license to increase power
from 250 watts to 1 KW, 580 kc., unlimited time, subject
to Rules 131 and 139. Examiner R. L. Walker sustained.
Order effective July 15, 1936.
WIRE — Ex. Rep. No. 226: Indianapolis Broadcasting Inc., In¬
dianapolis, Ind. — Granted C. P. to make changes in equip¬
ment and increase power from 500 watts night, 1 KW day to
1 KW night, 5 KW day, 1400 kc., unlimited time. Examiner
R. H. Hyde sustained. Order effective August 1, 1936.
NEW — Ex. Rep. No. 228: The Farmers & Bankers Life Ins. Co.,
Wichita, Kans. — Denied as in default C. P. for new broad¬
cast station to operate on 1210 kc., 100 watts, unlimited
time. Examiner R. H. Hyde sustained. Order effective
Julv 2, 1936.
NEW — Ex. Rep. No. 141: Joplin Broadcasting Co., Pittsburg,
Kans.-Denied C. P. for new broadcast station to operate
on 1200 kc., 100 watts, daytime. Examiner M. H. Dal¬
berg sustained. Order effective July 2, 1936.
Pittsburg Publishing Co., Pittsburg, Kans. — Denied C. P. for new
broadcast station to operate on 1500 kc., 100 watts, un¬
limited time. Examiner M. H. Dalberg reversed. Order
effective July 2, 1936.
Harold F. Foraker & Ray D. Luzadder, d/b as The Wichita Broad¬
casting Co., Wichita, Kans. — Denied C. P. for new broadcast
station to operate on 1500 kc., 100 watts, unlimited time.
Examiner M. H. Dalberg sustained. Order effective July 2,
1936.
NEW — Ex. Rep. No. 153: Roberts MacNab Co., Jamestown, N.
Dak. — Denied C. P. for new broadcast station to operate on
1310 kc., 100 watts, unlimited time. Examiner M. H. Dal¬
berg reversed. Order effective September 15, 1936.
WEAN — Ex. Rep. No. 205: The Shepard Broadcasting Service Inc.,
Providence, R. I. — Granted C. P. to install new equipment,
move transmitter and increase power from 500 watts to 1
KW, 780 kc., unlimited time, with directional antenna. Ex¬
aminer, J. P. Bramhall reversed. Order effective August 15,
1936.
KVSO — Ex. Rep. No. 206: The Ardmoreite Publishing Co., Inc.,
Ardmore, Okla. — Granted C. P. to make changes in equip¬
ment and to operate with 100 watts day and night. Ex¬
aminer R. H. Hyde reversed. Order effective September 22,
1936.
WFBR — Ex. Rep. No. 209: The Baltimore Radio Show, Inc.,
Baltimore, Md. — Granted modification of license to increase
power, 1 KW day, 500 watts night; 1270 kc., unlimited.
Examiner M. H. Dalberg sustained. Effective July 15, 1936.
WOOD — Kunsky-Trendle Broadcasting Co., Grand Rapids, Mich.
—Granted C. P. to change equipment, move transmitter
(site to be determined, subject to Commission’s approval),
and to increase power to 1 KW day, 500 watts night; 1270
kc., share time with WASH. Examiner M. H. Dalberg sus¬
tained. Effective July 15, 1936.
WASH — Kunsky-Trendle Broadcasting Co., Grand Rapids, Mich.
— Granted C. P. to change equipment, move transmitter
(site to be determined, subject to Commission’s approval),
and to increase power to 1 KW day, 500 watts night; 1270
kc., share time with WOOD. Examiner M. H. Dalberg sus¬
tained. Effective July 15, 1936.
NEW — Ex. Rep. No. 170: Ralph Perez Perry, Santurce, P. R. — •
Denied C. P. for new broadcast station to operate on 1340
kc., 250 watts, unlimited time. Examiner R. L. Walker
sustained. Order effective September 22, 1936.
KGCX — Ex. Rep. No. 164: E. E. Krebsbach, Wolf Point, Mont. —
Granted C. P. to move transmitter, to make changes in
equipment, change frequency from 1310 kc. to 1450 kc.,
increase power from 100 watts to 250 watts LS, change
hours of operation from specified hours to unlimited time.
Examiner J. P. Bramhall sustained. Order effective August
8, 1936.
NEW — Ex. Rep. No. 162: Bell Broadcasting Co., Temple, Tex. —
Granted C. P. for new broadcast station to operate on
1370 kc., 100 watts, daytime. Examiner M. H. Dalberg
sustained. Order effective July 15, 1936.
NEW — Ex. Rep. No. 158: Chicago Broadcasting Assn., Ltd., Chi¬
cago, Ill. — Denied C. P. for new broadcast station to operate
on 1500 kc., 100 watts, unlimited time. Examiner R. L.
Walker sustained. Order effective September 22, 1936.
NEW — Ex. Rep. No. 186: Advertiser Publishing Co., Ltd., Hono¬
lulu, T. H. — Denied C. P. for new relay broadcast station
to operate on 11850 and 15230 kc., 2 KW, six days per week
(Thursday to Tuesday, inclusive, iy2 hours per day). Ex¬
aminer R. L. Walker. Order effective September 22, 1936.
NEW — Ex. Rep. No. 204: Christina M. Jacobson, d/b as The
Valley Elec. Co., San Luis Obispo, Calif. — Granted C. P.
for new broadcast station to operate on 1200 kc., 250 watts,
daytime. Examiner G. H. Hill sustained. Order effective
September 29, 1936.
NEW — E. E. Long Piano Co., San Luis Obispo, Calif. — Denied
C. P. for new broadcast station to operate on 1200 kc., 100
watts, unlimited time. Examiner G. H. Hill sustained.
Order effective September 29, 1936.
NEW — Ex. Rep. No. 200: Merced Star Publishing Co., Merced,
Calif. — Granted C. P. for new broadcast station to operate
on 1040 kc., 250 watts, daytime. Examiner J. P. Bramhall
sustained. Order effective July '15, 1936.
KFJM — Ex. Rep. No. 199: University of North Dakota, Grand
Forks, N. Dak. — Granted C. P. to change equipment, change
frequency from 1370 kc. to 1410 kc., and increase power
from 100 watts to 1 KW day, 500 watts night, subject to
Rules 131, 132 and 139; unlimited time. Examiner R. L.
Walker reversed. Order effective September 29, 1936.
NEW — Ex. Rep. No. 196: V. H. Lake and H. E. Stanford, d/b
as L. & S. Broadcasting Co., Atlanta, Ga. — Denied C. P. for
new broadcast station to operate on 1210 kc., 100 watts,
daytime. Examiner R. H. Hyde sustained. Order effective
September 29, 1936.
WTFI — Ex. Rep. No. 195: Liberty Broadcasting Co., Atlanta, Ga.
— Granted C. P. to move transmitter and studio (site to be
determined), 1450 kc., 500 watts, unlimited time. Examiner
R. L. Walker sustained. Order effective September 8, 1936.
WCAO — Ex. Rep. No. 187: The Monumental Radio Co., Balti¬
more, Md. — Denied modification of license to increase power
from 500 watts, 1 KW LS, to 1 KW ; 600 kc., unlimited
time. Examiner M. H. Dalberg sustained. Order effective
September 15, 1936.
1429
WICC — Southern Connecticut Broadcasting Corp., Bridgeport,
Conn. — Denied modification of license to increase power
from 500 watts, 1 KW LS, to 1 KW ; 600 kc., specified
hours. Examiner M. H. Dalberg sustained. Order effective
September 15, 1936.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Granted
modification of license to increase power from 500 watts to
1 KW day, 500 watts night; 610 kc., unlimited time. Ex¬
aminer M. H. Dalberg reversed as to daytime power. Order
effective September 15, 1936.
KFRO — Ex. Rep. No. 161: Voice of Longview, Longview, Tex. —
Denied C. P. to change equipment; increase power from
100 watts day to 250 watts day, 100 watts night; change
hours from daytime to unlimited; change frequency from
1370 kc. to 1210 kc. Examiner G. H. Hill sustained. Order
effective August 1, 1936.
NEW — Oil Capital Broadcasting Assn., Kilgore, Tex. — Granted
C. P. for new broadcast station to operate on 1210 kc., 100
watts, unlimited time. Examiner G. H. Hill sustained.
Order effective August 1, 1936.
KWEA — International Broadcasting Corp., Shreveport, La. — De¬
nied renewal of license, 1210 kc., 100 watts, unlimited time.
Examiner G. H. Hill sustained. Order effective August 1,
1936.
NEW — Ex. Rep. No. 142: Black Hills Broadcast Co., Rapid City,
S. Dak. — Granted C. P. for new broadcast station to op¬
erate on 1370 kc., 100 watts, unlimited time. Examiner
J. P. Bramhall sustained. Order effective August 1, 1936.
NEW — Ex. Rep. No. 55: J. C. and E. W. Lee (Riverside Broad¬
casting Co.), Riverside, Calif. — Denied C. P. for new broad¬
cast station to operate on 820 kc., 250 watts, daytime.
Examiner R. L. Walker reversed. Order effective September
8, 1936.
NEW — Ex. Rep. No. 108: Robert K. Herbst, Fargo, N. Dak. —
Denied C. P. for new broadcast station to operate on 1310
kc., 100 watts, unlimited time, transmitter and studio sites
to be determined. Examiner P. W. Seward sustained.
Order effective September 15, 1936.
NEW — Ex. Rep. No. 129: F. N. Pierce, Taylor, Tex. — Denied C. P.
for new broadcast station to operate on 1310 kc., 100 watts,
daytime. Examiner R. L. Walker sustained. Order effec¬
tive September 8, 1936.
NEW — Eugene DeBogory, tr. as Tem-Bel Broadcasting Co.,
Temple, Tex. — Denied C. P. for new broadcast station to
operate on 1310 kc., 100 watts, daytime, site to be deter¬
mined. Examiner R. L. Walker reversed. Order effective
September 8, 1936.
MISCELLANEOUS
Pittsburg Broadcasting Co., Pittsburg, Kans. — Overruled petition
asking Commission to advance date for oral argument on
Examiner’s Report 1-220, not set for September 17, 1936.
WOWO — The Main Auto Supply Co., Fort Wayne, Ind. — Granted
control of license to Westinghouse Electric & Manufacturing
Co., Pittsburgh, Pa. Reconsidered action of May 1 and
May 21.
WGL — F. C. Zieg (Allen Wayne Co.), Fort Wayne, Ind. — Granted
application for assignment of license to Westinghouse Elec¬
tric & Manufacturing Co., Pittsburgh, Pa. Reconsidered
action of May 1 and May 21.
Lincoln Memorial University, Harrogate, Tenn. — Suspended effec¬
tive date of grant for C. P. to erect new broadcast station
pending outcome of hearing to be held on application be¬
cause of protest of Ted R. Woodard, applicant for a station
at Kingsport, Tenn.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Reconsidered and
granted application to increase daytime power to 5 KW
instead of 2l/2 KW. Station to use directional antenna day
and night.
WSB — Atlanta Journal Co., Atlanta, Ga. — Granted permission to
intervene at hearing of application of KMMJ for modifica¬
tion of license to operate on 740 kc. with 2 KW.
WACO — Central Texas Broadcasting Co., Inc., Waco, Tex. —
Granted permission to intervene at hearing of application
of John S. Braun for C. P. for a broadcast station at Waco
to operate on 1500 kc., 100 watts, daytime.
WTAR — WTAR Radio Corp., Norfolk, Va. — Approved spec, of
directional antenna system which operates so as to radiate
in the direction of CKSO, Canada, not to exceed 1.000 watts
and in the direction of WMC, Memphis, and WEAN, Provi¬
dence, R. I.
WWJ— Evening News Association, Inc., Detroit, Mich. — Granted
petition to intervene at hearing on application of Cadillac
Broadcasting Co. for new station at Dearborn, Mich., to
operate on frequency 1140 kc., 500 watts, daytime.
WROK — Rockford Broadcasters, Inc., Rockford, Ill. — Granted
modification of license in conformity with its action of
January 10, 1936, when authority was granted to change
hours of operation from sharing with WNBL to unlimited
time. Effective date July 1, 1936.
WEEI — Edison Electric Illuminating Co. of Boston, Boston, Mass.
— Dismissed at the request of applicant request for C. P.
to operate on 590 kc., 5 KW, unlimited time.
ORAL ARGUMENT
The Broadcast Division designated September 24th as the date
for oral argument in re Examiner’s Report 1-227, based on appli¬
cation of E. F. Peffer (KGDM), Stockton, Calif., to change time
of operation from daytime to limited time, i.e., to resume operation
after the dominant station on its channel (1100 kc.) suspends op¬
eration at night.
SET FOR HEARING— Continued
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
Amended application for C. P. to erect a new station at
Santa Barbara, Calif., to operate on 1220 kc., with 500
watts, unlimited time, site and type of antenna to be de¬
termined.
APPLICATIONS RECEIVED
First Zone
WATR — The WATR Company, Inc., Waterbury, Conn. — Con-
1190 struction permit to make changes in transmitting equip¬
ment; install a directional antenna for day and night use;
change frequency from 1190 kc. to 1290 kc. ; increase power
from 100 watts to 250 watts; change hours of operation
from limited time to unlimited time; and move transmitter
from 47 Grand Street, Waterbury, Conn., to Baldwin Ave¬
nue, Waterbury, Conn.
WOV — International Broadcasting Corp., New York, N. Y. — Con-
1130 struction permit to install new transmitter and vertical
antenna.
WLLH — Merrimac Broadcasting Co., Inc., Lowell, Mass. — Au-
1370 thority to install automatic frequency control.
WNBC — State Broadcasting Corp., New Britain, Conn. — Con-
1380 struction permit to make changes in equipment ; change
power from 250 watts to 250 watts, 1 KW day; install
directional antenna for day and night use; and change hours
of operation from daytime to unlimited time. Amended to
change name from William J. Sanders to State Broadcasting
Corp.
W2XBH — Radio Pictures, Inc., Long Island City, N. Y. — Modifi¬
cation of license to delete frequencies 2000-2100, 42000-
56000, 60000-86000 ke. and add 1614, 2398, 23100, 41000,
86000-400000 kc. and additional frequencies 1600, 2012-
2016 or 2276-2280, 41600 kc. for possible interference for
free facsimile transmission.
W2XF — National Broadcasting Co., Inc., New York, N. Y. —
License to cover changes in power to 12 KW, also request
for Al and A2 emission for test purposes.
W2XK — National Broadcasting Co., Inc., New York, N. Y. —
License to cover construction permit for increase in power
to 15 KW.
Second Zone
KDKA — Westinghouse Electric & Mfg. Co., Pittsburgh, Pa. — Con-
980 struction permit to install new equipment, new antenna, and
increase power from 50 KW to 500 KW.
WAVE — WAVE, Inc., Louisville, Ky. — Construction permit to
940 install a new transmitter.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. — Au-
1260 thority to determine operating power by direct measurement
of antenna.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. — License
1260 to cover construction permit (B2-P-838) as modified for
new equipment and increase in power.
WADC— Allen T. Simmons, Village of Tallmadge, Ohio. — Modifi-
1320 cation of construction permit (B2-P-689) for changes in
equipment and increase in power, requesting authority to
make changes in authorized equipment.
1430
WSMK — WSMK, Inc., Dayton, Ohio. — Modification of license to
1380 change hours of operation from simultaneous day-KQV,
specified hours night, to unlimited time, and increase power
from 200 watts to 250 watts.
NEW — Lenawee Broadcasting Co., Ferris Hodge, Edward Hodge,
1440 Leon C. Rogers, Clifford J. Hood, John S. Michener, Frank
Zimmerman, Karl M. Schneider, Adrian, Mich. — Construc¬
tion permit for a new station to be operated on 1440 kc.,
250 watts, daytime.
NEW — John E. Fetzer, Benton Harbor, Mich. — Construction per-
1500 mit for a new broadcasting station to be operated on 1500
kc., 100 watts, daytime. Amended to omit request to have
this application contingent upon WKBZ’s application for
1200 kc.
W3XEX — WTAR Radio Corporation, Norfolk, Va. — Modification
of construction permit to change transmitter site to Virginia
Beach Blvd., 1.7 miles from Norfolk, Va.
W3XEX — WTAR Radio Corporation, Norfolk, Va. — License to
cover above.
W3XES — Monumental Radio Co., Baltimore, Md.— License to
cover construction permit for a new general experimental
station.
NEW — The WGAR Broadcasting Co., Cleveland, Ohio, Portable-
Mobile. — Construction permit for a new relay station to be
operated on 31100, 34600, 37600, 40600 kc., 100 watts.
NEW — The WGAR Broadcasting Co., Cleveland, Ohio, Portable-
Mobile. — Construction permit for a new relay broadcast
station to be operated on 31100, 34600, 37C00, 40600 kc.,
35 watts.
NEW — The WGAR Broadcasting Co., Cleveland, Ohio, Portable-
Mobile. — Construction permit for a new relay broadcast
station to be operated on 31100, 34600, 37600, 40600 kc.,
3 watts.
NEW — The WGAR Broadcasting Co., Cleveland, Ohio, Portable-
Mobile. — Construction permit for a new relay broadcast
station to be operated on 31100, 34600, 37600, 40600 kc.,
35 watts.
NEW — The Crosley Radio Corp., Cincinnati, Ohio. — Construction
permit for a high frequency station to be operated on
31600, 35600, 38600, 41000 kc., 100 watts.
NEW — The Crosley Radio Corp., Cincinnati, Ohio. — Construction
permit for a high frequency station to be operated on
31600, 35600, 38600, 41000 kc., 100 watts.
NEW— Scranton Broadcasters, Inc., Portable-Mobile. — Construc¬
tion permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 5 watts.
NEW — Miami Valley Broadcasting Corp., Portable-Mobile. — Con¬
struction permit for a new relay station to be operated on
31100, 34600, 37600, 40600 kc., 40 watts.
NEW — Pittsburg Radio Supply House, Portable-Mobile. — Con¬
struction permit for a new relay station to be operated on
150000, 200000, 250000, 300000 kc., 5 watts.
Third Zone
WSM — The National Life & Accident Insurance Co., Nashville,
650 Tenn. — Construction permit to install a new transmitter
and increase power from 50 KW to 500 KW.
KTHS — Hot Springs Chamber of Commerce, Hot Springs, Ark. —
1040 Extension of special experimental authorization to change
frequency from 1040 kc. to 1060 kc., hours of operation
from share-KRLD to simultaneous WBAL from 6 a. m. to
LS daily, suspend until 8 p. m., and unlimited from then
until midnight, for period to 2-1-37.
WJBW — Charles C. Carlton, New Orleans, La. — Construction per-
1200 mit to install new transmitter; erect a vertical antenna;
change hours of operation from share-WBNO to unlimited
time; increase power from 100 watts to 100 watts, 250 watts
day; and move studio from 947 Howard Ave., New Orleans,
La., to Godchaux Building, 619 Canal Street, New Orleans,
La. Requests facilities of WBNO.
WAIM — Wilton E. Hall, Anderson, S. C. — Modification of con-
1200 struction permit (B3-P-737) to change hours of operation
from daytime to unlimited time, using 1 KW power; install
directional antenna for night use. Amended for approval of
transmitter site at Anderson College, Anderson, S. C.
NEW — Okmulgee Broadcasting Corp., Okmulgee, Okla. — Construc-
1210 tion permit for a new station to be operated on 1210 kc.,
100 watts, daytime.
NEW — William Jerome Vereen and Thomas Hoyt Wimpy, d/b
1240 as Southern Farmer Station, Moultrie, Ga. — Construction
permit for a new station to be operated on 1240 kc., 1 KW,
unlimited time. Amended to change name from Vereen-
Wimpy to William Jerome Vereen and Thomas Hoyt
Wimpy, d/b as Southern Farmer Station.
WDOD — WDOD Broadcasting Corp., Chattanooga, Tenn.— Au-
1280 thority to install automatic frequency control.
KRRV — Red River Valley Broadcasting Corp., Sherman, Tex.—
1310 Modification of construction permit (B3-P-999) to make
changes in equipment, for approval of transmitter site at
1910 South Crockett, iy2 miles from center of city, Sher¬
man, Tex., and to change requested studio site from 221 S.
Travis Avenue, Sherman, Tex., to 1910 South Crockett,
Sherman, Tex.
WAPO — W. A. Patterson, Chattanooga, Tenn. — Modification of
1420 construction permit (B3-P-588) for a new station, request¬
ing approval of antenna system and to make changes in
authorized equipment.
Fourth Zone
KWTO — Ozarks Broadcasting Co., Springfield, Mo. — Modification
580 of construction permit (B4-P-230) for new equipment and
increase in power, requesting extension of completion date
from 7-21-36 to 1-21-37.
KWTO— Ozarks Broadcasting Co., Springfield, Mo.— Modification
560 of construction permit (B4-P-230) as modified to install
new antenna, move transmitter from Beacon Hill Addition,
1008 McGee Street, Springfield, Mo., to Highway No. 13,
Springfield, Mo.
WILL — University of Illinois, Urbana, Ill. — Construction permit
890 to install directional antenna, move transmitter from 400
S. Wright St., Urbana, Ill., to south of Champaign, Ill.
KMA — May Seed & Nursery Co., Shenandoah, Iowa. — Modifica-
930 tion of construction permit (B4-P-764) for move of trans¬
mitter, changes in equipment, and change in hours of opera¬
tion, requesting further changes in equipment, unlimited
time and move of transmitter to 450 feet north of present
site.
NEW — C. W. Corkhill, Sioux City, Iowa. — Construction permit
1200 for a new station to be operated on 1200 kc., 100 watts, un¬
limited time.
KFH — Radio Station KFH Co., Wichita, Kans. — License to cover
1300 construction permit (B4-P-447) for changes in equipment
and increase in power.
KSCJ— Perkins Brothers Co. (The Sioux City Journal), Sioux
1330 City, Iowa. — License to cover construction permit (B4-P-
639) to install auxiliary equipment for emergency purposes
only, using 250 watts power.
WHBL — Press Publishing Co., Sheboygan, Wis. — License to cover
1410 construction permit (B4-P-945) for new equipment and
move of transmitter.
NEW— Charles Porter and Edward T. Eversole, Festus, Mo. —
1420 Construction permit for a new station to be operated on
1420 kc., 100 watts, limited time. Amended to change
hours of operation from limited time to unlimited time,
giving transmitter site as 100 Main Street, Festus, Mo.
KSTP — National Battery Broadcasting Co., St. Paul, Minn. — Con-
1460 struction permit to make changes in equipment ; move trans¬
mitter from Radio Center, Minnesota, to approximately 3
miles west of present site, Radio Center, Minnesota.
Amended to install vertical antenna, move transmitter to
approxmiately 4^2 miles northwest of St. Paul, Minn.
NEW — Howard A. Miller, Galesburg, Ill. — Construction permit
1500 for a new station to be operated on 1500 ks., 100 watts,
daytime, some nighttime. Amended to change hours of
operation from daytime to specified hours.
NEW — Northwestern Publishing Co., Danville, Ill. — Construction
1500 permit for a new station to be operated on 1500 kc., 250
watts, daytime.
NEW- — KFNF, Inc., Portable-Mobile. — Construction permit for a
new relay station to be operated on 31100, 34600, 37600,
40600 kc., 5 watts.
NEW — KFNF, Inc., Portable-Mobile. — License to cover above.
NEW — KFNF, Inc., Portable-Mobile. — Construction permit for a
new relay station to be operated on 31100, 34600, 37600,
40600 kc., 5 watts.
NEW— KFNF, Inc., Portable-Mobile.- — License to cover above.
NEW— K. E. Schonert, d/b as Schonert Radio Service, Harrisburg,
Ill. — Construction permit for a new high frequency station
to be operated on 31600, 35600, 38600, 41000, 90000,
103800, 142400, 400000 kc., 50 watts.
1431
NEW — K. E. Schonert, d/b as Schonert Radio Service, Harrisburg,
Ill. — Construction permit for a new high frequency broad¬
cast station to be operated on 25950 kc., 50 watts.
Fifth Zone
KFI — Earle C. Anthony, Inc., Los Angeles, Calif. — Construction
640 permit to install a new transmitter, directional antenna, and
increase power from 50 KW to 500 KW. Directional an¬
tenna to be used both day and night.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Author-
1210 ity to determine operating power by direct measurement of
antenna.
NEW — The News Press Publishing Co., Santa Barbara, Calif. — Con-
1220 struction permit for a new station to be operated on 1280
kc., 500 watts, unlimited time. Amended to change re¬
quested frequency from 1280 kc. to 1220 kc.
NEW — Curtis P. Ritchie, Trinidad, Colo. — Construction permit
1310 for a new broadcast station to be operated on 1310 kc., 100
watts, unlimited time.
KERN — The Bee Bakersfield Broadcasting Co., Bakersfield, Calif.
1370 — License to cover construction permit (B5-P-1112) to in¬
stall new equipment and antenna.
NEW — Jesse G. Bourus, Everett, Wash. — Construction permit for
1500 a new station to be operated on 1500 kc., 100 watts, 250
watts day, unlimited time. Amended to change power from
100 watts, 250 watts day, to 100 watts, make changes in
authorized equipment, and change in transmitter site at
Everett, Wash.
W6XKK — Don Lee Broadcasting System, San Francisco, Calif. —
License to cover construction permit for a new general ex¬
perimental station.
NEW — Intermountain Broadcasting Corp., Portable.— Construc¬
tion permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 2 watts.
1432
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * ***** WASHINGTON, D. 0.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright 1936. The National Association of Broadcasters
Vol. 4 - - No. 34
JULY 16, 1936
IN THIS ISSUE
Largest Convention in NAB History .
Proceedings Will Be Printed .
Officers and Directors for Ensuing Year. .
Directors .
Resolutions Adopted At NAB Convention
Court Broadcasting Cases .
Must File Broadcast Facility Rates .
Securities Act Registrations . . . .
New Station Recommended With Conditions ..
Recommendations on WALR .
Federal Trade Commission Action .
FTC Vacates Order . . . . .
Federal Communications Commission Action. .
Page
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LARGEST CONVENTION IN NAB HISTORY
The Fourteenth Annual Convention of the NAB, held at Chicago,
Illinois, July 5-8, was the largest convention in the history of the
Association. Total enrollment was 816, with a delegate list of 261.
the licensees of American broadcasting stations to cooperate with
the Federal Communications Commission.
Resolution No. 3
RESOLVED, That the National Association of Broadcasters
hereby expresses its sincere thanks to Mr. C. H. Sandage for his
contribution to the interest and value of the fourteenth annual
convention of this Association.
Resolution No. 4
RESOLVED, That the National Association of Broadcasters
hereby extends its hearty thanks to Mr. Glenn Snyder, Mr. Ralph
K. Atlass, Mr. H. Leslie Atlass, Mr. H. C. Crowell, Mr. Gene T.
Dyer, Mr. W. E. Hutchinson, Mr. Quin A. Ryan, Mr. F. A. San¬
ford, Mr. Niles Trammel, and Mr. Clinton R. White of the Local
Convention Committee, for their admirable services in making the
fourteenth annual convention of the National Association of Broad¬
casters an outstanding success.
Resolution No. 5
Proceedings Will Be Printed
The proceedings of the Fourteenth Annual Convention of the
NAB will be published in NAB Reports as soon as the official
transcript is available.
Officers and Directors for Ensuing Year
The following constitute the Officers and Directors of the Asso¬
ciation for the current year:
President — Charles W. Myers, KOIN-KALE, Portland, Oregon.
First Vice President — John Elmer, WCBM, Baltimore, Maryland.
Second Vice President — Gardner Cowles, Jr., KSO-KRNT, Des
Moines, Iowa.
Treasurer — -Harold Hough, WBAP, Fort Worth, Texas.
Managing Director — James W. Baldwin, Washington, D. C.
Directors
♦Edward A. Allen, WLVA, Lynchburg, Virginia.
Ralph R. Brunton, KJBS, San Francisco, California.
Harry C. Butcher, WJSV, Washington, D. C.
♦Arthur B. Church, KMBC, Kansas City, Missouri.
Edwin W. Craig, WSM, Nashville, Tennessee.
Wright W. Gedge, WMBC, Detroit, Michigan.
John J. Gillin, Jr., WOW, Omaha, Nebraska.
Alfred J. McCosker, WOR, Newark, New Jersey.
J. O. Maland, WHO, Des Moines, Iowa.
♦Eugene P. O’Fallon, KFEL, Denver, Colorado.
♦John Patt, WGAR, Cleveland, Ohio.
Gordon Persons, WSFA, Montgomery, Alabama.
♦Frank M. Russell, WRC-WMAL, Washington, D. C.
T. W. Symons, Jr., KFPY, Spokane, Washington.
*L. B. Wilson, WCKY, Covington, Kentucky.
* Elected this year.
RESOLUTIONS ADOPTED AT NAB
CONVENTION
(Note: Missing numbers represent Resolutions which failed of
adoption.)
Resolution No. 2
RESOLVED, That the National Association of Broadcasters
hereby extends its hearty thanks to the management of the Stevens
Hotel, and to Mr. Wm. P. Hennessy, Director of Conventions,
Chicago Association of Commerce, for their splendid service in
making the fourteenth annual convention of this Association an
outstanding success; also to the management of the Stevens Hotel,
and other hotels for their courtesies in accommodating so many of
our guests.
Resolution No. 6
RESOLVED, That the official acts of the Managing Director
since the thirteenth annual convention be and the same are hereby
approved.
Resolution No. 7
RESOLVED, That the Managing Director be and he hereby is
authorized to take such steps as may be necessary adequately to
represent the best interests of the broadcasting industry in the
forthcoming conferences preparatory to the Fourth Meeting of
the CCIR, scheduled for the spring of 1937, and in the meeting
of the CCIR.
Resolution No. 8
RESOLVED, That the President be' and he hereby is authorized
and directed to appoint a committee of three, one of whom shall be
the Managing Director, to determine the procedure for most effec¬
tive presentation of the United States position and proposals to
the next administrative international conference scheduled to be
held in Cairo early in 1938.
Resolution No. 9
RESOLVED, That the Managing Director be instructed to pro¬
ceed immediately with the creation of a bureau of agency recogni¬
tion in accordance with the plan approved and recommended by
the Commercial Committee, with the understanding that the said
bureau will be finally established only if the cost of its first year
of operation is underwritten by the stations proposing to avail
themselves of its services.
RESOLVED, That the National Association of Broadcasters
sincerely thanks the Hon. Judge Eugene Octave Sykes, Chairman
of the Broadcast Division, Federal Communications Commission,
for the information, practicability and usefulness of his message
delivered at its fourteenth annual convention, and that the member¬
ship believes that his message will serve as a potent aid in assisting
Resolution No. 10
RESOLVED, That the Board consider the continuance of the
establishment of one or more annual NAB awards for conspicuous
examples of public service rendered by American broadcasting
stations.
1433
Resolution No. 11
RESOLVED, That the NAB continue to cooperate with the
Federal Communications Commission and educational groups in
all practical efforts to study the application of education to radio.
Resolution No. 12
RESOLVED, That the NAB go on record as favoring the issu¬
ance of radio station licenses for a term of at least three years.
Resolution No. 14
RESOLVED, That the Committee on Radio Research for the
year 1936-1937 consist of seven members appointed by the presi¬
dent, so as to represent the following groups, in addition to the
Managing Director: (1) each major network contributing to the
project; (2) local stations; (3) regional stations; and (4) clear
channel or high powered stations.
BE IT FURTHER RESOLVED, That the committee be em¬
powered to select five of its membership to represent the broadcast¬
ing industry on the Joint Committee on Radio Research.
'RESOLVED, That this convention approve the activities of the
N. A. B. Radio Research Committee during the past year, and that
it commend the excellent progress made by the Joint Committee
on Radio Research sponsored by the National Association of Broad¬
casters, Association of National Advertisers, and American Asso¬
ciation of Advertising Agencies.
RESOLVED, That the Board of Directors of the National Asso¬
ciation of Broadcasters be empowered to devote for exploratory
purposes upon recommendation of the N. A. B. Radio Research
Committee the sum of $10,000.00, and that additional funds be
devoted to the project if necessary, and if, in the opinion of the
Board, this can be done without impairing the financial position
of the Association.
Resolution No. 16
RESOLVED, That the Board of Directors of the NAB be
directed and are instructed to carry on negotiations with copyright
owners to the end that a per-piece or measured service plan be
obtained.
Resolution No. 17
RESOLVED, That the Board of Directors of the NAB be
directed to solicit the cooperative assistance of the Radio Manu¬
facturers Association and all others interested in the advancement
of the radio art to foster a national educational campaign further¬
ing a public appreciation of radio. We recommend that if the
necessary cooperation and funds can be obtained that the directors
consider the employment of a competent person to direct this
program.
Resolution No. 18
RESOLVED, That the NAB approves of the action taken by the
Board of Directors in respect to the Bureau of Copyright and
urges the wholehearted support of all members of the program
which has been described in the reports made to the membership.
Resolution No. 19
WHEREAS, it is the sense of this convention that the interests
of those attending are becoming more and more varied and
WHEREAS, there has been an ever increasing tendency toward
the formation of smaller groups within the Association, and
WHEREAS, experience has proven this to be a healthy develop¬
ment, tending to interest a greater number of individuals in the
work of the Association, and
WHEREAS, the sales promotion problems of the industry and
individual stations both are becoming increasingly important
NOW THEREFORE BE IT RESOLVED, That
1. ' This Association favors the formation of a Sales Managers
Section of the NAB, to be affiliated with the Commercial Com¬
mittee. ,
2. This Association recommends to the Board of Directors their
approval of this project, and recommends that the Board authorize
the Managing Director to pay such incidental expenses as are
necessary for postage, printing and similar items out of funds of
the Association.
Resolution No. 20
BE IT RESOLVED, by the National Association of Broad¬
casters that an effort be made to entertain all ladies who attend
the conventions of the National Association of Broadcasters and
that during their attendance thereof an effort be made to entertain
these ladies who cannot be with us in the meetings held in the
interests of our problems.
Resolution No. 21-a
BE IT RESOLVED herewith that the National Association of
Broadcasters appreciates the interest in their problems; and
WHEREAS, one who is known to us as “Jim” Hughes of Rock
Island, Illinois, and who has attended many of our meetings in the
past, and who would be in Chicago today were it not for the fact
that health has presented a problem for him and that as he is now
in a Rock Island Sanitarium endeavoring to regain his health, we
trust that before another N. A. B. convention is held, Jim will be
able to be with us.
Resolution No. 21-b
WHEREAS, it has come to the attention of this Convention that
Edwin Spence of Baltimore, who has served the NAB for a number
of years in a very splendid manner as Chairman of the Convention
Committee, is ill
THEREFORE BE IT RESOLVED, That this Convention in
session sends greetings and wishes for a very speedy recovery.
Resolution No. 22
WHEREAS, as the Radio Broadcasting Industry continues to
grow in size it becomes more and more apparent that if broad¬
casters are to intelligently handle their state, regional and national
programs, they must be organized in State, Regional and National
Units.
Such organizations will also serve to keep the rank and file better
informed and give the numerous broadcasters more of a voice
in the affairs of the industry.
NOW THEREFORE BE IT RESOLVED, the Board of Direc¬
tors of the NAB be and are hereby instructed to bend every
effort during the year 1936-37 to foster such organizations as
chapters of the NAB.
COURT BROADCASTING CASES
Paul R. Heitmeyer has filed two appeals in the Court of Appeals
of the District of Columbia against decisions of the Federal Com¬
munications Commission in which the Commission refused to grant
him construction permits for stations to be located at Salt Lake
City, Utah, and Cheyenne, Wyo.
In the case of the Utah station the Examiner who heard the
case recommended that the Heitmeyer application be granted if
another grant then pending was denied. In the other case the
Examiner recommended that the application be granted. In both
cases the Broadcast Division of the Commission heard argument
and decided that the applications should not be granted. The
appeal is against these decisions.
Broadcasting Station KGBZ, York, Nebr., appealed in the same
court for an order granting a stay of execution of the Commission’s
order taking the station off the air. Should the stay be granted the
station could continue operation. The Commission has filed answer
urging that the Court uphold its decision taking the station off the
air.
The Eastland Company, the Palmer Broadcasting Syndicate,
Inc., and the Congress Square Hotel Company all filed appeals in
the Court of Appeals of the District of Columbia in connection
with the decision of the Federal Communications Commission of
May 1 granting an application of a construction permit to the
Portland Broadcasting System, Inc., for a station at Portland, Me.
MUST FILE BROADCAST FACILITY RATES
Chief Examiner Davis G. Arnold of the Federal Communications
Commission has handed down Report "No. III-9 dealing with a
request of the Rochester Telephone Corporation, Rochester, N. Y.,
taking up as a supplemental issue broadcast facilities.
In this case the telephone company contended that the Com¬
mission has only limited jurisdiction over it, while the Chief
Examiner contends in his report that it has full jurisdiction.
In connection with the case the Examiner found that “facilities
for broadcast purposes are furnished by the respondent.” In his
conclusions on this point the Examiner states that “pursuant to
Section 202(b) (of the Communications Act) the respondent is
required to file with the Commission their schedules and charges in
connection with this type of service.”
1434
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
American Coach & Body Company, Cleveland, Ohio. (2-2291,
Form A-2)
Cumberland Basin Mines, Inc., Denver, Colo. (2-2293, Form
A-l)
Consolidated Retail Stores, St. Louis, Mo. (2-229S, Form A-2)
Richman Brothers Company, Cleveland, Ohio. (2-2296, Form
A-2)
Lord Craven Hotel Corporation, New Bern, N. C. (2-2297,
A-l)
Gannett Company, Inc., Rochester, N. Y. (2-2298, Form A-2)
Northwest Publications, Inc., St. Paul, Minn. (2-2299, Form
A-2)
U. S. Radiator Corp. Committee, Detroit, Mich. (2-2300, Form
D-l)
Abasand Oils, Ltd., Toronto, Canada. (2-2301, Form A-l)
Dejay Stores, Inc., New York City. (2-2302, Form A-2)
Gardner-Denver Company, Quincy, Ill. (2-2303, Form A-2)
North American Car Corp., Chicago, Ill. (2-2304, Form A-2)
Reiter-Foster Oil Corp., Tulsa, Okla. (2-230S, Form A-l)
Hudson Motor Car Co., Detroit, Mich. (2-2306, Form A-2)
First Reinsurance Co. of Hartford, Hartford, Conn. (2-2307,
Form A-2)
V. J. Emore Stores, Inc., Clanton, Ala. (2-2308, Form A-l)
Public Service Electric & Gas Co., Newark, N. J. (2-2309,
Form A-2)
Kansas Pipe Line & Gas Co., Topeka, Kans. (2-2310, Form A-l)
John R. Wright Corp., Detroit, Mich. (2-2311, Form A-l)
Akron Brass Mfg. Company, Wooster, Ohio. (2-2312, Form
A-2)
Interstate Debenture Corp., Newark, N. J. (2-2313, Form E-l)
Standard Oil Company, New York City. (2-2314, Form A-2)
Soundview Pulp Company, San Francisco, Calif. (2-231S, Form
A-2)
North Bangor Slate Co., Bangor, Pa. (2-2318, Form A-2)
Stearman-Hammond Aircraft Corp., San Francisco, Calif. (2-
2319, Form A-l)
San Antonio Milam Building, Inc., San Antonio, Tex. (2-2322,
Form F-l)
Ryerson & Haynes, Inc., Jackson, Mich. (2-2323, Form A-2)
Petersen Engine Company, Inc., Brooklyn, N. Y. (2-2324, Form
A-l)
NEW STATION RECOMMENDED WITH
CONDITIONS
The Community Broadcasting Company filed an application
with the Federal Communications Commission asking a construc¬
tion permit for a new broadcasting station at Toledo, Ohio, to use
1200 kilocycles, 100 watts power, and daytime operation.
Examiner Ralph L. Walker, in Report No. 1-254, recommended
that the application be granted “in the event the applications of
WALR and the Continental Radio Company are denied * * *
subject to the later approval by the Commission of the exact trans¬
mitter site.” The Examiner found if the other pending applica¬
tions referred to above are denied, that “the granting of the pending
application will not result in objectionable interference.”
RECOMMENDATIONS ON WALR
Broadcasting Station WALR, Zanesville, Ohio, applied to the
Federal Communications Commission to move to Toledo, Ohio.
The station operates with 100 watts power, unlimited time, on
1210 kilocycles.
Examiner Ralph L. Walker, in Report No. 1-253, recommends
that “the Commission either revoke its order of September 25,
1934, granting the application here involved, or, in the alternative,
that the Commission modify said order to permit the operation of
Station WALR, at Toledo, Ohio, during daylight hours only.”
The Examiner states that the operation of WALR at Toledo
“will result in serious and objectionable interference which will
substantially reduce the present good service area of Station
WJIM, at Lansing, Mich., and listeners in a substantial area which
now receives a satisfactory signal from WJIM will be deprived of
that service.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2869. Belmont Laboratories, Inc., 4430 Chestnut St.,
Philadelphia, is charged in a complaint with unfair methods of
competition in the sale of “Mazon” and “Mazon Soap,” prepara¬
tions offered as treatments for skin diseases.
In magazines, medical journals and in other forms of advertising,
the respondent corporation allegedly makes representations to the
effect that the two preparations are prescribed by prominent physi¬
cians and afford quick and permanent elimination of eczema, ring
worm, athlete’s foot, and many other skin disorders; that “Mazon”
is the original treatment of its character for the skin diseases speci¬
fied in the respondent’s advertising, and that it has no substitute.
These representations are untrue, according to the complaint,
which alleges that the ingredients in “Mazon” have been known to
the medical profession for many years, and that there are a num¬
ber of proprietary preparations for skin diseases similar to “Mazon.”
Nos. 2872-2873. Two companies and their officers are named
respondents in separate complaints charging unfair methods of
competition in connection with the sale of field and garden seed.
In one complaint, the respondents are American Field Seed
Co., 1929 West 43rd St., Chicago, also trading as Sun-Field Seed
Service and Standard Seed Co., and its officers, Ernest E.
Elder, president, and J. F. Sinn, vice-president and treasurer.
These respondents deal only in field seed.
Sinn also is named a respondent in the second complaint, as are
the Berry Seed Co., Clarinda, Iowa, of which he is president,
and the company’s other officers, Charles M. Kelly, vice-president,
Joseph F. Faassen, secretary, and Charles S. McKee, treasurer.
Both field and garden seed are sold by these respondents.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 1707. Edna Wallace Hopper, Inc., 4316 North Kil¬
patrick Ave., Chicago, engaged in the compounding or manu¬
facture of cosmetics and toilet preparations, agrees to discontinue
advertising that its “Special Restorative Cream” will restore the
oils of youth to the skin or supply the skin with natural oils, and
will keep the skin young and free of wrinkles or age lines. Other
representations to be abandoned are that the preparation is the
discovery of a great French scientist or of a famous beauty expert,
and that the respondent company’s “White Youth Pack (day)” is
of French origin.
No. 1708. The Parmeda Company, Bowling Green, Va.,
stipulates that in the sale of “Parmeda,” which it manufactures,
it will cease the use in advertising matter of the phrase, “Hair
Tonic and Restorative,” and of representations that its preparation
“restores the natural color to gray and fading hair,” or that it will
“bring back the color of the hair to a natural shade.” According
to the stipulation, the product does not accomplish these things.
The respondent corporation also will desist from the assertion that
its product will stimulate hair growth or promote hair and scalp
health and will stop falling hair, and that its product is not a dye.
No. 1709. Scientific Laboratories of America, 2567 38th
Ave., Oakland, Calif., manufacturer of household remedies, agrees
to discontinue use of the words “Scientific” and “Laboratories” as
part of its trade name or in any way which may imply that it
owns or operates a scientific laboratory, when this is not true.
Under the stipulation, its remedies wi(l no longer be advertised as
prepared in one of the world’s largest laboratories, nor will it be
represented that the company spent many years in research before
offering its remedies to the public; or that it has a staff of expert
chemists. The respondent company agrees not to use in advertising
matter the word “Doctor” or the abbreviation “Dr.” to imply that
the product so labeled has been compounded in accordance with
the prescription of a doctor and contains special scientific features,
when this is not a fact.
No. 1710. Whitney Payne Corporation, 152 West 42nd St.,
New York City, manufacturer and distributor of medical prep¬
arations under the trade names “Pheno-Cosan” and “Pheno-Cosan
Medicated Soap,” agrees to cease alleging in advertising matter
that these preparations will cure or permanently relieve eczema,
psoriasis, or general skin diseases, and will discontinue use of all
representations not correctly describing its products and the results
which can be obtained by their use.
No. 1711. Frank J. Speckert, 105 Cherry St., Seattle,
Wash., selling “Leyden’s Hair Tonic,” agrees to stop representing
the product in a manner implying that it will impart nourishment
to the hair roots, thereby bringing gray or faded hair back to its
natural color, or that through its use the product will restore the
natural or original color to gray or faded hair, or that it will
1435
impart color to hair except in the sense that it may dye it. The
respondent stipulates that it will cease advertising that the prepara¬
tion is capable of bringing the scalp to a healthy condition or of
removing dandruff completely, stopping falling hair and starting it
to grow, stopping itching scalp, or restoring new life to the hair.
Speckert also agrees to desist from employing the phrase “It is
good for children to use as well as adults,” and of the assertion,
“It is positively harmless.”
No. 1713. Saks of Siloam Company, 1112 Porter Building,
Portland, Ore., is engaged in packing mineral salts obtained from
the waters of Soap Lake, Wash. According to its stipulation, the
company’s product, though laxative and diuretic in its action, and
of possible use as a cleansing agent, was not properly designated,
either directly or by implication, as having curative, remedial or
beneficial properties other than those belonging to a laxative,
diuretic or cleansing agent. The respondent agreed to cease and
desist from representations that its product had curative or bene¬
ficial properties other than Jhose mentioned, and from use of the
statement, “This Water Analyzed by the United States Govern¬
ment,” or any other assertions implying that the United States
Government actually made an analysis of the water of Soap Lake,
as set forth in the company’s advertising, when this was not true.
No. 1714. Maud J. Taylor, 184 Summer St., Boston, trad¬
ing as M. J. Taylor Company, engaged in printing and engraving
social and business stationery, will discontinue using in advertising
matter the words “engraving,” “engraved” and “engravers” as
descriptive of the respondent’s products, which are not, in fact,
made in accordance with the process of producing an impression
on paper from inked plates containing inscriptions which have
been carved, cut or stamped, according to the process of engraving
or embossing. The respondent also will not use the word “engrave”
alone or in connection with the word “semitone,” implying that
her products are manufactured by the well-known engraving or
embossing process, when this is not true.
No. 1715. Nu-Tone Laboratories, Inc., 115 South Market
St., Chicago, manufacturing electrical, radio and household special¬
ties, will cease advertising to the effect that its “Nu-Tone Aerial
Eliminator,” when used according to directions, will result in less
static, in a perfect tone, perfect selectivity, or greater distance,
or that its use will reduce static and noise or eliminate all outside
wires, in the sense that it will obviate the use of an outside aerial.
In soliciting the sale of its “Line Noise Eliminator,” the respondent
company agrees to desist from representations to the effect that it
will eliminate line noise or reduce static and noise, when used on
a radio set.
No. 1716. Charles E. Berry, Jr., 1826 20th St., Washing¬
ton, D. C., trading as Best Products Company, agrees that in
selling combination cigarette lighters and cases he will cease and
desist from the use in advertising matter of any pictorial representa¬
tions imitating the “Ronson” combination lighter and case manu¬
factured and sold by Art Metal Works, Inc., Newark, N. J., and
which is priced at $7.50.
According to the stipulation, Berry obtained a quantity of
combination lighters and cases, so made as to imitate in design
and appearance the “Ronson” product. In his advertisements
carrying a picture of a lighter and case simulating the “Ronson
type, Berrv is said to have offered it for sale at $1, thereby imply¬
ing that purchasers could obtain the “Ronson” type product at a
greatly reduced price.
No. 1717. Lew Bradley, Room 505, Tabor Building, Den¬
ver, Colo., operates a correspondence school under the name of
Modern Institute of Denver. In selling courses of instruction, he
agrees to discontinue the use in advertising matter of exaggerated
and inaccurate representations concerning the probability of stu¬
dents obtaining Civil Service positions, and stop misleading asser¬
tions as to the number of Civil Service employees being appointed
and the probability of examinations being held. Misleading rep¬
resentations to the effect that the Government is in need of Civil
Service employees and that the positions are permanent, steady,
and well-paying are barred, under the stipulation.
The respondent also stipulates that he will neither advertise nor
enter into any so-called agreements to refund tuition fees to his
students who fail to obtain positions, unless he specifies the time
within which such refunds are to be made.
No. 1718. Graham-Brown Shoe Company, Main anil
Austin Sts., Dallas, Tex., stipulates that in the sale of shoes it
will stop using the word “Doctor” or the abbreviation “Dr.” with
the name “Austin” as a brand for its shoes which are not manu¬
factured under the supervision of a doctor and do not contain
orthopedic features resulting from medical advice and service. The
respondent company also will cease use of the title “Doctor” or its
abbreviation, either alone or with other words, implying that its
shoes are made in accordance with the design of a doctor and con¬
tain orthopedic features, when such is not the case.
No. 1719. Ben Greenberg & Brother, Inc., 2911 South La¬
Salle St., Chicago, agrees that in the sale of pillows it will desist
from use of the word “kapok,” alone or with the word “processed,”
or with any other words as a brand name for pillows not filled
with kapok, or otherwise imply that the filling of such products is
composed of kapok, when such is not the fact. Kapok is the silky
fiber obtained from the seed of the Javanese kapok tree, and, after
being subjected to a certain blowing process, is said to be a superior
filling for pillows and mattresses.
No. 1720. Annette Lanzette, Inc., 30 East Randolph St.,
Chicago, trading as “Lanzette Laboratories,” in the sale of a
pumice stone device for removing superfluous hair will cease
representations to the effect that the use of depilatories may cause
erosion of the skin or blood poisoning; that, either shaving or the
use of depilatories makes hair return thicker and darker, or that
the use of waxes enlarges pores and increases hair growth. The
respondent corporation also will stop advertising, directly or by
inference, that the medical profession generally recognizes the
pumice stone method to be probably the best known method of
removing hair, when such is not the fact.
No. 2214. Unauthorized use of several well-known trade names,
such as Edison, Marconi, Majestic and others, in the sale of radio
sets, tubes and appliances, is prohibited under an order to cease
and desist issued against six manufacturing and sales companies
operating in New York, Boston and other cities.
The respondents are: Marconi Radio Corporation, Edison
Radio Stores, Inc., both of 23 East 21st Street, New York City;
Stuart Radio Corporation, 58 Stuart Street, Boston; Joseph
E., S. A. and A. M. Frank and G. Blumenthal, trading under
the names Perfection Radio Stores, Harvard Radio Stores and
Post Radio Company, formerly operating in various communi¬
ties of Massachusetts, New York, Pennsylvania, Maryland,
and in Washington, D. C.
These respondents are ordered to cease representing through ad¬
vertisements, trade promotion literature and through the use of
corporation, company or trade names, that the radio sets, tubes
and appliances manufactured or assembled for, or by, and sold by
them, are radio sets, tubes and appliances made, sold, sponsored or
licensed by Thomas A. Edison, Thomas A. Edison, Inc., American
Telephone & Telegraph Company, Western Electric Company,
Marconi Wireless Telegraph Company of America, Radio Corpora¬
tion of America, Victor Talking Machine Company, Brunswick-
Balke-Collender Company, Warner Brothers Pictures, Inc., and its
subsidiary, Brunswick Radio Corporation, Grigsby-Grunow Com¬
pany, and General Electric Company.
The order also bars representation through use of the names
“Edison,” “Edison-Bell,” “Edison Radio Stores, Inc.,” “Edison
International,” “Bell,” “Marconi,” “Marconi Radio Corporation,”
“Victor,” “Brunswick,” “Bronswick,” “Majestic,” “Radio Cor¬
poration of America,” “General Electric Company,” or the letters
“R. C. A.,” “R. S. A.,” “R. C. I.,” “G. E.” or “E. B„” or through
picturization of a bell, alone or in connection with other words or
symbols, that the radio sets, tubes, and appliances made or as¬
sembled for or by and sold by the respondents are made, assembled,
approved or licensed by the Edison Company, American Telephone
& Telegraph Company, and the other large, well-known companies
above designated.
A third provision of the order prohibits the use on radio sets,
tubes, and appliances sold by the respondent companies, of escut¬
cheon plates, brands, or other marks bearing the names “Edison,”
“Edison Radio Stores, Inc.,” “Edison International,” “Edison-
Bell,” “Bell,” or the representation of a bell, and various other
names and initials of large and well-known companies so as to
imply that these products are made, assembled, sold or licensed by
these prominent manufacturers.
Findings are that Joseph E. Frank controls the business of the
several respondent corporations and companies, and extended his
business activities throughout the United States and into foreign
countries, attempting to register with the Spanish Government
the names “Edison” and “Marconi” as trade marks or trade names
for radio and television sets and related products. This registra¬
tion was denied by the Spanish Government upon objection of
Thomas A. Edison, Inc., and the Marconi Wireless Telegraph
Company of America, according to findings.
No. 2371. Morgen Distilling Corporation, 107 Hudson St.,
Jersey City, N. J., has been ordered to discontinue representing
through use of the word “Distilling” in its corporate name, on
labels, in advertising matter, or in any other manner that it is a
1436
distiller, that it manufactures by a process of distillation the prod¬
ucts it sells, or that it owns or operates a place where its spirituous
beverages are distilled, until it actually owns or operates such a
place.
Nos. 2423-2424-2432-2442-2449. Selling whiskies, gins and
other spirituous beverages, five corporations have been ordered to
discontinue representing they are distillers until such is a fact.
The orders to cease and desist direct that the respondent cor¬
porations discontinue representing through use of the words "Dis¬
tilling,” “Distillery,” or “Distillers” in their corporate names, on
stationery, labels, or in any other manner that they are distillers
of spirituous beverages, that such beverages are manufactured by
them through the process of distillation, or that they own or con¬
trol places where such beverages are manufactured by distillation
unless that be true.
The respondent corporations are International Distilling &
Distributing Corporation, Washington, D. C. ; Sunrise Dis¬
tilling Corporation, Chicago; LaSalle Distillery, Inc., Stam¬
ford, Conn.; Raritan Distillers Corporation, Perth Amboy,
N. J., and United Distillers Corporation, Providence, R. I.
No. 2428. Esbeco Distilling Corporation, 25 Jefferson St.,
Stamford, Conn., has been ordered to cease representing through
use of the word “Distilling” in its corporate name that it is a
distiller of liquors, until such time as it shall actually own, operate
or control a distillery.
No. 2430. An order has been issued prohibiting unfair competi¬
tion on the part of Finishing Products Company, Inc., 3725
East 13th Street, Indianapolis, in the sale of lacquers, stains,
fillers, and other wood-finishing products.
Practicing what is known as commercial bribery, the respondent
company, according to the Commission’s findings in the case, at¬
tempted to promote the sale of its products by secretly paying to
superintendents or finishing foremen in furniture factories sums
of money to induce them to influence their employers to purchase
the respondent’s products in preference to those of competitors.
Findings are that through the medium of Walter J. Murray, its
president, and Frank A. Metzger, its former vice-president, and
David G. Small, its salesman, respectively, the respondent company
secretly gave money or gratuities to superintendents and finishing
foremen employed by customers in Sheboygan, Wis., Stevens Point,
Wis., Sheboygan Falls, Wis., Appleton, Wis., Piqua, O., and Zee-
land, Mich.
The order to cease and desist prohibits the respondent company,
in the sale of its products, from giving and offering to give, directly
or indirectly to superintendents, finishing foremen or other em¬
ployees of furniture factories and other purchasers of furniture
finishing products, without the knowledge and consent of their
employers, money or gratuities to induce such employees to recom¬
mend the respondent company’s products to their employers, or to
induce such employers to purchase such products in preference to
or to the exclusion of competing products.
No. 2438. Old Rose Distilling Co., 222 West Madison St.,
Chicago, has been ordered to cease and desist representing through
use of the word “distilling” in its trade name that it is a distiller of
liquors, owning, operating or controlling a distillery, unless and
until it shall own, operate or control such a plant.
Nos. 2443-2678. Potomac Distilling Corporation, 2700 Wil-
marco Ave., Baltimore, Md., and Old Colonel Distillery, Inc.,
427 West Main St., Louisville, Ky., have been ordered to discon¬
tinue unfair methods of competition by improper use of the words
“Distilling” or “Distillery” in their corporate names.
Each company is directed to stop representing through use of
the word “Distilling” or “Distillery,” respectively, in its corporate
name, on stationery and in advertising matter, that it is a distiller
of liquors; that these liquors or other spirituous beverages are
manufactured by it through the process of distillation, or that it
owns, operates or controls a place of business in which these
products are distilled, unless and until it shall actually own, operate
or control such a distillery.
No. 2497. Henry L. Hughes, Inc., and its subsidiary, Auto-
graf Toothbrush Company, 300 Madison Avenue, New York
City, have been ordered to cease and desist from making mislead¬
ing representations in the interstate sale of their product.
The order directs that the respondents cease representing through
the medium of labeling, stamping or imprinting on the handles of
toothbrushes sold by them, that such articles are made wholly in
the United States, when in fact the handles have been imported
from a foreign country, the name of which has been obliterated or
obscured.
The order also directs the respondents to discontinue represent¬
ing by imprinting on boxes, cartons or other packages containing
their toothbrushes, the words “Made in U. S. A.,” implying that
these articles are manufactured in the United States, when in fact
the handles have been imported from abroad.
No. 2553. Gus Martel, New Fairfield, Conn., has been
ordered to discontinue false representations in connection with the
sale of correspondence courses of instruction in physical culture
and boxing.
Martel is prohibited, among other things, from representing in
advertising matter or in any other manner that his courses can be
immediately mastered by amateur or professional fighters, and by
non-amateurs or non-professionals in a relatively short period of
time.
No. 2597. Sanderson Adjustment Bureau, Inc., 1042 Citi¬
zens and Southern National Bank building, Atlanta, Ga., has been
ordered to discontinue unfair methods of competition in the sale
of collection systems for the use of merchants, professional men,
and others.
The order requires the respondent corporation to cease represent¬
ing in advertising that it is an old established concern selling col¬
lection systems for which there is a great demand, and that reliable
men with managerial ability and sufficient capital to invest should
earn from $500 to $1500 a month selling such systems, while the
minimum earnings for agents should be $50 a week.
No. 2658. Prohibiting unfair competition in the sale of leather
luggage, an order has been issued to cease and desist against
Meyer Brodie and Morris White, trading as M & M Bag and
Suit Case Co., 15 West 20th Street, New York City.
The order directs cessation of the practice of labeling or stamp¬
ing luggage made in whole or in part from split leather as “War¬
ranted Walrus Grained Leather” without at the same time and in
connection therewith, clearly stating that split leather has been
used in the manufacture of such luggage.
No. 2683. An order has been issued against Dr. S. B. Heininger
directing him to discontinue unfair methods of competition in offer¬
ing for sale and selling dental plates manufactured in his laboratory
at 440 Huron St., Chicago.
Dr. Heininger’s method of business, according to findings, is to
have laymen who reply to his advertisements, take impressions of
their own teeth and gums with wax materials he sends them, and,
upon return of the impressions, make from them the dental plates
he sells to the purchasers.
Under the order, Dr. Heininger is required to cease representing
that purchasers of his artificial teeth can make as correct impres¬
sions of their own teeth and gums as members of the dental pro¬
fession; that from such impressions he can make dentures that will
give full power of mastication and look and feel better than the
wearer’s natural teeth, and that purchasers can obtain from him
artificial teeth that fit as well and are as comfortable as those
made in the usual manner by members of the dental profession.
No. 2759. Under an order to cease and desist, the Hollywood
Mask, Inc., 105 West Monroe St., Chicago, is prohibited from
misrepresenting in advertising matter the nature and effect of the
cosmetic preparations it sells in interstate commerce.
The order directs the respondent corporation to discontinue rep¬
resenting that any of its cosmetics serve as a food for the skin,
tissues or muscles, or have a beneficial effect in nourishing, filling
out and tightening the lines of broken tissues; that they eliminate
dryness, banish wrinkles and remove blackheads, and that they
penetrate the skin beyond the epiderpiis, so as to produce any
beneficial results on the underlying muscles, tissues, or layers of skin.
No. 2831. Buno Company, Inc., 507 Green St., Philadelphia,
has been ordered to stop making misleading representations in the
sale of its medicinal preparation called “Buno.”
The order directs the respondent to stop alleging that this product
will keep the skin clear and healthy, give instant relief from sun¬
burn, mosquito and other insect bites, and that it is an effective
treatment for dandruff, eczema, athlete’s foot, and other skin
eruptions.
FTC VACATES ORDER
No. 2168. The Federal Trade Commission has entered an order
vacating a cease and desist order issued in November, 1934, against
Maid-O-Best, Inc., of St. Paul, and its president, G. M. Moses,
and against Morris Averbach, of St. Paul, trading as The Muriel
Company.
The Commission directed that the order to cease and desist be
set aside, and that taking of testimony on the charges of the prior
complaint begin at a time to be determined.
The vacated order to cease and desist prohibited unfair repre¬
sentations in the sale of flavoring compounds, foodstuffs, toilet
articles and household novelties.
1437
FEDERAL COMMUNICATIONS COMMISSION
ACTION
The Broadcast Division of the Commission did not meet at its
regular time this week. A meeting will be held later.
No hearings are scheduled before the Commission during the
week beginning Monday, July 20.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — Construc-
1370 tion permit to install a new transmitter, change frequency
from 1370 kc. to 1120 kc., power from 100 watts, 250 watts
day to 1 KW.
Fourth Zone
APPLICATIONS RECEIVED
First Zone
WOR— Bamberger Broadcasting Service, Inc., Newark, N. J.—
710 Construction permit to install a new transmitter, new an¬
tenna, and increase power from 50 KW to 500 KW.
WHDH— Matheson Radio Co., Inc., Boston, Mass.— Special ex-
830 perimental authorization to operate from sunset at Denver,
Colo., to 11 p. m., EST, using directional antenna, from
8-1-36 to 2-1-37.
NEW — George M. Haskins, Hyannis, Mass. — Construction per-
1210 mit for a new station to be operated on 1210 kc., 100 watts,
250 watts day, unlimited time.
NEW— Continental Radio Co., Washington, D. C. — Construction
1230 permit for a new station to be operated on 1230 kc., 1 KW,
unlimited time. Amended to give transmitter site as ap¬
proximately 1 mile northwest of north corner of District of
Columbia, Montgomery County, Md., and install directional
antenna for day and night use.
NEW — Julio M. Conesa, Mobile, Puerto Rico. — Construction per¬
mit for a new relay station to be operated on 1622, 20<>8,
2150, 2790 kc., 75 watts.
Second Zone
NEW— Radio Air Service Corp., Portable-Mobile.— Construction
permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 10 watts.
NEW— The Ohio State University, Portable.— Construction permit
for a new relay station to be operated on 31100, 31600,
37600, 40600, 93300, 12440, 155500, 248800 kc., 1 watt.
NEW— Radio Air Service Corp., Portable-Mobile.— Construction
permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 10 watts.
NEW _ Radio Air Service Corp., Portable-Mobile. License to
cover above.
Third Zone
NEW — Pee Dee Broadcasting Co., James A. Bradley, Pres.,
950 Florence, S. C. — Construction permit for a new station to
be operated on 950 kc., 1 KW, daytime.
NEW— Carolina Advertising Corp., Florence, S. C. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, unlimited time.
WJNO— Hazlewood, Inc., West Palm Beach, Fla— License to
1200 cover construction permit (B3-P-159) as modified for a
new station.
WSIX— Jack M. Draughon & Louis R. Draughon, d/b as 638
1210 Tire & Vulcanizing Co., Nashville, Tenn.— Modification of
construction permit (B3-P-227) for move of transmitter
and studio, requesting extension of completion date from
8-4-36 to 11-1-36.
WATL— J. W. Woodruff & S. A. Cisler, d/b as Atlanta Broad-
1370 casting Co., Atlanta, Ga.— Construction permit to install a
new transmitter, make changes in antenna, increase power
from 100 watts to 100 watts, 250 watts day, move studio
from Room 707, Volunteer Life Bldg., Forsyth & Luckie
Sts., Atlanta, Georgia, to 26 Cain Street, Atlanta, Georgia,
and transmitter from Yaarab Shrine Mosque, 660 Peach¬
tree Street, Atlanta, Georgia, to 26 Cain Street, Atlanta,
Georgia.
NEW — Carolina Advertising Corp., Columbia, S. C. — Construction
1370 permit for a new station to be operated on 1370 kc., 100
watts, 250 watts day, unlimited time.
WLBL — State of Wisconsin, Dept, of Agriculture & Markets,
900 Stevens Point, Wise. — Construction permit to install a new
transmitter and antenna, change power and hours of opera¬
tion from iy2 KW, specified hours to 5 KW, daytime, move
transmitter from 8 mi. N. E. of Stevens Point (near
Ellis), Wisconsin, to 1 mi. S. of Auburndale, Wisconsin.
NEW — Walter H. McGenty, Rice Lake, Wise. — Construction per-
1200 mit for a new station to be operated on 1200 kc., 100 watts,
250 watts day, unlimited time.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
1310 Construction permit to install a new antenna, move studio
and transmitter from 919 West 27th Street, Kearney, Ne¬
braska, to site to be determined, Omaha, Nebraska.
WMIN — Edward Hoffman, St. Paul, Minn. — Construction permit
1370 to make changes in equipment and increase power from
100 watts to 100 watts, 250 watts day.
WHLB — Head of the Lakes Broadcasting Co., Virginia, Minn. —
1370 Modification of construction permit (B4-P-329) to make
changes in equipment, install a vertical antenna, for ap¬
proval of transmitter and studio sites at 6th Ave. W. &
17th, Virginia, Minn., and extend commencement and com¬
pletion dates.
KOVC — George B. Bairey, Valley City, N. D. — Modification of
1500 construction permit (B4-P-224) for a new station requesting
authority to install a new transmitter and antenna and for
approval of transmitter site at 312 Fifth Ave., Valley
City, North Dakota.
Fifth Zone
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Modification of con-
590 struction permit (B5-P-925) as modified, giving transmitter
site as R. F. D. No. 3, Spokane, Wash., and height of an¬
tenna to be determined.
KMO — KMO, Inc., Tacoma, Wash. — Construction permit to make
1330 changes in equipment, install a vertical antenna, increase
power from 250 watts to 1 KW, and change transmitter site
from 1623 East “J” St., Tacoma, Wash., to site to be de¬
termined, Tacoma, Wash.
KMED — Mrs. W. J. Virgin, Medford, Ore. — Construction permit
1410 to make changes in transmitter, install a new antenna, move
transmitter from Sparta Building, Main & Riverside Avenues,
Medford, Ore., to Ross Lane, Medford, Ore.
NEW — Earle C. Anthony, Inc., Portable-Mobile. — Construction
permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 25 watts.
NEW — Standard Radio, Inc., Hollywood, Calif. — Authority to
transmit electrical transcriptions to foreign countries (CJRJ,
Winnipeg, Manitoba, Canada, and other Canadian stations).
NEW — Earle C. Anthony, Inc., Mt. Wilson, Calif. — Construction
permit for a new high-frequency station to be operated on
31600, 35600, 38600, 41000 kc., 100 watts.
NEW — Lee Tracy, Mobile, aboard yacht Adore. — Construction
permit for a new relay station to be operated on 1622,
2058, 2150, 2790 kc., 100 watts.
NEW— Earle C. Anthony, Inc., Los Angeles County, California,
near Buena Park. — Construction permit for a new interna¬
tional station to be operated on 6020, 9510, 11750, 15150,
21480 kc., 10 KW.
Puerto Rican Zone
WPRP— Julio M. Conesa, Ponce, P. R.— Modification of license
1420 to operate an additional hour from 11 p. m. to 12 daily.
1438
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyright. 1936. The National Association of Broadcasters _
Vol. 4 - - No. 35
JULY 23, 1936
IN THIS ISSUE
Page
Details of October S Broadcast Hearing Announced . 1439
Securities Act Registrations . 1440
Texas Station Recommended . 1440
Broadcast Receipts in West South Central States . 1440
New Florida Station Recommended . 1440
New Service Announced for Broadcasters and Educators. . . 1440
Recommends New California Grant . 1441
Watson and Blaz Wanted . 1441
Court Approves Bank Night . 1441
South Dakota Station Recommended . 1441
Stay Orders Granted . 1441
Recommends Denying New Station . 1441
Move of KGKO Recommended . 1441
Mexican Station Wants to Import Power . 1441
Daytime Hours Recommended for New Station . 1441
Recommends New Texas Station . 1442
Broadcast Station Corrections . 1442
Federal Trade Commission Action . 1443
Federal Communications Commission Action . 1444
DETAILS OF OCTOBER 5 BROADCAST HEARING
ANNOUNCED
The Federal Communications Commission this week made pub¬
lic details of the informal hearing to be held before the Broadcast
Division of the Commission on October S in connection with Docket
No. 4063 relating to the allocation of frequencies in the broadcast
band and with the prevention of inteference in that band. In an
official statement on this subject the Commission announced the
following:
Notice is hereby given of an informal hearing before the Broad¬
cast Division of this Commission, to be held in the offices of the
Commission at Washington, D. C., beginning at 10 A. M., October
5, 1936, for the purpose of determining what principles should
guide the Commission in matters relating to or affecting the alloca¬
tion of frequencies and the prevention of interference in the band
550-1600 kc, and, in particular, what changes, if any, should be made
in the Commission’s existing regulations or in the standards here¬
tofore applied by it and its Engineering Department, in order to
give effect to those principles.
Individual applications, individual assignments, and requests for
allocation of broadcast facilities to particular groups or organiza¬
tions will not be considered.
The Broadcast Division of the Commission desires to obtain the
most complete information available with respect to this broad
subject of allocation, not only in its engineering but also in its
corollary social and economic phases, to the end that such regula¬
tions and standards as it may retain or adopt will make possible
such use of the band 550-1600 kc as will provide maximum service
(both transmission and reception) in the public interest. The im¬
provements in, and the increased knowledge of, the engineering
aspects of broadcasting since the inauguration of the present allo¬
cation system in 1928 will be taken into consideration; also the
amendment of June 5, 1936, to the Communications Act of 1934,
repealing Sec. 302 and modifying Sec. 307 (b).
Specifically, the Broadcast Division will consider proposals and
evidence for or against such proposals, as to the principles that
should guide it with respect to its regulations and standards on
such subjects as the following:
I. Classification of broadcast stations:
1. Desirability of establishing new classes, or of subdividing,
modifying or abolishing any existing class.
2. Proper definition of each class with respect to purpose and
character of service.
3. Number of frequencies to be allocated to each class.
4. Suitability of various bands of frequencies (e.g., propaga¬
tion characteristics and noise levels) in the range 550-1600
kc for the service to be rendered by each class.
5. Extent to which freedom from interference is to be secured
to each class and extent to which duplicated use, night or
day, of frequencies allocated to each class is to be per¬
mitted, including
(a) number of stations to be permitted to operate simul¬
taneously on frequencies of each class;
(b) mileage-frequency separation tables as a method for
determining permissible duplications;
(c) advisability of establishing subclassifications of any of
the principal classes;
(d) use of frequencies allocated to one class by stations of
another class;
(e) possibility of duplicated use of a frequency by two 50
kw stations separated by a substantial distance ;
(f) consideration of hour of sunset as the dividing line
between daytime and nighttime permissible duplica¬
tions, and location at which sunset or other hour should
be taken as such dividing line;
(g) application of directional antennas; and
(h) application of synchronization.
7. Maximum and minimum power requirements with respect
to each class, including
(a) increases in power above 50 kw on any class of fre¬
quency ;
(b) horizontal increases in power on frequencies on which
nighttime duplicated operation is permitted, and
(c) differentiation in maximum power at day and at night.
II. Standards to be applied in determining coverage and the
presence or absence of objectionable interference.
1. Propagation characteristics of the various frequencies in
the range 550-1600 kc, including comparison of east-west
and north-south transmission, effect of intervening moun¬
tain ranges, and seasonal variations.
2. Prevailing attenuation in various parts of the country.
3. Proper ratio of desired to undesired signal.
4. Signal intensity necessary to render satisfactory service in
various types of community (e.g., urban, residential, rural,
etc.).
5. Relative electrical noise levels, natural and man-made, in
the range 550-1600 kc and in various types of communities.
6. Frequency separation, including
(a) the prescribed 10 kc separation between frequencies
used by broadcast stations;
(b) the customary 50 kc separation between frequencies
used by broadcast stations in the same community;
(c) mileage-frequency separation tables as a method for
determining minimum geographical separation between
stations using frequencies separated by from 10 to
40 kc;
(d) permissible disparity in power between stations on
adjacent frequencies;
(e) practicable standards of receiver selectivity, and
(f) practicable standards of receiver fidelity.
7. Proper definition of blanketing signal.
8. Legitimate assumptions with respect to Heaviside layer and
sunspot cycle.
III. Geographical distribution of broadcast facilities.
1. Weight to be given to such factors as area, population and
economic support.
2. Desirability of establishing a system for evaluating facili¬
ties (e.g., a quota system) in order to comply with Sec.
307 (b) of the Communications Act of 1934, as amended,
and “to provide a fair, efficient, and equitable distribution
of radio service” among the several States and communities.
1439
3. Feasibility of allowing adherence to sound engineering prin¬
ciples automatically to effect the distribution required by
Sec. 307 (b).
IV. Standards and methods of measurement with respect to
1. Power.
2. Tolerance.
3. Field intensity.
4. Determination of service.
5. Determination of interference.
V. Apparatus performance requirements to be imposed on broad¬
cast stations.
1. Frequency stability.
2. Antenna efficiency.
3. Modulation.
4. Suppression of harmonics.
5. Fidelity of transmission.
6. Transmitter location.
VI. Effect of any proposals regarding the foregoing subjects.
1. Socially and economically, upon the public and the industry.
2. Internationally, upon use of the band 550-1600 kc by other
countries in North and Central America.
3. Upon possible future use of frequencies in the band 6000-
30,000 kc and in the band above 30,000 kc for broadcasting.
This outline is not to be taken as excluding evidence and pro¬
posals bearing on allocation matters not specifically enumerated,
provided such evidence and proposals otherwise come within the
limitations set forth in this notice.
Cross-examination of witnesses will be limited to questions by
Commissioners and members of the Commission’s legal and
technical staffs.
Persons or organizations desiring to appear and testify should
notify the Commission of such intention on or before September 15,
1936. In such notification the number of witnesses who will ap¬
pear and the time estimated to be occupied by each should be
stated. This information is necessary in order more efficiently to
organize the hearing. Proposals seeking amendment of existing
regulations should be accompanied by written drafts of the amend¬
ments desired, to be submitted at the time such proposals are made
during the hearing.
Prior to this hearing, the Broadcast Division will publish the
results of the so-called “clear channel survey,” undertaken during
the past year, in order that all persons who desire to appear at the
hearing will have as much information as is practicable with re¬
spect to the performance of stations operating under practical
conditions.
By the Commission,
(Seal)
John B. Reynolds,
Acting Secretary.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Brown Forman Distillery Co., Louisville, Ky. (2-2325, Form A-l)
Merchants Industries, Inc., Dayton, Ohio (2-2326, Form A-2)
Security Holders Protective Committee, Newark, N. J. (2-2327,
Form D-l)
Charleston Shipbuilding & Drydock Co., Charleston, S. C.
(2-2329, Form A-l)
Chamberlin Metal Weather Strip Co., Detroit, Mich. (2-2330,
Form A-2)
Johnson Furniture Co., Shreveport, La. (2-2331, Form A-l)
Froedtert Grain & Malting Co., Greenfield, Wis. (2-2332,
Form A-2)
Carroll Stores of America, Inc., West Haven, Conn. (2-2333,
Form A-l)
Powdrell & Alexander, Inc., Danielson, Conn. (2-2334, Form
A-2)
Silver Dollar Mining Co., Wallace, Idaho (2-2335), Form A-l)
TEXAS STATION RECOMMENDED
The Navarro Broadcasting Association filed an application with
the Federal Communications Commission asking for a construction
permit for a new broadcasting station to be erected at Corsicana,
Texas, to use 137.0 kilocycles, 100 watts power and daytime opera¬
tion.
Examiner George H. Hill in Report No. 1-260 recommended
that the application be granted subject to the condition that the
towers be marked in accordance with the specifications of the
Bureau of Aeronautics. The Examiner found that there is need
for the additional radio service in the area and that there is ade¬
quate local talent to supply the needs of such a station. Some in¬
terference would be caused with Station WRR, Dallas, Texas, how¬
ever, says the Examiner, “it is shown that it would not be classed
as serious.”
BROADCAST RECEIPTS IN WEST SOUTH
CENTRAL STATES
Total receipts of the 65 broadcast stations in the west south
central states from the sale of radio time last year amounted to
$3,684,427 according to the Bureau of the Census, Department of
Commerce in a report of the new business census series on the
broadcasting business.
The report covers all stations in the four west south central
states including 11 stations in Arkansas, 12 in Louisiana, 12 in
Oklahoma and 30 in Texas.
NEW FLORIDA STATION RECOMMENDED
Earl Weir filed an application with the Federal Communications
Commission asking for a permit to erect a new broadcasting sta¬
tion at St. Petersburg, Florida, to use 1370 kilocycles, 100 watts
power and unlimited time on the air.
Examiner Melvin H. Dalberg in Report No. 1-261 recommended
that the application be granted. The Examiner states that it is
apparent that there is a genuine need for local broadcasting facili¬
ties. There is no question, says the Examiner, “of objectionable
interference involved in this application.”
NEW SERVICE ANNOUNCED FOR BROAD¬
CASTERS AND EDUCATORS
Another constructive move to improve local educational radio
programs has been announced jointly by the United States Com¬
missioner of Education, J. W. Studebaker and James W. Baldwin,
managing director of the National Association of Broadcasters.
Recognizing that radio scripts, improved production techniques
and closer cooperation of educators and broadcasters were the
keys to better local educational radio programs, Commissioner
Studebaker, requested the Educational Radio Project to prepare
materials to meet these needs. The result is “Interviews with the
Past,” a series of 15 minute radio scripts with accompanying sug¬
gestions for production by high school or college radio units.
“Interviews with the Past” are imaginary interviews by a group
of reporters for a local school paper. They interview successfully
six celebrities of the past who reply to the young newspapermen
and newspaperwomen in the exact language history records them
as using.
Celebrities interviewed are: Benjamin Franklin, William Shake¬
speare, Queen Elizabeth, Napoleon Bonaparte, Catherine of Russia,
and George Washington.
Scripts, a production manual, a glossary of radio terms, inci¬
dental theme music and bibliographies are being mailed today
from the Office of Education to city school superintendents, heads
of higher institutions and CCC district advisers who wish to pro¬
duce the programs with school groups during the coming school
year with the cooperation of their local station managers. Copies
of this material are also going out to the Nation’s station managers
from the National Association of Broadcasters office.
Before drawing up the manual of suggestions for broadcasting,
Maurice Lowell, the Project’s production director, cast and pro¬
duced the “Interviews with the Past” program with the help of
a radio guild from McKinley High School, Washington, D. C.,
over Station WMAL.
Production Director Lowell observed the difficulties of this
group, and on the basis of these observations wrote a “Radio
Manual of Suggestions for Production,” to serve as a guide for
schools, universities, CCC camps and other nonprofessional groups.
He also prepared a glossary of terms used in studios.
Music arrangements for theme and signature by school orches¬
tras or choruses were written by Music Director Rudolf Schramm.
Since it was discovered in the experimental production of the
series that the broadcasts stimulated interest in the lives of the
celebrities, the Project prepared a series of bibliographies for dis¬
tribution among schools and CCC camps.
Written by Dr. Donald G. Calhoun, formerly professor of history
at the University of Southern California, and feature writer for the
Los Angeles Times, and Miss Dorothy Donnell, formerly educa-
1440
tional editor, Macmillan Book Company, magazine editor, and
author of children’s books, the scripts were edited by Leo S.
Rosencrans, Educational Radio Project’s script director, who
formerly was with the National Broadcasting Company. Mr.
Rosencrans is author of “Sally of the Talkies,” “Nickelodeon” and
other nationally-known programs. He is co-author with Irene
Rich of “Behind the Screen.”
An advisory commmittee of historians and educators guided the
preparation of the series. The committee includes Dr. C. C. Tan-
sill, professor of history, American University; Belmont Farley,
director of publicity, National Educational Association; Miss Olga
Jones, administrative assistant in the editorial division, Office of
Education, and William Dow Boutwell, editor-in-chief of the
Office of Education, and director of the Project.
While Commissioner Studebaker expects that most educators
and broadcasters will wish to produce the series during the Fall,
some school officials have indicated their desire to put the series on
the air during their Summer school session. Mr. Baldwin indicated
that many station managers will welcome this new material for
Summer production.
In cooperation with the National Broadcasting Company and
the Columbia Broadcasting System, the Educational Radio Project
is now producing five program series as experimental demonstra¬
tions of new educational broadcasting techniques. These programs
go over Nation-wide hook-ups and include: “The World Is Yours”
— dramatizations based on activities of the Smithsonian Institu¬
tion ; “Safety Musketeers” — safety education ; “Answer Me This”
— social science; “Have You Heard?” — natural science and “Edu¬
cation in the News.”
In order that teachers, school officials and other workers in
educational radio may have an opportunity to learn the latest
methods of the art, the Educational Radio Project established a
workshop in cooperation with New York University. A script
exchange service has also been set up to serve educators in need of
educational scripts.
RECOMMENDS NEW CALIFORNIA GRANT
K. K. Kidd and A. C. Kidd, applied to the Federal Communica¬
tions Commission for a construction permit for the erection of a
new station at Taft, Cal., to use 1420 kilocycles, 100 watts and
daytime operation.
Examiner R. H. Hyde, in Report No. I-2S9 has recommended
that the application be granted. The Examiner states that “the
evidence shows that there is a public need and a demand in the
applicants’ area for the proposed new broadcast service,” also,
that “the construction and operation of the proposed station could
not reasonably be expected to cause interference to the fair and
efficient service of any other station or stations.”
WATSON AND BLAZ WANTED
Broadcasting station KFH, Wichita, is anxious to know the
whereabouts of M. V. Watson and Ned E. Blaz connected with
National Features Service, Inc.
COURT APPROVES BANK NIGHT
“Bank night” is not a lottery according to a ruling of the
Supreme Court of Massachusetts. The court held that a man
could not be held guilty of promoting a lottery without specifically
selling lottery tickets.
As is generally known bank night is a night set aside by various
theatres during which a sum of money is given to a patron whose
name is drawn from among those of patrons who hold gratuitously
distributed tickets.
SOUTH DAKOTA STATION RECOMMENDED
The Sioux Falls Broadcasting Association, Inc., applied to the
Federal Communications Commission for a construction permit for
the erection of a new station at Sioux Falls, S. D., to use 1200
kilocycles, 100 watts power and unlimited time on the air.
Examiner George H. Hill in Report No. 1-262 recommends that
the application be granted subject to the approval of the antenna
and transmitter sites. He found that there is need for the facilities
of a local station at Sioux Falls and states that no interference
would result to any existing service from the operation of the pro¬
posed station.
STAY ORDERS GRANTED
The Court of Appeals of the District of Columbia has granted
a stay order to station KGBZ. York, Nebr., and in another case a
stay order was granted to the Palmer Broadcasting Syndicate.
Station KGBZ was taken off the air by the Federal Communica¬
tions Commission and was actually off the air from July 7 to
July 14. Under the court’s stay order, however, the station is back
on the air until its appeal against the decision of the Commission
is disposed of.
The Commission granted a construction permit to the Portland
Broadcasting System, Inc., for the erection of a new station at
Portland, Me. The Palmer Broadcasting Syndicate and several
others who had applications pending for a station at the same time
appealed to the Court against the decision of the Commission. The
court has granted a stay order against the erection of the new
station pending disposition of the case.
RECOMMENDS DENYING NEW STATION
Ted R. Woodard applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new station
at Kingsport, Tenn., to use 1210 kilocycles, 100 watts power and
daytime operation.
Examiner Ralph L. Walker in Report No. I-2S7 has recom¬
mended that the application be denied. The Examiner found that
“the operation of a station as proposed will result in objectionable
interference to a new station now being constructed at Middleboro,
Ky.; likewise, the service area of the proposed station would be
restricted by objectionable interference from the Middleboro sta¬
tion.”
MOVE OF KGKO RECOMMENDED
Broadcasting station KGKO, at Wichita Falls, Texas, applied to
the Federal Communications Commission to install new equipment
and to move its transmitter and studios to Fort Worth, Texas.
The station operates on S70 kilocycles, 250 watts and 1,000 watts
LS and unlimited time.
Chief Examiner Davis G. Arnold in Report No. 1-255 recom¬
mends that the Commission confirm a former order granting the
station permission to make the move. Following the granting of
this permission by the Commission chambers of commerce and
radio stations objected to the move and the case was set for further
hearing.
The Chief Examiner in recommending to the Commission that it
allow the change to be made states that “considering the entire
record it is not shown that the protestants have discharged the
burden of proof resting upon them.”
MEXICAN STATION WANTS TO IMPORT
POWER
The Federal Power Commission has announced receipt of an
application from the Piedras Negras Broadcasting Company, Pie-
dras Negras, Coahuila, Mexico, for authority to import electric
energy from the United States, to be purchased from the Central
Power & Light Company at a point of delivery on the Texas side
of the Rio Grande River near Eagle Pass, Texas.
The application was filed under the requirements of Section
202 (e) of the Federal Power Act, and is the twenty-third applica¬
tion involving the international transmission of electric energy
received by the Commission.
The applicant, which serves the City of Piedras Negras and
vicinity, states that the amount of energy expected to be imported
during the next twelve months will be' approximately 950,000 kilo¬
watt-hours, to be used for stand-by emergency service and to sup¬
plement, when necessary, the output of the broadcasting company’s
power plant in Piedras Negras.
Adding that the proposed importation will be in the public
interest because of the need for emergency service in Piedras Negras
and because it will provide an outlet for surplus energy in the
United States, the applicant further states that due to recent
heavy rainfall the power house at Piedras Negras has been inca¬
pacitated, making the City of Piedras Negras and vicinity depen¬
dent upon energy to be obtained from the United States.
DAYTIME HOURS RECOMMENDED FOR NEW
STATION
Jonas Weiland filed an application with the Federal Communi¬
cations Commission asking for a construction permit for the
erection of a new station at Kinston, N. C., to use 1200 kilocycles,
100 watts and 250 watts LS and unlimited time on the air.
Examiner Ralph L. Walker in Report No. 1-258 recommended
that the application be granted for daytime operation only; deny¬
ing nighttime operation.
1441
The Examiner states that “operation of the proposed station
during the day would not result in objectionable interference to
any existing station, but its operation at night would cause ob¬
jectionable interference to and curtail the good service area of
Station WLVA, Lynchburg, Va.”
RECOMMENDS NEW TEXAS STATION
Dorrance D. Roderick applied to the Federal Communications
Commission for a construction permit for the erection of a new
broadcasting station at El Paso, Texas, to use 1500 kilocycles, 100
watts power and unlimited time on the air.
Examiner George H. Hill in Report No. 1-256 recommends that
the application be granted “on condition that the towers of the
proposed station be marked and lighted in accordance with the
specifications of the Department of Commerce.”
The Examiner contends that a city the sue of El Paso can sup¬
port two broadcasting stations, the proposed new one and KTSM,
and he states that no objectionable interference would result from
the operation of the proposed station.
BROADCAST STATION CORRECTIONS
The Federal Communications Commission has issued the following list of broadcast station alterations and corrections (underlined)
to the edition dated January 1, 1936 for the month of June.
Call
Main Studio
Frequency
Time
Letters
Location
Name of Licensee
Power
( kc )
Destination
KCMO
Kansas City, Mo.
Lester E. Cox, Thos. L. Evans and C. C.
lOOw
1370
U
Payne
KDON
Del Monte, Calif.
T-Monterey
Monterey Peninsula Broadcasting Co.
lOOw
1210
U
KELD
N. Eldorado, Ark.
Radio Enterprises, Inc.
lOOw
1370
U
KFJZ
Fort Worth, Tex.
Fort Worth Broadcasters, Inc.
lOOw
250w-LS
1370
u
KFVD
Los Angeles, Calif.
Standard Broadcasting Co.
250w
1000
L-WHO
KGBZ
York, Nebr.
KGBZ Broadcasting Co.
lkw
2 j4kw-LS
930
S-KMA
Date of deletion i
sxtended to
7-7-36
Strike out 6-30-36
KHBC
Hilo, Hawaii
Honolulu Broadcasting Co., Ltd.
250w
1400
U
C. P. covered by license
KHQ
Spokane, Wash.
Louis Wasmer, Inc.
lkw
2kw-LS
590
U
C. P. 5kw-LS
KMA
Shenandoah, Iowa
May Seed and Nursery Co.
lkw
2j4kw-LS
930
S-KGBZ
Effective 7-7-36 . . . .
. . V
Strike out
6-30-36
KOB
Albuquerque, N. Mex.
Albuquerque Broadcasting Co.
lOkw
1180
Simultaneous
D. S-KEX
night
KOL
Seattle, Wash.
Seattle Broadcasting Co.
lkw
5kw-LS
1270
U
KOVC
Valley City, N. D.
George B. Bairey
lOOw
1500
V (C.P. only)
Effective 7-2-36
KRSC
Seattle, Wash.
Radio Sales Corp.
lOOw
1120
D
C. P. 250w ....
. . U
KUO A
Fayetteville, Ark.
KUOA, Inc.
lkw
1260
D
C. P. Siloam Springs .
. 2l/2kw
KVI
Tacoma, Wash.
Puget Sound Broadcasting Co., Inc.
lkw
570
U
T-nr. Des Moines
C. P. T-N. of Tacoma . . .
. 5kw-LS
KWYO
Sheridan, Wyo.
Big Horn Broadcasting Co., Inc.
lOOw
1370
U
C. P. 250W-LS
WBNX
New York, N. Y.
Standard Cahill Co., Inc.
250 w
1350
S-WAWZ
T-Cliffside Park, N. J.
Effective 6-20-36 . .
Strike out 9-15-36
. . C. P. lkw
WEEI
Boston, Mass.
T-Weymouth
WEEI Broadcasting Corp.
lkw
590
U
D
WELI
New Haven, Conn.
City Broadcasting Corp.
500w
900
WFIL
Philadelphia, Pa
WFIL Broadcasting Co.
500w
lkw-LS
560
U
S. A. lkw-night-
C.P. lkw
■Exp.
WGBI
Scranton, Pa.
Scranton Broadcasters, Inc.
600w
880
S-WQAN
Strike out S. A. 500w-Exp.
WHBB
Selma, Ala.
W. J. Reynolds, Jr., J . C. Hughes and J. S.
lOOw
1500
D
Allen, d/b as Selma Broadcasting Co.
WHBU
Anderson, Ind.
Anderson Broadcasting Corp.
lOOw
250-w-LS
1210
U
WHIS
Bluefield, W. Va.
Daily Telegraph Printing Co.
600w
1410
U
T-nr. Bluefield
lkw-LS
1442
Call
Main Studio
Frequency
Time
Letters
Location
Name of Licensee
Power
( kc )
Destination
WLAK
Lakeland, Fla.
Lake Region Broadcasting Co.
C. P. covered by license
lOOw
1310
U
WMC
Memphis, Tenn.
T-Bartlett,
C. P. T-nr. Memphis .
Memphis Commercial Appeal, Inc.
lkw
2^kw-LS
. 5kw-LS
780
u
WMT
Cedar Rapids, Iowa
T-nr. Marion
Iowa Broadcasting Co.
1 k W
2j4kw-LS
C. P.5kw^LS
600
u
WNBC
New Britain, Conn.
T -Newington
State Broadcasting Corp.
250w
1380
D
WREC
Memphis, Tenn.
T-nr. Rugby Park
WREC, Inc.
lkw
Skw-LS
600
u
WSPR
Springfield, Mass.
T-West Springfield
Quincy A. Brackett, Lewis B. Breed, Edmund
A. Laport, co-partners, d/b as Connecti¬
cut Valley Broadcasting Co.
SOOw
1140
L-KVOO,
WAPI
C. P. covered by license
Note: Section 302 of the Communications Act of 1934 repealed as of June 5, 1936. Strike out all quota.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them:
No. 2874. Wilson Chemical Company, Inc., Tyrone, Pa.,
is named respondent in a complaint alleging unfair methods of
competition in the sale of medicinal salves and miscellaneous mer¬
chandise, the latter designated as “premiums.”
According to the complaint, the respondent corporation adver¬
tises in newspapers and magazines for sales agents, and represents
to them that by selling a specified number of boxes of salve, usually
twelve, they may receive one of several articles of merchandise as a
premium. The respondent corporation is said to allow agents 30
days in which to sell a consignment of salve, and either to remit
such portion of the sales proceeds agreed upon or to return the
unsold merchandise.
No. 2875. Charging unfair competition in the sale of baby
foods and health preparations, a complaint has been issued against
Adah Alberty, 729 Seward Avenue, Hollywood, Calif., trading
as Alberty’s Food Products, Alberty’s Food Lab., Alberty’s
Food Laboratories, The Alberty Food Laboratories, Cheno
Laboratories, Cheno Products, and U. S. Okey.
Selling products through wholesale houses, physicians and health
food stores, and advertising in newspapers, health magazines, and
booklets distributed through food stores, the respondent is alleged
to have circulated deceptive and misleading allegations concerning
the curative value and benefits to be obtained by using her baby
foods and health preparations.
No. 2876. Charged with using unfair methods of competition
in connection with the sale of proprietary and patent medicines,
Reliable Specialty Corporation, 1030 Lafayette Ave., Buffalo,
N. Y., is named respondent in a complaint alleging violation of
Section 5 of the Federal Trade Commission Act.
In a booklet entitled “Hints in Health and Beauty,” and on
labels and in circulars, the respondent corporation is charged with
making false representations in advertising certain of its products,
including “Great Christopher Corn Cure,” “Reliable Hair Food,”
“Dr. King’s Ointment,” “Reliable Herb Tablets,” “Beat-Sail Iron
Compound Tonic Tablets,” “Reliable Anti-Stout Tablets,” “Re¬
liable Cold Tablets,” “Romola Antiseptic Powder,” “Reliable Herb
Tea,” “Reliable Asthma Remedy,” and “Egyptian Asthma
Remedy.”
The complaint alleges that in such advertising many of the
representations made by the respondent corporation are misleading
and deceptive in that in some cases they do not truthfully and ac¬
curately state the therapeutic value of the preparations, and in
other cases exaggerate such therapeutic values.
No. 2877. A complaint alleging unfair competition in the sale
of a safety appliance for use on radiant-type stoves has been
issued against Health Guard, Inc., 110 East Utica St., Buffalo,
N. Y.
Selling “Health Guard,” a cylinder-shaped device designed to
remove carbon monoxide from gases produced by radiant-type
stoves, the respondent company is alleged to have advertised that
its appliance contains a catalyst that oxidizes the deadly, poisonous
carbon monoxide, changing it to a harmless gas, and that the
product is the only safe device for eliminating unsightly pipes on
stoves and radiant heaters, and the first and only completely safe
substitute for stove pipes.
According to the complaint, the respondent’s product does not
oxidize carbon monoxide, nor change it to a harmless gas, nor
does it accomplish the other things claimed, and the respondent’s
representations tend to deceive purchasers, and may cause them to
do away with flues or other means of removing carbon monoxide
products from a room, thereby endangering health and lives
because of a false sense of security induced by the respondent
company’s representations.
No. 2878. A complaint has been issued against Giacomo
LaGuardia, trading as Herba Medicinal Laboratory, S3 7
Broadway, New York City, charging him with misrepresenting
the therapeutic value of the herb medicines he compounds and
sells in interstate commerce.
The respondent is said to represent in advertisements, by radio
broadcasts, and otherwise, that his products are a competent treat¬
ment and an effective remedy for 28 different diseases or ailments,
when, according to the complaint, they are not as efficacious as
claimed ; do not have the medical value represented in reducing
weight and clearing the skin of impurities and eruptions; do not
cure stomach and intestinal disorders, and are not competent in
the treatment and relief of the various other ailments and diseases
as advertised by the respondent.
Other representations of the respondent alleged in the complaint
to be untrue are that he is a great specialist in herbs and that his
store is the only place where herbs “adapted for any one of your
troubles” can be found.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 01406. International Laboratories, Inc., Rochester,
N. Y., agrees that in the sale of “Moone’s Emerald Oil” it will stop
advertising that “dangerous” varicose veins can be reduced by use
of the preparation; that it dissolves simple swellings, except in the
sense that it aids nature in reducing such swellings through its pene¬
trative and counter-irritative nature, and that it is of benefit in the
treatment of boils, ulcers, open sores or skin disorders, other than
such benefit as reasonably may be expected from a wet dressing
exercising an inhibitory effect upon germ or fungus growth. Rep¬
resentations that users of the preparation will have “no more
crippling pain” and that there is “nothing so good” as the re¬
spondent’s product, will be discontinued.
No. 01407. Lechler Laboratories, Inc., 334 Audubon Ave.,
New York City, selling a hair bleaching product designated
“Lechler’s ‘S69’ Instantaneous Hair Lightener,” agrees to cease
representing that the preparation will lighten hair without perox¬
ide, and does not contain peroxide ; that it is the only preparation
that lightens the scalp and is an effective remedy for dandruff, and
that one application keeps the scalp beautifully clean.
No. 01408. Mantho Kreoamo, Inc., 301 North Center St.,
Clinton. Ill., stipulates that it will discontinue advertising that
its “M-K Liquid Rub” controls inflammation and is a competent
treatment for rheumatism, lumbago, athlete’s foot, colds, aches and
1443
pains, unless such claims are limited to the palliative relief afforded
by the preparation. The respondent corporation also agrees to
cease advertising that its “M-K Cold Remedy” prevents pneumonia
and is effective for coughs, colds, bronchitis, or complications of
colds, unless such representations are limited to symptomatic relief.
No. 01409. Sterling Wiener, trading as Wiener’s Nu-Way
Laboratories, 20 Vine St., Evansville, Ind., entered into a
stipulation not to represent that “P. D. Q. Cough Control” is
effective in the relief of coughs and colds, unless such representa¬
tions are limited to the relief of coughs which may result from
colds, and that it is a beneficial remedy for sore throat, unless
such claim is confined to the relief of minor throat irritations and
sore throats due to colds.
No. 01410. Vladimir Mohnach and Michael Homa, trading
as The Remasol Company, P. O. Box 6419, Philadelphia,
and dealing in a medicinal preparation designated “Remasol,”
signed an agreement to discontinue representations that their
product is a new and remarkable remedy which rids the skin of
pimples, blackheads, and other skin eruptions, and assures a normal
complexion; that it is harmless to the most sensitive skin; that
its harmlessness is guaranteed, and that medical men endorse it.
No. 01411. The Quaker Oats Company, 141 West Jackson
Blvd., Chicago, will stop advertising that “Quaker Oats” is the
only protective food that is rich in the nerve-nourishing Vitamin B
that combats nervousness and constipation; that most foods lack
a sufficient amount of the yeast Vitamin B present in “Quaker
Oats,” and that Vitamin B is “oatmeal vitamin.”
No. 01412. A. H. Smith, trading as Three Threes Sales
Company, Sumner, Miss., engaged in the sale of a medicinal
preparation designated “Three Threes Pellagra Remedy,” will dis¬
continue claims that the product prevents or cures pellagra and
prevents death, and that it is guaranteed and is effective in supply¬
ing iron or vitamins to the blood, in increasing appetite and
weight, and in aiding digestion.
No. 2223. An order has been issued prohibiting unauthorized
use by seven New York radio dealers of well-known trade names,
such as Edison, Marconi, Majestic and others, in the sale of
radio sets, tubes and appliances.
The respondents are: Edison-Bell Co., Inc., 60 Courtlandt St.;
Fox Radio & Television Company, Inc., 60 Courtlandt St.;
Atlas Television Co., Inc., 58 Courtlandt St.; York Television
and Radio Corporation, 166 Greenwich St.; Bob Radio Cor¬
poration, 174 Greenwich St.; Music Masters Corporation, 71
Courtlandt St.; and Fox Radio Corporation, 60 Courtlandt St.,
all of New York City. The order also names as respondents
Robert Siegel, Aaron L. Siegel, Samuel Fox Barsky and
Simon Barsky, individually and trading under the name Edison-
Bell Company.
The respondents are ordered to cease representing through ad¬
vertisements, trade promotion literature, and through the use of
corporation, company or trade names, that the radio sets, tubes
and appliances manufactured or assembled for, or by, and sold by
them, are radio sets, tubes and appliances made, sold, sponsored or
licensed by Thomas A. Edison, Thomas A. Edison, Inc., American
Telephone & Telegraph Company, Western Electric Company,
Marconi Wireless Telegraph Company of America, Radio Corpora¬
tion of America, Victor Talking Machine Company, Brunswick-
Balke-Collender Company, Warner Brothers Pictures, Inc., and
its subsidiary, Brunswick Radio Corporation, Grigsby-Grunow
Company, and General Electric Company.
The order also bars representation through use of the names
“Edison,” “Edison-Bell,” “Edison-Bell Company,” “Edison Radio
Stores, Inc.,” “Edison International,” “Bell,” “Marconi,” “Marconi
Radio Corporation,” “Victor,” “Brunswick,” “Bronswick,” “Ma¬
jestic,” “Majestic Radio Corporation,” “Majestic International,”
“Radio Corporation of America,” “General Electric Company,” or
the letters “R.C.A.,” “R.S.A.,” “R.C.I.,” “G.E.” or “E. B. ,” or
through picturization of a bell, alone or in connection with other
words or symbols, that the radio sets, tubes and appliances made
or assembled for, or by, and sold by the respondents, are made, as¬
sembled, approved or licensed by the Edison Company, American
Telephone & Telegraph Company, and the other large, well-known
companies above designated.
The order also prohibits the use on radio sets* tubes and appli¬
ances sold by the respondent companies, of escutcheon plates,
brands or other marks bearing the names “Edison,” “Edison Radio
Stores, Inc.,” “Edison International,” “Edison-Bell,” “Edison-Bell
Company,” “Bell,” or the representation of a bell, and various
other names and initials of large and well-known companies so as
to imply that these products are made, assembled, sold or licensed
by these manufacturers.
No. 2583. Under an order entered, Sain Fisher, trading as
Hollywood Shirt Company, 8 Allen St., New York City, is
directed to discontinue representing that he manufactures the
shirts he sells in interstate commerce, and that persons who pur¬
chase them in preference to the shirts of competitors are buying
from a manufacturer, thereby saving a middleman’s profit.
Fisher buys his shirts from an independent corporation, accord¬
ing to the Commission’s findings, but in advertising his products
used the words “manufacturer” and “direct from manufacturer
to wearer.”
No. 2645. Trading as Diamond Knitting Mills, Jack Dia¬
mond, 1225 Broadway, New York City, has been ordered to dis¬
continue representing that he owns or operates a mill or factory
in which the knitted products he sells are manufactured.
The order directs the respondent to cease making such repre¬
sentation through his trade name by use of the words “Knitting”
or “Mills” alone or in connection with any other words, or in any
other manner.
No. 2671. Ross Knitting Mills, Inc., and others, of 522 East
8th St., Brooklyn, distributor of knitted garments and other
wearing apparel, have been ordered to cease and desist from repre¬
senting through their trade names, or in other ways, that they own,
operate or control a mill or factory in which their products are
knitted or manufactured.
Findings are that the respondents do not knit or manufacture
the garments they sell and that their representations tend to de¬
ceive buyers, many of whom prefer to deal directly with manu¬
facturers, believing that they can, in this way, eliminate middle¬
men’s profits and buy at lower prices.
No. 2674. Under an order issued, Griffith Piano Company,
605 Broad St., Newark, N. J., is directed to discontinue unfair
competition in the sale of its products in interstate commerce.
The order directs the respondent, in connection with the sale
and advertising of pianos, to cease and desist from altering the
illustrations of pianos sold by it so as to give the impression that
the article offered is of square, colonial design, when this is not
true, and from simulating the advertising or illustrations of com¬
petitors in such manner as to mislead buyers as to the design or
type of the piano offered for sale. The respondent also is directed
to cease permitting or authorizing its agents to make false and mis¬
leading assertions or false, disparaging comments concerning pianos
of its competitors.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
No hearings are scheduled at the Commission during the week
beginning Monday, July 27.
APPLICATIONS GRANTED
WAVE— WAVE, Inc., Louisville, Ky.— Granted C. P. to install
new equipment.
KWTO— Ozarks Broadcasting Co., Inc., Springfield, Mo— Granted
modification of C. P. extending completion date from July
21, 1936, to January 21, 1937, to enable applicant to erect
a 429-foot antenna in conformance with engineering rules
of the Commission.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted consent to the transfer of control from the present
stockholders to W. H. Allen ; frequency 1420 kc., 100 watts,
daytime only.
WCAX— Burlington Daily News, Inc., Burlington, Vt. — Granted
consent to the transfer of control from Bertha Jackson to
Marie Jackson Forbes; frequency 1200 kc., 100 watts day
and night, specified hours.
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
Station, Boise, Idaho. — Granted C. P. to move transmitter
locally and install vertical radiator.
KUJ — KUJ, Inc., Walla Walla, Wash. — Granted consent to the
transfer of control from Louis Wasmer to H. E. Studebaker;
frequency 1370 kc., 100 watts, unlimited time.
KSUN — Copper Electric Company, Inc., Lowell, Ariz. — Granted
C. P. to make changes in equipment, to install vertical
radiator, and increase day power from 100 watts to 250
watts; frequency 1200 kc., 100 watts night, 250 watts day,
unlimited time.
W9XAA — Chicago Federation of Labor, York Township (DuPage
Co.), Illinois. — Granted C. P. to make changes in trans¬
mitter equipment and increase power from 500 watts to
5,000 watts; frequencies 6080, 11830, 17780 kc. unlimited
time.
1444
WKBZ — Karl L. Ashbacker, Muskegon, Mich.— Granted C. P.
requesting approval of transmitter site and installation of
new vertical radiator; frequency 1500 kc., 100 watts night,
2S0 watts day, unlimited time.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Granted
C. P. to install new equipment; frequency 1410 kc., 500
watts, unlimited time.
W2XMN — Edwin H. Armstrong, site to be determined. — Granted
modification of C. P. for new high-frequency broadcast
station on an experimental basis requesting additional fre¬
quency of 41600 kc. Original permit authorized 86500 and
111000 kc., 40 KW, for experimental operation, with fre¬
quency and amplitude modulation.
KFWB — Warner Bros. Broadcasting Corp., Hollywood, Calif. —
Granted modification of C. P. requesting approval of an¬
tenna, move of transmitter site and installation of new
equipment; frequency 950 kc., 1 KW night, 5 KW day, un¬
limited time.
WDOD — WDOD Broadcasting Corp., Chattanooga, Tenn. —
Granted authority to install automatic frequency control ;
frequency 1280 kc., 1 KW night, 5 KW day, unlimited time.
W9XJM — WCBS, Inc., Portable-Mobile. — Granted license to cover
C. P. for a new relay broadcast station on an experimental
basis, under provisions of Rules 1000, 1001 (b) and 1003 (d),
to be used in relaying programs where wire facilities are
not available, to be broadcast by applicant’s broadcast
station WCBS; frequencies 31100, 34600, 37600, 40600 kc.,
2 watts, unlimited time.
W2XF — National Broadcasting Co., Inc., New York, N. Y. —
Granted license to cover C. P. for changes in equipment and
increase power from 5 KW to 12 KW ; frequencies 42000-
56000, 60000-86000 kc., unlimited time.
KFH — Radio Station KFH Co., Wichita, Kans. — Granted license
to cover C. P. for changes in equipment and increase day
power to 5 KW ; frequency 1300 kc., 1 KW night, 5 KW
day, unlimited time.
WHBL — Press Publishing Co., Sheboygan, Wis. — Granted license
to cover C. P. which authorized changes in equipment, in¬
stallation of vertical antenna and the moving of the trans¬
mitter; frequency 1300 kc., 250 watts, unlimited time.
WKBI — WKBI, Inc., Cicero, Ill. — Granted modification of license
requesting a change in hours as specified on license from
CST to EST ; frequency 1420 kc., 100 watts.
WEHS — WEHS, Inc., Cicero, Ill. — Granted modification of license,
as amended, requesting a change in specified hours from
daily (except Sundays) : 4 p. m. to 6 p. m., 1 a. m. to 7
a. m.; Sundays: 4 p. m. to 8 p. m., and 1 a. m. to 7 a. m.,
CST, to daily (except Sundays) : 4 p. m. to 6 p. m. ; Sun¬
days: 4 p. m. to 8 p. m., EST. Frequency 1420 kc., 100
watts, specified hours.
WHFC — WHFC, Inc., Cicero, III. — Granted modification of license
requesting change in hours as specified from CST to EST ;
frequency 1420 kc., 100 watts, specified hours.
KYA — Hearst Radio, Inc., San Francisco, Calif. — Granted C. P.
amended to read: Move transmitter locally, install new
equipment, increase day power from 1 KW to 5 KW, and
commencement date 30 days after grant, completion date
90 days thereafter; frequency 1230 kc., 1 KW, unlimited
time.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Granted
C. P. to move transmitter locally 2.5 miles, install vertical
radiator, and authority to operate with 1 KW, unlimited
time, permanently ; frequency 580 kc., 1 KW, unlimited
time.
WABI — Community Broadcasting Service, Bangor, Me. — Granted
C. P. to move transmitter locally 2 miles to Brewer, Me.,
install vertical radiator, make changes in equipment, change
hours of operation from specified hours to unlimited time,
and increase day power from 100 watts to 250 watts; fre¬
quency 1200 kc., 100 watts night, 250 watts day.
WAPO — W. A. Patterson, Chattanooga, Tenn. — Granted modifica¬
tion of C. P. to make change in equipment and antenna
system; frequency 1420 kc., 100 watts, daytime only.
WSB — Atlanta Journal Co., Atlanta, Ga. — Granted renewal of
license for period August 1, 1936, to February 1, 1937;
frequency 740 kc., 50 KW, unlimited time.
NEW — Puerto Rico Advertising Co. (Emilio Defillo Ramirez),
Mayaguez, Puerto Rico. — Granted amended application for
C. P. for a new station at Mayaguez, P. R., to authorize
operation on 1370 kc., 100 watts night, 250 watts day,
specified hours. Exact studio and transmitter sites are to
be determined with Commission’s approval.
NEW — Mutual Broadcasting System, Inc., Chicago, Ill. — Granted
extension of authority to exchange programs with Station
CKLW, Windsor, Ontario, and other Canadian broadcast
stations through the telegraph office of Canadian Pacific
Railway at Windsor with Canadian Radio Broadcasting
Commission from June 1, 1936, to December 1, 1936.
RENEWAL OF LICENSES
KDKA — Westinghouse Electric & Manufacturing Co., Pittsburgh,
Pa. — Granted renewal of license.
KDKA — Westinghouse Electric & Manufacturing Co., Pittsburgh,
Pa. (Alternate). — Granted renewal of license.
KEX — Oregonian Publishing Co., Portland, Ore. — Granted renewal
of license.
The following stations were also granted renewal of licenses:
KFAB, KFAB Broadcasting Company, Lincoln, Nebr.; KFEQ,
KFEQ, Inc., St. Joseph, Mo.; KFI, Earle C. Anthony, Inc., Los
Angeles, Calif.; KFI (Auxiliary), Earle C. Anthony, Inc., Los
Angeles, Calif.; KGO, National Broadcasting Co., Inc., San Fran¬
cisco, Calif.; KGO (Auxiliary), National Broadcasting Co., Inc.,
San Francisco, Calif.; KIRO, Queen City Broadcasting Co.,
Seattle, Wash.; KJBS, Julius Brunton and Sons Co., San Fran¬
cisco, Calif.; KMOX, The Voice of St. Louis, Inc., St. Louis, Mo.;
KOA, National Broadcasting Co., Inc., Denver, Colo.; KPO,
National Broadcasting Co., Inc., San Francisco, Calif.; KPO
(Auxiliary), National Broadcasting Co., Inc., San Francisco, Calif.;
KRLD, KRLD Radio Corp., Dallas, Tex.; KSOO, Sioux Falls
Broadcast Assn., Inc., Sioux Falls, S. Dak.; KTHS, Hot Springs
Chamber of Commerce, Hot Springs National Park, Ark.; KTRB,
Thomas R. McTammany and William H. Bates, Jr., Modesto,
Calif.; KVOO, Southwestern Sales Corp., Tulsa, Okla.; KXA,
American Radio Telephone Co., Seattle, Wash.; KYW, Westing¬
house Electric & Manufacturing Co., Philadelphia, Pa.; WAAW,
Omaha Grain Exchange, Omaha, Nebr.; WABC-WBOQ, Atlantic
Broadcasting Corp., New York, N. Y.; WAPI, WAPI Broadcasting
Corp., Birmingham, Ala.; WATR, The WATR Company, Inc.,
Waterbury, Conn.; WBAL, The WBAL Broadcasting Co., Balti¬
more, Md.; WBBM, WBBM Broadcasting Corp., Chicago, Ill.;
WBBM (Auxiliary), WBBM Broadcasting Corp., Chicago, Ill.;
WBT, Station WBT, Inc., Charlotte, N. C.; WBZ, Westinghouse
Electric and Manufacturing Co., Boston, Mass.; WCAZ, Superior
Broadcasting Service, Inc., Carthage, Ill.; WCFL, Chicago Fed¬
eration of Labor, Chicago, Ill.; WCFL (Auxiliary), Chicago Fed¬
eration of Labor, Chicago, Ill.; WDGY, Dr. George W. Young,
Minneapolis, Minn.; WEAF, National Broadcasting Co., Inc., New
York, N. Y.; WEAF (Auxiliary), National Broadcasting Co., Inc.,
New York, N. Y. ; WEEU, Berks Broadcasting Co., Reading, Pa.;
WENR, National Broadcasting Co., Inc., Chicago, Ill.; WENR
(Auxiliary), National Broadcasting Co., Inc., Chicago, Ill.; WEW,
The St. Louis University, St. Louis, Mo.; WGN, WGN, Inc.,
Chicago, Ill.; WGY, General Electric Co., Schenectady, N. Y. ;
WGY (Auxiliary), General Electric Co., Schenectady, N. Y. ;
WHAM, Stromberg-Carlson Telephone Mfg. Co., Rochester, N. Y.;
WHAM (Auxiliary), Stromberg-Carlson Telephone Mfg. Co.,
Rochester, N. Y. ; WHAS, The Courier- Journal Co. and The
Louisville Times Co., Louisville, Ky.; WHB, WHB Broadcasting
Co., Kansas City, Mo.; WHKO, Associated Radiocasting Corp.,
Columbus, Ohio; WINS, Hearst Radio, Inc., New York, N. Y.;
WJJD, WJJD, Inc., Chicago, Ill.; WJR, WJR. The Goodwill Sta¬
tion, Detroit, Mich.; WJR (Auxiliary), WJR, The Goodwill Sta¬
tion, Detroit, Mich.; WJZ, National Broadcasting Co., Inc., New
York, N. Y.; WJZ (Auxiliary), National Broadcasting Co., Inc.,
New York, N. Y.; WKAR, Michigan State College, East Lansing,
Mich.; WMAQ, National Broadcasting Co., Inc., Chicago, Ill.;
WOAI, Southland Industries, Inc., San Antonio, Tex.; WOAI
(Auxiliary), Southland Industries, Inc., San Antonio, Tex.; WPTF,
WPTF Radio Co., Raleigh, N. C.; WPTF, WPTF Radio Co.,
Raleigh, N. C. (Auxiliary) ; WSAZ, WSAZ, Inc., Huntington,
W. Va.; WTAM, National Broadcasting Co., Inc., Cleveland, Ohio;
WTBO, Associated Broadcasting Corp., Cumberland, Md.; WTIC,
The Travelers Broadcasting Service Corp., Hartford, Conn.
WHDF, The Upper Michigan Broadcasting Co., Calumet, Mich.,
was granted renewal of license for period ending 3 a. m., EST,
January 1, 1937.
The following applications for renewal of special experimental
station license for experimental service were granted for the periods
specified in exact conformity with the existing licenses:
WlXKB, Westinghouse Electric & Manufacturing Co., Portable,
effective 3 a. m., EST, July 21, 1936, and expiring 3 a. m., EST,
October 31, 1936; WlXEH, The Travelers Broadcasting Service
Corp., Avon, Conn., effective 3 a. m., EST, July 24, 1936, expiring
1445
3 a. m., EST, October 24, 1936; W3XDD, Bell Telephone Labora¬
tories, Inc., Whippany, N. J., effective 3 a. m., EST, July 29,
1936, expiring 3 a. m., EST, October 29, 1936; WlXKA, W3XKA,
W8XKA, Westinghouse Electric & Manufacturing Co., Portable-
Mobile, effective 3 a. m., EST, July 30, 1936, expiring 3 a. m.,
EST, October 30, 1936.
The Commission also granted the following applications for
renewal of licenses:
KFBI, The Farmers and Bankers Life Insurance Co., Abilene,
Kans. ; WBZ, Westinghouse Electric and Manufacturing Co.,
Boston, Mass.; WDZ, WDZ Broadcasting Co., Tuscola, Ill.;
WHDH, Matheson Radio Co., Inc., Boston, Mass.; WHDH (Aux¬
iliary), Matheson Radio Co., Inc., Boston, Mass.; WHEB, Granite
State Broadcasting Corp., Portsmouth, N. H.; WHO, Central
Broadcasting Co., Des Moines, Iowa; WMBI, The Moody Bible
Institute Radio Station, Chicago, Ill.; WOR, Bamberger Broad¬
casting Service, Inc., Newark, N. J.; WOR (Auxiliary), Bamberger
Broadcasting Service, Inc., Newark, N. J.; WSB, The Atlanta
Journal Company, Atlanta, Ga. (Auxiliary) ; WSM, The National
Life and Accident Insurance Company, Nashville, Tenn.; WSM,
The National Life and Accident Insurance Company, Nashville,
Tenn.; WRVA, Larus & Bro. Company, Inc., Richmond, Va.;
KFVD, Standard Broadcasting Company, Los Angeles, Calif.;
KGDM, E. F. Peffer, Stockton, Calif.; KIEV, Cannon System,
Ltd., Glendale, Calif.; KJR, Fisher’s Blend Station, Inc. (Lessee),
Seattle, Wash.; KOB, Albuquerque Broadcasting Company, Al¬
buquerque, N. M.; KSL, Radio Service Corporation of Utah,
Salt Lake City, Utah ; WIBG, Seaboard Radio Broadcasting
Corp., Glenside, Pa.; WLS, Agricultural Broadcasting Co., Chi¬
cago, Ill.; WLS (Auxiliary), Agricultural Broadcasting Company,
Chicago, Ill.; WLW, The Crosley Radio Corp., Cincinnati, Ohio;
WMAZ, Southeastern Broadcasting Co., Inc., Macon, Ga.; WOI,
Iowa State College of Agriculture and Mechanic Arts, Ames, Iowa ;
WRUF, University of Florida, Gainesville, Fla.
The Commission granted applications for renewal of license for
period ending 3 a. m., EST, January 1, 1937, in the following
cases:
KELD, Radio Enterprises, Inc., El Dorado, Ark.; WJMS,
WJMS, Inc., Ironwood, Mich.; WOPI, Radiophone Broadcasting
Station WOPI, Inc., Bristol, Tenn.
The Commission directed that renewal of licenses be granted
to the following stations on a temporary basis only for the term
beginning 3 a. m., EST, August 1, 1936, and ending 3 a. m., EST,
February 1, 1937, subject to such action as the Commission may
take upon the licensee’s pending application for renewal of license:
KNX, Western Broadcast Company, Los Angeles, Calif.; KWJJ,
KWJJ Broadcast Co., Inc., Portland, Ore.; KWKH, International
Broadcasting Corp., Shreveport, La.; WBAP, Carter Publications,
Inc., Fort Worth, Tex.; WCCO, Northwestern Broadcasting, Inc.,
Minneapolis, Minn.; WESG, Cornell University, Elmira, N. Y.;
WFAA, A. H. Belo Corp., Dallas, Tex.; WJAG, The Norfolk
Daily News, Norfolk, Nebr. ; WNYC, City of New York, Depart¬
ment of Plant and Structures, New York, N. Y.; WOV, Interna¬
tional Broadcasting Corp., New York, N. Y. ; WPG, City of
Atlantic City, Atlantic City, N. J.; WWL, Loyola University,
New Orleans, La.
The Commission directed that a temporary renewal of license
be issued to KGBZ, KGBZ Broadcasting Co., York, Nebr., for use
of frequency 930 kc., 1 KW, 2)4 KW day, sharing time with
Station KMA; and a temporary renewal of license to KMA, May
Seed and Nursery Co., Shenandoah, Iowa, for the use of frequency
930 kc., 1 KW night, 2)4 KW day, sharing time with Station
KGBZ, for the period beginning July 14, 1936, pursuant to and
in conformity with the stay order granted July 14, 1935, by the
Court of Appeals of the District of Columbia in Cause No. 6770,
KGBZ Broadcasting Co., appellant, v. FCC, and pending decision
of said appeal on the merits by the Court of Appeals of District
of Columbia.
SET FOR HEARING
KXL — KXL Broadcasters, Portland, Ore. — Application for con¬
sent to the transfer of control of KXL Broadcasters from
A. B. Read to T. W. Symons, Jr., and E. B. Craney. Fre¬
quency 1420 kc., 100 watts night, 250 watts day, sharing
time with KBPS.
KTHS — Hot Springs Chamber of Commerce, Hot Springs, Ark. —
Application for consent to the assignment of license of
station KTHS from Hot Springs Chamber of Commerce
to Radio Enterprises, Inc. Frequency 1040 kc., 10 KW
night and day, sharing with KRLD.
NEW — Dixie Broadcasting System, Stokes Gresham, Jr., Presi¬
dent, Valdosta, Ga. — Application for C. P. for a new sta¬
tion at Valdosta, Ga., to operate on 1500 kc., 100 watts
daytime only, site to be approved.
WSPA — Virgil V. Evans, d/b as The Voice of South Carolina,
Spartanburg, S. C. — Application for C. P. to make changes
in equipment, install vertical radiator, increase day power
from 1 KW to 5 KW. Present assignment: 920 kc., 1 KW,
daytime only.
NEW — Vincennes Newspapers, Inc., Vincennes, Ind. — Application
for C. P. to erect a new broadcast station on 1200 kc., 100
watts night, 250 watts day, unlimited time, exact site to
be determined.
KFI — Earle C. Anthony, Inc., Los Angeles, Calif. — Hearing before
Broadcast Division on application for C. P. to install new
equipment and directional antenna and increase power from
50 KW to 500 KW. Frequency 640 kc., unlimited time.
WJR — WJR, The Goodwill Station, Detroit, Mich. — Hearing
before Broadcast Division on application for C. P. to install
new equipment and to increase power from 50 KW to 500
KW. Frequency 750 kc., unlimited time.
WSM — The National Life & Accident Insurance Co., Nashville,
Tenn. — Hearing before Broadcast Division on application
for C. P. to install new equipment and to increase power
from 50 KW to 500 KW. Frequency 650 kc., unlimited
time.
WHDH — Matheson Radio Co. Inc., Boston, Mass. — Hearing be¬
fore Broadcast Division on application for special experi¬
mental authorization to operate from local sunset at Denver,
Colo., to 11 p. m. EST, using directional antenna at present
site for a period from August 1, 1936 to February 1, 1937.
Frequency 830 kc., 1 KW night, 1 KW day, daytime to
sunset at Denver, Colo.
WCFL — Chicago Federation of Labor, Chicago, Ill. — Hearing be¬
fore Broadcast Division on application for C. P. to install
new equipment and increase power from 5KW to 50 KW
with unlimited time experimentally. Frequency 970 kc.,
5 KW, unlimited time, experimentally.
KDKA — Westinghouse Electric & Mfg. Co., Pittsburgh, Pa. —
Hearing before Broadcast Division on application for C. P.
to install new equipment (new transmitter and new an¬
tenna) subject to Commission approval, and to increase
power from 50 KW to 500 KW. Frequency 980 kc., 50
KW, unlimited time.
KGO — National Broadcasting Co., Inc., San Francisco, Calif. —
Application for C. P. to move transmitter to same site as
KPO near Belmont, Calif., install new equipment, increase
power from 7.5 KW to 50 KW, and install directional
antenna for night operation. Frequency 790 kc., 7.5 KW,
unlimited time.
WSMK — WSMK, Inc., Dayton, Ohio — Application for modifica¬
tion of license to authorize change in hours of operation
from simultaneous day KQV and specified hours night to
unlimited time, and to increase power from 200 watts to
250 watts. Frequency 1380 kc.
WGBI — Scranton Broadcasters, Inc., Scranton, Pa. — Application
for modification of license to authorize increase in day
power from 500 watts to 500 watts, 1 KW LS and con¬
tinue to share with WQAN. Frequency 880 kc.
WDRC — WDRC, Inc., Hartford, Conn. — Hearing before Broad¬
cast Division on application for modification of license to
change power from 1 KW, 5 KW LS to 5 KW, unlimited
time. Frequency 1330 kc., unlimited time.
NEW— Farnsworth Television, Inc., of Pennsylvania, Springfield,
Pa. — Application for C. P. for a new television broadcast
station to operate on 42000-56000 kc. and 60000-86000 kc.
on an experimental basis under provision of Rules 1031,
1033 and 1034. It is proposed to be used in a program of
research for the development of the art of television in the
metropolitan areas of Springfield and Philadelphia.
The hearing of the so-called Brooklyn cases, involving stations
WLTH, WEVD, WBBC, WVFW, et al., scheduled before the
Commission, sitting en banc, for September 9, 1936, was post¬
poned to October 26, 1936.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. 1-235: Carl S. Taylor, DuBois, Pa. — Denied
C. P. for new broadcast station to operate on 780 kc., 250
watts daytime. Examiner R. H. Hyde sustained. Effec¬
tive October 13, 1936.
1446
WISN — Ex. Rep. 1-230: Hearst Radio, Inc., Milwaukee, Wis.—
Denied C. P. to make changes in equipment, move trans¬
mitter from 533 E. Wells St., Milwaukee, Wis. to 231 W.
Michigan St., Milwaukee, Wis., to increase power from 250
watts night, 1 KW day, to 1 KW, unlimited time. Fre¬
quency 1120 kc. Examiner M. H. Dalberg reversed.
Effective Oct. 6, 1936.
WGBF — Ex. Rep. 1-232: Evansville On The Air, Inc., Evansville,
Ind. — Granted C. P. to make changes in equipment and in¬
crease power from 500 watts to 500 watts night, 1 KW
day. Frequency 630 kc. Simultaneous day and shares
night with WOS and KFRU. Examiner R. H. Hyde sus¬
tained. Effective October 6, 1936.
WQDM — Ex. Rep. 1-236: E. J. Regan & F. Arthur Bostwick,
d/b as Regan & Bostwick, St. Albans, Vt. — Granted C. P.
to install new equipment, move transmitter from 16 King-
man St., St. Albans, Vt. to St. Albans Bay, Vt., change
frequency from 1370 kc. to 1390 kc., and increase power
from 100 watts to 1 KW, specified hours. Examiner M. H.
Dalberg sustained. Effective September 8, 1936.
Heard Before Broadcast Division:
KNX — Western Broadcast Co., Los Angeles, Calif. — Granted re¬
newal of license. Frequency 1050 kc., 50 KW, unlimited
time. Also granted authority to transfer control of the
corporation from Edwin Earl, Guy C. Earl, Jr., Naylor
Rogers, Ranson Henshaw, Calmon Luboviski, Paul G. Hoff¬
man Co., Inc., to Columbia Broadcasting System, Inc.,
effective September 15, 1936.
NEW— Ex. Rep. 1-225: Wilbur M. Havens, Charles H. Wood¬
ward, Calomb B. Jones, Wilfred H. Wood, d/b as Peters¬
burg Broadcasting Co., Petersburg, Va.— Set for oral argu¬
ment, October 22, 1936.
WLBG — Ex. Rep. 1-225: WLBG, Inc., Petersburg, Va. — Set for
oral argument, October 22, 1936.
WLBG — Ex. Rep. 1-225: WLBG, Inc., Petersburg, Va. — Set for
oral argument, October 22, 1936.
WHB — Ex. Rep. 1-229: WHB Broadcasting Co., Kansas City,
Mo. — Set for oral argument, October 22, 1936.
KFOX — Ex. Rep. No. 1-233: Nichols and Warinner, Inc.. Long
Beach, Calif. — Set for oral argument October 22, 1936.
NEW — Ex. Rep. No. 1-234: B. A. Thompson, Santa Cruz, Calif. —
Set for oral argument October 22, 1936.
NEW — Ex. Rep. No. 1-234: William B. Smullin, Sacramento, Calif.
— Set for oral argument October 22, 1936.
NEW — Ex. Rep. No. 1-234: Howard N. Mitchell, Sacramnto,
Calif. — Set for oral argument October 22, 1936.
NEW — Ex. Rep. No. 1-234: The Press Democrat Publishing Co.,
Santa Rosa, Calif. — Set for oral argument October 22, 1936.
NEW — Ex. Rep. No. 1-237: Miles J. Hansen, Fresno, Calif.— Set
for oral argument October 29, 1936.
NEW — Ex. Rep. No. 1-237: Julius Brunton & Sons Co., Fresno,
Calif. — Set for oral argument October 29, 1936.
NEW — Ex. Rep. No. 1-238: Harold H. Hanseth, Fresno, Calif. —
Set for oral argument October 29, 1936.
NEW — Ex. Rep. No. 1-238: Fresno Broadcasting Co., Fresno,
Calif. — Set for oral argument October 29, 1936.
SPECIAL AUTHORIZATIONS
KOTN — Universal Broadcasting Corp., Pine Bluff, Ark. — Granted
special temporary authority to operate unlimited time for
period beginning July 25, 1936, and ending in no event
later than 30 days thereafter, in order to broadcast special
Arkansas Centennial programs each night.
WOW — Woodman of the World Life Ins. Assn., Omaha, Nebr. —
Granted extension of special temporary authority to operate
with power of 5 KW night for period beginning July 31,
1936, and ending in no event later than 30 days.
WHAS — The Courier-Journal Co. and the Louisville Times Co.,
Louisville, Ky. — Granted extension of special temporary
authority to operate a 50-watt test transmitter from 12
midnight to 6 a. m., CST, for period beginning July 19,
1936, and ending in no event later than 30 days thereafter,
in order to determine new transmitter site.
WIBM — WIBM, Inc., Jackson, Mich. — Granted special temporary
authority to operate two unlicensed portable-mobile broad¬
cast pickup transmitters on July 20 and 21, 1936, during
the Michigan Open Golf Tournament. The transmitter to
operate on 2 watts power, on frequencies 31100, 34600,
37600, 40600 kc., A3 emission, Radio Transceiver Labs.
TR-6A6 equipment.
WBAA— Purdue University, West Lafayette, Ind. — Granted spe¬
cial temporary authority to remain silent during month of
August, 1936, in order to observe summer vacation.
WINS — Hearst Radio, Inc., New York, N. Y. — Granted special
temporary authority to operate a 100-watt portable test
transmitter on 1160 kc., between the hours of 1 a. m. and
6 a. m. in the vicinity of Jersey Meadows, for a period
beginning July 24, 1936, and ending in no event later than
30 days thereafter, in order to make field tests to determine
new transmitter site.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Granted
extension of special temporary authority to operate with
power of 50 watts from local sunset to 11 p. m., EST, on
Tuesdays, Thursdays, Saturdays and Sundays, during the
month of August, 1936, pending action on application for
modification of license requesting this authority.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Granted
extension of special temporary authority to operate with
additional power of 750 watts at night for the period be¬
ginning July 30, 1936, and ending in no event later than
August 28, 1936.
WSFA — Montgomery Broadcasting Co., Inc., Montgomery, Ala. —
Granted extension of special temporary authority to op¬
erate without an approved frequency monitor for period
beginning July 16, 1936, and ending in no event later than
September 1, 1936. Station will be responsible for devia¬
tions of more than 50 cycles from the assigned frequency.
WFAB — Fifth Avenue Broadcasting Corp., New York, N. Y. —
Granted special temporary authority to operate without an
approved frequency monitor for period not to exceed 30
days. Station will be responsible for deviations of more
than 50 cycles from assigned frequency.
WCOP — Massachusetts Broadcasting Corp., Boston, Mass. —
Granted special temporary authority to operate without
antenna ammeter for period of 10 days provided readings
of the plate voltmeter and ammeter are maintained at nor¬
mal values.
WLAK — Lake Region Broadcasting Co., Lakeland, Fla. — Granted
special temporary authority to operate without antenna
ammeter for period of 30 days provided readings of plate
voltmeter and ammeter are maintained at normal values.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted extension of spe¬
cial temporary authority to use studio located at Zion, Ill.,
as main studio, pending action on application to move
studio to Chicago, Ill., for period beginning July 23, 1936,
and ending in no event later than August 21, 1936.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
special temporary authority to operate simultaneously with
Station KVOO, using power of 1 KW, from 8 p. m., CST,
to the conclusion of the acceptance speech of Gov. Alfred
Landon, July 23, 1936.
KVOO — Southwestern Sales Corp., Tulsa, Okla. — Granted special
temporary authority to operate simultaneously with Station
WAPI, using power of 1 KW, from 8 p. m., CST, to the
conclusion of the acceptance speech of Gov. Alfred Landon,
July 23, 1936.
WRAW — Reading Broadcasting Co., Reading, Pa. — Granted spe¬
cial temporary authority to dperate without an antenna
ammeter pending repair of that apparatus damaged by
storm, but for a period beginning July 10, 1936, and ending
in no event later than 10 days thereafter, provided read¬
ings of plate voltmeter and ammeter are maintained at
normal values.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Granted ex¬
tension of special temporary authority to operate simul¬
taneously with Station WKBO from 10 a. m. to 11 a. m.
and 5 p. m. to 6 p. m., EST, for period beginning July 26,
1936, and ending in no event later than August 24, 1936,
pending agreement on division of time due to adoption of
DST in Easton, Pa.
WMBG— Havens and Martin, Inc., Richmond, Va. — Granted ex¬
tension of special temporary authority to operate from
5:30 p. m. to 7 p. m., EST, on Sundays, for period begin¬
ning August 1, 1936, and ending in no event later than
August 31, 1936 (provided WBBL remains silent) in order
to broadcast special programs.
WSUI — State University of Iowa, Iowa City, Iowa. — Granted ex¬
tension of special temporary authority to operate a minimum
of six hours daily, instead of unlimited time, for period
1447
beginning August 1, 1936, and ending in no event later than
September 1, 1936, in order to observe summer vacation.
KGGF — Hugh J. Powell and Stanley Platz, d/b as Powell and
Platz, Coffeyville, Kans. — Granted extension of special tem¬
porary authority to operate from 7:15 p. m. to 9:15 p. m.,
CST, August 4. 6, 11, 13, 18, 20, 25, and 27, 1936, and 8:15
p. m. to 9:15 p. m., CST, August 5, 12, 19, and 26, 1936
(provided Station WNAD remains silent) in order that
WNAD may observe summer vacation.
WNAD — University of Oklahoma, Norman, Okla. — Granted spe¬
cial temporary authority to remain silent during month of
August, 1936, in order to observe summer vacation.
WDBJ — Times-World Corp., Roanoke, Va. — Granted special tem¬
porary authority to operate station without an approved
frequency monitor for period beginning July 25, 1936, and
ending in no event later than 30 days thereafter. Station
will be responsible for deviations of more than 50 cycles
from assigned frequency.
National Broadcasting Co., Inc., New York, N. Y. — Granted ex¬
tension of authority to transmit programs to foreign coun¬
tries for period not to exceed 30 days from July 11, 1936,
pending receipt and/or action on formal application.
WMEG — United Air Lines Transport Corp., aboard regularly
licensed aircraft NC-13361. — Granted special temporary au¬
thority to operate regularly licensed aircraft transmitter,
KHSAZ, aboard NC-13361, as a broadcast pickup station
on July 21 and 22, 1936, in connection with Great Lakes
Exposition program to be rebroadcast over WTAM and
WLW.
RATIFICATIONS
The Broadcast Division ratified the following acts authorized on
the dates shown below:
KABF — James McClatchy Co., Sacramento, Calif. — Granted au¬
thority to operate Broadcast Pickup Station KABF as
licensed from July 3 to July 5, inclusive, in order to broad¬
cast celebration at Rodeo Grounds, Reno, Nev. Action
taken 7-1.
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — Granted
authority to extend program test period of station 30 days
from July 9, 1936. Action taken 7-1.
WABG — Memphis Commercial Appeal, Inc., Memphis, Tenn.—
Granted authority to extend test period for 30 days begin¬
ning July 7, 1936. Action taken 7-6.
WGBE — Onondaga Radio Broadcasting Corp., Syracuse, N. Y. —
Granted authority to operate Broadcast Pickup Station
WGBE as licensed from July 16 to July 20, 1936, inclusive,
in order to broadcast description of New York State Ama¬
teur Golf Tournament from Bellevue Golf and Country
Club. (Action taken 7-9.)
Radio Air Service Corp., Cleveland, Ohio. — Granted special tem¬
porary authority to operate unlicensed transmitter as a
general experimental broadcast pickup station for period
beginning July 4, 1936, and ending in no event later than
August 2, 1936, to broadcast public activities. Frequencies
31100, 34600, 37600, 40600 kc., 10 watts. (Action taken
7-3.)
KGCX — E. E. Kresbach, Wolf Point, Mont. — Granted special
temporary authority to operate from 3:30 p. m. to 6 p. m.,
July 9, 10 and 11, 1936, in order to broadcast annual Wolf-
point Stampede. (Action taken 7-6.)
WCOL — WCOL, Inc., Columbus, Ohio. — Granted special tem¬
porary authority to operate using the equipment as au¬
thorized by C. P., for a period not to exceed 30 days,
pending completion of equipment and program tests as
authorized by this permit. (Action taken 7-6.)
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. —
Granted special temporary authority to relocate (and use)
main studio from 102 18th Street, Rock Island, Ill., to 1630
5th Avenue, Moline, Ill., for a period not to exceed 30
days. (Action taken 7-6.)
WPRP — Julio M. Conesa, Ponce, P. R. — Granted special tem¬
porary authority to operate without approved frequency
monitor for a period of 30 days. Station will be respon¬
sible for deviations of more than 50 cycles from assigned
frequency. (Action taken 7-9.)
WABY — The Adirondack Broadcasting Co., Inc., Albany, N. Y. —
Granted special temporary authority to operate a 100-watt
portable test transmitter between the hours of 1 a. m. and
6 a. m., EST, for a period from July 15 to August 7, 1936,
inclusive, only, in order to make field tests for relocation of
transmitter. (Action taken 7-9.)
WEBR — Howell Broadcasting Co., Inc., Buffalo, N. Y. — Granted
special temporary authority to operate a 100-watt portable
transmitter on 1310 kc., from 1 a. m. to 6 a. m., EST, for
a period not to exceed 10 days, provided no operation occurs
during silent periods designated for monitoring schedule, in
order to determine new transmitter site. (Action taken
7-9.)
WEBR — Howell Broadcasting Co., Inc., Buffalo, N. Y. — Granted
special temporary authority to operate without an approved
frequency monitor for a period not to exceed 30 days.
Station will be responsible for deviations of more than 50
cycles from assigned frequency. (Action taken 7-9.)
KIDW — Southwest Broadcasting Co., Lamar, Colo. — Granted spe¬
cial temporary authority to operate without an approved
frequency monitor for a period not to exceed 30 days.
Station will be responsible for deviations of more than 50
cycles from assigned frequency. (Action taken 7-9.)
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. —
Granted special temporary authority to operate from 7:45
p. m. to 9 p. m., EST, using 100 watts, July 12, 19 and 26,
1936, and from 7 p. m. to 9 p. m., EST, using 100 watts,
August 2, 9, 16, 23 and 30, 1936, in order to broadcast
Catholic Summer School. (Action taken 7-9.)
WGNY — Peter Goelet, Chester Township, N. Y. — Granted special
temporary authority to operate a 50-watt portable test
transmitter on 1210 kc. in vicinity of Newburgh, N. Y„
between the hours of 1 a. m. and 6 a. m., EST, provided
no operation occurs during silent periods designated for
monthly monitoring schedule, for period not to exceed 30
days, in order to determine new transmitter site. (Action
taken 7-11.)
WGST — Georgia School of Technology, Atlanta, Ga. — Granted
special temporary authority to operate a 100-watt portable
test transmitter of 890 kc. between the hours of 12 mid¬
night and 6 a. m., EST, for period beginning July 13, 1936,
and ending in no event later than 30 days thereafter, in
order to determine new antenna location. (Action taken
7-11.)
NEW — The WGAR Broadcasting Co., Portable-Mobile. — Granted
C. P. as follows: Frequencies 31100, 34600, 37600 and
40600 kc., 3 watts; Emission A-3 and Special for high
quality telephony, the maximum frequency band of emis¬
sion 5000 cycles; portable-mobile; authority is granted to
communicate as a broadcast pickup station only in the
temporary service on an experimental basis under provision
of Rule 320 subject to conditions (1) that the provisions of
Rule 357 (b) shall not be applicable hereto, and (2) that this
authority is granted upon a temporary basis and may be
cancelled at any time without notice or hearing.
NEW — The WGAR Broadcasting Co., Portable-Mobile — Granted
C. P. same as above, except 35 watts emission A-3 and
special for high quality telephony, and the maximum fre¬
quency band of emission 17000 cycles. (Action taken 7-11)
NEW — The WGAR Broadcasting Co., Portable-Mobile — Granted
C. P. same as above except 100 watts. (Action taken 7-11)
KFBB — Buttrey Broadcast, Inc., Great Falls, Mont. — Granted
C. P. to move transmitter locally approximately 7 miles,
install new equipment and new vertical radiator; tower to
be marked in accordance with Rule 131-d; application
granted upon express condition contained in a waiver sub¬
mitted by counsel for applicant under date of July 3, 1936,
that the action of Commission in granting this permit shall
not be construed to affect in any manner any of the issues
in any proceeding or application now pending before the
Commission in which station KFBB is involved. (Action
taken 7-3)
WRR-KVPA — City of Dallas, Dallas, Texas — Granted authority
to police station KVPA to use antenna system licensed to
WRR for purpose of making equipment tests. (Action taken
7-6)
The Broadcast Division granted the request of Harold Johnson
and Leland M. Perry, d/b as Johnson and Perry, for an order to
take depositions in support of their application for C. P. (Docket
3843). (Action taken 6-30)
The Broadcast Division approved the design of the proposed
directional antenna system for station WNBX, Springfield, Vt.
and authorized the installation of same provided it is marked in
accordance with Rule 131-d. (Action taken 7-10)
1448
MISCELLANEOUS
KGFI — Gulf Coast Broadcasting Co., Corpus Christie, Texas —
Denied petition of Eagle Broadcasting Co., KGFI, for
further hearing of application of Gulf Coast Broadcasting
Co. for new station to operate on 1330 kc., 250 watts, 500
watts LS, unlimited time.
NEW — C. E. Wilkinson Broadcasting Co. Inc., Mason City, Iowa
— Denied motion asking Commission to stay action of July
2, 1936, denying applications of Mason City Broadcasting
Company and Northern Iowa Broadcasting Co. for new
stations at Mason City, and granting application of Mason
City Globe-Gazette Company. Action in effect is a denial
of application of C. E. Wilkinson Broadcasting Company
for new station at Mason City.
NEW — Hunt Broadcasting Association, Greenville, Texas — Denied
petition asking Commission to reopen hearing on applica¬
tion for C. P. to erect a new station at Greenville, Texas.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Denied
petition asking Commission to reconsider action in desig¬
nating for hearing application for modification of license to
increase daytime power to 1 KW and to grant the same
without a hearing.
KXL — KXL Broadcasters, Inc., Portland, Ore. — Denied petition
asking Commission to reconsider action in designating re¬
newal of license for hearing and to grant the same.
Black River Valley Broadcasts Inc., Watertown, N. Y. — Denied
motion asking Commission to dismiss application of Brock¬
way Company for C. P. to erect new station at Water-
town, N. Y.
KVOS — KVOS, Inc., Bellingham, Wash. — Denied petition asking
Commission to issue subpoenas relative to proceedings be¬
fore the Commission for transfer of majority of stock and
for renewal of license, since issues have already been heard
by an examiner.
Pittsburg Publishing Co., Pittsburg, Kan. — Denied petition asking
postponement from July 2, 1936 of decision upon applica¬
tions of Pittsburg Publishing Co., the Joplin Broadcasting
Co., both of Pittsburg, Kans., and the Wichita Broadcasting
Co., Wichita, Kans.
Wayne Broadcasting Co., Hamtramck, Mich. — Denied application
requesting Commission to reconsider its action in refusing
C. P. for new broadcast station at Hamtramck to operate
on 1370 kc., 100 watts daytime.
WBBR — Peoples Pulpit Assn., New York, N. Y. — Granted per¬
mission to withdraw without prejudice application for C. P.
to increase power from 1 KW to 5 KW daytime and to
change station’s equipment.
WRAW — Reading Broadcasting Co., Reading, Pa. — Denied mo¬
tion to dismiss as in default WBBR’S application recorded
above.
WWL — Loyola University, New Orleans, La. — Granted further
extension for period ending in no event later than 3 a. m.
EST, Sept. 1, 1936, of the special temporary experimental
authorizations heretofore issued, subject to same conditions
as contained in the existing authorizations, pending con¬
sideration of the pending petition of station WLWL and
petitions in opposition thereto.
KWKH — International Broadcasting Corp., Shreveport, La. —
Granted further extension for period ending in no event
later than 3 a. m. EST, Sept. 1, 1936, of the special tem¬
porary experimental authorizations heretofore issued, sub¬
ject to same conditions as contained in the existing au¬
thorizations, pending consideration of the pending petition
of station WLWL and petitions in opposition thereto.
NEW — Lookout Broadcasting Corp., Chattanooga, Tenn. —
Granted dismissal of application at request of applicant.
Application was for a C. P. for station to operate on
1420 kc., 100 watts, daytime.
NEW — J. E. Churchwell, G. O. Russell, H. O. Freeman, Jr., d/b
as Panama City Broadcasting Co., Panama City, Fla.-
Granted dismissal of application at request of applicant.
Application was for a C. P. for new station to operate on
1500 kc., 100 watts, daytime.
APPLICATIONS RECEIVED
First Zone
NEW — General Electric Co., Schenectady, N. Y. — Construction
790 permit for a new experimental broadcast station to be
operated on 790 kc., 250 watts, 12 midnight to 6 a. m.
WESG — Cornell University, Elmira, N. Y. — Extension of special
1040 experimental authorization to operate on 850 kc., daylight to
sunset at New Orleans, La., for period from 8-1-36 to
2-1-37.
WCBM — Baltimore Broadcasting Corp., Baltimore, Md. — Con-
1370 struction permit to install a new transmitter, antenna, and
move transmitter from 114 W. Lexington St., Baltimore,
Md., to Cold Spring Lane, Baltimore, Md.
NEW — WEEI Broadcasting Corp., Medford, Mass. — Construc¬
tion permit for a new high-frequency broadcast station to
be operated on 31600, 35600, 38600, 41000 kc., 100 watts.
Second Zone
WHAS — The Courier-Journal Co. and The Louisville Times Co.,
820 Louisville, Ky. — Construction permit to install new equip¬
ment, increase power from 50 KW to 500 KW, and move
transmitter from Rural Route No. 1, near Jeffersontown,
Ky., to site to be determined, Oldham County, Ky.
Amended to change application from a special experimental
authorization to a construction permit.
WMMN— A. M. Rowe, Inc., Fairmont, W. Va. — Modification of
890 license to change name from A. M. Rowe, Inc., to Monon-
gahela Valley Broadcasting Co.
W3XAU- — WCAU Broadcasting Co., Newton Square, Pa. — Modi¬
fication of construction permit for a relay broadcast station,
requesting extension of completion date for period of 60
days.
NEW — WIBM, Inc., Portable-Mobile. — Construction permit for
a new relay broadcast station to be operated on 31100,
34600, 37600, 40600 kc., 2 watts.
NEW — WIBM, Inc., Portable-Mobile. — Construction permit for
a new relay broadcast station to be operated on 31100,
34600, 37600, 40600 kc., 2 watts.
NEW — James F. Hopkins, Inc., Highland Park, Mich. — Construc¬
tion permit for a new high-frequency broadcast station to
be operated on 26050 kc., 100 watts.
Third Zone
WFLA-WSUN — Clearwater Chamber of Commerce, Clearwater,
620 Fla. — Voluntary assignment of license of WFLA only from
Clearwater Chamber of Commerce to Florida West Coast
Broadcasting Co., Inc., St. Petersburg Chamber of Com¬
merce to remain licensee of WSUN.
WOAI — Southland Industries, Inc., San Antonio, Tex. — Construc-
1190 tion permit to move transmitter from Austin Highway,
Selma, Tex., to site to be determined, Texas; increase power
from 50 KW to 500 KW, install a new transmitter and
antenna.
WAML — New Laurel Radio Station, Inc., Laurel, Miss. — Con-
1310 struction permit to install a new transmitter and move trans¬
mitter from 429 Magnolia Street, Laurel, Miss., to Laurel,
Miss, (no street address).
WLAC — WLAC, Inc., Nashville, Tenn. — Construction permit to
1470 install a new transmitter and make antenna changes and
increase power from 5 KW to 50 KW.
NEW — The Atlanta Journal Co., Portable-Mobile. — Construction
permit for a new relay station to be operated on 31100,
34600, 37600, 40600 kc., 10 watts.
Fourth Zone
KSD — The Pulitzer Publishing Co., St. Louis, Mo. — Modification
550 of license to limit night radiation in the direction toward
WKRC to 123.7 mv/m at one mile or 88.3 mv/m at monitor
point.
NEW — Vincennes Newspapers, Inc., Vincennes, Ind. — Construc-
1200 tion permit for a new station to be operated on 1200 kc„
100 watts, 250 watts day, unlimited time.
NEW — Falls City Broadcasting Corp., Falls City, Nebr. — Con-
1310 struction permit for a new station to be operated on 1310
kc., 100 watts, unlimited time. Amended to install a verti¬
cal antenna and give transmitter site as NW Cor. of SW)4
of SEL*, Sec. 3, Twp. 1, Range 16, East of 6 PM and being
mile north of city limits of Falls City, Nebr.
NEW — Sioux City Broadcasting Co., Sioux City, Iowa. — Con-
1420 struction permit for a new station to be operated on 1420
kc., 100 watts, 250 watts day, unlimited time.
WKBB — Sanders Brothers Radio Station, East Dubuque, Ill. —
1500 License to cover construction permit (B4-P-1102) to install
a new transmitter.
1449
NEW — The Journal Co. (The Milwaukee Journal), Milwaukee,
1570 Wis. — Construction permit for a new special broadcast
station to be operated on 1570 be., 1 KW, unlimited time.
NEW — First National Television, Inc., Portable-Mobile. — Con¬
struction permit for a new relav broadcast station to be
operated on 31100, 34600, 37600, 40600, 87600, 89600,
91600, 93600 kc., 150 watts.
NEW — First National Television, Inc., Portable-Mobile. — Con¬
struction permit for a new relay broadcast station to be
operated on 31100, 34600, 37600, 40600, 87600, 89600,
91600, 93600 kc., 5 watts.
KABJ — Central States Broadcasting Co., Portable. — License to
cover construction permit for a new broadcast pickup
station.
Mutual Broadcasting System, Inc. — Extension of the authority
to transmit sustaining programs to a foreign country, CKLW
(Western Ontario Broadcasting Co., Ltd), Windsor, On¬
tario, Canada (B4-FP-13), for period from 6-1-36 to
12-1-36.
Fifth Zone
KVOA — Arizona Broadcasting Co., Inc., Tucson, Ariz. — Modifica-
1260 tion of construction permit (B5-P-1096) for changes in
equipment, requesting further changes in equipment, to in¬
stall a vertical antenna, increase power from 500 watts to
1 KW, and move transmitter from corner Congress St. and
Stone Ave., Tucson, Ariz., to West Lee at 10th St., Tucson,
Ariz., and extend commencement and completion dates.
KVOR — S. H. Patterson, Colorado Springs, Colo. — Voluntary as-
1270 signment of license from S. H. Patterson to Out West Broad¬
casting Co.
Puerto Rican Zone
NEW — Julio M. Conesa, Ponce, P. R. — Construction permit for a
new experimental broadcast station to be operated on
8655, 12862.5 kc., 100 watts.
1450
The National Association of Broadcasters
NATIONAL PRESS BUILDING ★ * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS *
Copyright, 1936. The National Association of Broadcasters
IN THIS ISSUE
Page
New Rules Postponed . 1451
KGBZ Appeal Dismissed . 1451
Wisconsin Station Recommended . 1451
Changes Recommended for KRLC . 1451
Communications Commission on October 5 Hearing . 1451
New Alabama Station Recommended . 1452
Rule 229 Amended and Made Permanent . 1452
New California Station Recommended . 1452
WJBO Changes Recommended on Conditions . 1452
Advertising to Benefit . 1452
Federal Trade Commission Action . 1453
FTC Closes Case . 1455
Federal Communications Commission Action . 1455
NEW RULES POSTPONED
The effective date of new rules of the Federal Communications
Commission pertaining to relay broadcast, international broadcast,
visual broadcast, high frequency broadcast, experimental broadcast
stations and rebroadcasting have been postponed until September
15. In a statement on this subject the Commission says:
“In view of the Commission’s action postponing the effective
date of Rule 229, as amended, to September 15, 1936, and in order
to permit full consideration of the suggestions submitted by the
licensees of stations, the Broadcast Division has extended the
effective date of Rules 970 to 1076, inclusive, and Rules 177 and
177-1 to September 15, 1936.”
KGBZ APPEAL DISMISSED
The Court of Appeals of the District of Columbia has dismissed
the appeal of broadcasting station KGBZ, York, Nebr., on the
application of the appellant.
A short time ago the Court granted a stay order to the station
when it filed its appeal. In this case the station was taken off the
air by the Federal Communications Commission and was actually
off from July 7 to July 14 when the stay order was granted. The
station appealed the action of the Commission and later applied for
dismissal of its appeal which was granted by the Court. The station
is off the air.
WISCONSIN STATION RECOMMENDED
Fred A. Baxter applied to the Federal Communications Commis¬
sion for a construction permit for the erection of a new broadcast¬
ing station at Superior, Wis., to use 1200 kilocycles, 100 watts
power, and unlimited time on the air.
Examiner Melvin H. Dalberg, in Report No. 1-266, recommended
that the application be granted. The Examiner states that “it is
apparent from the testimony given at the hearing and in the
depositions, which are in evidence, that there exists a need for
broadcast facilities of a purely local nature in the area sought to
be served.” He states further that there is no question of any
interference with other stations.
CHANGES RECOMMENDED FOR KRLC
Broadcasting station KRLC, Lewiston, Idaho, applied to the
Federal Communications Commission to change its frequency from
1420 to 1390 kilocycles, and to increase its power from 100 to 250
watts. The station operates unlimited time and its application
asked that that remain unchanged.
Examiner George H. Hill, in Report No. 1-265, recommended
that the application be granted. He found that the operation of
the station with the new frequency and increased power “would
render service to an area not now receiving consistent service from
any station.” The Examiner also found that the change would
not result in any interference with any existing radio service.
Vol. 4 - - No. 36
JULY 30, 1936
COMMUNICATIONS COMMISSION ON OCTOBER
5 HEARING
The Federal Communications Commission this week issued a
supplemental statement in connection with the hearing of the
Broadcast Division on allocations to be held October 5. This state¬
ment is as follows:
“Many inquiries have been made with respect to the proper and
ultimate consequences of the proposed broadcast allocation hear¬
ing set for October 5th. In order that the industry may thoroughly
understand the situation, it is believed they should be informed
that the evidence given at the October 5th hearing will form a basis
for such changes which may be shown to be desirable in the existing
regulations of the Commission with respect to broadcasting alloca¬
tions, engineering requirements or standards.
“With respect to the foregoing, the industry may recall that the
Commission has approved the following procedure as a basis for
attacking the solution of the problems confronting the public, the
Commission and the industry:
“1. In new allocations or in reallocations of radio frequencies to
services or to stations within services, proceed on the basis
of ‘evolution, experimentation and voluntary action’ rather
than by radical and enforced costly changes. Modifications
which do not involve large expenditures or are necessary re¬
quirements to keep abreast of the technical art should be
accomplished.
“2. Encourage communication development along specific lines
as may be indicated from time to time from accumulated
data and from evidence secured from such informal engineer¬
ing meetings as may be necessary to facilitate progress in
detail.
“3. Direct engineering and other interested departments to pre¬
pare modification of existing regulations pertaining to fre¬
quencies for various classes of broadcast stations between
550 and 1600 kc. in such a manner that they are sufficiently
flexible to permit the adaptation of new technical develop¬
ments and allocation principles which, upon proper showing
at hearings, indicate that a needed improvement in service
will result.
“At the June 5th hearing, at which was considered the broader
aspects of the allocation of the entire spectrum to various services,
the Commission pursued the policy of cooperation with the in¬
dustry in solving the basic radio problems confronting the nation.
There is no contemplated change in policy in this respect on the
part of the Commission with reference jo the October 5th broadcast
hearing.
“As is well known in the industry, the existing practical alloca¬
tions depart somewhat from the empirical standards which became
the basis of the regulations in 1928, and which have not been
changed since that date. It is believed that at least one of the
outcomes of the October 5th hearing will be to modify the regula¬
tions so that they will conform to the actual practice of today.
“As is also well known to the industry, there are many pro¬
ponents for high power stations, as well as many who oppose such
increases in power. There are also many who desire horizontal
power increases for regional stations, and there are certain un¬
economic situations which exist, such as those experienced by
stations sharing time. In addition, the repeal of the Davis Amend¬
ment has removed certain limitations upon the engineering solution
of the radio problem.
“Some of the schools of thought affect the entire allocation
system, and some of the proposals will have advantages as well as
disadvantages. Therefore, it is felt that prior to any basic deci¬
sion on the part of the Commission to change or not to change
its regulations, the entire industry should have an opportunity to
come before the Commission in an informal public discussion of
the existing broadcasting problems, as well as to determine the
1451
merits of any proposals for changes in the principles of allocation.
“It is felt that the hearing on October 5, 1936, will afford the
Commission and the industry the opportunity to cooperate in an
open manner toward a logical solution of the existing broadcast
problems confronting the nation.”
NEW ALABAMA STATION RECOMMENDED
The Jefferson Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new broadcasting station at Birmingham, Ala., to use
1200 kilocycles, 100 watts and 250 watts LS, and unlimited time.
Also, Wilton H. Pollard applied to the Commission to erect a new
station at Huntsville, Ala., to use 1200 kilocycles, 100 watts power,
and unlimited time.
Examiner P. W. Seward, in Report No. 1-263, recommended that
the Jefferson Company application be denied and that the Pollard
application be granted.
The Examiner found in the case of the application for a station
at Birmingham that it was not shown that a need exists for addi¬
tional radio service there and that objectionable interference would
result with several existing stations.
In the case of the proposed Huntsville station the Examiner
states that there is need for additional radio service in that area
and no interference would result either with existing or proposed
stations.
RULE 229 AMENDED AND MADE PERMANENT
Effective September 15, Rule 229 of the Federal Communications
Commission is amended and made permanent. At a general session
of the Commission it took the following action:
In the following cases, Protest of Purdue University to Commis¬
sion Order No. 14 amending Rule 229, Docket 4057; Petition of
National Television Corporation for hearing on Commission Order
No. 14 amending Rule 229, Docket 4058; and application and sup¬
plemental petition of National Television Corporation, Docket No.
3029, the Commission entered the following order:
That Rule 229 as amended May 13, 1936, be made permanent,
effective September 15, 1936, except as to the frequency band
2000-2100 kc. As to the frequencies 2000-2100 kc., the Commission
ordered that Rule 229 be further amended as follows:
thereof and ending not later than 3 A. M., E.S.T., September 15,
1936. Said authorization to contain the following express terms:
(1) That National Television Corporation furnish the Com¬
mission on or before September 1, 1936, complete report showing
all data and results obtained to that date with particular reference
therein to results obtained from transmission of pictures and narrow
band communication system, and such further information as the
Commission may require.
(2) That at any time during the operation of the station author¬
ized by this permit the results of the experimentation and the
operations carried on may be viewed and tests conducted by per¬
sons authorized by the Commission so to do in such manner as
may be prescribed, including the introduction of what otherwise
might be an interfering signal, subject however to the condition!
that National Television Corporation be not required to disclose
inventions used in its operations, or otherwise.
(3) That the action of the Commission in issuing this special
temporary experimental authority is for the purpose of making
tests only and such action shall not be construed as a finding that
the granting of the application of National Television Corpora¬
tion in Docket No. 3029 is in the public interest, convenience, or
necessity.
(4) That with, or without, further hearing and at any time in
its discretion, the Commission may enter its final order upon the
application of National Television Corporation in Docket No.
3029.
Note: Commissioner Stewart dissented as to grant of special
temporary experimental authorization to the National Television
Corporation.
The application, Docket 3029, for a CP to construct and operate
a new visual broadcast station to operate in the band 2000-2100 kc.,
500 watts, unlimited time, in accordance with Rule 308, is to remain
on the hearing calendar for further consideration and decision.
Denied supplemental petition in Docket 3029 for special tem¬
porary authorization for the month of July, 1936.
Purdue University, Lafayette, Ind. — Modified existing experi¬
mental visual broadcast license in accordance with consent in
writing of Purdue University, so as to authorize the operation of
an experimental visual broadcast station upon the band of frequen¬
cies 2000-2100 kc. in lieu of the frequencies now authorized; all
other terms of the existing license to remain the same. Effective at
3 A. M., EST, September 15, 1936.
Frequency
Allocation
2000
Amateur
a 2 004
Govt. & exp. vis. broadcast
h2008
Do. Do.
2012
Exp. vis. broadcast
2016
Do.
2020
Relay broadcast & exp. vis. broadcast
) 2022
Do. Do.
a2024
Govt., relay broadcast & exp. vis. broadcast
) 2026
Govt. & exp. vis. broadcast
2028
Do. Do.
i2032
Do. Do.
2036
Police (intercity teleg.) & exp. vis. broadcast
2040
Do. Do. Do.
2044
Do. Do. Do.
i2048
Govt. & exp. vis. broadcast
a2052
Govt. & exp. vis. broadcast
2056
) 2058
Relay broadcast & exp. vis. broadcast
2060
2064
Govt. & exp. vis. broadcast
) 2066
Do. Do.
2068
Do. Do.
h2072
Do. Do.
i2076
Do. Do.
2080
Do. Do.
) 2082
Do. Do.
2084
Do. Do.
2088
)2090
Relay broadcast & exp. vis. broadcast
2092
a2096
Govt. & exp. vis. broadcast
That the further amendment be effective 3:00 A. M., E.S.T.,
September 15, 1936.
National Television Corporation, New York, N. Y. — Granted
special temporary experimental authorization for operation of a
visual broadcast station for a period beginning upon the issuance
NEW CALIFORNIA STATION RECOMMENDED
The Marysville-Yuba City Publishers, Inc., applied to the Fed¬
eral Communications Commission for a construction permit for
the erection of a new broadcasting station at Marysville, Calif., to
use 1140 kilocycles, 250 watts power, and daytime operation.
Examiner R. H. Hyde, in Report No. 1-264, recommended that
the application be granted. He found that “there is a public need
in the applicant’s area for the local service the applicant proposes
to provide.” The Examiner also found that “the operation of the
proposed new station could not reasonably be expected to cause
interference to the reception of any other station or stations.”
WJBO CHANGES RECOMMENDED ON
CONDITIONS
Broadcasting station WJBO, Baton Rouge, La., applied to the
Federal Communications Commission to change its frequency from
1420 to 1120 kilocycles, and to increase its power from 100 to 500
watts. The station now operates unlimited time and it asks for
the same except from 8 to 9 p. m. on Mondays and Fridays.
Examiner Melvin H. Dalberg in Report No. 1-267 recommends
that the application be granted if the pending applications of
stations WISN and WHB are denied, otherwise that the applica¬
tion of WJBO be denied. The Examiner states that the changes
asked by WJBO would result in extending the service of that
station and he says further that the hearing disclosed the public
need for this additional coverage. However the other two stations
have applications pending and should they be granted the changes
asked by WJBO would cause interference.
ADVERTISING TO BENEFIT
A marked upsurge in advertising and research expenditures by
corporations this fall as the result of the new tax laws, was pre¬
dicted before the meeting sponsored by the National Association
of Manufacturers, at the New York Museum of Science and In¬
dustry, Radio City, when addressed by Dr. Orestes H. Caldwell,
trustee of the Museum and editor of Radio Today.
1452
“When American business men get to looking over their profit
statements near the close of this year, and discover what a large
part of these profits they will have to pay out as taxes, many are
going to prefer to increase their appropriations for advertising
and research to get the benefit of money that will otherwise be
swept largely into the tax-collector’s till,” said the speaker.
Besides a normal tax of 15% on each dollar of profit, a business
may have to pay an additional excess-profits tax of 12%, and
another 27% “undistributed-profits” tax, or 54% in Federal taxes.
In addition, there may be a 6% state tax (as in New York),
making 60%. And if profits are held or “improperly accumulated,”
25% more may be added, making a possible total tax of 85%,
or 85 cents for taxes out of each dollar of profits!
Faced with such a situation, explained Dr. Caldwell, many
manufacturers have concluded that it will be better business judg¬
ment to spend money for business promotion, advertising, news¬
paper campaigns, radio time, technical research, etc., where they
get full benefit of each dollar in building up the business.
FEDERAL TRADE COMMISSION ACTION
COMPLAINTS
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2879. Allegedly misrepresenting “Nacor” and “Nacor
Kaps” as an effective remedy or cure for asthma, The Nacor
Medicine Co., 405 State Life Building, Indianapolis, is re¬
spondent in a complaint charging unfair competition in connection
with the sale of such medicine.
The respondent company’s representations in advertising matter
and radio broadcasts are alleged to be false in that its medicine is
not an efficacious treatment for asthma and bronchial coughs in
all cases and does not benefit all persons suffering with such ail¬
ments; is not free from drugs or harmless ingredients and is not
safe in all instances; is not effective where other treatments have
failed, and does not afford permanent or lasting relief in all cases.
According to the complaint, the respondent company’s practices
tend to deceive purchasers and divert trade to the respondent from
competitors who truthfully advertise their products.
No. 2880. Unfair competition in the sale of books is alleged
in a complaint issued against Gold Medal Books, Inc., 915
Broadway, New York City.
The respondent company allegedly represents that a set of five
books of fiction which it sells for 98 cents has a usual and regular
sales price of $11.50, when according to the complaint, the ordi¬
nary and usual price is 98 cents. The books, described by the re¬
spondent as “best sellers,” are “The Desert of Love,” “Georgie
May,” “Private Secretary,” “Five Sisters,” and “Show Girl.”
The respondent company’s practice of misrepresenting the value
of the books and the price at which they are customarily sold
tends to deceive purchasers, the complaint charges, and unfairly
to divert trade to the respondent from competitors.
No. 2881. A complaint has been issued against Hogan Adver¬
tising Co., trading as the Sendol Co., 1008-10 Walnut St., Kansas
City, Mo., alleging unfair methods of competition in the sale of
“Sendol,” offered as a remedy for colds, headaches and pains.
The complaint charges that the respondent company, by means
of representations and testimonials in newspapers, magazines, ad¬
vertising literature, and radio broadcasts claims that its product
is a safe medicine in all cases, even for children; is effective and
reliable in cases of muscular rheumatic or neuralgia aches and
pains; affords quick relief for headaches, colds and pains, and is
an efficacious remedy for nervousness.
Such representations are false and misleading, according to the
complaint, which points out that “Sendol” contains aspirin and
digitalis and is not safe to administer to all persons or to children.
STIPULATIONS AND ORDERS
The Commission has issued the following cease and desist orders
and stipulations:
No. 01413. Bio-Products, Inc., 500 North Dearborn St.,
Chicago, stipulates it will cease representations that “Vitalin
Tablets” are a competent treatment for coughs, colds, impure
blood, aches or pains, and are an effective remedy in the treat¬
ment of indigestion, dyspepsia, acidosis, nervousness and billious-
ness, unless such claims are limited to conditions due to improper
diet, hyperacidity, or mineral or vitamin deficiency. The re¬
spondent corporation also will stop advertising that “Vitalin
Tablets” supply the mineral elements or vitamins necessary to at¬
tain good health or to avoid the cause that leads to the most
serious diseases, and that users of the product have experienced
almost immediate improvement in health.
No. 01414. The McFadden Institute of Physical Culture,
Inc., 903 King St., Wilmington, Del., agrees to discontinue
claims that its course in physical culture assures students that they
will not have rheumatism, heart trouble, hardening of the arteries
or breaking down of the body, and that such course will make
one successful, strong, magnetic, and able to overcome any obstacle.
No. 01415. General Mills, Inc., Minneapolis, selling a cereal
designated “Wheaties,” will cease advertising that the whole wheat
from which “Wheaties” is made contains almost twice the body¬
building protein of corn.
The respondent corporation admits that in radio broadcasts ad¬
vertising “Wheaties,” certain characters impersonated and referred
to are fictitious persons. In this connection the respondent cor¬
poration stipulates that it will stop representing that any of the
proceeds from the sale of “Wheaties” is used to defray the costs
of an operation or medical attention for a fictitious person named
in a broadcast, or that any such operation or medical attention is
dependent upon the sale of “Wheaties.”
No. 01416. William T. Drouillard, trading as No-Gray
Laboratories, 738 Noble St., Toledo, Ohio, will discontinue
representing that his hair treatment, designated “No-Gray,” pre¬
vents hair from turning or staying gray, or restores gray hair to
its natural color; that one cannot have dandruff if he uses “No-
Gray,” and that the product is not a dye. The respondent agrees
to discontinue use of the word “laboratories” in his trade name
until he operates a laboratory.
No. 01417. N. M. Markwood, trading as Anti-Pelade Com¬
pany, Kelso Park, Erie, Pa., and selling a treatment for the hair
designated “Anti-Pelade,” signed an agreement to discontinue
claims that the preparation is effective in treating any type of
baldness, unless the representations are limited to falling hair at¬
tributed to an organism which a proper germicide may kill; that
it grows or restores hair, or is guaranteed, and has the approval
of the government agency charged with administration of the
Food and Drug Act.
No. 01418. Biovegetin Products, Inc., 500 North Dearborn
St., Chicago, agrees that in the sale of “Vegemucene,” also desig¬
nated “V. M. Tablets,” it will discontinue representing that the
product is effective in the treatment of gastro-intestinal ailments,
stomach and duodenal ulcers and inflammations, acid stomach,
colitis, gas or heartburn; that it completely relieves gastric ulcers
of ten years’ standing, and safeguards patients against conditions
that may lead to ulcers of the stomach.
No. 01419. Joe Anderson, trading as The A. & O. Company,
New Bern, N. C., will refrain from making claims in advertising
that his medicinal preparation, designated “A and O,” relieves the
most stubborn colds when other treatments fail; gives relief after
the first dose; heals irritated membranes, clears the nasal passages
and clears the digestive tract, and protects users from influenza,
pneumonia or serious lung trouble.
No. 01420. Martin Steam, trading as the Occult Company,
217 East 34th St., New York City, selling “Black Herman’s
Dream Book and the Secret System,” agrees to cease representa¬
tions to the effect that his publication contains information by
means of which one may gain sufficient knowledge of black magic,
kabalism, numerology, astrology, or any of the so-called mystic
arts, to enable him to attain success in love, health, or business.
The respondent also will refrain from advertising that “Black
Herman” was the world’s greatest magician and that $6 is the
regular price of the book, or that $1 is a special or reduced price.
No. 01421. Frances Denney, a corporation, and Anthony
De P. Denney, John D. Denney, Anne Denney Fleming, and
William F. Denney, Jr., copartners trading as Denney &
Denney, 1500 Walnut St., Philadelphia, selling a cosmetic
designated as “Eyelash Grower,” will stop representing that the
product increases the growth or length of eyelashes; makes them
healthy, unless the assertion is specifically limited to the effect in
inducing softness and flexibility; or that it is a competent treat¬
ment for granulated eyelids, or anything more than a palliative to
relieve the pain due to conditions such as granulated lids. The
respondents also will discontinue use of the word “Grower” as
part of the trade name for their product.
No. 01422. Don L. Baxter, trading as Major Kord, Del
Rio, Tex., selling a correspondence course in piano instruction,
will stop representing that there are no notes, scales or exercises
accompanying the course; that use of the course enables one to
play the piano in any specified time, and that results are guaranteed.
No. 01423. Ace Feature Syndicate, Inc., 1296 Broadway,
New York City, stipulates that in the sale of books it will cease
1453
and desist from representing that such books are bound in leather
when such is not the fact.
No. 01424. A. S. Thomas, trading as Santa Fe Watch
Company, 457 Thomas Building, Topeka, Kans., selling watches,
watch chains, and necklaces, will cease representing by use of the
words “Direct to You” that the prices charged for his watches
are the prices at which such watches would ordinarily be sold by
a manufacturer direct to the public; that he has eliminated the
middleman, and that his watches are sold at prices lower than
those charged by other distributors for watches of equal grade,
unless such representation is supported by factual evidence.
The respondent further agrees to discontinue use of the words
“pearl” and “gold” to designate or describe, respectively, necklaces
not composed of pearls formed by natural processes in the shells
of mollusks, and any articles not composed wholly of gold.
No. 01425. William Carroll, 201 E. 46th St., New York
City, selling “Pepzt Ointment,” entered into an agreement to cease
advertising that his preparation is an effective remedy for weakened
glands, vitalizes the nerves and invigorates the whole system; that
“one cannot fail to benefit by using Pepzt,” and that it brings
quick and lasting results. The respondent admits that, according
to the weight of scientific opinion, the therapeutic value of the
product is limited to its effect as a lubricant and an emollient.
No. 01426. Knight Laboratories, Inc., 2201 West Broad¬
way, Minneapolis, agrees, in advertising “Phen-ocin,” to dis¬
continue representing that this preparation is an effective remedy
for neuritis, all forms of aches and pains, influenza, colds, rheu¬
matism, tonsilitis or fever; that it is “The Miracle Pain Tablet”;
possesses marked superiority over any similar product, does not
depress the heart, and can be taken without unpleasant or danger¬
ous after effects.
No. 01427. The Siticide Company, Inc., Commerce, Ga.,
will stop making assertions in advertising that “Sit-i-Cide” kills the
itch, unless it states, in connection with such representations, that
only scabies itch is meant, and will cease representing that this
product immediately kills every parasite causing the itch. The
respondent company further stipulates that it will cease using an
unqualified headline which is too comprehensive or inclusive, even
though the claim for the product may be modified in the text of
the advertisement.
No. 01428. J. F. Kessinger, trading as Argotane Labora¬
tories Co., 91% South Main St., Memphis, Tenn., engaged in
selling “Argotane,” signed a stipulation to discontinue representing
that his preparation is a competent treatment for malaria, stomach
troubles, auto-intoxication, loss of vitality, headaches, gallstones,
or kindred disorders, and that it has any therapeutic value in the
treatment or prevention of such ailments other than its laxative
or bile-stimulating properties. Claims that many physicians pre¬
scribe “Argotane” and that millions have endorsed it will be
stopped, as will the representation, through use of the word “Lab¬
oratories,” that the respondent owns or operates a laboratory, until
such is a fact.
No. 01429. John F„ Jane L., Barbara Jane and John Lind¬
sey Ketels, co-partners operating as Amber-O-Latum Labora¬
tory, 2821 Main St., Portland, Ore., selling “Amber-O-Latum
Chest Ointment,” will cease representing that their preparation is
an effective remedy for chest colds, inflammation, croup, pleurisy
pains, or congestion, unless such claims are limited to the palliative
relief afforded by the product’s counter-irritant action. The re¬
spondents agree to discontinue assertions implying that “Amber-O-
Latum” prevents pneumonia or influenza, and that its action is
quicker or more effective than all other preparations.
No. 91430. Solarine Company, Baltimore, selling a cleaning
solution designated “Jumbo,” entered into a stipulation to dis¬
continue advertising that the product removes all odors, kills
germs and bacteria, and disinfects burns, cuts, scratches and insect
bites.
No. 01431. V. D. Angerman, trading as Franklin Publish¬
ing Co., 800 North Clark St., Chicago, sells a course of lessons
in hypnotism. He agrees to discontinue representations that the
secrets of hypnotism can be learned in 25 easy lessons, regardless
of the intellectual or educational qualifications of the student, and
that the science of hypnotism overcomes bashfulness, strengthens
memory, mind and will power, develops a strong personality, and
enables one to realize his ambitions and gain control over others.
The representation that “satisfaction is guaranteed” will be stopped.
No. 01432. Henry Bergman, Springfield, Mo., engaged in the
sale of instruments purported to locate gold and silver, signed a
stipulation to stop claiming that use of such device enables one to
locate deposits of gold, silver, quartz, or buried treasure. The
respondent admits that, according to the weight of scientific opin¬
ion, the instruments have no value for the purpose claimed in his
advertising matter.
No. 1721. U. S. Handkerchief Company, Inc., 534 Broad¬
way, New York City, stipulates that in the sale of handkerchiefs
it will discontinue representing that such products are domestic
made and that it owns or operates a factory at Passaic, N. J., or
elsewhere, when such are not the facts, and will cease using the
word “manufacturers” in advertising matter or in any manner to
imply that it owns or operates a factory, when such is not true.
No. 1723. The Hecht Company, 7th and F Sts., N. YV.,
Washington, D. C., will cease using in advertising matter, or
otherwise, the word “mahogany” to describe furniture not manu¬
factured from wood derived from trees of the genus “swietenia”
of the “meliaceae” family, and to imply that the products so
designated are made of true mahogany, when such is not the fact.
No. 1724. Champion Blower & Forge Co., Lancaster, Pa.,
agrees that in the sale of the ventilating fans it manufactures it
will discontinue use in advertising matter of figures which purport
to represent the various capacities its fans have for air exhaustion,
and which figures are substantially greater than the actual capacity
thereof as ascertained by the standard test code for disc and pro¬
peller fans, centrifugal fans and blowers, as prepared by the Na¬
tional Association of Fan Manufacturers and the American Society
of Heating and Ventilating Engineers. According to the stipula¬
tion, the respondent company in advertising in catalogues and
otherwise greatly overstated the number of cubic feet of air ex¬
hausted by its fans on the basis of revolutions and consumption
of electric power per minute.
No. 1725. Robert Y. Powell, trading as Powell Brothers,
2800 Belmont Ave., Chicago, and selling novelty jewelry, signed
a stipulation to cease using in advertising matter the words “Mex¬
ican gems” alone or with the word “genuine” to designate ring
settings consisting of glass or ornamentation obtained from a coun¬
try other than Mexico ; the word “cameo” as descriptive of rings
which are engraved intaglios; the word “chromium” to describe
a ring not made from chromium; the words “rhodium finish” as
descriptive of rings not finished with rhodium ; the words “manu¬
facturers” or “manufacturing” so as to imply that the respondent
owns or operates a plant where his products are made, and the
words “importing” or “exporting” to give the impression that he
imports or exports his products.
No. 1726. Fan Tan Company, Inc., trading as Black Dia¬
mond Company, 207 North Michigan Ave., Chicago, will dis¬
continue representing that its “Black Diamond Hair Dye” is safe
or harmless, and that it does not stain the hands or scalp.
No. 1727. The Marlin Firearms Company, 79 Willow St.,
New Haven, Conn., in the sale of razor blades, will stop using
in advertising matter the phrase “direct from the factory” imply¬
ing that it owns or controls a plant in which such razor blades are
made, when such is not the fact.
Nos. 1728-1729. The Service Legging Company, Inc., 120
East 16th St., New York City, and R. M. Hollingshead Cor¬
poration, Camden, N. J., signed separate stipulations that in the
sale of saddle soap they will discontinue using on labels the state¬
ments “Warranted to Conform to U. S. Govt. Specifications” and
“U. S. Government Standard Saddle Soap” to imply that such
product is approved and used as a general standard by the United
States Government. The stipulations provide that the respondent
companies may represent that their saddle soap conforms with the
specifications approved and used by some particular branch of the
Federal Government, only when such is the fact.
Nos. 1722-1730-1731. Misuse of the word “silk” in branding
and advertising hosiery will be discontinued by three companies
entering into stipulations.
These stipulations to cease unfair methods of competition in
violation of Section 5 of the Federal Trade Commission Act were
signed by D. S. & W. Hosiery Co., 1130 Moss St., Reading, Pa.;
Unrivaled Hosiery Mills, Williamstown, Pa., and M. L.
Victorius & Co., Inc., 271 Church St., New York City.
Under the stipulations, the companies agree to cease and desist
from using the word “silk” alone or with the words “pure thread,”
or with any other words so as to imply that the hosiery so marked
is composed wholly of silk, when such is not the fact.
The stipulations provide that when the hosiery is composed in
substantial part of silk, and the word “silk” is used as descriptive
of the product’s content, then the word “silk” shall be accompanied
by other words in type equally as conspicuous as that in which
the word “silk” is printed, so as to indicate clearly that the hosiery
is not composed wholly of silk, but is made in part of other
materials.
1454
No. 2243. Electro Thermal Co., Franklin and Morris Ave¬
nues, Steubenville, Ohio, has been ordered to discontinue false
and exaggerated representations in connection with the sale of
“Thermalaid,” an electric device offered as a treatment for pros¬
tatic and other ailments.
Among the representations the respondent company is prohibited
from making in newspaper advertisements, pamphlets and testi¬
monials are that the use of the device is a positive cure for any
ailment ; that its use constitutes a competent treatment or cure for
prostatitis and hypertrophy and that users of the device may expect
immediate relief from backache, pains, worry and debilities due to
prostatic trouble.
No. 2402. General Distillers, Ltd., 136 Front St., San Fran¬
cisco, has been ordered to discontinue representing through use of
the word “Distillers” in its corporate name, or in any other manner
by the use of words of like import, that it is a distiller, that it
manufactures by the process of distillation the whiskies and other
spirituous beverages it sells, or that it owns or operates a distillery
where such products are manufactured, until it does own or operate
such a plant.
No. 2463. Johnson Wholesale Perfume Co., Inc., 953 Dix-
well Ave., New Haven, Conn., also trading as Allen’s Cut-Rate
Shops and Allied Cut-Rate Shops, has been ordered to discon¬
tinue unfair methods of competition in connection with the sale
of cosmetics or toilet preparations.
The order to cease and desist prohibits the respondent corpora¬
tion from entering into any agreement with Jay H. Schmidt, trad¬
ing as Jay H. Schmidt Perfumer, New York City, or aiding or
causing Schmidt to label cosmetics or toilet preparations manu¬
factured in the United States with the words “Paris” or “France,”
implying that such products are manufactured in Paris or in
France, or imported into the United States. ,
The order further directs that the respondent corporation shall
not make any agreement with Schmidt or cause him to represent
that “Arlene Richards Tissue Cream” is a food for the skin or
tissues, or helps nature fill out hollows, lines or wrinkles.
No. 2475. Distillers Exchange, Inc., 425 Fourth Ave., New
York City, has been ordered to discontinue representing through
use of the word “Distillers” in its corporate name, or in any
other manner by the use of words of like import, that it is a
distiller, that it manufactures by the process of distillation the
whiskies and other spirituous beverages it sells, or that it owns or
operates a distillery where such products are manufactured, until
it does own or operate such a plant.
The order also prohibits representation through use of the word
“Distillers” in connection with the word “Exchange” or words of
like import in its corporate name or in other ways, that it operates
a place where distillers engage in trading or bartering spirituous
liquors.
No. 2768. Jonas Schainuck & Son, Inc., 757 Broadway,
New York City, operating a chain of men’s clothing stores, has
been ordered to cease and desist from representing that certain
clothing it sells is all wool or all silk, when this is not true. The
respondent company is also directed to discontinue asserting that
it manufactures clothing, until it owns or operates a factory for
such purpose.
Other representations to be discontinued under the order are
that the price at which two suits or other garments are sold is the
regular and customary jarice of one such suit or garment, and that
upon purchase of one suit or garment from the respondent com¬
pany it will give a suit or garment free, or approximately free.
No. 2781. Prohibiting unfair competition in the sale of a germi¬
cide designated “Ku-Rill,” an order to cease and desist has been
issued against A. C. Hynd Corporation, 320 Franklin St., Buffalo.
In advertising the product for sale, the respondent company is
directed to stop alleging that it is a competent remedy in treating
eczema, athlete’s foot and other skin ailments, that it kills 27 dif¬
ferent kinds of germs, and instantly stops itching and soreness
of the skin.
FTC CLOSES CASE
No. 2427. The Federal Trade Commission has entered an order
closing its case against Clear Spring Distilling Co., 444 West
Grand Ave., Chicago, because this respondent company had
changed its name to Clear Spring Co. prior to January 1, 1936,
and it appeared unlikely that the respondent would resume the
unfair practices charged in the complaint.
The complaint alleged unfair use of the word “Distilling” in the
company’s corporate name and otherwise, when, in fact, it was
not a distiller but a dealer in liquors.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
No broadcast hearings are scheduled at the Commission during
the week beginning Monday, August 3.
APPLICATIONS GRANTED
NEW — Barney Hubbs, A. J. Crawford, Jack Hawkins, Harold
Miller, d/b as Carlsbad Broadcasting Co., a partnership,
Carlsbad, N. Mex. — Granted C. P. for new broadcast sta¬
tion at Carlsbad, N. M., to operate on 1210 kc., 100 watts,
unlimited time.
WCAT — South Dakota State School of Mines, Rapid City, S. D.—
Granted C. P. to move the transmitter and studio 600 ft.
from present site and install vertical radiator and ground
system. Frequency 1200 kc., 100 watts, specified hours.
KFAB — KFAB Broadcasting Co., Lincoln, Neb. — Granted applica¬
tion for extension of special experimental authority to op¬
erate synchronously with station WBBM, Chicago, Ill., from
local sunset to 12 midnight, CST.
WBBM — WBBM Broadcasting Corp., Chicago, Ill. — Granted ap¬
plication for extension of special experimental authority to
operate synchronously with station KFAB, Lincoln, Nebr.,
from sunset at Lincoln, Nebr., to 12 midnight, CST.
WLW — The Crosley Radio Corp., Cincinnati, O. — Granted ex¬
tension of special experimental authorization to operate with
power of 500 KW, employing a directional antenna system
nighttime. Frequency 700 kc.
KIRO — Queen City Broadcasting Co., Seattle, Wash. — Granted ex¬
tension of special experimental authorization to operate un¬
limited time on frequency 710 kc. with 1 KW.
WPTF — WPTF Radio Co., Raleigh, N. C. — Granted extension of
special experimental authorization to operate from local
sunset to 8 p. m. PST with 1 KW power for the period
August 1, 1936, to February 1, 1937.
WPTF — WPTF Radio Co., Raleigh, N. C. — Granted extension of
special experimental authorization for auxiliary transmitter
to operate from local sunset to 8 p. m. PST with 1 KW
for period of August 1, 1936, to February 1, 1937.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Granted
authority to determine operating power by direct measure¬
ment of antenna input in compliance with terms of Rule
137. Frequency 1210 kc., 100 watts.
WPRP — Julio M. Conesa, Ponce, P. R. — Granted modification of
license to operate an additional hour from 11 p. m. to 12
p. m. daily; frequency 1420 kc., 100 watts night, 250 watts
day, specified hours.
KFPY — Symons Broadcasting Co., Spokane, Wash. — Granted con¬
sent to the transfer of control of Symons Broadcasting Co.
from the Symons Investment Co. to T. W. Symons, Jr.;
frequency 890 kc., 1 KW, unlimited time.
KANS — Charles C. Theis, Wichita, Kans. — Granted modification
of C. P. requesting approval of transmitter and studio sites
at Lassen Hotel, First and Market St., and change in au¬
thorized equipment. Original C. P. authorized erection of
a new station in Wichita to operate on 1210 kc., 100 watts,
unlimited time.
WMEX — The Northern Corp., Boston, Mass. — Granted C. P. to
move transmitter to Granite .Avenue, Milton, Mass.; to
change frequency from 1500 kc. to 1470 kc.; increase night
power from 100 watts to 5 KW, day power from 250 watts
to 5 KW ; and to install directional antenna. Commissioner
Case dissented.
WSIX — Jack M. Draughon and Louis R. Draughon, d/b as 638
Tire & Vulcanizing Company, Nashville, Tenn. — Granted
modification of C. P. requesting extension of completion
date from 8-4-36 to 11-1-36. Original permit and modifica¬
tion thereof authorized move of station from Springfield
to Nashville, Tenn., and extensions of commencement and
completion dates.
KEHE — Evening Herald Publishing Co., Los Angeles, Calif. —
Granted modification of C. P. requesting approval of an¬
tenna and move of transmitter site to near Baldwin Hills,
Los Angeles, Calif.
WLIH — Merrimac Broadcasting Co., Inc., Lowell, Mass. — Granted
authority to make changes in automatic frequency control
equipment; frequency 1370 kc., 100 watts night, 250 watts
day, unlimited time.
WJBC — Arthur Malcolm McGregor and Dorothy Charlotte Mc¬
Gregor, partnership, Bloomington, Ill. — Granted license to
cover C. P. ; frequency 1200 kc., 100 watts night, 250 watts
1455
day, shares with WJBL. (Original permit authorized in¬
stallation of new equipment and increase in daytime power
to 250 watts.)
WHBU — Anderson Broadcasting Corp., Anderson, Ind. — Granted
license to cover C. P. Original permit authorized changes
in tubes in the last radio stage. Frequency 1210 kc., 100
watts night, 250 watts day, unlimited time.
KSCJ — Perkins Brothers Co. (The Sioux City Journal), Sioux
City, Iowa. — Granted license to cover C. P. authorizing the
installation of auxiliary transmitter for auxiliary purposes
only; frequency 1330 kc., 250 watts night, 250 watts day.
WLAP — American Broadcasting Corp. of Kentucky, Lexington,
Ky. — Granted authority to transfer control from T. C.
Rush to J. Lindsay Nunn.
KWSC — State College of Washington, Pullman, Wash. — Granted
C. P. to make changes in equipment and increase day power
to 5 KW, subject to Rules 131, 132 and 139.
SET FOR HEARING
NEW — Walter H. McGenty, Rice Lake, Wis. — Application for
C. P. for new station at Rice Lake, Wis., to authorize opera¬
tion on 1200 kc., 100 watts night, 250 watts day, unlimited
time, site to be approved.
NEW — Ferris Hodge, Edward Hodge, Leon C. Rogers, Clifford J.
Hood, John S. Nichener, Frank Zimmerman and Karl M.
Schneider, d/b as Lenawee Broadcasting Co., Adrian, Mich.
— Application for C. P. for a new broadcast station at
Adrian, Mich., to authorize operation on 1440 kc., 250 watts
daytime only, site to be determined.
NEW- — Hannibal Broadcasting Co., Hannibal, Mo. — Application
for C. P. for a new broadcast station at Hannibal, Mo., to
authorize operation on 1310 kc., 100 watts, unlimited time,
studio site to be determined.
NEW— C. W. Corkhill, Sioux City, Iowa. — Application for C. P.
for a new broadcast station at Sioux City, Iowa, to author¬
ize operation on 1200 kc., 100 watts, unlimited time, site
to be determined.
NEW — Isadore Goldwasser, Anniston, Ala. — Application for C. P.
for a new broadcast station at Anniston, Ala., to authorize
operation on 1420 kc., 100 watts, daytime only.
NEW — Jesse G. Bourus, Everett, Wash. — Application for C. P.
for a new broadcast station at Everett, Wash., to operate
on 1500 kc„ 100 watts, unlimited time.
WMAS — WMAS, Inc., Springfield, Mass. — Application for C. P.
to move transmitter and studio locations, install new equip¬
ment and directional antenna for day and night operation,
change frequency from 1420 kc. to 560 kc., and increase
power from 100 watts night, 250 watts day, to 1 KW, un¬
limited time.
WOR — Bamberger Broadcasting Service, Inc., Newark, N. J. —
Hearing before Broadcast Division on application for C. P.
to install new equipment, new radiating system, and increase
power from 50 KW to 500 KW ; frequency 710 kc.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Appli¬
cation for modification of license to increase hours of opera¬
tion from daytime only to daytime and local sunset to 11
p. m. on Tuesdays, Thursdays, Saturdays, and Sundays,
employing a power of 50 watts after sunset; frequency
1210 kc.
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. — Hear¬
ing before Broadcast Division on application for modifica¬
tion of C. P. to install directional antenna for nighttime
operation, increase night power from 1 KW to 5 KW, and
extend commencement date from 6-24-36 to 30 days after
grant, completion date from 12-24-36 to 180 days thereafter;
frequency 1230 kc.
KRKO — Lee E. Mudgett, Everett, Wash. — Application for con¬
sent to the voluntary assignment of license from Lee E.
Mudgett to KRKO, Inc.
ACTION ON EXAMINERS REPORTS
WOL — Ex. Rep. 1-247: American Broadcasting Co., Washington,
D. C. — Granted C. P. to make changes in equipment, move
transmitter from 1111 H St., N. W., Washington, D. C. to
about one-half mile east Riggs and lager Roads, Md. ;
change frequency from 1310 kc. to 1230 kc.; and increase
power from 100 watts to 1 KW, unlimited time. Examiner
M. H. Dalberg reversed. Effective October 13, 1936.
NEW — Ex. Rep. 1-184: W. H. Kindig, Hollywood, Calif. — De¬
nied C. P. for new broadcast station to operate on 1300
kc., 1 KW, share time with KFAC. Examiner George H.
Hill reversed. Effective October 20, 1936.
KFAC — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
Granted renewal of license, frequency 1300 kc., 1 KW, un¬
limited time. Examiner George H. Hill sustained. Effective
October 20, 1936.
WLBF — Ex. Rep. 572: WLBF Broadcasting Co., Kansas City,
Kans. — Granted modification of license to change frequency
from 1420 kc. to 1310 kc., 100 watts, unlimited time.
Examiner Ralph L. Walker reversed. Effective October 6,
1936.
SPECIAL TEMPORARY AUTHORIZATIONS
WNOX — Continental Radio Co., Knoxville, Tenn. — Granted spe¬
cial temporary authority to operate a portable test trans¬
mitter with power of 100 watts on 1010 kc., in vicinity of
Knoxville, from 12 midnight to 6 a. m., CST, but for a
period not to exceed ten days, beginning July 20, 1936, in
order to determine new site.
KFRO — Voice of Longview, Longview, Tex. — Granted special tem¬
porary authority to operate from local sunset to 10:30
p. m., CST, July 20 to 25, 1936, inclusive, in order to broad¬
cast political speeches of candidates for the public offices in
Texas and Gregg County.
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
Station, Boise, Idaho. — Granted extension of special tem¬
porary authority to operate with temporary antenna for a
period beginning July 23, 1936, and ending in no event
later than 30 days thereafter.
WHDF — The Upper Michigan Broadcasting Co., Calumet, Mich. —
Granted special temporary authority to operate from 7
a. m. to 9 a. m., CST, Sunday, July 26, August 2, 9, 16, 23,
and 30, 1936, in order to transfer programs now being
broadcast Sunday afternoons.
WROK — Rockford Broadcasters, Inc., Rockford, Ill. — Granted
special temporary authority to operate station without an
approved frequency monitor for a period of 10 days be¬
ginning July 17, 1936. Station will be responsible for devia¬
tions of more than 50 cycles from assigned frequency.
WCBS — WCBS, Inc., Springfield, Ill. — Granted special temporary
authority to operate from 10 p. m. to 12 midnight, CST,
from August 15, 1936, to August 23, 1936, inclusive, in
order to carry a complete broadcast of the Illinois State
Fair.
WJJD — WJJD, Inc., Chicago, Ill. — Granted extension of special
temporary authority to begin daily operation at 5 a. m.,
CST, instead of 6 a. m., CST, as licensed, during the period
of time daylight saving time is recognized as official time in
Chicago, but for the period beginning 3 a. m., EST, August
1, 1936, and ending in no event later than 3 a. m. February 1,
1937.
WLBL — State of Wisconsin, Department of Agriculture and Mar¬
kets, Stevens Point, Wis. — Granted special temporary au¬
thority to operate station without an approved frequency
monitor for a period not to exceed 30 days beginning July
15, 1936. Station will be held responsible for deviations
of more than 50 cycles from assigned frequency.
KARK — Arkansas Radio and Equipment Co., Little Rock, Ark. —
Granted extension of special temporary authority to operate
a 50-watt portable test transmitter between the hours of 12
midnight and 6 a. m., CST, for the period beginning August
1, 1936, and ending in no event later than August 30, 1936,
in order to determine new transmitter site for KARK.
KELW — Evening Herald Publishing Co., Burbank, Calif. — Granted
extension of special temporary authorization to use the
transmitter of station KEHE with power of 500 watts, for
the period beginning July 29, 1936, and ending in no event
later than 3 a. m. EST, September 1, 1936, pending com¬
pletion of construction of station KEHE as authorized.
KBTM — W. J. Board (Beard’s Temple of Music), Jonesboro.
Ark. — Granted special temporary authorization to operate
from 8:30 p. m. to 9:30 p. m. CST, August 8, 1936, in order
to broadcast a special program.
KTSM — Tri-State Broadcasting Co., Inc., El Paso, Texas — Granted
extension of special temporary authorization to carry pro¬
grams of station WDAH for a period of 30 days beginning
August 13, 1936.
RATIFICATIONS
The Broadcast Division denied the petition of C. W. Snyder,
requesting the Commission to reconsider its action of July 2, 1936,
1456
in designating for hearing his application of C. P. for a new
station in Wichita Falls, Texas, and grant same without a hearing.
(Action taken 7-13.)
The Broadcast Division advanced the effective date of the order
on the applications of Baltimore Radio Show (WFBR) and
Kunsky-Trendle Broadcasting Corp. (Wood and WASH) from
July IS, 1936, to July 17, 1936. (Action taken 7-15.)
The Broadcast Division postponed the effective date of the
order on the applications of (1) Bell Broadcasting Co. (2) Merced
Star Publishing Co. (3) Orlando Broadcasting Co. (WDBO) from
July IS, 1936, to July 17, 1936. (Action taken 7-15.)
The Broadcast Division denied the motion of the Missouri Broad¬
casting Corp. (WIL) for an extension of time for filing exceptions
to Examiner’s Report No. 1-246 until September IS, 1936, and
directed that said time for filing exceptions be extended to July 23,
1936. (Action taken 7-16.)
The Broadcast Division granted the petition of the Isle of
Dreams Broadcasting Corp. (WIOD) Miami, Fla., to extend the
time for filing exceptions to Examiner’s Report No. 1-243 on the
application of Nathan N. Bauer for a C. P. to August 31, 1936.
(Action taken 7-12.)
The Broadcast Division granted the petition of the Sun Pub¬
lishing Company, Inc. (WTJS), Jackson, Tenn., to extend the
time for filing exceptions to Examiner’s Report No. 1-244, to
August 31, 1936. (Action taken 7-12.)
The Broadcast Division granted the motions of the Continental
Radio Company for extension of the time for filing exceptions to
Examiner’s Report No. 1-240 and No. 1-241 to September 1,
1936. (Action taken 7-13.)
MISCELLANEOUS
WDGY — Dr. George W. Young, Minneapolis, Minn. — Granted
petition asking return of last application filed by National
Battery Broadcasting Co. of St. Paul, Minn., for new station
at St. Paul, Minn., in accordance with the intent of Rule
104.7.
NEW — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— Hearing of application for C. P. for new radio station to
operate on 1480 kc., S KW, daytime, now scheduled for
August 19, 1936, postponed until September 21, 1936.
KFNF — KFNF, Inc., Shenandoah, Iowa — Granted application to
increase operating hours from one-half to seven-eighths
time on the frequency of 890 kc., subject to the removal of
station WILL from 890 kc. to 580 kc., which will occur
when satisfactory directional antenna is completed on new
site.
NEW — Jefferson Broadcasting Co., Birmingham, Ala. — Denied re¬
quest to withdraw without prejudice application for author¬
ity to erect new station in Birmingham to operate on 1200
kc., 100 watts night, 2S0 LS, unlimited time.
WGPC — Americus Broadcasting Co., Albany, Ga. — Reconsidered
and granted C. P. for new transmitter site, also authority
to move studios and to install new equipment and antenna
system. These grants shall in no way effect any final action
Commission may take upon application for renewal of
license. (Action taken 7-17-36.)
APPLICATIONS RECEIVED
First Zone
WEAN — Shepard Broadcasting Service, Inc., Providence, R. I. —
780 Modification of construction permit (Bl-P-734) to install
new equipment, directional antenna, increase power and
move transmitter, requesting changes in authorized equip¬
ment, move of transmitter from Seekonk, Bristol Co., Mass.,
to E. Providence, Rhode Island, and for approval of direc¬
tional antenna.
WCAD — The Brockway Co. (Lessee), Watertown, N. Y. — Con-
1270 struction permit to change frequency from 1220 kc. to 1270
kc., change hours of operation from specified hours to day¬
time, install a new transmitter and antenna, move trans¬
mitter from Park St., Canton, N. Y., to site to be de¬
termined, Watertown, N. Y., and studio from Science Bldg.,
University Campus, Park St., Canton, N. Y., to site to be
determined, Watertown, N. Y. Contingent upon the grant¬
ing of Bl-AL-118.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
1450 Modification of construction permit (B1-P-22S) for changes
in equipment and increase in power, requesting further
changes in transmitting equipment and directional antenna
and extend completion date.
WlXBS — American-Republican, Inc., Nr. Waterbury, Conn. —
1530 Construction permit for a 100 watt booster station in New
Haven, Conn., to operate synchronously with WlXBS on
1530 kc. Exact site to be determined.
WlXBS — American-Republican, Inc., Nr. Waterbury, Conn. —
1530 Construction permit for a 100 watt booster station in
Bridgeport, Conn., to operate synchronously with WlXBS
on 1530 kc. Exact site to be determined.
Second Zone
WKRC — WKRC, Incorporated, Cincinnati, Ohio — Extension of
550 special experimental authorization to operate on 1 KW
power from 9-1-36 to 3-1-37.
WCOL — WCOL, Incorporated, Columbus, Ohio — License to cover
1210 construction permit (B2-P-1152) for changes in equip¬
ment.
WBLY — Herbert Lee Blye, Lima, Ohio — Modification of construc-
1210 tion permit (B2-P-643) to install a new transmitter and
for approval of transmitter site at 1422 Rice Ave., High¬
land Park Section, Lima, Ohio, and move studio from 123
W. High St., Lima, Ohio to Cor. West Market & McDonel
Sts., Lima, Ohio.
WHP — WHP, Incorporated, Harrisburg, Pa. — Construction permit
1430 to install a new antenna and move transmitter from Fort
Washington Road, Lemoyne, Pa., to Swatara Township, Pa.
WJSV — Old Dominion Broadcasting Co., Washington, D. C. —
1460 Modification of license to move studio from Mt. Vernon
Highway, nr. Potomac Yards, V/2 mi. north of center of
Alexandria, Virginia, to Earle Building, Washington, D. C.
W8XHV — The Evening News Assn., Inc., Mobile — License to
cover construction permit for a new general experimental
station.
W8XIG — The Evening News Assn., Portable-Mobile — License to
cover construction permit for a new general experimental
station.
W8XHX — The Evening News Assn., Inc., Portable-Mobile — License
to cover construction permit for a new general experimental
station.
NEW — The Toledo Broadcasting Co., Portable-Mobile — Construc¬
tion permit for a new relay broadcast station to be operated
on 31190, 34600, 37600, 40600 kc., SO watts.
NEW — West Virginia Broadcasting Corp., Portable-Mobile — Con¬
struction permit for a new relay broadcast station to be
operated on 31100, 34600, 37600, 40600 kc., 50 watts.
NEW — The Toledo Broadcasting Co., Portable-Mobile — Con¬
struction permit for a new relay broadcast station to be
operated on 1646, 2090, 2190, 2830 kc., 50 watts.
NEW — West Virginia Broadcasting Corp., Portable-Mobile — Con^
struction permit for a new relay broadcast station to be
operated on 1646, 2090, 2190, 2830 kc., SO watts.
Third Zone
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Extension
580 of special experimental authorization to operate with 750
watts additional power daytime, for period from 9-1-36 to
3-1-37.
NEW — World Publishing Co., Tulsa, Okla. — Construction permit
940 for a new station to be operated on 940 kc., 1 KW, un¬
limited time. To use directional antenna night.
NEW — Broadus McSwain, d/b as “The Voice of The Times,”
1210 Raleigh, N. C. — Construction permit for a new station to
be operated on 1210 kc., 100 watts, daytime.
KRBC — Reporter Broadcasting Co., Abilene, Texas — Modification
1420 of construction permit (B3-P-439) for a new station, re¬
questing changes in authorized equipment, for approval of
antenna, change studio site from 1S1 Cypress St., Abilene,
Texas to 984 Fourth St., Abilene, Texas, and approval of
transmitter site at 341 Ambler St., Abilene, Texas. Amended:
To change type of equipment.
W4XB— Isle of Dreams Broadcasting Corp., Laurence E. Dutton,
Miami Beach, Fla. — Construction permit for increase in
power to S KW.
Fourth Zone
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Modifica-
609 tion of construction permit (B4-P-1021) for changes in
equipment and increase in power, requesting to install a new
transmitter.
WAAF — Drovers Journal Publishing Co., Chicago, Ill. — License to
920 cover construction permit (B4-P-403) as modified for new
equipment, change in power, and move of transmitter and
studio.
1457
KFJB — Marshall Electric Co., Inc., Marshalltown, Iowa. — Modifi-
1200 cation of construction permit (B4-P-1054) to install a vertL
cal antenna, move transmitter from 1603 West Main St.,
Marshalltown, Iowa, to Rural, Marshalltown, Iowa, and
extend commencement and completion dates.
KWTN — Greater Kampeska Radio Corp., Watertown, S. Dak. —
1210 Construction permit to install a new transmitter, vertical
antenna, change frequency from 1210 kc. to 1340 kc., power
from 100 watts to 2S0 watts night, 500 watts day, move
transmitter from 502 Fifth St., N. W., Watertown, S. Dak.,
to East Shore, Lake Kampeska, S. Dak. Requests frequency
of KGDY (subject to KGDY’s being granted 1210 kc.).
KFVS — Oscar C. Hirsch, tr. as Hirsch Battery & Radio Co., Cape
1210 Girardeau, Mo. — Authority to install automatic frequency
control.
NEW — The Courier-Post Publishing Co., Hannibal, Mo. — Con-
1310 struction permit for a new station to be operated on 1310
kc., 100 watts, unlimited time. Amended to change power
from 100 watts to 100 watts night, 250 watts day, and
change type of equipment.
KGDY — Voice of South Dakota, Huron, S. Dak. — Construction
1340 permit to change frequency from 1340 kc. to 1210 kc.;
change power from 250 watts daytime to 100 watts night,
250 watts day, hours of operation from daytime to un¬
limited time; make changes in equipment; install a vertical
antenna; move transmitter from SE 20 acres of NE V\ of
25-111-62, y2 mile north of North Addition, Huron, South
Dakota, to State Fair Grounds, Huron, S. Dak., and studio
from Security National Bank Bldg., Huron, S. Dak., to
State Fair Grounds, Huron, S. Dak. Contingent upon
KWTN’s application for 1340 kc. being granted. (By
agreement.)
NEW — Ernest Edward Ruehlen, Great Bend, Kans. — Construc-
1370 tion permit for a new station to be operated on 1370 kc.,
100 watts, unlimited time. Amended: Transmitter and
studio sites to be determined.
NEW — Chas. Porter and Edward T. Eversole, Festus, Mo. — Con-
1420 struction permit for a new station to be operated on 1420
kc., 100 watts, unlimited time. Amended to change hours
of operation from unlimited time to daytime.
WMBD — Peoria Broadcasting Co., Peoria, Ill. — License to cover
1440 construction permit (B4-P-590) as modified for changes in
equipment and move of transmitter.
WTMV — Mississippi Valley Broadcasting Co., Inc., East St. Louis,
1500 Ill. — Construction permit to install a new transmitter and
increase power from 100 watts to 100 watts night, 250 watts
day.
Fifth Zone
KFVD — Standard Broadcasting Co., Los Angeles, Calif. — Con-
1000 struction permit to make changes in equipment, install direc¬
tional antenna, increase power from 250 watts to 1 KW, and
change hours of operation from limited time to unlimited
time. Amended to use directional antenna at night.
KDNC — Democrat-News Co., Inc., Lewiston, Mont. — Modifica-
1200 tion of construction permit (B5-P-831) to install new trans¬
mitter, increase power from 100 watts to 100 watts night,
250 watts day, antenna and transmitter site to be deter¬
mined, Lewiston, Mont.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Authority to trans-
1200 fer control of corporation from Harry B. Read to Walter
L. Read, 148 shares of common stock.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Modification of
1270 license to change frequency from 1270 kc. to 1040 kc., and
increase power from 1 KW, 5 KW day, to 5 KW day and
night.
KERN— Bee Bakersfield Broadcasting Co., Bakersfield, Calif. —
1370 Voluntary assignment of construction permit (B5-P-1112)
from the Bee Bakersfield Broadcasting Company to Mc-
Clatchy Broadcasting Co.
KRKO — Lee E. Mudgett, Everett, Wash. — Construction permit to
1370 install a new transmitter.
KERN — McClatchy Broadcasting Co., Bakersfield, Calif. — License
1370 to cover construction permit (B5-P-1112) to install new
equipment and antenna. Amended to change name from
Bee Bakersfield Broadcasting Company to McClatchy Broad¬
casting Company.
KSLM — Oregon Radio, Inc., Salem, Ore. — Authority to transfer
1370 control of corporation of KSLM, Oregon Radio, Inc., from
Walter L. Read to H. B. Read, 24 shares of common stock.
W7XBD — Oregonian Publishing Co., Portland, Ore. — Modification
of construction permit for extension of commencement and
completion dates.
1458
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS • • • • • ^
Copyright. 1936. The National Association of Broadcasters
IN THIS ISSUE
Page
Recommendations Against New Georgia Stations . 1459
Securities Act Registrations . 1459
Notes for the Sales Staff . 1459
Notice to All NAB Members . 1459
California Station Recommended on Condition . 1459
Labor Union Decision . 1460
Broadcast Advertising in June . 1461
Federal Trade Commission Action . 1463
FTC Closes Case . 1464
Federal Communications Commission Action . 1464
RECOMMENDATION AGAINST NEW GEORGIA
STATIONS
Application was filed with the Federal Communications Com¬
mission by W. T. Knight, Jr., for a new station at Savannah, Ga.,
to use 1310 kilocycles, 100 watts power and unlimited time on the
air, and a similar application for the erection of a new station at
the same place and using same frequency, power and time on the
air from Mr. and Mrs. Jack E. Brantley and Jack E. Brantley, Jr.
Examiner Melvin H. Dalberg in Report No. 1-269 recommended
that both of these applications be denied. The Examiner states
that sufficient showing was not made by either applicant at the
hearing for the need of additional radio service at Savannah. It
was not shown at the hearing, the Examiner states, that sufficient
money is available to support a new station on an independent
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Faddis Oil & Gas Corp., Waynesboro, Pa. (2-2336, Form A-l)
Detroit Steel Corp., Detroit, Mich. (2-2337, Form A-2)
Cleveland Railway Company, Cleveland, Ohio. (2-2338, Form
A-2)
Public Service Co., of N. H., Manchester, N. H. (2-2339, Form
A-2)
Binghamton Washington Machine Co., Binghamton, N. Y.
(2340- Form A-l)
St. John Gold & Copper Co., Phoenix, Ariz. (2-2341, Form
A-l)
Bell Aircraft Corp., Buffalo, N. Y. (2-2342, Form A-l)
Thrift Investment Certificate Corp., Minneapolis, Minn. (2-
2343, Form A-l)
Pointer Brewing Co., Clinton, Iowa. (2-2344, Form A-l)
Sun Ray Drug Company, Philadelphia, Pa. (2-2345, Form A-2)
Arrow Aircraft Corp., Lincoln, Nebr. (2-2346, Form A-l)
Income Properties, Inc., Chicago, Ill. (2-2347, Form A-l)
D. C. Collier, Gainesville, Ga. (2-2348, Form A-l)
Kinner Airplane & Motor Corp., Ltd., Glendale, Cal. (2-2349,
Form A-l)
Darling Stores Corp., New York City (2-2350, Form A-l)
Central Investors Corp., Kansas City, Mo. (2-2351, Form A-l)
Commercial Investment Corp., Davenport, Iowa. (2-2352,
Form A-2)
Miles Detroit Theatre Co., Detroit, Mich. (2-2353, Form A-2)
Soss Manufacturing Co., Roselle, N. J. (2-2354, Form A-2)
Pine Products Chemicals, Inc., Wilmington, Del. (2-2355,
Form A-l)
Dairyland, Inc., San Antonio, Texas. (2-2022, Form A-l)
NOTICE TO ALL NAB MEMBERS
Members of the NAB will please take notice that under date of
June 16, 1936, Rudolph Schramm, music director of the Edu¬
cational Radio Project, Office of Education, U. S. Department of
Interior, executed a written license to all radio broadcasting sta¬
tions under which license all stations are authorized to render pub-
NOTES FOR THE SALES STAFF
June broadcast advertising shows that the sum¬
mer slump has been beaten more than in any pre¬
vious year. (See Developments of the Month, page
1461.)
The strong showing of local business as against
May and also the preceding June indicates increas¬
ing sales possibilities in this field. (See Total
Broadcast Advertising, page 1461.)
The marked strength of regional station volume
and the strong showing of non-network business in
the South and Midwest are of considerable interest.
(See Non-network Advertising, page 1461.)
The strong showing of transcriptions in both the
national and local field, and the revived strength on
the part of live talent volume are significant. (See
Non-network Advertising by Type of Rendition,
page 1462.)
lie performances of his copyrighted musical composition entitled
“Interviews with the Past” in connection with a series of radio
programs entitled “Interviews with the Past” prepared by the Edu¬
cational Radio Project, Office of Education, U. S. Department of
Interior, and furnished by the Educational Radio Project to stations
for broadcasting purposes.
This authority is contained in a license agreement now in the
files of the National Association of Broadcasters under which
agreement all stations may render the composition “Interviews
with the Past” without discretion as to the time, place and fre¬
quency of performance and broadcast, and without the payment
of any fee or royalty to anyone. This authority also guarantees
to hold any station performing said composition harmless against
any and all claims, demands or recoveries finally sustained by rea¬
son or any violation of proprietary right or copyright or any un¬
lawful matter contained in said composition in consequence of said
broadcast performance.
In addition to this license filed with the National Association
of Broadcasters, Mr. Schramm has caused to be imprinted upon
all copies of said composition the following:
“Permission granted hereby to broadcast, perform, copy or dup¬
licate this music without fee or license.”
In view of the above it is the opinion of the National Associa¬
tion of Broadcasters that all stations may render Mr. Schramm’s
composition entitled “Interviews With the Past” without incur¬
ring any liability therefor and without payment of fees or royalties
to any person, firm, corporation, association, or licensing group.
CALIFORNIA STATION RECOMMENDED ON
CONDITION
Application was filed with the Federal Communications Com¬
mission by Tulare-Kings Counties Radio Associates for a con¬
struction permit for the erection of a new broadcasting station
at Visalia, Cal., to use 1190 kilocycles, 250 watts power and day¬
time operation.
Examiner R. H. Hyde, in Report No. 1-268 recommended that
the application be granted on certain conditions. He found that
the operation of the proposed station would not cause objection¬
able interference within the recognized service area of any other
station. Also the Examiner states that there is a present need in
the applicant’s area for local broadcast service. However, there is a
prior application for construction of a new station at Visalia and
the Examiner states that there is no need for the granting of both
1459
applications. He recommends that if the first application is denied
that the application of the Radio Associates be granted.
LABOR UNION DECISION
Following is the decision of the Supreme Court of Massachu¬
setts in the case of the Yankee Network, Inc., against George
Gibbs and others:
Yankee Network, Inc. vs. Georce Gibbs & others.
Suffolk. Submitted February 7, 1936. — Opinion filed July 2,
1936.
Present: Rugg, C.J., Field, Donahue, Lummus, & Qua, JJ.
Unlawful Interference. Labor Union. Equity Pleading and
Practice, Decree.
Appeal by the defendants in a suit in equity in the Superior
Court from a final decree entered by order of Macleod, J.
Qua, J. The plaintiff operates a chain of broadcasting stations.
The defendants are the officers and members of “Local No. 9,”
which is located in Boston and is affiliated with and forms part
of the American Federation of Musicians. The primary purpose
of the suit is to restrain the defendants from interfering with the
conducting of an orchestra by one Kendis in the plaintiff’s studio.
For about eighteen months prior to April 1, 1935, the officials
of the local had been endeavoring to induce the plaintiff to em¬
ploy a “house orchestra,” so called, but the plaintiff had refused
to do so, because it was unable to find a conductor of suitable
talent. Shortly before April 1 the plaintiff requested Kendis to
get together an orchestra of ten musicians, which he did by select¬
ing ten members of the local. Their work proved satisfactory to
the plaintiff, and thereupon, on April 1, the plaintiff and Kendis
entered into a contract in writing by which the plaintiff engaged
Kendis for one year as “contractor, conductor, arranger and
pianist” at a salary of one hundred dollars per week. Kendis
was a member of the American Federation of Musicians, belong¬
ing to locals in New York City and elsewhere, but not to Local
9. A by-law of the federation provided that “A member who
has his transfer card on deposit in a Local is not entitled, without
the consent of the Local, to solicit, accept or play any permanent
engagement during a period of three months after the date of
deposit, but otherwise is entitled to all the privileges of the Local,”
with exceptions not here material. Another by-law common to
both the federation and the local required members to include
in their contracts with employers a stipulation to the effect that
nothing in the contract should be construed to interfere with any
obligation which they owed to the federation as members thereof.
A so called “Price List” of the local contained a regulation re¬
quiring members playing exclusively for broadcasting “to file con¬
tracts with the Secretary prior to the engagement.” Kendis, upon
coming to Boston, deposited his transfer card with Local 9, but
he did not obtain the consent of that local before accepting and
executing his contract with the plaintiff. The stipulation required
by the by-law w'as not included in that contract. It did not ap¬
pear that he was “playing exclusively for Radio broadcasting,”
so as to bring him within the regulation. On April 1, after signing
the contract, Kendis submitted it to the officials of Local 9 for
approval. On April 3 the executive committee voted to refuse
permission to Kendis to accept the contract, and on April 8 he
was officially notified that fines aggregating $500 had been imposed
upon him for violation of the by-laws and of the regulation here¬
inbefore mentioned. On the same day the orchestra ceased to
play. Up to this point there is little, if any, dispute as to the facts.
The judge found that Kendis had not violated any of the by¬
laws or regulations of the federation or of Local 9. He further
found that the ten musicians employed by Kendis desired to con¬
tinue to play at the plaintiff’s studio, “that they were entirely satis¬
fied with the compensation and the conditions of their employ¬
ment, and that the only reason they did not continue to play was
because as the result of the threats made to them by the officials
of the Union they feared substantial fines, suspension or expul¬
sion,” that “there was no legitimate or reasonable basis for re¬
fusing the permission to Kendis to carry out his contract with the
plaintiff,” and that suspension or expulsion of the ten musicians
would be arbitrary, unreasonable and illegal. Upon the facts
found by him and upon “all the evidence” he found and ruled
“that the conduct of the officials of the Union in interfering with
the employment of Kendis and the members of the orchestra by
the plaintiff constituted an impairment of the plaintiff’s right to
a free flow of labor, and that conduct was illegal, and in violation
of the plaintiff’s rights.”
The case is here on appeal with a report of the evidence. We
must examine the testimony and draw our own conclusions as to
facts, giving due weight to the findings of the judge who saw and
heard the witnesses and not reversing his findings either of sub¬
sidiary or of ultimate facts unless they are erroneous in law or
the evidence shows them to be plainly wrong. Cook v. Mosher,
243 Mass. 149, 153. New England Wood Heel Co. v. Nolan, 268
Mass. 191. Masterson v. American Employers’ Ins. Co. 288 Mass.
518, 521. MacLeod v. Davis, Mass. Adv. Sh. (1935) 987, 989.
We think it is plain on evidence practically undisputed that
Kendis had violated the two by-laws in question by accepting
without the consent of the local and before the expiration of the
three-months period a contract for a permanent engagement which
did not contain the required stipulation. We deal with the case
on this basis. The other findings of fact hereinbefore stated can¬
not be pronounced plainly wrong. They are consistent with in¬
ferences which a reasonable mind might draw from evidence which,
as elicited from witnesses in the court room, might have been con¬
vincing. It is true that there was no direct evidence of “threats”
by the officers of the local to the ten musicians, but there was evi¬
dence which could have been thought to show advice from the
officers which caused the musicians to abandon their employment
through fear of action by the officers and the local and against
their own desire.
The precise word used to describe this is unimportant.
The findings and the evidence together show that the defend¬
ants, having no trade dispute of any kind with the plaintiff, com¬
bined to prevent the carrying out of the contract between the
plaintiff and Kendis and to prevent Kendis from working for the
plaintiff and that they succeeded in that purpose. Such a com¬
bination for such a purpose was prima facie unlawful both as an
interference with the contractual right of the plaintiff and as an
interference with the right of the plaintiff to manage its own busi¬
ness in its own way and to have free access to the market for
musical talent. Walker v. Cronin, 107 Mass. 555. Reynolds v.
Davis, 198 Mass. 294. Burnham v. Dowd, 217 Mass. 351. W. A.
Snow Iron Works, Inc. v. Chadwick, 227 Mass. 382, 389. Haver¬
hill Strand Theatre, Inc. v. Gillen, 229 Mass. 413. Folsom En¬
graving Co. v. McNeil, 235 Mass. 269. Mechanics Foundry &
Machine Co. v. Lynch, 236 Mass. 504. Rice, Barton & Fades Ma¬
chine & Iron Foundry Co. v. Willard, 242 Mass. 566, 572. Moore
Drop Forging Co. v. McCarthy, 243 Mass. 554. A. T. Stearns
Lumber Co. v. Howlett, 260 Mass. 45, 56, 65. Armstrong Cork &
Insidation Co. v. Walsh, 276 Mass. 263, 272. Service Wood Heel
Co. Inc. v. Mackesy, Mass. Adv. Sh. (1936) 193. The evidence fails
to show justification for the defendants’ conduct in the exercise
by them of any right of free competition or of any other right of
equal dignity with the rights of the plaintiff. Plant v. Woods, 176
Mass. 492. Berry v. Donovan, 188 Mass. 353. Folsom v. Lewis,
208 Mass. 336. Haverhill Strand Theatre, Inc. v. Gillen, 229 Mass.
413.
The right of the local, solely as between itself and Kendis, to
punish Kendis for violation of the by-laws is not here involved.
Whatever may be the extent of that right, it cannot be used as a
justification for an otherwise unlawful attack upon the plaintiff.
Indeed it was held after much consideration in Martell v. White,
185 Mass. 255, and in L. D. Willcutt & Sons Co. v. Driscoll, 200
Mass. 110, that the imposition of coercive fines was in itself an
unlawful means of carrying on even a lawful combination. A. T.
Stearns Lumber Co. v. Howlett, 260 Mass. 45, 72. See G. L.
(Ter. Ed) c. 180, § 19. And in this case the abrupt change of
attitude on the part of the local toward the new orchestra when
Kendis was mentioned as the conductor, the close relationship be¬
tween the refusal to approve Kendis’s contract and the calling out
(as the judge found) of the ten musicians and the imposition of
the heavy fines, together with much other evidence in the case,
would justify a conclusion that the fines were not being employed
solely to punish Kendis for his past infractions of the by-laws,
but that they were being employed in part at least as one of the
means of carrying out the defendants’ then present unlawful pur¬
pose of breaking up Kendis’s connection with the plaintiff in the
hope ultimately of forcing the plaintiff to employ in his place some
member of the local who had not come in from another city. See
DeMinico v. Craig, 207 Mass. 593; A. T. Stearns Lumber Co. v.
Howlett, 260 Mass. 45, 70.
No prejudicial error appears in the manner in which the judge
dealt with questions of evidence.
We think the final decree was no broader in its terms than was
reasonably required for the protection of the plaintiff’s rights. As
the purpose of the combination must now be deemed to have been
unlawful, it was proper to enjoin all means of carrying it out
1460
which there was reason to apprehend would be employed, includ¬
ing suspension or expulsion from the local as well as fines. In
this respect the case differs from L. D. Willcutt & Sons Co. v.
Driscoll, where the issue was only as to the lawfulness of the
means. This point is conceded by the minority opinion in that
case at page 137. The decree must be interpreted reasonably in
the light of the pleadings and with reference to the nature of the
wrong for which relief is granted. Attorney General v. New
York, New Haven & Hartford Railroad, 201 Mass. 370, 372. It
does not purport to regulate the relations of the local with its
members, except as they are involved in the combination against
the plaintiff which is the subject of the suit. Inasmuch, however,
as the one-year term of the contract annexed to the bill has now
expired, the third paragraph of the final decree should be
omitted. As so modified, the decree is affirmed with costs.
Ordered accordingly.
W. J. Day, for the defendants.
G. Alpert & J. A. Farrer, for the plaintiff.
BROADCAST ADVERTISING IN JUNE
Developments of the Month
Broadcast advertising volume during June amounted to
$7,917,733 as represented by the gross billings of the
medium. The decline from the May level during the
month was the smallest in recent years. Total radio
volume decreased 7.3% from the previous month, as com¬
pared to a drop of 12.7% in 1935 and of 21.6% in 1934.
Gross volume was 20.2% above that of June 1935.
Local broadcast advertising reversed the usual seasonal
trend during June and exceeded the preceding month’s
volume by 0.4 % .
National non-network volume continued to show the
greatest relative gain as compared to corresponding
periods of the previous year. Following several months
of uncertainty, local broadcast advertising again exhibited
strength and topped June 1935 by 24.7%.
In the non-network field, regional station volume ac¬
counted for all of the gains over the May level, and also
experienced the greatest increase as compared to June of
last year. Non-network advertising in the South and
mid-West continued to show the greatest gains over
previous years.
Compared to the preceding month national announce¬
ment volume and local live talent business alone showed
important increases. In the national field both transcrip¬
tions and live talent gained materially as compared to
June of the previous year, while transcriptions experi¬
enced the greatest increase in the local field.
Gains in local automotive advertising, national non-net¬
work and local beverage volume and local department
store radio sponsorship were the outstanding develop¬
ments as compared to May.
A number of important increases occurred as against
the corresponding month of 1935. All forms of auto¬
motive advertising increased materially. Regional net¬
work and national non-network drug advertising rose
markedly while national network and local volume in the
same field decreased in similar fashion. Food advertising
rose throughout the medium, as did all beverage adver¬
tising except national non-network. National non-net-
work and local household equipment volume rose mate¬
rially. Local department store volume was 49.1% above
June of last year.
Gross billings of the medium were 7.3% below those of the pre¬
ceding month. Local broadcast advertising alone showed an in¬
crease, rising 0.4% over May. Other declines were as follows:
national networks, 10.5% ; regional networks, 15.1% ; national non¬
network volume, 7.5%.
Broadcast advertising volume exceeded that of June 1935 by
20.2%. National network advertising registered an increase of
9.7%, and regional network volume one of 11.0%. National non¬
network business experienced the greatest increase, rising 34.5%.
Following a relatively poor showing for several months, local
broadcast advertising increased 24.7% over the June 1935 level.
Comparison with Other Media
Seasonal declines were general throughout major advertising
media during June. National magazine volume decreased 17.4%
and national farm paper volume 20.4%. Newspaper lineage
dropped off 7.9%.
Compared to June of the preceding year, all media showed in¬
creases in advertising volume, with radio again leading the field.
National magazine advertising increased 7.7%, national farm paper
volume 10.1% and newspaper lineage 14.5%.
Advertising volume by major media is set forth in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
1936 Gross Time and Space Sales
Advertising Medium
Radio broadcasting .
National magazines 1 . . . .
National farm papers1. . .
Newspapers a .
May
$8,545,594
14,927,513
658,935
52,691,000
June
$7,917,600
12,323,954
524,308
48,484,000
Cumulative
Jan.-June
$50,802,179
74,756,884
3,730,765
275,706,000
Total . $76,823,042 $69,249,862 $404,995,828
1 Publishers’ Information Bureau.
2 Estimated.
Non-network Advertising
General non-network advertising decreased 3.6% during the
month. Regional station volume alone rose, increasing 5.8% as
compared to May. Clear channel and high powered regional sta¬
tion non-network business decreased 10.1% during the month, and
local station business 9.9%.
Compared to June 1935, total non-network volume rose 29.3%.
Regional and local stations led the field with increase of 48.5%
and 41.0% respectively. Clear channel station non-network adver¬
tising increased 11.0% over the corresponding month of last year.
Non-network advertising by power of station is found in
Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1936 Gross Time Sales
Cumulative
Power of Station May June Jan.-June
Over 1,000 watts . $1,717,240 $1,543,110 $9,864,340
250-1,000 watts . 1,613,150 1,707,620 8,798,750
100 watts . 645,210 581,380 3,312,640
Total Broadcast Advertising
Total broadcast advertising during the month is set forth in
Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
Class of Business ....
National networks ....
Regional networks . . .
National non-network
Local .
1936
May
$4,445,346
124,648
2,035,680
1,939,920
Gross Time
June
$3,979,763
105,860
1,883,830
1,948,280
Sales
Cumulative
Jan.-June
$28,181,976
644,473
11,527,860
10,447,870
Total
$8,545,594 $7,917,733 $50,802,179
Total . $3,975,600 $3,832,110 $21,975,730
Non-network advertising in the South Atlantic and South Cen¬
tral States alone increased as compared to the preceding month.
Volume in this area rose 2.6%, contrary to the usual seasonal tend¬
ency. Non-network advertising in the New England-Middle
Atlantic area decreased 3.1%, that of the North Central States
dropped 6.3%, while volume in the Mountain and Pacific States
declined 4.3%.
The South and Mid-West led the country in gains in non¬
network volume as compared to June of last year, rising 48.8%
and 34.7% respectively. New England-Middle Atlantic non-net¬
work advertising rose 7.1% and Pacific and Mountain volume
34.3%.
Non-network advertising by geopraghical district is found in
Table IV.
1461
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
Geographical District
New England-Middle At¬
lantic Area .
South Atlantic-South Cen¬
tral Area .
North Central Area .
Pacific and Mountain Area
May
$866,250
710,250
1,573,200
825,900
1936 Gross Time Sales
Cumulative
June
$839,110
729,060
1,473,420
790,520
Jan.-June
$4,802,650
4,304,570
8,676,930
4,191,580
Total . $3,975,600 $3,832,110 $21,975,730
Non-network Advertising by Type of Rendition
Announcements increased 5.5% as compared to May in the
national field, while local live talent volume rose 3.9% and
record business gained 2.4%. In the national field transcription
and live talent volume decreased 7.8% and 11.5% respectively.
Local transcriptions decreased 6.9%, and announcements 1.7%.
Gains were general in all forms of rendition in both, the national
and local fields as compared to June 1935. National gains were
as follows: electrical transcriptions, 39.7%; live talent, 36.1%;
announcements, 21.9%. Local gains were the following: transcrip¬
tions, $57.8%; five talent, 33.0%; records, 20.0%; announcements,
9.0%.
Broadcast advertising by type of rendition is found in Table V.
TABLE V
NON-NETWORK BROADCAST ADVERTISING BY TYPE OF RENDITION
1936 Gross Time Sales
National Non-network Local Total Cumulative
Type of Rendition
May
June
May
June
May
June
Jan.-June
Electrical transcriptions .
Live talent programs .
Records .
Announcements .
$803,600
. . . . 932,950
.... 8,090
291,040
$740,290
827,160
9,830
306,550
$261,050
935,850
70,460
672,560
$242,840
971,490
73,170
660,780
$1,064,650
1,868.800
78,550
963,600
$983,130
1,798,650
83,000
967,330
$5,723,950
10,643,770
423,120
5,184,890
Total .
_ $2,035,680
$1,883,830
$1,939,920
$1,948,280
$3,975,600
$3,832,110
$21,975,730
Sponsor Trends in June
The usual seasonal declines were experienced by the great ma¬
jority of sponsor groups during June, with several important
exceptions. Local automotive volume rose 9.8 % as compared to
the previous month. Regional network drug advertising increased
26.0%. National non-network and local beverage volume rose
15.8% and 25.8% respectively. National non-network soap and
kitchen supply advertising increased 86.5%. Local department
store volume rose 10.5%.
Comparison with June, 1935
Increases were fairly general as compared to the preceding June,
with a number of them of outstanding interest. Automotive adver¬
tising continued to gain throughout all portions of the medium.
Regional network and national non-network gasoline and accessory
volume rose 27.5% and 22.5% respectively.
Regional network drug advertising increased 73.3% and national
non-network drug volume rose 52.0%. National network and
local drug volume declined 19.5% and 37.9% respectively. With
the exception of national network food advertising, which in¬
creased but slightly, food volume over the remainder of the medium
rose materially. National network confectionery volume increased
85.3%.
National non-network and local household equipment adver¬
tising gained 49.0% and 20.3% respectively. National network
soap and kitchen supply volume rose 60.8%. Local department
store advertising gained 49.1%. National non-network tobacco
advertising increased 38.2%.
Broadcast advertising by major sponsoring groups is found
in Table VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
(June,
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
(1) Automobiles .
(2) Accessories, gas and oil .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
(4) Drugs and pharmaceuticals .
(5) Toilet goods .
6-8. Food products:
(6) Foodstuffs .
(7) Beverages .
(8) Confections .
9-10. Household goods:
(9) Household equipment and furnishings
(10) Soap and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
Total .
1936)
Gross Time Sales
National
Networks
Regional
Networks
National
Non-networks
Local
Total
—
—
$12,500
$50,580
$63,080
$302,034
—
231,180
162,360
695,574
323,780
$20,125
147,770
89,330
581,005
25,908
—
38,200
239,180
303,288
322,358
8,233
290,490
54,000
675,081
743,822
1,680
77,540
20,670
843,712
788,593
27,226
404,660
282,570
1,503,049
313,610
15,730
58,800
151,130
539,270
72,006
—
17,770
5,670
95,446
35,462
4,120
64,480
218,720
322,782
334,434
2,392
188,740
9,150
534,716
39,052
514
16,700
83,970
140,236
103,401
332
9,640
12,100
125,473
—
364
2,820
164,640
167,824
393,311
10.790
78,620
10,990
493,711
181,992
14,354
243,920
393,220
833,486
$3,979,763
$105,860
$1,883,830
$1,948,280
$7,917,733
1462
Details as to trends in the various product and service groups
sponsoring radio advertising are as follows:
la. Amusements. National non-network down 5.3% and
local up 63.2% as compared to May. National non-network up
166.0% as compared to last June and local down 6.8%.
1. Automotive. National network volume down 16.2% as
against May and national non-network down 13.4%. Local up
9.8%. Gains over June 1935 as follows: national networks, 61.5%;
national non-network, 62.6%; local, 96.1%.
2. Gasoline and accessories. Declines from the May level
as follows: national networks, 12.6%; regional networks, 6.4%;
national non-network, 20.9%; local, 16.0%. National network
business 7.7% below June 1935 and local down 1.8%. Regional
network and national non-network business up 27.5% and 22.5%
respectively.
3. Clothing. Declines from previous month as follows: na¬
tional networks, 16.1%; national non-network, 2.0%; local, 8.1%.
National network business 32.5% below last June. National non¬
network and local volume up 18.7% and 29.8% respectively.
4. Drugs and pharmaceuticals. Regional network adver¬
tising 26.0% above May. Declines as follows: national networks,
13.3%; national non-network, 4.1%; local, 15.2%. National net¬
work and local volume below June 1935 by 19.5% and 37.9%
respectively. National non-network and regional network business
over last June by 52.0% and 73.3% respectively.
5. Toilet goods. National and regional network volume
below preceding month by 16.8% and 46.0% respectively. National
non-network and local volume up 18.4% and 5.5% respectively.
National network business 11.6% below last June. National non¬
network business up 10.0% and local 22.8%.
6. Foodstuffs. Declines from May level as follows: national
networks, 4.4%; regional networks, 20.6%; national non-network,
8.1%. Local up 18.4%. Increases over previous June as follows:
national networks, 3.8%; regional networks, 27.7%; national non¬
network, 39.0%; local, 37.7%.
7. Beverages. National network volume down 9.1% from
May and regional down 3.1%. National non-network business up
15.8% and local 25.8%. National network business 57.1% above
last June. Regipnal network business up more than sixfold. Na¬
tional non-network advertising down 8.5%. Local up 44.1%.
8. Confectionery. Declines from May as follows: national
networks, 25.6%; national non-network, 18.1%; local, 40.0%.
National network business 85.3% above June 1935. National non¬
network down 24.1% and local 74.0%.
9. Household equipment. National network volume 13.7%
above May. National non-network down 46.7% and local 1.7%.
National network business 1.5% below last June. Regional net¬
works doubled. National non-network volume up 49.0% and local
20.3%.
10. Soaps and kitchen supplies. Gains over May as fol¬
lows: national networks, 2.5%; national non-network, 86.5%.
Declines as follows: regional networks, 72.8% and local, 13.2%.
Increases over June of last year as follows: national networks,
60.8%; national non-network, 18.3%; local more than doubled.
Regional network volume down 43.2%.
11. Insurance and financial. National network advertising
2.7% over May and local up 3.7%. National non-network down
18.8%. Gains over June 1935 as follows: national networks,
40.0%; national non-network, 43.0%; local, 77.1%.
12. Radios. Decreases from May level as follows: national
networks, 7.8%; regional networks, 50.0%; national non-network,
48.0%; local, 20.1%. Increases over June of last year as follows:
national networks, 29.2%; national non-network, more than
doubled; local, 50.0%.
13. Department and general stores. National non-network
62.6% below May and local up 10.5%. Local, 49.1% above June
1935 and national non-network down 50.0%. Total up 36.5%.
14. Tobacco products. National network volume unchanged
from previous month. Other declines as follows: regional network,
12.9%; national non-network, 8.2%; local, 17.8%. National net¬
work business 37.3% above last June, and national non-network
up 38.2%. Regional network volume down 60.2%, Local up by
more than double.
15. Miscellaneous. Declines from preceding month as fol¬
lows: national networks, 29.2%; regional networks, 4.3%; national
non-network, 19.6%; local, 13.2%. National network miscella¬
neous business more than double previous June, with regional net¬
works showing same tendency. National non-network up 44.1%
and local 18.7%.
Retail Broadcast Advertising
Broadcast advertising by retail establishments of various types
declined 4.1% from the May level but exceeded the volume of the
previous June by 29.8%.
Principal increases as compared to May were as follows: auto¬
motive, 17.0%; household equipment dealers, 23.0%; furniture
stores, 3.0%, and department stores, 6.6%. Clothing store volume
decreased 7.5% and grocery store business 41.0%.
Practically all major types of retail establishments increased
their broadcast advertising expenditures as compared to the pre¬
ceding June. More important gains were as follows: automotive,
112.0%; clothing, 27.8%; grocery stores, 14.3%; household equip¬
ment, 13.0%; furniture stores, 74.0% and department stores, 36.5%.
Broadcast advertising by various types of retail establishments
are set forth in Table VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business May June
Automobiles and accessories:
Automobile agencies and used car dealers $142,610 $166,960
Gasoline stations, garages, etc . 73,670 53,560
Clothing and apparel shops . 266,700 246,230
Drugs and toilet goods:
Drug stores . 16,300 12,910
Beauty parlors . 16,350 9,130
Food products:
Grocery stores, meat markets, etc . 82,620 48,210
Restaurants and eating places . 23,400 20,920
Beverage retailers . 1,320 700
Confectionery stores . 2,250 1,880
Household goods:
Household equipment dealers . 63,770 78,480
Furniture stores . 104,600 107,780
Hardware stores . 32,700 26,520
Radio retailers . 10,870 10,830
Department and general stores . 157,258 167,824
Tobacco shops . . .
Miscellaneous . 99,780 97,800
Total . $1,094,198 $1,049,734
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2882. A complaint has been issued against Euclid Candy
Co., 715 Battery St., San Francisco, alleging unfair competition in
that the respondent company is said to pack and assemble its candy
so as to involve the use of a lottery scheme when it is sold and
distributed to consumers.
Use of such a lottery method, the -complaint charges, tends to
lessen competition and to exclude from the candy trade competi¬
tors who are unwilling to resort to the same or equivalent methods
in the sale of their product.
No. 2883. False and fraudulent representations in advertising
a line of cosmetics and beauty preparations are alleged in a com¬
plaint issued against Charles of the Ritz Distributors Corpora¬
tion, 9-11 University Place, New York City.
In connection with the sale of its products, known as the “Ritz”
or “Charles of the Ritz” line, the respondent corporation is said to
distribute a booklet entitled “Beauty in the Modern Mode” in
which, according to the complaint, it represents, among other
things, that:
“Eye Lotion Ritz” strengthens the eye nerves and relieves eye
strain; “Scalp Food Ritz” promotes the growth of hair; “Eye
Cream Ritz” nourishes the tissues about the eyes, banishes lines
and prevents crow’s feet; “Rejuvenescence Cream Ritz” supplies
the skin with a youth-giving element, penetrates the skin and
gives it new life and vitality, and “Eyelash Grower Ritz” pro¬
motes the growth of eyelashes.
No. 2884. Civilian Preparatory Service, Inc., Suite 500,
Simms-Keller Building, Huntington, W. Va., and its principal
stockholder and sales manager, Homer Bruce Crone, trading as
1463
Economic Research Bureau, are charged with unfair competi¬
tion in the sale of correspondence courses of instruction designed
to prepare students to take examinations for civil service positions
under the United States Government.
Salesmen soliciting prospective students, the complaint charges,
represent that they and the respondents are connected with the
Government; that civil service positions are available and that
examinations for such positions are to be held in the near future
or at definite times stated; that students can be placed in gov¬
ernment positions if they pursue the respondents’ courses; that
money will be refunded if a job is not obtained, and that only a
limited number of students are selected for training in a particular
locality.
These representations are untrue or misleading, according to the
complaint, which alleges that the memorized sales talks of the
respondents’ agents are intended to conceal the fact that they rep¬
resent a private correspondence school and to create the false
impression that they are engaged in selecting candidates for gov¬
ernment positions.
No. 2885. A complaint alleging misrepresentation of the reme¬
dial or restorative qualities of “Youthray,” offered as a hair color
restorer, has been issued against Ema Saffan, Inc., 646 N. Mich¬
igan Ave., Chicago, and Roy M. Kirtland, majority stockholder
in and secretary-treasurer of the corporation.
Advertising “Youthray” in newspapers, magazines and circulars,
the respondents are charged with unfair methods of competition
in that they falsely represent that their preparation effectively re¬
stores the natural color of hair; acts on gray hair without the aid
of harmful dyes that ruin the health and beauty of hair and scalp;
brings to gray hair a lustrous, youthful color, and is beneficial
to the head because it is a fine germicide and antiseptic.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 1789. Luden’s Inc., Eighth and Walnut Streets, Reading,
Pa., is prohibited from using unfair competition in the sale of
candy, in violation of the Federal Trade Commission Act, under an
order to cease and desist.
Sale of candy to wholesalers in assortments so arranged as to
involve use of a lottery scheme when distributed to consumers,
and other similar practices, are prohibited in the order.
The respondent company admitted the truth of the material
allegations of the Commission’s complaint and waived further pro¬
cedure, following which the Commission issued its findings of fact
and order to cease and desist.
No. 2407. Representations that it is a distiller of spirituous
beverages, when such is not the fact, are to be discontinued by
Western American Distillers Corporation, 110 First St., San
Francisco, under an order to cease and desist.
The order directs the respondent corporation, through use of
the word “Distillers” in its corporate name, or otherwise, to cease
representing that it manufactures by the process of distillation the
spirituous beverages it sells, or that it owns or operates a plant
where such products are distilled, unless it actually does own or
operate such a plant.
No. 2418. Western Reserve Distilling Co., 2501 Norwood
Ave., Cincinnati, has been ordered to cease representing that it is
a distiller of whiskies, gins and other spirituous beverages, until
such is the fact.
The order prohibits the respondent company from representing,
through use of the word “Distilling” in its corporate name, on
labels, or in advertising matter, that it manufactures through the
process of distillation the spirituous beverages it sells in interstate
commerce, or that it owns or operates a plant where such beverages
are manufactured, until it actually owns such a plant.
No. 2621, Sweet Candy Co., 224 South First West St., Salt
Lake City, has been ordered to cease and desist from selling to
wholesalers, jobbers and retailers assortments of candy so packed
and assembled that a lottery scheme or game of chance is involved
when the candy is resold to consumers.
FTC CLOSES CASE
No. 2828. The Federal Trade Commission has entered an order
closing its case against Mandre, Inc., 1400 Broadway, New York
City, and Louis C. Rosenblatt, Arthur J. Rosenblatt and H.
Edelman, officers of the corporation, and against the same re¬
spondents trading as M. Brooks & Co., 1109 G Street, N. W.,
Washington, D. C. The New York corporation manufactures
and deals in furs, fur coats and fur-trimmed garments, while the
Washington company only deals in these products.
The Commission’s complaint had alleged that the respondents
labeled and advertised their products with names of high-priced
furs, which were, in fact, furs made from inferior skins treated and
dyed to resemble higher quality skins.
According to the order, the respondents have entered into a
stipulation with the Commission to discontinue such unfair methods
of competition. The Commission closed the case without prejudice
to the right to reopen it should the facts so warrant.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, August 11
HEARING BEFORE AN EXAMINER
(Broadcast)
WKZO — WKZO, Inc., Kalamazoo, Mich. — C. P., 590 kc., 250
watts, 1 KW LS, unlimited time.
APPLICATIONS RECEIVED
First Zone
WEEI — The Edison Electric Ill. Co. of Boston, Boston, Mass. —
590 Voluntary assignment of construction permit (Bl-P-1196)
from The Edison Electric Illuminating Co. of Boston to
WEEI Broadcasting Corp.
WEEI — WEEI Broadcasting Corp., Boston, Mass. — Modification
590 of construction permit (Bl-P-1196) to install a new trans¬
mitter and directional antenna; increase power from 1 KW
to 1 KW night, 5 KW day; and move transmitter, to further
request increase in power from 1 KW night, 5 KW day, to
5 KW day and night. (Filed in new name.)
NEW — Rev. Edward Warren Cromey, Rector, Church Wardens
1130 & Vestrymen of St. Michael’s P. E. Church, Brooklyn, New
York.— Construction permit for a new station to be op¬
erated on 1130 kc., 1 KW, daytime, requests facilities of
Station WOV. Amended to make changes in antenna and
give exact studio site as site to be determined, Brooklyn,
N. Y.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Construc-
1200 tion permit to install new equipment.
WOCL — -A. E. Newton, Jamestown, N. Y. — Construction permit
1210 to make changes in equipment to comply with Rule 132 and
increase power from 50 watts to 100 watts. Amended to
omit request for increase in power and make further changes
in equipment.
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. —
1230 License to cover construction permit (Bl-P-1083) for
changes in equipment and increase in power.
WNBF — Howitt-Wood Radio Co., Inc., Binghamton, N. Y. — Con-
1500 struction permit to install a new antenna, move transmitter
from 92 Seneca Street, Binghamton, N. Y., to Acreage (no
street), Binghamton, N. Y.
NEW — Bamberger Broadcasting Service, Inc., Portable-Mobile.—
Construction permit for a new relay broadcast station to be
operated on 1622, 2060, 2150, 2790 kc., 26.4 watts.
Amended to change frequency 2060 kc. to 2058 kc.
NEW — Bamberger Broadcasting Service, Inc., Portable-Mobile. —
Construction permit for a new relay broadcast station to be
operated on 1622, 2060, 2150, 2790 kc., 50 watts. Amended
to change frequency 2060 kc. to 2058 kc.
Second Zone
WCOL — WCOL, Inc., Columbus, Ohio. — Construction permit to
1210 make changes in equipment and increase power from 100
watts to 100 watts night, 250 watts day.
NEW — The Central Michigan Radio Co., James Bourland, John
1350 Tebbell, Gerald J. Cotter and Ray D. Markel, Mt. Pleasant,
Mich. — Construction permit for a new station to be operated
on 1350 kc., 250 watts, unlimited time.
W8XIP — The WGAR Broadcasting Co., Portable-Mobile. — License
to cover construction permit for a new relay broadcast
station.
W8XIQ — The WGAR Broadcasting Co., Portable-Mobile. — License
to cover construction permit for a new relay broadcast
station.
1464
W8XIR— The WGAR Broadcasting Co., Portable-Mobile.— License
to cover construction permit for a new relay broadcast
station.
NEW — WCAU Broadcasting Co., Philadelphia, Pa. — Construction
permit for a new high frequency broadcast station to be
operated on 31600, 35600, 38600, 41000 kc., 100 watts.
Third Zone
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — Con-
1200 struction permit to make changes in equipment, change fre¬
quency from 1200 kc. to 1210 kc., move transmitter from
512-516 S. Grand Street, Monroe, La., to (no street address)
Monroe, La. Amended to change equipment, increase power
from 100 watts to 100 watts night, 250 watts day, and omit
request for change in frequency.
NEW — Southeastern Broadcasting Co., Inc., Macon, Ga. — Con-
1210 struction permit for a new station to be operated on 1210
kc., 100 watts, specified hours (local sunset to 12 midnight).
NEW — Times Publishing Co., Okmulgee, Okla. — Construction per-
1210 mit for a new station to be operated on 1210 kc., 100 watts,
daytime.
WRR — City of Dallas, Texas, Dallas, Tex. — Modification of license
1280 for intermittent or simultaneous operation of WRR and
KVPA into a single vertical radiating tower.
NEW — Virgil V. Evans, Gastonia, N. C. — Construction permit for
1420 a new station to be operated on 1420 kc., 100 watts, un¬
limited time.
NEW — Fort Worth Broadcasters, Inc., Portable-Mobile. — Con¬
struction permit for a new relay broadcast station to be
operated on 31100, 34600, 37600, 40600 kc., 5 watts.
NEW — Fort Worth Broadcasters, Inc., Portable. — Construction
permit for a new relay broadcast station to be operated on
1622, 2058, 2150, 2790 kc., 40 watts.
Fourth Zone
NEW — Michael F. Murray, St. Cloud, Minn. — Construction per-
560 mit for a new station to be operated on 560 kc., 500 watts,
daytime.
WCAZ — Superior Broadcasting Service, Inc., Carthage, Ill. —
1070 License to cover construction permit (B4-P-876) for changes
in equipment and move of transmitter.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
1310 Construction permit to install a new antenna, move studio
and transmitter from 919 West 27th Street, Kearney, Nebr.,
to site to be determined, Omaha, Nebr. Amended to install
a new transmitter.
WLBC — Donald A. Burton, Muncie, Ind. — License to cover con-
1310 struction permit (B4-P-248) as modified for changes in
equipment and increase in power.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Construction per-
1420 mit to install a new transmitter.
NEW — Hammond-Calumet Broadcasting Corp., Hammond, Ind.—
1480 Construction permit for a new station to be operated on
1480 kc., 5 KW, daytime. Amended to give transmitter site
as Wicker Park at Southeastern Avenue overpass, near con¬
junction of U. S. Routes 6 and 41, Highland, Ind., and in¬
stall directional antenna.
W9XJL — Head of the Lakes Broadcasting Co., Superior, Wis. —
License to cover construction permit for a general experi¬
mental station.
Fifth Zone
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Authority to
930 determine operating power by direct measurement of antenna.
KFEL — Eugene P. O’Fallon, Inc., Denver, Colo. — License to cover
920 construction permit (B5-P-1107) as modified for changes in
equipment and move of transmitter.
NEW — Julius Brunton & Sons Co., San Jose, Calif. — Construction
970 permit for a new station to be operated on 970 kc., 250
watts, daytime. Contingent upon KQW’s application for
move of station, increase in power, new antenna and changes
in equipment.
KQW— Pacific Agricultural Foundation, Ltd., Sacramento, Calif. —
1010 Construction permit to make changes in equipment, install
new antenna, increase power from 1 KW to 1 KW night,
5 KW day, move transmitter from 87 E. San Antonio St.,
San Jose, Calif., to North Yz of lot J. Glides, West Sacra¬
mento, Calif., subdivision as recorded in Yolo County,
4-7-15, and move studio from same address to Senator
Hotel, 12th and L Sts., Sacramento, Calif.
KYOS — Merced Star Publishing Co., Merced, Calif. — Modification
1040 of construction permit (B5-P-673) to install a vertical
radiator and for approval of transmitter and studio sites at
just out of town, Merced, Calif.
KJBS — Julius Brunton & Sons Co., San Francisco, Calif. — Con-
1070 struction permit to install a new antenna, change frequency
from 1070 kc. to 1080 kc., move studio and transmitter
from 1380 Bush Street, San Francisco, Calif., to 1476 Pine
Street, San Francisco, Calif.
NEW — John D. Fields, Inc., Las Vegas, Nev. — Construction per-
1370 mit for a new station to be operated on 1370 kc., 100 watts,
unlimited time.
KSLM — Oregon Radio, Inc., Salem, Ore. — Construction permit to
1370 install a new transmitter, make changes in antenna, increase
power from 100 watts to 250 watts, and change frequency
from 1370 kc. to 1240 kc.
NEW — Loyal K. King, Pasadena, Calif. — Construction permit for
1480 a new station to be operated on 1480 kc., 250 watts, day¬
time.
NEW — Ben S. McGlashan, Portable-Mobile. — Construction per¬
mit for a new general experimental station to be operated
on 86000-400000 kc., 100 watts. Amended to delete above
frequency band and substitute the frequencies 88000, 120000,
240000, 500000 kc.
NEW — Ben S. McGlashan, Los Angeles, Calif. — Construction per¬
mit for a new high frequency broadcast station to be op¬
erated on 25950 kc., 1 KW.
1465
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No, 38
AUG. 6, 1936
COMPARISON NAB AND CENSUS ESTIMATES
OF BROADCAST ADVERTISING
The publication of the preliminary summaries for the United
States of broadcast advertising volume for 1935 by the Bureau of
the Census, Department of Commerce, has given rise to numerous
inquiries as to the relation of these figures to those published by
the National Association of Broadcasters, and the degree of agree¬
ment or disparity found in the two sets of figures.
In order that there may be no misunderstanding in this respect,
the following analysis has been prepared.
Comparison of Total Revenues
The gross time sales for the medium in 1935, as given by the
National Association of Broadcasters was $87,523,848. The gross
revenues, as given by the U. S. Bureau of the Census, were
$86,492,653.
Actually, the correspondence between the two figures is not as
great as this indicates, nor should it be. The Census figure includes
$6,875,110 revenues from the sale of talent and miscellaneous
sources. Deducting this figure leaves $79,617,543 as the revenue
from the sale of time. The Census figure is therefore 9.0% lower
than the NAB figure.
This lack of correspondence is explainable by the fact that the
two sets of figures are collected on a different base. The Census
figures represent net sales. In this instance, discounts arising out
of the length of the broadcast series contracted for and similar
promotional discounts are subtracted from gross billings, though
agency commissions, considered a sales expense, are not deducted.
The NAB figures represent gross billings, i.e., all time sold billed
at the one time rate. Because of its simplicity, this latter method
has been the customary form of stating advertising volume by
media.
Comparison of National Advertising Estimates
Available data make possible a comparison of the NAB and the
Census estimates with regard to national and regional advertisers.
The NAB report of national and regional network gross billings
for 1935 showed a total of $51,178,425. This figure was not the
result of sampling, but constituted a complete report of the net¬
works in question.
The Census report for national and regional network net time
sales for the same year was $39,737,867. Thus it was revealed that
there were discounts of 22.4% to be deducted from gross billings
of networks before net sales were arrived at.
Discounts in the national non-network or national spot field are
generally similar to those applicable in the network field. It is
probable that the shorter series of broadcasts utilized by the smaller
regional advertisers may reduce the average discount slightly.
Assuming the existence of discounts of between 20% and 22.4%
in the national non-network field, it is possible to calculate esti¬
mated gross billings on the basis of the $13,805,200 volume of this
type of business reported by the Census. Such a calculation reveals
estimated gross billings of between $17,256,000 and $17,802,000.
Both of these figures are slightly higher, but extremely close to
the reported figure of the NAB for 1935, that of $17,063,688.
This seems to confirm once more both the general accuracy and the
conservatism of the NAB statistics.
Proportion of National and Local Business
The most important discrepancy between the two sets of figures
is with regard to the proportion of total business represented by
national and regional non-network advertisers and local broadcast
advertisers. According to the NAB estimates national non-net¬
work volume accounted for $17,063,688 in 1935 and local broadcast
advertising for $19,281,735. These two figures are approximately
equal.
In the case of the Census report of net sales, national non¬
network volume is $13,805,200 (this has been reconciled to the
NAB estimates in the preceding paragraphs), while local broadcast
advertising is given as $26,074,676.
Two problems present themselves at this point. The first,
already alluded to, is the discrepancy in the two reports as to
the proportion of non-network business represented by national
and local advertisers. The second discrepancy is the fact that the
combined national and local non-network net sales of the Census
report are greater than the NAB gross billings by $3,534,163.
Turning to the first problem, that of the relative proportion of
national and regional business and of local business comprising the
non-network total for the medium: It is probable in this instance
that the NAB figures are closer to the actual situation than are
those of the U. S. Census. This is true for the following reasons:
The Census estimates are the result of the reports of the various
stations to the Bureau of the Census. The division of business
into national and regional on the one hand and local on the other
is certain to be an extremely rough estimate on the part of the
great majority of stations. Studies leading to the development of
standard cost accounting for radio stations, conducted in 1934,
indicated only the roughest separation of business along national
and local lines by stations.
In addition, it is quite probable that station estimates tend to
inflate the local rather than the national figure. Where national
advertisers and local agencies combine, and where such combined
advertising is carried at the local rate, it will tend at times to be
classified as local. Some regional advertisers will tend to be
classified as local.
The NAB method of compiling data in this field seems to be the
more careful. No over-all estimate is used for the year, or even
for any individual month. The tabulations of national and local
business are the results of the individual classification of every
account broadcast over each of the reporting stations every month.
This classification is made entirely upon the basis of the actual
point of origin of the business and without regard to whether it is
billed at one rate or another. The original classifications made by
the reporting stations, in addition, are carefully checked by experts
prior to tabulation and compilation. This method, it would seem,
should yield the more desirable results from the viewpoint of
accuracy.
Comparison of Local Volume
The discrepancy in the local volume between the NAB and
Census reports is undoubtedly explained in part by the confusion
in classification of business as to national and local. This, how¬
ever, does not explain the fact that the total non-network business
as set forth by the NAB is below that reported by the Census.
Discounts on local business are relatively small for the most part,
but still will serve to swell the reported Census figure of $39,737,-
867 to at least some degree, thus further increasing the difference
between it and the' reported non-network volume of $36,534,163
of the NAB.
One conclusion is inescapable from the above figures, namely,
that the NAB estimates of non-network volume have been highly
conservative on the whole, probably by 10% to 15%. As more
detailed final information is revealed by the Census Bureau, it
may be possible to indicate the exact extent to which this has been
the case.
1467
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 39
AUG. 10, 1936
BROADCAST ADVERTISING DURING THE
FIRST HALF OF 1936
Principal Developments
Broadcast advertising during the first half of the cur¬
rent year showed an increase of 12.7% over the corre¬
sponding period of 1935. Gross time sales of the medium
amounted to $50,802,179 during the six-month period.
Advertising trends during the period were principally
a continuation of those in evidence recently throughout
the medium. Regional network and national non-network
volume continued to show the greatest rate of growth.
Radio broadcasting as a whole continued to hold its own
with other major media as to percentage of increase over
corresponding periods of previous years.
Local station non-network advertising volume again
showed the greatest relative increase, while non-network
business in the South and mid-West increased to a greater
extent than that in other portions of the country.
A new trend of interest has been the marked growth of
transcription volume in both the national and local fields.
National transcription business showed an increase of
52.3% over the corresponding six months of 1935, while
local volume increased by 41.8%. Live talent volume
continued strong in both the national and local fields,
while announcement business again declined.
Several trends of importance have developed as to radio
advertising sponsorship. There has been a marked gain
in automotive advertising throughout the entire medium.
National and regional network beverage advertising in¬
creased to a considerable degree. National network and
local drug advertising fell off markedly, while national
non-network and regional network drug volume increased.
Regional network and national non-network food adver¬
tising rose to an important degree. There were heavy
declines in some of the minor national network classi¬
fications.
Broadcast Advertising Volume
Advertising volume with regard to various portions of the radio
broadcasting medium during the first half of the current and
preceding year is set forth in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
Gross Time Sales
Class of Business
First Half
1935 1936
National networks. . .
Regional networks. . .
National non-network
Local .
$26,120,410
465 , 899
8,591,053
9,898,610
$28,181,976
644,473
11,527,860
10,447,870
Total . $45,075,972 $50,802,179
Regional network volume continued to show the greatest relative
gain over the preceding year, rising 38.0%. National non-network
business gained 34.1%, while local broadcast advertising, after
exhibiting weakness for several months, revived sufficiently to show
an increase of 5.5% over the corresponding period of last year.
National network advertising gained 7.9% as compared to the
first half of 1935.
Comparison with Other Media
Advertising volume by major media during the first half of
1935 and 1936 is set forth in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
Advertising Medium
Radio broadcasting. . . .
National magazines x. .
National farm papers 1
Newspapers 2 .
Gross Time and Space Sales
First Half
1935
$45,075,972
67,954,820
2,973,225
254,551,000
1936
$50,802,179
74,756,884
3,730,765
275,706,000
Total . $370,555,017 $404,995,828
1 Publishers’ Information Bureau.
2 Estimated.
Compared to a rise of 12.7% on the part of radio broadcasting,
national magazine advertising increased 10.0% as against the first
six months of last year, while newspaper lineage rose 8.3%. Farm
paper volume alone exceeded radio advertising in rate of increase,
gaining 25.3% over the corresponding period of 1935.
Non-Network Advertising
General non-network advertising rose 18.8% as compared to the
first half of the preceding year. Local station volume continued
to show the greatest relative increase. Gross time sales of 100-watt
stations from non-network sources rose 34.5% over the correspond¬
ing period of 1935. Regional station non-network business in¬
creased 21.6%, while that of clear channel and high powered
regional stations rose 16.0%. Non-network business by power of
station is found in Table III.
TABLE III
NON-NETWORK BROADCAST ADVERTISING BY
POWER OF STATION
Gross Times Sales
First Half
Power of Station 1935 1936
Over 1,000 watts . $8,808,965 $9,864,340
250-1,000 watts . 7,234,055 8,798,750
100 watts . 2,446,653 3,312,640
Total . $18,489,673 $21,975,730
Non-network volume in the South and mid-West continued to
show the greatest strength. Business of this type in the South
Atlantic and South Central States during the first half of 1936
exceeded that of the previous year by 48.4%. North Central States
non-network volume showed a gain of 24.3% over the correspond¬
ing six-month period of last year.
Non-network advertising in the Mountain and Pacific States
gained 12.6%, while that in the New England-Middle Atlantic
area declined 1.6%. Rising network volume still seems to be the
principal explanation of the last-mentioned trend.
Non-network advertising by major geographical districts is
found in Table IV.
1469
TABLE IV
NON-NETWORK ADVERTISING BY
GEOGRAPHICAL DISTRICTS
Gross Time Sales
Geographical District
First Half
1935 1936
New England-Middle Atlantic Area .
South Atlantic-South Central Area. .
North Central Area .
Pacific and Mountain Area .
$4,887,087
2,900,708
6,975,707
3,726,171
$4,802,650
4,304,570
8,676,930
4,191,580
Total
$18,489,673 $21,975,730
Advertising by Type of Rendition
The marked rise of electrical transcription volume in both the
national and local fields has been the principal development of
interest during the period in question. Total transcription volume
for the first six months of the year exceeded 1935 by 50.4%. Na¬
tional electrical transcription business increased 52.3% and local
volume 41.8%.
National live talent business continued to show important in¬
creases and rose 37.2% as compared to the corresponding period
of 1935. Local live talent volume gained 8.3%. Local record
business increased 1.6%.
Of particular interest has been the continued decline of an¬
nouncement volume in contrast to the rise in transcription and
live talent programs. National announcement business decreased
11.2% as compared to the first half of last year, while local volume
dropped off 5.8%.
Non-network advertising by type of rendition is presented in
Table V.
TABLE V
NON-NETWORK BROADCASTING BY TYPE OF RENDITION
Gross Time Sales
First Half
National Non-network Local Total
Type of Rendition
1935
1936
1935
1936
1935
1936
Electrical transcriptions .
. $2,971,754
$4,542,695
$833,984
$1,181,255
$3,805,738
$5,723,950
Live talent programs .
. 3,830,994
5,244,910
4,986,251
5,398,860
8,817,245
10,643,770
Records .
. 56,924
39,340
378,217
383,780
435,141
423,120
Announcements .
. 1,731,381
1,700,915
3,700,158
3,483,975
5,431,539
5,184,890
Total .
$8,591,053 $11,527,860
Broadcast Advertising Sponsorship
One of the outstanding developments as to advertising sponsor¬
ship has been the marked growth of automotive advertising with
regard to all portions of the medium. National network volume
increased 28.6%, national non-network business 106.0%, and local
automotive advertising 47.3%.
Regional network and national non-network gasoline and acces¬
sory business gained 47.3% and 34.4%, respectively. Regional
network and national non-network drug advertising rose 88.3%
and 21.1%, respectively, while national network and local drug
volume declined 29.1% and 34.2%, respectively.
$9,898,610 $10,447,870 $18,489,663 $21,975,730
National network beverage advertising rose 38.7%, while re¬
gional network volume rose more than fourfold. With the excep¬
tion of national network business, which declined 2.0%, all phases
of food advertising increased to an important degree. Marked
gains were experienced in national non-network radio set and
tobacco advertising.
There were few declines of importance though some heavy de¬
creases occurred in several of the less important categories of
national network sponsorship. Broadcast advertising by various
product and service classes is set forth in Table VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
1936 Gross Time Sales
Type of Sponsoring Business
la. Amusements .
1-2. Automobiles and accessories:
1. Automobiles .
2. Accessories, gas and oils .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
4. Drugs and pharmaceuticals .
5. Toilet goods . .
6-8. Food products:
6. Foodstuffs .
7. Beverages .
8. Confections .
9-10. Household goods:
9. Household equipment and furnishings
10. Soaps and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
First Half
National
Networks
Regional
Networks
$325
National
Non-network
$56,210
Local
$217,150
Total
$273,685
$2,152,900
2,356,850
191,589
90,017
2,316
1,439,050
886,450
232,620
732,645
469,985
1,401,300
4,324,595
3,803,302
1,827,825
2,515,368
5,792,116
62,878
19,770
2,343,010
525,030
386,500
125,870
5,307,756
6,462,786
5,296,284
2,115,612
665,422
183,381
56,501
19,605
2,369,020
301,660
201,950
1,392,390
592,380
51,940
9,241,075
3,066,153
938,917
230,128
1,809,459
246,532
637,575
2,262,747
1,909,394
29,701
38,556
4,194
1,328
2,730
55,890
77,281
495,235
499,240
131,400
82,770
63,965
340,940
1,559,310
1,105,835
52,850
455,700
81,000
815,550
44,525
2,522,250
1,860,899
2,400,105
847,826
802,673
882,245
2,704,102
6,068,235
Total .
Details as to broadcast advertising trends in various fields of
business are as follows:
la. Amusements. National non-network volume increased
94.4% over the corresponding period of 1935, while local volume
declined 19.6%. Total business decreased 7.7%.
1. Automotive. National network advertising in the automo-
$28,181,976 $644,473 $11,527,860 $10,447,870 $50,812,179
tive field rose 28.6% as compared to the first half of last year.
There was no regional network volume as compared to $6,490 in
1935, automotive advertising always having been a minor item
in the regional field. National non-network advertising increased
106.0%, while local volume rose 47.3%.
2. Gasoline and accessories. National network volume
1470
gained 18.8% during the period in question as compared to the
preceding year. Regional network advertising increased 47.3%,
and national non-network business 34.4%. Local broadcast adver¬
tising declined 5.7%.
3. Clothing. National network advertising declined 28.6%,
while regional network advertising decreased 80.0%. National
non-network volume rose 30.0% and local broadcast advertising
7.7%.
4. Drugs and pharmaceuticals. National network drug vol¬
ume decreased 29.1% as a result of the gradual discontinuance of
this type of business by the • networks. Local volume also de¬
creased, dropping off 34.2%. Regional network drug volume rose
88.3%, while national non-network business increased 21.1%.
5. Toilet goods. National network business increased 8.0%
and national non-network advertising gained 9.1%. Regional net¬
work volume declined 3.4%. Local business decreased 6.7% as
compared to the corresponding period of the preceding year.
6. Foodstuffs. National network advertising declined 2.0% as
against the first half of last year. Increases in other fields were
as follows: regional networks 51. 5%, national non-network 47.5%,
local 13.3%.
7. Beverages. National network advertising rose 38.7% and
regional network volume more than quadrupled. National non¬
network business gained 7.0%. Local beverage advertising in¬
creased 18.8%.
8. Confectionery. With the exception of the tripling of re¬
gional network volume, due to a rise in this type of advertising
by several more important branded lines, all forms of confectionery
advertising declined. National network business decreased 21.5%,
national non-network volume 30.4%, and local advertising 33.0%.
9. Household goods. Declines of 41.5% and 46.3%, respec¬
tively, occurred in the national and regional network fields. Na¬
tional non-network advertising increased 26.6%, while local volume
rose 2.2%.
10. Soaps and kitchen supplies. National network adver¬
tising in this class increased 14.1%. Regional volume more than
doubled. National non-network business rose 11.1%, and local
broadcast advertising gained 19.5%.
11. Insurance and financial . General increases occurred
throughout all portions of the medium. National network business
rose 7.1% and regional network volume more than tripled. Na¬
tional non-network business increased 19.8%, while local financial
advertising rose 32.8%.
12. Radios. The principal increase in this field was a seven¬
fold rise in national non-network radio set advertising. National
network business increased 12.6%, while local set advertising
gained 12.5%.
13. Department and general stores. National non-network
volume gained 24.0%, while local business decreased 4.9%. Total
department store volume declined 2.8%.
14. Tobacco products. National network advertising gained
20.8% as against the first half of 1935. Regional network business
declined 9.7%. National non-network business rose 46.3%, while
local advertising increased 10.0%.
15. Miscellaneous. Increases in this classification were as
follows: national networks 11.2%, regional networks 35.4%, na¬
tional non-network 29.3%, local 6.5%.
Retail Broadcast Advertising
Broadcast advertising by various types of retail establishments
gained 7.7% as compared to the corresponding period of the pre¬
ceding year. Principal gains included the following: automobile
dealers, 46.1%; clothing and apparel shops, 11.3%; grocery stores,
meat markets, etc., 42.6%; furniture stores, 11.8%.
Significant declines were as follows: gasoline stations and acces¬
sory stores, 32.4%; drug stores, 11.9%; household equipment deal¬
ers, principally electrical household equipment, 7.1% ; hardware
stores, 19.1%; and department stores, 2.8%.
Broadcast advertising by retail establishments is set forth in
Table VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
Type of Sponsoring Business
Automobiles and accessories:
Automobile agencies and used car
dealers .
Gasoline stations, garages, etc ....
Clothing and apparel shops .
Drugs and toilet goods:
Drug stores .
Beauty parlors .
Food products:
Grocery stores, meat markets, etc .
Restaurants and eating places ....
Beverage retailers .
Confectionery stores .
Household goods:
Household equipment dealers .
Furniture stores .
Hardware stores .
Radio retailers .
Department and general stores .
Tobacco shops .
Miscellaneous .
Total .
Gross Time Sales
First Half
1935
1936
$521,280
$760,600
385,430
259,000
1,324,932
1,475,040
118,408
104,645
60,413
55,500
278,620
398,610
120,995
127,080
23 , 299
22,810
11,315
17,430
351,169
325,530
514,569
575,360
136,908
110,190
73,636
69,990
907,532
881,881
6,632
3,090
499,195
555,140
$5,334,333
$5,741,896
1471
.
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS
Copyright 1936. The National Association of Broadcasters
* it * * It
Vol. 4 - - No. 40
AUG. 13, 1936
IN THIS ISSUE
Page
Common Antenna System . 1473
Utah Station Recommended . 1473
Commission Refuses to Extend Effective Date . 1473
New Texas Station Recommended . 1473
Securities Act Registrations . 1473
Recommends Cedar City Station . 1473
Full Time Recommended for KGFG . 1473
Recommendation Favors Watertown Station . 1473
Two New Stations Recommended . 1474
Federal Trade Commission Action . 1474
Case Closed by FTC . 1475
Federal Communications Commission Action . 1475
COMMON ANTENNA SYSTEM
The Federal Communications Commission has issued the follow¬
ing statement in connection with the use of a common antenna
system by two broadcast stations, or a broadcast station and
another radio station:
The Broadcast Division has received requests from various
broadcast licensees for authority to use a common radiating system
for two or more radio stations.
The Broadcast Division, on July 17, 1936, made the following
ruling in this regard:
Two or more broadcast stations owned by the same licensee
may be permitted to use a common antenna, but different
licensees will not be authorized to use a common antenna since
both licensees under such conditions of operation cannot have
complete control of all the apparatus which directly controls
the external effects of the station.
UTAH STATION RECOMMENDED
The Cache Valley Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new station at Logan, Utah, to use 1200 kilocycles,
100 watts power, and unlimited time on the air.
Examiner George H. Hill, in Report No. 1-274, recommended
that the application be granted. He found that there is need for
the service of the proposed new station, that no objectionable
interference would result from any present or proposed stations,
and that its erection would be in the public interest.
COMMISSION REFUSES TO EXTEND
EFFECTIVE DATE
The Federal Communications Commission has refused to extend
the effective date of Rule 132. In this connection it issued the
following official announcement this week:
The Commission has received several requests for a postpone¬
ment of the working date of Rule 132, adopted on November 12,
1935. This rule requires that the equipment in use at broadcast
stations shall be provided with safety features in accordance with
the National Electrical Code and that it shall be constructed and
operated in accordance with the requirements of good engineering
practice. The Broadcast Division on July 2, 1936, decided that
no extension of the date of required compliance would be granted.
NEW TEXAS STATION RECOMMENDED
The Gulf States Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new broadcasting station to be located at Corpus
Christi, Texas, to use 1330 kilocycles, unlimited time on the air,
and 250 watts with 500 watts LS.
Examiner George H. Hill, in Report No. 1-272, has recommended
that the application be granted “subject to the Commission’s ap¬
proval of a proper transmitter site.” The Examiner found that
there is a need for the service proposed to be rendered by the
applicant, that “no objectionable interference would result to any
existing service for the operation of the proposed station,” and
that the granting of the application would be in the public interest.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Superior Oil Corp., Tulsa, Okla. (2-2356, Form A-2)
General Reserves Corp., New York City. (2-2357, Form C-l)
Dayton Rubber Manufacturing Co., Dayton, Ohio. (2-2359,
Form A-2)
Consumers Oxygen Company, Inc., New Orleans, La. (2-2360,
Form A-l)
Affiliated Fund, Inc., Jersey City, N. J. (2-2361, Form A-l)
Allied Stores Corporation, Paterson, N. J. (2-2362, Form A-2)
Hunter Steel Company, Pittsburgh, Pa. (2-2365, Form A-2)
Upson-Walton Company, Cleveland, Ohio. (2-2366, Form A-2)
Celotex Corporation, Chicago, Ill. (2-2367, Form D-1A)
Celotex Corporation, Chicago, Ill. (2-23 68, Form E-l)
F. M. Johnson, Shreveport, La. (2-2371, Form A-l)
J. R. C. Moseley, Shreveport, La. (2-2372, Form A-l)
Alconquin Hotel Corporation, Cumberland, Md. (2-2373, Form
E-l)
RECOMMENDS CEDAR CITY STATION
Harold Johnson and Leland M. Perry applied to the Federal
Communications Commission for the erection of a new broadcast¬
ing station at Cedar City, Utah, to use 1310 kilocycles, 100 watts,
and unlimited time.
Examiner George H. Hill, in Report No. 1-275, recommends that
the application be granted. The Examiner found that there is
need for such a station, that no objectionable interference would
result and “the programs proposed to be broadcast by the appli¬
cants appear to be well balanced and would serve public interest.”
FULL TIME RECOMMENDED FOR KGFG
Broadcasting Station KGFG, Oklahoma City, Okla., operating
on a frequency of 1370 kilocycles, 100 watts, and sharing time,
applied to the Federal Communications Commission to use the
same frequency and power but to operate full time. Also the
station applied for authority to transfer the control of the corpora¬
tion from Hale V. Davis to Harold V. Hough through the sale of
133 Yi shares of the corporate stock.
Examiner John P. Bramhall, in Report No. 1-270, recommended
that the station be granted authority to use full time instead of
sharing and that the stock transfer be allowed to proceed. The
Examiner found that by the station’s using full time there will be
interference with KCRC during simultaneous operation; however,
the Examiner believes that “the number of people served and the
public good derived from the granting of this application will
transcend any interference that might obtain in the service area of
Station KCRC.” The Examiner found also that the exchange of
ownership “would be in the public interest.”
RECOMMENDATION FAVORS WATERTOWN
STATION
Black River Valley Broadcasts, Inc., applied to the Federal
Communications Commission for a construction permit for the
erection of a new broadcasting station at Watertown, N. Y., to use
1420 kilocycles, 100 watts and 250 watts LS, with unlimited time
on the air.
Examiner Melvin H. Dalberg, in Report No. 1-271, recommends
that the application be granted. The Examiner states from the
testimony taken “that there exists a definite need in the area sought
to be served for local broadcast facilities and the program material
1473
proposed seems to be of a satisfactory nature for a station of the
power requested.” He states further that no interference will result
either with any existing station or any proposed station.
TWO NEW STATIONS RECOMMENDED
The Albert Lea Broadcasting Corporation applied to the Fed¬
eral Communications Commission for a construction permit for the
erection of a new broadcasting station at Albert Lea, Minn., to use
1200 kilocycles, 100 watts power, and unlimited time on the air.
Also, the Winona Radio Service filed a similar application for con¬
structing a new station at Winona, Minn.
Examiner R. H. Hyde, in Report No. 1-273, recommended that
both applications be granted “subject to conditions limiting the
operating time of the proposed stations to daytime hours.” In
the case of the Albert Lea station the Examiner found that there
is a need for additional radio service in the applicant’s area and
that the operation of the proposed station during daytime hours
“will not interfere with the fair and efficient service of any other
station.” He found that there is also need for more service in the
Winona area and “the operation of the proposed station simul¬
taneously with Station KFJB during nighttime hours would result
in interference, restricting the service of KFJB.” However, he
states that the operation of the proposed station in daytime hours
would not cause any interference.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 2821. In an amendment to its complaint against Henry
Loeb, Jr., and Martha Huffman, selling tobacco products under
the trade name West Memphis Cigarette Co., West Memphis,
Ark., the Commission further charges those respondents with
entering into a conspiracy with retailers and consumers of cigars
and cigarettes to suppress and restrain competition in interstate
commerce by evading payment of the Tennessee tobacco tax.
The respondents, in carrying out the conspiracy, the amendment
alleges, sell and ship to merchants in Memphis or Shelby County,
Tennessee, cigars and cigarettes in cartons and boxes which do not
bear the Tennessee tobacco tax stamp, and which products are
resold to the public without such stamps being affixed thereto, and
with the tax unpaid.
Among the merchants with whom the respondents are alleged
to have so conspired are A. A. Balin, Harry H. Horner, Lester G.
Green, J. T. Holmes, Miss Willie H. Jackson, Mack Milstead,
Charles E. Sturgios, R. D. Turner, and Browder Pharmacy.
Another allegation in the amendment to the complaint is that
the respondents conspired with various persons, including J. H.
Gary and an individual named Garner, to form “pools” in the
places of their employment for the purchase of the unstamped
tobacco products of the respondents, and it is charged that the
heads of “pools” so formed did buy the respondents’ unstamped
products and distributed them to the employees of the Goldsmith
& Company department store and the National Bank of Commerce,
both of Memphis, and to the employees of other places of business.
No. 2886. Operating hatcheries at Milltowu and Huntingburg,
Ind., under the trade names Atz’ Hatchery, Atz’ Iilue Mound
Hatchery, and Atz’ Mammoth Hatchery, Nolan, Gusta and
John Edward Atz are charged with unfair competition in the
sale of baby chicks, in a complaint.
Among the false representations the respondents are alleged to
make in magazines having a nation-wide circulation are that their
baby chicks are hatched from the eggs of old hens and from eggs
produced by poultry flocks that have been “blood-tested” for 11
or 12 years; that they are of various breeds, and “are hatched by
the thousands daily for immediate delivery.”
Alleging that there is a preference among purchasers for baby
chicks hatched from the eggs of old hens and from eggs of flocks
that have been blood-tested, for a period of several years, the
complaint charges that many of the respondents’ chicks are
hatched from the eggs of pullets; that the flocks are not blood-
tested, as advertised, and that the respondents do not have certain
specified breeds for immediate delivery in all cases. In many
instances, according to the complaint, the respondents do not
make any shipments at all to purchasers, do not notify such pur¬
chasers of their inability to fill orders, and do not refund money
forwarded with orders.
No. 2888. A complaint has been issued charging four Cali¬
fornia corporations with violation of Section S of the Federal
Trade Commission Act, by representing “Acme Beer” as superior
to other beer products because it is made under a “non-fattening
formula” and lacks properties for producing or otherwise bringing
about increase in body fat and weight.
The respondents are Cereal Products Refining Corporation,
762 Fulton St., San Francisco, and Acme Brewing Company,
2080 East 49th St., Los Angeles, which manufacture “Acme
Beer,” and their selling and distributing agents, Bohemian Dis¬
tributing Company, Ltd., 2060 East 49th St., Los Angeles, and
California Brewing Association, 763 Fulton St., San Francisco.
Using newspapers, radio broadcasts, billboards and labels for
advertising purposes, the respondents represent, the complaint
alleges, that the non-fattening quality of “Acme Beer” is due to
a formula peculiar to it as distinguished from other beer products;
that it contains certain ingredients which cause it to have the
tendency to “slenderize,” and that for these reasons it is different
from and superior to beer sold by competitors.
The complaint charges that all beer, including “Acme,” cannot
be truthfully represented as non-fattening for all people and with¬
out properties for inducing increase in weight, unless consideration
is given to the individual dietary habits, physiological idiosyn¬
crasies and fat-producing tendencies of beer consumers.
No. 2890. Unfair competition through use of a lottery scheme
in the sale of candy to the public is alleged in a complaint issued
against Queen Anne Candy Company, 1039 Sixth Ave., South,
Seattle, Wash.
Sales are made by means of a punch board, according to the
complaint, and purchasers who punch winning numbers from the
board are said to receive a box of candy, while those selecting other
numbers receive nothing for their money.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 1732. S. Buchsbaum & Co., 243 East Huron St., Chi¬
cago, in connection with the sale of jewelry, will cease branding
any of its products with the word “Gold” or any combination con¬
taining that word to imply that such product is composed of gold
in whole or in part, when such is not the fact.
No. 1733. Maurice L. Rothschild, Inc., 304 South State
St., Chicago, selling wearing apparel, agrees to discontinue the
use in advertising matter, or in any manner, of the words “Lamb’s
Wool” to describe the interlinings of women’s coats which are not
interlined with lamb’s wool.
No. 1734. Gamble-Skogmo, Inc., with headquarters at 615
Third St., N., Minneapolis, operates a chain of stores for the
sale of general merchandise. The respondent corporation stipu¬
lates that in advertising the storage batteries it sells, or in tables
or schedules purporting to constitute a comparison of its storage
batteries with those of competitors, it will discontinue erroneous
or inaccurate representations concerning the prices of such bat¬
teries or the length of time for which they are guaranteed by their
makers, and will stop advertising misleading tabulations alleged
to follow the factory specifications and ratings of the Society of
Automotive Engineers, but which in fact differ materially from
such specifications and ratings.
No. 1735. The National Perforator Co., Inc., 1017 North
Front St., Philadelphia, engaged in selling and repairing check
perforating machines, signed an agreement to cease misrepresenting
the business or status of its competitors, especially the American
Perforator Company and the Cummins Perforator Company, both
of Chicago, and to discontinue representations tending to deceive
purchasers as to the identity of the company with which they are
dealing.
According to the stipulation, salesmen of the respondent cor¬
poration represented, among other things, that the American Per¬
forator Company and the Cummins Perforator Company had gone
out of business; that they had been consolidated with the re¬
spondent corporation, and that the latter was the only company
that could repair the machines of the two other companies.
No. 1736. Frank Jones Chemical Works, Inc., 57 Lexing-
ton Ave., Brooklyn, selling a plating compound designated
“Krome Plate,” agrees to stop using the words “Krome Plate” as
a trade name for its product; the word “Krome” or any imitation
of the word “chromium” to imply that the product contains
chromium, when such is not the fact, and the word “Plate” in any
manner to give the impression that use of the product constitutes
a means of plating metal articles, when this is not true.
1474
No. 1737. The Theon Co., Inc., 25 West 18th St., New
York City, in the sale of various manicure preparations, including
a product designated “Nailtone” which consists of a “massage
cream” and a “nourishing cream,” will stop using the word “nour¬
ishing” as part of the trade name of any of its products which
do not feed or nourish the nails, and will cease representations that
its preparations remove corrugations or rings from the nails, or
prevent them from breaking.
No. 1738. Decorative Cabinet Corporation, 221 McKibbin
St., Brooklyn, is engaged in the manufacture and sale of card¬
board cabinets and agrees to cease and desist from the use in
advertising of the words “cedar-lined” to describe cabinets which
do not have a cedar wood lining of the thickness, substantial
quantity or per cent by weight of such wood as to afford the
protection against moths which is generally recognized by the
public to be characteristic of cedar and cedar-lined products.
The respondent corporation also will stop representing, among
other things, that its cabinets are of multiple-ply construction,
the inner or any ply of which is composed of cedar, when such is
not the fact.
No. 1739. Benjamin Perain Scott, trading as American
Institute of Technology, 4709 Woodward Ave., Detroit, and
Iver M. Holton, stipulate that in the sale of correspondence
courses in “electronics,” which includes instruction in photo-electric
cell, radio and television engineering, they will stop representing,
when such are not the facts, that students will be regularly coached
by engineers connected with the school, that they must receive
classroom and laboratory instruction at the respondents’ school or
be given a pre-graduation examination there, that the school is
under Government supervision and that previous to being given
employment students must pass a Federal examination in “elec¬
tronic” engineering, and that upon graduation a picture of the
student and notice of his graduation will appear in newspapers.
The respondents also will discontinue claims that graduates
obtain positions paying $125 a month or more or that some have
obtained positions paying $20,000 annually.
No. 1740. Seaver Exterminating System, 185 North
Wabash Ave., Chicago, is engaged in selling a vermin extermi¬
nator, together with a purported correspondence course of in¬
struction in the extermination of vermin, one of the conditions
for the purchase of such course being that the customer buy certain
quantities of the respondent corporation’s “Miracle Rat & Mice
Exterminator.” Under the stipulation, the respondent will stop
advertising that the founder of the system has “astounded Amer¬
ica”; that students can earn up to $15,000 a year; that the founder
of the system has not had a failure in his 31 years’ experience;
that rats will not come back within a year, or that the complete
lesson material is sent to subscribers immediately upon receipt of
the subscriptions, when such is not the fact.
No. 2460. Under an order to cease and desist entered against
Kenneth Hauer, 408 Augusta St., Cincinnati, trading as Hauer
Distilling Co., he is directed to cease representing through use of
the word “Distilling” in his trade name, in advertising matter, or
on labels, that he is a distiller of spirituous beverages; that he
manufactures by the process of distillation the spirituous beverages
he sells; or that he owns or operates a plant where such beverages
are distilled, unless he actually does own or operate such a plant.
The order excludes from its provisions gin manufactured by a
process of rectification, whereby alcohol purchased but not pro¬
duced by the respondent is redistilled over juniper berries and
other aromatics.
No. 2506. Use of lottery schemes to promote sale of candy
has been ordered discontinued in an order to cease and desist
entered against Barager- Webster Co., 810 First Ave., Eau
Claire, Wis.
The order prohibits the respondent corporation from selling to
wholesalers, jobbers or retailers assortments of candy designed to
be used, without alteration of the contents of such assortments,
to conduct a lottery in the resale of the candy to consumers.
The respondent corporation also is directed to cease supplying
dealers with push cards, either with assortments of candy or
separately, designed for use in selling the candy to the public.
No. 2606. Savage Candy Co., 2158 Lawrence St., Denver,
Colo., has been ordered to discontinue selling to wholesalers,
jobbers and retaliers candy so assembled in assortments that a
lottery scheme is involved when such candy is resold to the public.
The order to cease and desist prohibits the respondent corpora¬
tion from supplying dealers with push cards designed for use in
selling the candy at retail, and from packing in the same assort¬
ment of candy pieces of uniform size and shape having centers
of a different color, together with larger pieces and a box of candy
which are to be given to purchasers who, by chance, procure a
piece of candy with a center of a particular color.
No. 2619. An order has been issued directing the Cosner
Candy Company, 2015 Arapahoe St., Denver, Colo., to dis¬
continue selling to wholesalers, jobbers and retailers candy so
packed that its resale to the public involves a lottery or gaming
device.
The order prohibits the respondent company from supplying
dealers with assortments of candy designed to be used in con¬
ducting a lottery when the candy is sold to the public; from
furnishing dealers with display cards informing purchasers that
the candy is being sold by lot or chance, and from placing in the
hands of dealers push cards designed for use in selling the candy
to the public at retail.
No. 2826. Charles N. Miller Company, 16 Medford St., Bos¬
ton, has been ordered to cease and desist from selling to dealers
assortments of candy so packed that a lottery scheme or game of
chance is involved when resold to the public.
The respondent company admitted all the material allegations of
the complaint to be true except to deny that it was selling the
assortments complained of when the complaint was brought, or
thereafter, stating it had discontinued the sale of such assortments
prior to issuance of the complaint. The company consented to is¬
suance of the Commission’s findings of fact and order to cease and
desist.
No. 2887. Mislabeling of leather luggage in violation of section
5 of the Federal Trade Commission Act is alleged in a complaint
issued against Israel Zaveloff and Harry Bernstein, 130 Bleecker
St., New York City, trading as Everlast Suit Case & Bag Co.
The respondents are alleged to label certain of the luggage they
manufacture and sell with the words “Warranted Genuine Leather,”
when, the complaint charges, such products are manufactured from
split cowhide leather, described as the under side of the hide, and
not from top grain leather, which is superior in quality and dura¬
bility.
The public generally believes the word “leather” to mean the top
or hairy side of the hide, according to the complaint, which alleges
that the label “Warranted Genuine Leather” on the respondents’
luggage represents to purchasers that the material with which such
luggage is covered is top grain leather, otherwise described as the
outside of the hide.
CASE CLOSED BY FTC
No. 2642. The Federal Trade Commission has entered an order
closing, without prejudice, its case against the Buff and Polishing
Wheel Manufacturers’ Association, New York City, and 32 member
companies of the association and one non-member company en¬
gaged in the manufacture of cotton buff and polishing wheels.
Issued December 5, 1935, the Commission’s complaint had
charged the association and the respondent companies with enter¬
ing into a combination and an agreement to suppress competition
in the sale of their products and to enhance the prices thereof to
purchasers.
The order states that the case was closed because it appeared to
the Commission that “the practices charged in the complaint were
carried on under the authority conferred by a code formulated and
approved under the National Industrial Recovery Act,” and that
there is no evidence “that the practices charged in the complaint
have been indulged in by the respondents since the decision of the
United States Supreme Court in the case of A. L. A. Schechter
Poultry Corporation, and others, v. United States (295 U. S. 495),
it being the policy of the Commission not to proceed against re¬
spondents for practices authorized and engaged in prior to May 27,
1935 (the date of the above decision), pursuant to codes formu¬
lated and approved under the National Industrial Recovery Act.”
In closing the case, the Commission reserved the right to reopen
it should the facts warrant.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Thursday, August 20
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Farnsworth Television Incorporated of Pennsylvania,
Springfield, Pa.— C. P., 42000-56000 and 60000-56000 kc.,
1 KW, unlimited time.
1475
The following action has been taken subject to ratification of
the Broadcast Division of the Commission at its next regular meet¬
ing:
SPECIAL AUTHORIZATIONS
KGFF — KGFF Broadcasting Co. Inc., Shawnee, Okla. — Granted
special temporary authority to operate station without an
approved frequency monitor for a period not to exceed 15
days.
KDYL — Intermountain Broadcasting Corp., Salt Lake City, Utah —
Granted special temporary authority to operate without a
plate voltmeter for a period not to exceed 3 weeks.
WBRC — Birmingham Broadcasting Co. Inc., Birmingham, Ala.—
Granted special temporary authority to operate without a
plate voltmeter for a period not to exceed 10 days.
WGNY — Peter Goelet, Chester Township, N. Y. — Granted special
temporary authority to operate simultaneously with station
WGBB from 1:30 to 3:00 p. m. ; with station WFAS from
3 to 5 p. m.; with WBRB from 5 to 7 p. m., EDST, on
Aug. 12, 1936, or to operate simultaneously with WFAS from
1:30 to 5 p. m., and with station WBRB from 5 to 7 p. m.,
EDST, on Aug. 13, in order to broadcast Hambletonian
Races.
KGKB — East Texas Broadcasting Co., Tyler, Tex. — Granted ex¬
tension of special temporary authority to operate from 7
a. m. to 2 p. m., and from 4 to 10 p. m., CST, during
August, 1936, instead of the hours now licensed pending
compliance with Rule 131.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
Granted special temporary authority to operate a 50 watt
portable test transmitter between the hours of 1 and 6 a. m.,
EST, for a period not to exceed 3 weeks beginning July 31,
1936, in order to determine new transmitter site.
WBPU — Transcontinental & Western Air, Inc., Aboard regularly
licensed aircraft NC-13711 — Granted special temporary au¬
thority to operate regularly licensed airplane transmitter,
KHDEV, aboard NC-13711, as broadcast pickup (relay
broadcast) station on Aug. 1, 2, 8, 9, 15, 16, 22 and 23, to
make traffic surveys. Frequency of 2790 kc., 80 watts.
WBPA — The National Life & Accident Ins. Co., Nashville, Tenn. —
Granted special temporary authority to operate portable-
mobile relay broadcast transmitter for period Aug. 8 and
ending not later than Aug. 16, for the purpose of relay broad¬
cast from a moving train “The Pan American” for re¬
broadcast over station WSM ; frequency 2102 ltc., 20 watts.
W3XEX — WTAR Radio Corp., Norfolk, Va. — Granted extension
of special temporary authority to conduct service tests at
its new location at WTAR transmitter building, for period
July 30 to Aug. 13, pending action on formal application
for modification of C. P. and license to cover same.
KCMO — Lester E. Cox, Thomas L. Evans & C. C. Payne, Kansas
City, Mo. — Granted extension of special temporary authority
to use and operate the 100 watt transmitter formerly used
by KGBX in Springfield, Mo., transmitter to be located in
the Commerce Trust Building, in Kansas City, Mo., for the
period July 31 and ending not later than Aug. 29, 1936.
WKP-WQP — RCA Communications, Inc., Rocky Point, N. Y. —
Granted extension of special temporary authority to op¬
erate point to point telegraph station WKP and WQP to
communicate with broadcast pickup station WOEH aboard
NC-223-Y, for the period beginning July 30 and ending not
later than Aug. 28, for contact control service to facilitate
reception of program material by Riverhead, N. Y., receiv¬
ing station for delivery to NBC network. Frequency WKP
6950 kc., WQP 13900 kc., 40 KW.
KEC-KEI-KKL — RCA Communications, Inc., Bolinas, Cal. —
Granted extension of special temporary authority to operate
point to point telegraph stations KEC, KEI and KKL to
communicate with broadcast pickup station WOEH aboard
plane NC-223-Y for the period July 30 to Aug. 28, 1936;
frequencies 5265 kc. KEC; 9490 kc. KEI; 15475 kc. KKL,
40 KW.
WFAB — Fifth Ave. Broadcasting Corp., New York City — Granted
special temporary authority to operate station without an
approved frequency monitor for a period not to exceed 30
days from Aug. 12, instead of July 17 as granted July 17.
KUTA — Utah Broadcasting Co., Salt Lake City, Utah — Granted
special temporary authority to operate a 100 watt portable
test transmitter in vicinity of Salt Lake City, between the
hours of 9 a. m. and 6 p. m., MST, for a period beginning
Aug. 1 and ending in no event later than Aug. 15, in order
to determine suitable transmitter site.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Granted
extension of special temporary authority to maintain the
main studio of WHBF at Rock Island, for a period August
5 and ending not later than Sept. 3, 1936.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. —
Granted special temporary authority to operate station
without an approved frequency monitor for a period not
to exceed 30 days
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted special temporary authority to operate a
100 watt portable test transmitter between the hours of 12
midnight and 6 a. m., EST, for a period not to exceed 10
days.
KFBB — Buttery Broadcast Inc., Great Falls, Mont. — Granted
special temporary authority to operate without an approved
frequency monitor for a period not to exceed 30 days.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted ex¬
tension of special temporary authority to operate on 560 kc.,
with power of 1 KW at night, during month of August,
1936, pending filing of and action on license application to
cover C. P.
WSBC — WSBC, Inc., Chicago, Ill. — Granted special temporary
authority to use transmitter and studios of station WEDC
for a period not to exceed 1 week beginning July 30, in
order to move and install new equipment of WSBC.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Granted special
temporary authority to operate station without an approved
frequency monitor for a period not to exceed 40 days.
WMFJ — W. Wright Esch, Daytona Beach, Fla. — Granted exten¬
sion of special temporary authority to use RCA Victor,
Type 100-E, transmitter, pending completion of construction
and installation of such transmitter, for period July 31 to
August 30.
WIP — Penna. Broadcasting Co., Philadelphia, Pa. — Granted special
temporary authority to operate a 50 watt portable test
transmitter between the hours of 1 and 6 a. m., EST, for
the period Aug. 5 and ending no later than Aug. 9.
W6XAI — Pioneer Mercantile Co., Bakersfield, Cal. — Granted ex¬
tension of special temporary authority to operate without
an approved frequency monitor for a period of 15 days.
W2XKI — National Broadcasting Co. Inc., New York City, N. Y. —
Granted extension of test period for 30 days from July 19.
W2XK — National Broadcasting Co. Inc., New York City, N. Y. —
Granted extension of test period for 30 days from July 28.
WKBV — Knox Radio Corp., Richmond, Ind. — Granted extension
of program test period for 30 days from Aug. 4, pending
action on license application.
WNBD — WDSU, Inc., New Orleans, La. — Granted temporary au¬
thority to operate broadcast pickup station WNBD (over
station WDSU) as licensed Aug. 3 to 16, inclusive, to broad¬
cast from ferry.
WHIO — The Miami Valley Broadcasting Corp., Dayton, Ohio —
Granted extension of program test period for 30 days from
July 28.
WIEK-WIEL — Atlantic Broadcasting Corp., New York City,
N. Y. — Granted temporary authority to operate broadcast
pickup stations as licensed Aug. 5 to 10 inclusive, in connec¬
tion with tests and air show of Army maneuvers at Camp
Knox.
KGKO — Broadcast Station KGKO, Wichita Falls, Tex. — Granted
temporary authority to operate station without antenna
ammeter for period of 10 days.
KSTP — Natl. Battery Broadcasting Co., St. Paul, Minn. — Granted
C. P. for approval of transmitter site and installation of
vertical radiator; 1460 kc., 10 KW night, 25 KW day, un¬
limited time.
KWTO — Ozarks Broadcasting Co., Springfield, Mo. — Granted
modification of C. P. approving transmitter site and vertical
radiator.
KRRV — Red River Valley Broadcasting Corp., Sherman, Tex. —
Granted modification of C. P. approving transmitter and
studio sites and changes in equipment.
KWJJ — KWJJ Broadcast Co. Inc., Portland, Ore. — Granted ex¬
tension of temporary authority to operate on 1040 kc.,
limited time, and resume operation from 9 to 3 a. m., PST,
for the period Aug. 1, 1936 to Feb. 1, 1937.
WJAG — The Norfolk Daily News, Norfolk, Neb. — Granted ex¬
tension of temporary authority to operate on 1060 kc., with
power of 1 KW, and limited time for the period Aug. 1,
1936 and ending Feb. 1, 1937.
WTIC — The Travelers Broadcasting Service Corp., Hartford, Conn.
— Granted extension of special experimental authority to
1476
operate unlimited time simultaneously with KRLD, Dallas,
Tex., on a frequency of 1040 kc., with power of SO KW
for period Aug. 1, 1936 to Feb. 1, 1937.
WESG — The Cornell University, Elmira, N. Y. — Granted extension
of special temporary experimental authority to operate day¬
time to sunset at New Orleans on frequency of 850 kc., with
power of 1 KW for period Aug. 1, 1936 to Feb. 1, 1937.
KTHS — Hot Springs Chamber of Commerce, Hot Springs, Ark. —
Granted extension of special temporary authority to operate
on frequency of 1060 kc., with power of 10 KW simul¬
taneously with station WBAL from 6 a. m. to LS from
Aug. 1, 1936 to Feb. 1, 1937.
KRLD — KRLD Radio Corp., Dallas, Tex.— -Granted -extension of
special temporary experimental authority to operate simul¬
taneously with station WTIC, Hartford, Conn., for period
Aug. 1, 1936, and ending not later than Feb. 1, 1937.
WBAL — The WBAL Broadcasting Co., Baltimore, Md. — Granted
extension of special temporary experimental authority to
operate on 1060 kc., with power of 10 KW simultaneously
with station KTHS from 6 a. m. to sunset at Hot Springs
and alone from sunset at KTHS to 9 p. m., EST, to operate
synchronously with WJZ on 760 kc., with power of 2.5
KW from 9 p. m., EST, to midnight employing directional
antenna system for period Aug. 1, 1936 to Feb. 1, 1937.
WOEH — National Broadcasting Co., Inc., Aboard Douglas Air¬
plane NC-223-Y. — Granted extension of special temporary
authority to operate regularly licensed temporary broadcast
pickup station WOEH, piloted by Howard Hughes and
accompanied by NBC operator announcer, as pickup station
on frequencies in addition to licensed frequencies to describe
flight from Los Angeles to Nome to Siberia and return to
New York via Nome and California. Operation extended
for period July 30 and ending not later than August 28;
frequencies 1606, 2020, 2102, 2760, 4797.5, 6425, 8655,
12862.5 kc., 100 watts.
WFAA — A. H. Belo Corp., Dallas, Tex. — Granted extension of
special temporary authority to use joint call letters WFAA-
WBAP and waive the requirements of Rule 156 for period
August 1, 1936, to December 1, 1936, in order to broadcast
programs of Central Exposition of the Texas Centennial
Celebration in Dallas and the Frontier Celebration in Fort
Worth.
WBAP — Carter Publications, Inc., Fort Worth, Tex. — Granted
extension of special temporary authority to use joint call
letters WFAA-WBAP and waive the requirements of Rule
156 for period August 1, 1936, to December 1, 1936, in
order to broadcast programs of Central Exposition of the
Texas Centennial Celebration in Dallas and the Frontier
Celebration in Fort Worth.
KWLC — Luther College, Decorah, Iowa. — Granted modification
of special temporary authority to remain silent for period
August 8, 1936, to August 31, 1936, inclusive, and to operate
a minimum of 1 hour per week for period September 1 to
September 9, 1936, in order to observe summer vacation.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
Granted extension of special temporary authority to operate
station without an approved frequency monitor for the
period July 30 to August 28, 1936.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. —
Granted special temporary authority to operate without
antenna ammeter for a period July 21 to August 19, 1936.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Granted special temporary authority to operate with a tem¬
porary antenna pending the rebuilding of towers demolished
by storm, for period July 28 to August 26, 1936.
KSCJ — Perkins Bros. Co. (The Sioux City Journal), Sioux City,
Iowa. — Granted special temporary authority to use auxiliary
transmitter, with 250 watts power, as main transmitter for
period July 22 to August 10, 1936, pending installation of
regular transmitter at new site.
KFJR — Ashley C. Dixon, KFJR, Inc., Portland, Ore. — Granted
extension of special temporary authority to operate station
without an approved frequency monitor for period August
1 to August 7, 1936.
KGFJ-W6XKG — Ben S. McGlashan, Los Angeles, Calif. — Granted
special temporary authority to operate broadcast station
KGFJ and high frequency broadcast station W6XKG to
rebroadcast programs of Olympic Games for period August
3 to August 30, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KMMJ, Clay Center, Nebr.; KMPC, Beverly Hills, Calif.;
WLWL, New York City; WWVA and auxiliary, Wheeling, W. Va.
WCAU (Aux.) — WCAU Broadcasting Co., Philadelphia, Pa. —
Present license for auxiliary transmitter extended on a tem¬
porary basis only for the period ending September 1, 1936,
pending receipt and action on application for renewal.
WMFJ — W. Wright Esch, Daytona Beach, Fla. — Present license
extended on a temporary basis for the period August 1, 1936,
to September 1, 1936, pending receipt and action on renewal
application.
WRDO — WRDO, Inc., Augusta, Me. — Present license extended on
a temporary basis for the period August 1, 1936, to Septem¬
ber 1, 1936, pending receipt and action on renewal application.
WWAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— Present license extended on a temporary basis for the
period August 1, 1936, to September 1, 1936, pending receipt
and action on renewal application.
WCBD — WCBD, Inc., Waukegan, Ill. — Present license extended
for a period of 3 months from August 1, 1936, upon a tem¬
porary basis only subject to such action as may be taken
on application for renewal and for transfer of control pend¬
ing before it.
WOCL — W. E. Newton, Jamestown, N. Y. — Present license ex¬
tended on a temporary basis only for the period August 1
to September 1, 1936, subject to such action as may be
taken upon application for renewal pending before the
Commission.
W2XBH— Radio Pictures, Inc., Long Island City, N. Y. — Present
special experimental station license extended for a period of
one month from August 1 to September 1, 1936, on a tem¬
porary basis only, pending action on renewal application.
MISCELLANEOUS
NEW — National Battery Broadcasting Co., St. Paul, Minn. —
Designated for hearing C. P. for new station, 920 kc., 1
KW, unlimited time, using directional antenna.
WELI— City Broadcasting Corp., New Haven, Conn. — Denied re¬
quest for special authority to operate from local sunset to
8 p. m., EST, power 500 watts, for a period not to exceed
30 days.
KUSD — University of South Dakota, Vermillion, S. Dak. — The
Commission reconsidered its action in designating for hear¬
ing applications for renewal of license and modification of
license to change hours of operation from share KUSD and
WILL time, KFNF H time to share KFNF-KUSD %
time, KFNF % time, dismissed said applications from hear¬
ing docket and granted renewal of license on a regular basis.
WNBC — State Broadcasting Corp., New Britain, Conn. — Denied
special temporary authority to operate from local sunset to
8 p. m., EST, for a period not to exceed 30 days, for the
purpose of disseminating political information.
The Broadcast Division denied the petition filed by the E. E.
Long Piano Co., requesting that the Commission reconsider its
action of July 2, 1936, in granting the application of Christina M.
Jacobson, d/b as The Valley Electee Co., for a new station at
San Luis Obispo, Calif, (site to be determined subject to Com¬
mission’s approval), subject to Rule 131, and denying the applica¬
tion of the E. E. Long Piano Co. for a new station at San Luis
Obispo.
The Broadcast Division denied the motion filed on behalf of
Earl C. Anthony, Inc. (KFI), Los Angeles, Calif., requesting the
Commission to remand the application of Radio Broadcasting Corp.
(KTFI), Twin Falls, Idaho, for modification of license, for further
hearing.
The Broadcast Division denied the motion filed on behalf of
Southland Industries, Inc., requesting Commission to remand for
further hearing the application of J. Laurance Martin, Tucumcari,
N. Mex., for C. P.
The Broadcast Division granted the petition filed on behalf of
the Pee Dee Broadcasting Co., of Florence, S. C., protesting the
action of the Commission on July 2, 1936, in granting without a
hearing the application of O. Lee Stone for C. P. for new station
in Florence, and directed that said application be designated for
hearing in accordance with provisions of Rule 104.4 and that the
effective date of Commission’s action on said application be post¬
poned until the date of Commission’s decision after hearing on the
protest as contemplated by the rules.
1477
The Broadcast Division denied the petition of 0. Lee Stone
(applicant for a new station at Florence, S. C., granted July 2,
1936, without hearing subject to Rule 104.4), praying the Com¬
mission to dismiss the protest filed by the Pee Dee Broadcasting
Co. to said grant. The Broadcast Division granted the petition
submitted by the Pee Dee Broadcasting Co. by way of answer to
the aforesaid petition of Mr. Stone, in s’o far as it requests a hear¬
ing on said protest in accordance with provisions of Rule 104.4.
APPLICATIONS GRANTED
KRKO — Lee E. Mudgett, Everett, Wash. — Granted C. P. to install
new transmitter.
KFVS — Hirsch Battery & Radio Co., Cape Girardeau, Mo. —
Granted authority to install automatic frequency control.
WNLC — Thames Broadcasting Corp., New London, Conn. —
Granted modification of C. P. to change type of equipment
and antenna system.
WCLO — Gazette Printing Co., Janesville, Wis. — Granted modifica¬
tion of C. P. to change type of equipment.
WHLB — Head of the Lakes Broadcasting Co., Virginia, Minn. —
Granted modification of C. P. approving transmitter site
and make changes in equipment.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Granted modifica¬
tion of C. P. approving transmitter site and erection of
vertical radiator.
KMA — May Seed & Nursery Co., Shenandoah, Iowa. — Granted
modification of C. P. to change type of equipment and move
transmitter.
WCMI — The Ashland Broadcasting Co., Inc., Ashland, Ky. —
Granted modification of C. P. authorizing local move.
WKBB — Sanders Bros. Radio Station, E. Dubuque, Ill. — Granted
license to cover C. P., 1500 kc., 100 watts, 250 watts LS,
unlimited time.
WAAF — Drovers Journal Pub. Co., Chicago, Ill. — Granted license
to cover C. P., 920 kc., 1 KW, daytime only.
WKBV — Knox Radio Corp., Richmond, Ind. — Granted license to
cover C. P., 1500 kc., 100 watts night, 250 watts day,
specified hours.
WJNO — Hazlewood, Inc., W. Palm Beach, Fla. — Granted license
to cover C. P., 1200 kc., 100 watts, unlimited time.
WMBD — Peoria Broadcasting Co., Peoria, Ill. — Granted license
to cover C. P., 1440 kc., 500 watts night, 1 KW day, un¬
limited time.
WNBD — WDSU, Inc., New Orleans, La.— Granted authority to
operate broadcast pickup station WNBD, as licensed, for
the period August 20 to 22, inclusive, in order to broadcast
Louisiana State U. open golf tournament.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
authority to operate without antenna ammeter for period
of 10 days from August 6, 1936.
WABG — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted authority to extend service tests of station WABG
for period of 30 days beginning August 6, 1936.
KIIQ — KMTR Radio Corp., Los Angeles, Calif. — Granted au¬
thority to operate broadcast pickup station KIIQ as
licensed, from September 4 to 7, inclusive, to broadcast
National Air Races from Los Angeles Municipal Airport.
Also to operate station KIIQ as licensed, from August 8 to
12, inclusive, to cover the American Legion Convention in
Los Angeles.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — Granted authority
to extend equipment test period for 10 days from August 9.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Granted
extension of special temporary authority to operate a
50-watt portable test transmitter between the hours of 1
and 6 a. m., EST, for the period beginning August 10 and
ending no later than August 19, 1936, in connection with
construction of station’s proposed new antenna.
WKAR — Michigan State College, E. Lansing, Mich. — Granted
special temporary authority to operate with reduced hours
for period August 8 and ending no later than September 17,
in order to observe school vacation.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
special temporary authority to operate from 2 to 4:30
p. m., EDST, on August 14, and from 2 to 3:30 p. m.,
EDST, on August 15, in order to broadcast American
Legion Convention and Parade.
KOIL — Central States Broadcasting Co., Council Bluffs, Iowa. —
Granted special temporary authority to operate a 50- to
100-watt portable test transmitter between hours of 1 and
6 a. m., CST, for a period not to exceed 30 days, in order
to determine new transmitter site for KOIL.
National Broadcasting Co., Inc., New York City. — Granted ex¬
tension of authority to transmit programs to foreign coun¬
tries for a period not to exceed 30 days from August 10,
1936, pending receipt and/or action on formal application.
W9XAF — The Journal Co., The Milwaukee Journal, Milwaukee,
Wis. — Present license for special experimental station ex¬
tended for a period of 1 month from August 1 to September
1, 1936, on a temporary basis only, pending the receipt of
and action on renewal application.
KMA — May Seed and Nursery Co., Shenandoah, Iowa. — Granted
petition for special temporary authority to operate un¬
limited time for a period ending in no event later than
September 10, 1936, pending action on and completion of
construction.
APPLICATIONS RECEIVED
First Zone
WJAR — The Outlet Co., Providence, R. I. — Construction permit
890 to make changes in equipment and increase power from 1
KW to 1 KW night, 5 KW day.
WJAR — The Outlet Co., Providence, R. I. — Construction permit
890 to move old W.E. D-94994 transmitter from The Outlet
Co. Bldg., 176 Weybosset Street, Providence, R. I., to
junction Newport and Ferris Ave., Rumford, E. Providence,
R. I., for auxiliary purposes only.
WTHT — The Hardford Times, Inc., Hartford, Conn. — License to
1200 cover construction permit (Bl-P-360) for a new station.
NEW — Harold Thomas, Pittsfield, Mass. — Construction permit for
1310 a new broadcast station to be operated on 1310 kc., 100
watts, 250 watts day, unlimited time.
WAWZ — Pillar of Fire, Zarephath, N. J. — Authority to install
1350 automatic frequency control.
WAWZ — Pillar of Fire, Zarephath, N. J. — Construction permit to
1350 install a new transmitter and antenna.
WHDL — Olean Broadcasting Co., Inc., Olean, N. Y. — Construction
1420 permit to install new equipment, change frequency from
1420 kc. to 1400 kc.; increase power from 100 watts to
500 watts; and move transmitter from Exchange National
Bank Bldg., corner Union and Laurens Streets, Olean, N. Y.,
to Town of Allegany, N. Y. Amended to change type of
equipment and change requested power to 250 watts.
W3XEY — The Baltimore Radio Show, Inc., Baltimore, Md. —
License to cover construction permit for a new general ex¬
perimental station.
NEW — W’orld Wide Broadcasting Corp., Boston, Mass. — Con¬
struction permit for a new experimental relay broadcast
station to be operated on 6040 and 11790 kc., 5 KW.
Second Zone
WKZO — WKZO, Inc., Kalamazoo, Mich. — Construction permit to
590 install new equipment.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Exten-
610 sion of special experimental authorization to operate with
1 KW power for the period from 9-1-36 to 3-1-37.
NEW — Sharon Herald Broadcasting Co., near Sharon, Pa.— Con-
780 struction permit for a new station to be operated on 780 kc.,
250 watts, daytime.
NEW — David J. Mercier and George F. Warren, d/b as Northern
830 Broadcasting Co., Traverse City, Mich. — Construction per¬
mit for a new station to be operated on 830 kc., 500 watts,
daytime.
NEW — The Louisville Times Co., Louisville, Ky. — Construction
1210 permit for a new station to be operated on 1210 kc., 100
watts, unlimited time.
WCMI — The Ashland Broadcasting Co., Inc., Ashland, Ky. —
1310 Modification of construction permit (B2-P-1099) for equip¬
ment changes and increase in power, to further request move
of studio and transmitter from Hotel Henry Clay, Win¬
chester Street at 16th, Ashland, Ky., to 20th and Greenup
Streets, Ashland, Ky.
WEED — William Avera Wynne, Rocky Mount, N. C.— License to
1420 cover construction permit (B2-P-1059) for changes in equip¬
ment and increase in power.
W8XIH — WJR, The Goodwill Station, Portable-Mobile. — License
to cover construction permit for a new general experimental
station.
King-Trendle Broadcasting Corp., Detroit, Mich. — Authority to
transmit programs from Station WXYZ to stations of the
Canadian Radio Commission.
1478
Third Zone
WFOR— -Forrest Broadcasting Co., Inc., Hattiesburg, Miss-
680 License to cover construction permit (B3-P-1068) for new
equipment and move of studio.
NEW— R. W. Page Corp., Columbus, Ga. — Construction permit
950 for a new station to be operated on 950 kc., 250 watts, un¬
limited time.
NEW — Columbia Radio Co., Inc., Columbia, S. C. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, unlimited time.
WDAE — Tampa Times Co., Tampa, Fla. — Extension of special
1220 experimental authorization to operate with power of
KW day, with equipment changes, from 10-1-36 to 4-1-37.
KGFI— Eagle Broadcasting Co., Inc., Corpus Christi, Tex. — Con-
1500 struction permit to install new equipment and move trans¬
mitter from Broadway and Leopard Street, Corpus Christi,
Tex., to Ocean Drive, Corpus Christi, Tex. Amended to
install vertical antenna.
NEW — Wilton E. Hall, Portable-Mobile. — Construction permit for
a new relay broadcast station to be operated on 31100,
34600, 37600, 40600 kc., 0.5 watts.
Fourth Zone
NEW— News-Tribune Co., Duluth, Minn.— Construction permit
630 for a new broadcast station to be operated on 630 kc., 250
watts, unlimited time.
WCBD — WCBD, Inc., Waukegan, Ill. — Authority to make changes
1080 in automatic frequency control.
WCLO — Gazette Printing Co., Janesville, Wis. — Modification of
1200 construction permit (B4-P-1038) for move of transmitter
and increase in power, requesting further changes in au¬
thorized equipment.
WSBC — WSBC, Inc., Chicago, Ill. — License to cover construction
1210 permit (B4-P-1037) for move of station and changes in
antenna.
KGBX — Springfield Broadcasting Co., Springfield, Mo. — Con-
1310 struction permit to make changes in equipment, increase
power from 500 watts to 1 KW, and move studio from 508
St. Louis Street, Springfield, Mo., to Chamber of Commerce
Building, Walnut and Jefferson Streets, Springfield, Mo.
KSCJ — Perkins Brothers Co. (The Sioux City Journal), Sioux
1330 City, Iowa. — License to cover construction permit (B4-P-
619) as modified for changes in equipment, move of trans¬
mitter, and change hours of operation.
KCMO — Lester E. Cox, Thomas L. Evans and C. C. Payne,
1370 Kansas City, Mo. — License to cover construction permit
(B4-P-1033) for new equipment, move of transmitter and
studio.
NEW — C. W. Corkhill, Sioux City, Iowa. — Construction permit for
1420 a new station to be operated on 1200 kc., 100 watts, un¬
limited time. Amended to change frequency from 1200 kc.
to 1420 kc.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
31100, 34600, 37600, 40600 kc., 10 watts.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
31100, 34600, 37600, 40600 kc., 10 watts.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
31100, 34600, 37600, 40600 kc., 2 watts.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
31100, 34600, 37600, 40600 kc., 2 watts.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
1622, 2058, 2150, 2790 kc., 40 watts.
NEW — WDZ Broadcasting Co., Portable-Mobile. — Construction
permit for a new relay broadcast station to be operated on
1622, 2058, 2150, 2790 kc., 100 watts.
Fifth Zone
KLZ — KLZ Broadcasting Co., Denver, Colo. — License to cover
560 construction permit (5-P-B-3274) for move of transmitter,
new equipment, and increase in power.
KLZ — KLZ Broadcasting Co., Denver, Colo. — Authority to de-
560 termine operating power by direct measurement of antenna.
KJR — Fisher’s Blend Station, Inc., Seattle, Wash. — Construction
970 permit to make changes in equipment and increase power
from 5 KW to 10 KW.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Modification of
1200 construction permit (B5-P-940) for changes in equipment
and move of transmitter, requesting further changes in
equipment, change hours of operation from daytime to un¬
limited time, using 250 watts power, and extend commence¬
ment and completion dates from 6-24-36 and 12-24-36,
respectively, to 60 days after grant and six months there¬
after.
KTW — First Presbyterian Church, Seattle, Wash. — Authority to
1220 make changes in automatic frequency control.
NEW — Chauncey W. Hammond, Oakland, Calif. — Construction
1280 permit for a new station to be operated on 1280 kc., 500
watts, 1 KW day, unlimited time. Amended to change re¬
quested power from 500 watts night, 1 KW day, to 1 KW
day and night.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Modification of
1310 construction permit (B5-P-444) for new equipment, move
of transmitter, change in frequency, increase in power, and
change in hours of operation, requesting changes in au¬
thorized equipment and move of transmitter 1 mile from
present authorized site, Wolf Point, Mont.
KID— KID Broadcasting Co., Inc., Idaho Falls, Idaho— Modifica-
1320 tion of construction permit (B5-P-559) for move of trans¬
mitter and increase in power, requesting to install a vertical
antenna and to give exact transmitter site as near Idaho
Falls, Idaho. Amended to give exact transmitter site as
2$i miles southeast of Idaho Falls on the Ammon Highway,
Booneville County, Idaho.
KAST— Abraham Shapiro, Astoria, Ore.— Voluntary assignment of
1370 license from Abraham Shapiro to Astoria Broadcasting Co.
KGGC— The Golden Gate Broadcasting Co. (Robert J. Craig),
1420 San Francisco, Calif. — Construction permit to install a new
transmitter.
1479
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS *
Copyright 1936. Tin National Association of Broadcasters _
Vol. 4 - - No. 41
AUG. 20, 1936
IN THIS ISSUE
Page
Florida Broadcasters Organize . 1481
Recommends Illinois Station Changes . 1481
Wilkinson Files Appeal . 1481
Recommends Control Change . 1481
Denial of New Station Recommended . 1481
Interference Would Be Caused . 1481
Mrs. L. M. Burt Wanted . 1481
Recommends Dismissing Texas Application . 1482
Broadcast Station Changes . 1482
Federal Trade Commission Action . 1484
Federal Communications Commission Action . 1485
FLORIDA BROADCASTERS ORGANIZE
Broadcasters of the State of Florida have organized the Florida
Association of Broadcasters and have elected officers and appointed
committees as follows:
OFFICERS: President, Fred W. Borton; Vice-President, W. Walter
Tison ; Secretary-Treasurer, Garland W. Powell.
EXECUTIVE COMMITTEE: Fred W. Borton, W. Walter Tison,
Garland W. Powell, Frank King, John R. Beacham.
OTHER COMMITTEES: Short Wave— Jack Hopkins, Chairman;
Harold B. Danforth, John R. Beacham, W. Walter Tison,
Gilbert Freeman.
Publicity — Garland W. Powell, Chairman; Gilbert Freeman,
Henry G. Wells, L. S. Mitchell, W. B. Byrd.
Highway Line Interference — Garland W. Powell, Chairman;
W. Wright Esch, G. G. Fletcher, Harold Meyer.
Educational — Gilbert Freeman, Chairman; John R. Beacham,
Garland W. Powell.
Resolutions — W. Walter Tison, Chairman; Jack Hopkins,
Harold B. Danforth.
Engineering — (To be appointed later)
RECOMMENDS ILLINOIS STATION CHANGES
Broadcasting stations WHFC, WKBI, and WEHS, all of Cicero,
Ill., have applied to the Federal Communications Commission for,
respectively, a construction permit, modification of license, and
power increase from 100 watts to 100 watts and 250 watts LS.
The application of WHFC is for a construction permit as it in¬
volves changes in the transmitter equipment and the construction
of a new antenna and ground system. Stations WKBI and WEHS
use the transmitter of WHFC and their applications involved only
a modification of license which is contingent upon the granting of
the application for a construction permit of WHFC.
Examiner Melvin H. Dalberg, in Report No. 1-276, recommends
that the applications be granted. He found that the three stations
are rendering a meritorious service “but there appears to be need
for additional service and a signal of a higher intensity as re¬
quested by these applications.” The Examiner found that there
might be some slight interference caused by the power increase
but, he says, “there appears to be need for increasing the intensity
signal as requested in the instant applications for the purpose of
aiding and overcoming the high noise level in this area.”
WILKINSON FILES APPEAL
An appeal and an application for a stay order has been filed
with the Court of Appeals of the District of Columbia by the C. E.
Wilkinson Broadcasting Company, Mason City, Iowa, against a
decision of the Federal Communications Commission of July 27
granting a station construction permit to the Mason City Globe
Gazette Company at Mason City.
The appeal sets forth the fact that the Wilkinson Company filed
an application with the Commission on July 30, 1935, for a con¬
struction permit for a station at Mason City which was re¬
submitted on January 7 of this year. Several applicants had
applied for a construction permit at the same place. Hearing was
held and the Commission granted the permit to the Globe Gazette
Company. The Wilkinson Company claims that the Commission
ignored its “rights and interests” in the decision and asks that the
Court reverse the Commission’s decision.
RECOMMENDS CONTROL CHANGE
Broadcasting Station WCBD, Waukegan, Ill., applied to the
Federal Communications Commission for authority to transfer
the control of the corporation from Wilbur Glenn Voliva, E. E.
Harwood, and M. J. Mintern to Gene T. Dyer, E. M. Ringwald,
L. E. Moulds, and W. F. Moss. The station also asked permission
to designate its Chicago studio as its main studio.
Examiner George H. Hill, in Report No. 1-280, recommended
that both of these applications be granted. He found that “since
Mr. Dyer and his associates have been in charge of the operation
of the station there has been a great improvement in the programs
broadcast by the station.” He states that the operation generally
has been improved. The Examiner found that transfer of the
control “would not be in violation” of the Communications Act
and the designating of the Chicago studio as the main studio would
be in the public interest.
DENIAL OF NEW STATION RECOMMENDED
J. T. Bilben and N. G. Barnard filed an application with the
Federal Communications Commission asking for a construction
permit for the erection of a new station at Walker, Minn., to use
1310 kilocycles, 100 watts and unlimited time.
Examiner John P. Bramhall, in Report No. 1-277, recommends
that the application be denied. The Examiner states that the
applicants do not have the technical nor financial qualifications to
maintain the proposed station. The area proposed to be served
is receiving secondary service from clear channel stations and the
Examiner states, “It is extremely doubtful as to whether or not
the establishment of this station is feasible from an economic
standpoint.”
INTERFERENCE WOULD BE CAUSED
The Eastern States Broadcasting Corporation filed an applica¬
tion with the Federal Communications Commission asking for a
construction permit for the erection of a new broadcasting station
at Bridgeton, N. J., to use 1210 kilocycles, 100 watts and daytime
operation. In the meantime Station WHAT, Philadelphia, has an
application pending before the Commission for operation on 1220
kilocycles, 1,000 watts, and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-279, states that
“the recommended separation for the prevention of objectionable
interference between the assignments as requested by the Eastern
States Broadcasting Company, Inc., and Station WHAT is 116
miles. Objectionable interference would be expected to the service
area of each station if both applications were granted.”
MRS. L. M. BURT WANTED
Broadcasting Station KRGV, Weslaco, Texas, is anxious to
know the whereabouts of Mrs. L. M. Burt, doing business as
1481
The Burt Company, manufacturers and distributors of CALSI-
DINE Products.
RECOMMENDS DISMISSING TEXAS
APPLICATION
The Hunt Broadcasting Association applied to the Federal Com¬
munications Commission for a construction permit for the erection
of a new station at Greenville, Texas, to use 1200 kilocycles, 100
watts, and daytime operation.
Examiner George H. Hill, in Report No. 1-278, recommends that
the “application be dismissed with prejudice.” When the hearing
was called the Examiner states that notice was received from the
applicant asking that its application be dismissed. The Examiner
therefore recommended that it be dismissed with prejudice.
BROADCAST STATION CHANGES
The Federal Communications Commission this week made public a list containing alterations and corrections (italicized) to the
broadcast list dated January 1, 1936, for the month of July as follows:
Call
Main Studio
Frequency
Time
Letters
Location
Name of Licensee
Power
(kc)
Designation
KCRJ
Jerome, Ariz.
Charles C. Robinson
lOOw
1310
S. H.
C.
P.-D
KEHE
Los Angeles, Calif. -T- Santa
Evening Herald Publishing Co.
500w
780
S-KELW
Monica
lkw-LS
C. P. T-Los Angeles .
. .U
KERN
Bakersfield, Calif.
McClatchy Broadcasting Co.
lOOw
1370
U
KFBK
Sacramento, Calif.
McClatchy Broadcasting Co.
5kw
1490
U
KFEL
Denver, Colo.
T-Edgewater
C. P.-T-nr. Denver
Eugene P. O'Fallon, Inc.
500w
920
S-KVOD
KFH
Wichita, Kans.
Radio Station KFH Co.
lkw
5kw-LS
1300
U
KFJM
Grand Forks, N. Dak.
University of North Dakota
lOOw
1370
u
C. P. 500w-lkw-LS-1410
KFNF
Shenandoah, Iowa
KFNF, Inc.
500w
lkw-LS
890
S-WILL, KUSD
S-KUSD eff.
when WILL goes
to 580kc
KGBX
Springfield, Mo.
Springfield Broadcasting Co.
500w
1230
U
T-nr. Springfield
Strike out S. A. T-nr. Springfield-500w-1230—
U-Exp.
KGBZ
Strike out all particulars
KGCX
Wolf Point, Mont.
E. E. Krebsbach
lOOw
250w-LS
1310
S. H.
C. P. lkw .
. . .1450. . . .
. . U
KGHL
Billings, Mont.
Northwestern Auto Supply Co., Inc.
lkw
2 J^kw-LS
780
u
C.
P. 5kw-LS
Strike out S. A. 780kc-Exp.
KGLO
Mason City, Iowa
Mason City Globe GAZETTE Co.
lOOw
1210
U (C. P. only)
Effective 8-1-36
KHUB
Watsonville, Calif.
F. W. Atkinson
250w
1310
D (C. P. only)
Effective 8-15-36
KIUJ
Santa Fe, N. Mex.
J. Laurance Martin
lOOw
1310
U
KLAH
Carlsbad, N. Mex.
Barney Hubbs, A. J. Crawford, Jack Haw-
lOOw
1210
U (C. P. only)
kins, Harold Miller d/b as Carlsbad
Broadcasting Co., a partnership
KMA
Shenandoah, Iowa
May Seed and Nursery Co.
lkw
930
S-KGBZ
2J/£kw-LS
**U
Strike out Effective 7-7-36-U
KMJ
Fresno, Calif.
McClatchy Broadcasting Co.
500w
lkw-LS
580
u
KMMJ
Clay Center, Nebr.
KMMJ, Incorporated
lkw
740
L-WSB
KOBH
Rapid City, S. Dak.
Black Hills Broadcast Co. ( Robert Lee Dean)
lOOw
1370
U (C. P. only)
KOCA
Kilgore, Texas
Oil Capital Broadcasting Assn. (James G.
lOOw
1210
U (C. P. only)
Ulmer, Pres.)
Effective 8-1-36
KROY
Sacramento, Calif.
Royal Miller
lOOw
1210
D (C. P. only)
Effective 9-8-36
KSUN
Lowell, Ariz.
Copper Electric Co., Inc.
lOOw
1200
U
c.
P. 250w-LS
KTEM
Temple, Texas
Bell Broadcasting Co.
lOOw
1370
D (C. P. only)
Effective 7-17-36
KUSD
Vermillion
University of South Dakota
500w
890
S-KFNF, WILL
S-KFNF eff.
when WILL goes
to 580 kc
KVCV
Redding, Calif.
M. C. P. S. of Redding
Golden Empire Broadcasting Co.
lOOw
1200
U (C. P. only)
Strike out effective 4-21-36
1482
Call
Main Studio
Frequency
Time
Letters
Location
Name of Licensee
Power
( kc )
Designation
KVSO
Ardmore, Okla.
The Ardmoreite Publishing Co., Inc.
lOOw
1210
D
C. P.
U.
KWEA
Strike out all particulars — Effective 8-1-36
KWG
Stockton, Calif.
McClatchy Broadcasting Co.
lOOw
1200
u
KYA
San Francisco, Calif.
Hearst Radio, Inc.
lkw
1230
u
C. P.
5kw-LS
KYOS
Merced , Calif.
Merced Star Publishing Co.
250w
1040
D (C. P. only)
WABI
Bangor, Maine
Community Broadcasting Service
lOOw
1200
S. H.
C. P. T-Brewer .
250w-LS. .
. U
WASH
Grand Rapids, Mich.
The Kunsky-Trendle Broadcasting Corp.
500w
1270
S-WOOD
C.
P.
lkw-LS
WCMI
Ashland, Ky.
The Ashland Broadcasting Co.
lOOw
1310
U
C.
P.
250w-LS
WDBO
Orlando, Fla.
Orlando Broadcasting Co., Inc.
250w
*lkw
580
U
C. P.
lkw
S.
A.
Ikw-LS-Exp.
S.
A.
lkw-night
WEAN
Providence, R. I.
Shepard Broadcasting Service, Inc.
500w
780
u
C. P. lkw
WEBR
Buffalo, N. Y.
WEBR, Incorporated
lOOw
250w-LS
1310
u
WEEI
Boston, Mass.
WEEI Broadcasting Corp.
lkw
590
u
T- Weymouth
C. P. 5kw-LS
WEXP
Clarksburg, W. Va.
The Exponent Co.
lOOw
1370
D (C. P. only)
WFBR
Baltimore, Md.
Baltimore Radio Show, Inc.
500w
lkw-LS
1270
U
*KVEC
San Luis Obispo, Calif.
Christina M. Jacobson, tr. as The Valley
250w
1200
D (C. P. only)
Elec. Co.
Effective 9-29-36
WFOR
Hattiesburg, Miss.
Forrest Broadcasting Co., Inc.
lOOw
1370
U
Formerly WPFB
WGBF
Evansville, Ind.
Evansville On the Air, Inc.
500w
630
Simultaneous
D. S-KFRU
WOS, night
C.
P.
lkw-LS . . .
. Simultaneous
D. S-KFRU,
night
WGL
Fort Wayne, Ind.
Westinghouse Electric and Manufacturing Co.
lOOw
1370
U
WGNY
Chester Twp., N. Y.
Peter Goelet
lOOw
1210
S-WBRB,
C. P. Newburgh
WFAS, WGBB
WHBL
Sheboygan, Wise.
Philadelphia, Pa.
Press Publishing Co.
250w
1300
U
WIP
Pennsylvania Broadcasting Co.
500w
610
U
S.
A.
lkw-Exp.
*1
" lkw
WIRE
Indianapolis, Ind.
Indianapolis Broadcasting, Inc.
500w
lkw-LS
1400
u
C. P.
lkw-5kw-LS
WIS
Columbia, S. C.
Station WIS, Inc.
lkw
560
u
T-nr. Columbia
5kw-LS
Strike out S. A. lkw-5kw-LS — 560kc
WJAR
Providence, R. I.
The Outlet Co.
lkw
, 890
u
T-E. Providence
Strike out S. A. 500w-night-Exp.
WJBC
Bloomington, Ill.
Arthur Malcolm McGregor, and Dorothy
lOOw
1200
S-WJBL
T- Normal
Charlotte McGregor, a partnership
250w-LS
WKRC
Cincinnati, Ohio
WKRC, Incorporated
500w
550
U
S.
A.
lkw-Exp.
C.
P.
lkw-5kw-LS conditionally
Strike out C. P. 2]f>,kw-LS
WLBF
Kansas City, Kans.
The WLBF Broadcasting Co.
lOOw
1420
**1310
U
WLMU
Strike out all particulars
Formerly WLIN
WMCA
New York, N. Y.
Knickerbocker Broadcasting Co., Inc.
500w
570
u
T-Flushing
*lkw
WMEX
Boston, Mass.
The Northern Corp.
lOOw
1500
u
T-Chelsea
250w-LS
C. P. T- Milton .
. 5kw .
. . .1470
WOL
Washington, D. C.
American Broadcasting Co.
lOOw
1310
u
C. P. T-Md .
. lkw .
. . . 1230
WOLS
Florence, S. C.
0. Lee Stone
lOOw
1200
D ( C . P. only)
1483
Call
Main Studio
Frequency
Time
Letters
Location
Name of Licensee
Power
(kc)
Designation
WOOD
Grand Rapids, Mich.
Kunsky-Trendle Broadcasting Corp.
500w
1270
S-WASH
C. P. lkw-LS
WPRA
Mayaguez, P. R.
Puerto Rico Advertising Co.
lOOw
250w-LS
1370
5. H. (C. P. only)
WQDM
St. Albans, Vt.
E. J. Regan and F. Arthur Bostwick, d/b
as Regan and Bostwick
lOOw
1370
S. H.
C. P. T-St. Albans Bay
. . . 1390
WROK
Rockford, Ill.
Rockford Broadcasters, Inc.
500w
1410
U
WSMB
New Orleans, La.
WSMB, Inc.
lkw
1320
u
WSPG
Strike out all particulars
Issues being determined by Court of Appeals, District of Columbia
WTAG
Worcester, Mass.
Worcester Telegram Publishing Co., Inc.
500w
580
u
C. P. T -Holden .
WTFI
Athens, Ga.
C. P. Atlanta
Liberty Broadcasting Co.
500w
1450
u
WWSW
Pittsburg, Pa.
Walker and Downing Radio Corp.
lOOw
250w-LS
1500
u
** See Abbreviations — Lists of January 1, 1936.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints issued against the following firms. The respondents
will be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
Nos. 2889-2891. Selling leather luggage in interstate commerce,
Mutual Brief Case Company, Inc., 133-135 Kossuth St.,
Newark, N. J., and Rubin E. Rappeport, trading as R. E.
Rappeport, 1700 West Monroe St., Chicago, are charged in
separate complaints with unfair competition in misrepresenting the
quality of their products.
The respondents are said to label their products, manufactured
from split cowhide leather, with the words “Cowhide,” “Cowhide
Only” or “Warranted Genuine Cowhide,” to imply that the mate¬
rial covering such luggage is top grain leather, when, according to
the complaint, such is not the fact.
Top grain leather, the complaint alleges, is superior in quality,
durability and price to split leather, which is the under side of the
hide, and the public generally is said to believe that the word
“leather” means the top or hairy side of the hide.
No. 2892. Willard F. Main, Cedar Rapids, Iowa, is charged
in a complaint with using unfair methods of competition in the
sale of coin-operated vending machines and candy, confections,
peanuts and other commodities for use in such machines. Main
is said to trade under the names of W. F. Main Co., The Machen
Co., Standard Mercantile Co., Appleton Novelty Co., and
New Specialty Co.
The complaint alleges that the respondent, in advertising mat¬
ter, testimonials, and through assertions made by his salesmen,
makes false representations which deceive purchasers of his vend¬
ing machines as to the real or usual profits to be derived from
their operation, and which misleads such purchasers into the belief
that their investment guarantees a return of 120 per cent; that
failure to earn such return entitles them to a refund of their money
plus 6 per cent interest, and that they can buy additional machines
by giving their personal note for one-third of the purchase price,
the remainder to be paid out of the earnings of the machines,
provided the purchasers furnish satisfactory credit information or
security.
Earnings from the machines do not average a minimum of $2
a month each, as represented, according to the complaint, which
also alleges that the respondent’s contract contains so many pro¬
visions with which purchasers must comply that it is impossible
for them to obtain the benefit of the repurchase agreement; that
the 120 per cent profit agreement is a snare and subterfuge, and
that the respondent in most cases refuses to accept a note for one-
third down payment on additional machines bought, and refuses
credit to purchasers, which is a condition precedent to the repur¬
chase agreement.
No. 2893. A complaint has been issued charging Midwest Pub¬
lishing Company, 540 North Michigan Ave., Chicago, and its
president, Walter H. Gorham, with unfair methods of competi¬
tion in the sale of a set of reference books entitled “Modern
American Encyclopedia,” together with a 10-year quarterly ex¬
tension service.
By means of sales talks and advertising literature, the respond¬
ents are said to represent that the encyclopedia set is a new,
modern and up-to-date reference work, when, according to the
complaint, the respondent Gorham and two associates purchased
a set of old plates made in 1891, from which four prior owners
printed five editions of reference books under various titles, and
from which plates, very slightly revised, the respondents now print
a sixth edition. The complaint alleges that prospective purchasers
are not properly informed of the antiquated character of the mate¬
rial and data in the books, and that the many rapid scientific,
historical and other changes that have occurred since 1891 render
the “Modern American Encyclopedia” practically valueless for
reference purposes.
The respondents allegedly circulate advertising literature con¬
taining the names of 33 persons, each prominent in a particular
field of learning or industry, and represent that each of these has
contributed substantially to the so-called new and modern en¬
cyclopedia, when, according to the complaint, such is not the fact,
except that a few of the persons named contributed slightly to the
original work in 1891 and revisions thereof.
No. 2894. Alleging unfair competition in connection with the
sale of a hair treatment designated “Pro-Ker,” a complaint has
been issued against Pro-Ker Laboratories, Inc., 10 East 49th St.,
New York City.
The complaint charges that the respondent corporation repre¬
sents in advertising matter, testimonials and radio broadcasts that
“Pro-Ker” is a competent treatment for baldness; that it corrects
or cures any hair or scalp disorder, forces nature to replace fallen
hair, produces a new growth of hair, and makes the scalp healthy
and strong.
Such representations are grossly exaggerated and false, the com¬
plaint alleges, and tend to cause unfair diversion of trade to the
respondent corporation from competitors who truthfully advertise
their products.
No. 2895. Charged with representing that she owns a hatchery
where she has baby chicks for sale, when such is not the fact,
Helen G. Dougherty, 5910 California Ave., Eldorado, Altoona,
Pa., and trading as Farm Service Company, Tyrone, Pa., is
named respondent in a complaint alleging violation of Section 5
of the Federal Trade Commission Act.
The complaint alleges that when the respondent receives an
order, she buys baby chicks from a hatchery, which ships them
direct to the purchaser, and that she does not select the chicks,
does not see them crated and never has them in her possession.
Other representations which the complaint charges are untrue
are that the chicks she sells are hatched from eggs weighing 24
to 28 ounces a dozen; that a written guarantee of safe delivery
accompanies each shipment ; that she has had 40 years’ experience
in the poultry business, and that her husband is connected with
her present business.
No. 2896. A complaint has been issued charging Utilities
Engineering Institute, Inc., with office at 404 North Wells St.,
Chicago, and a branch at 841 Broadway, New York City, with
using unfair methods of competition in the sale of correspondence!
courses in air conditioning and electric refrigeration.
Alleging that the respondent corporation advertises for prospects
in the classified columns of newspapers, the complaint charges
such advertisements, known as “blind ads,” are so worded as to
conceal the fact that only a correspondence school course is offered
for sale, and have deceived prospective purchasers into believing
1484
that the advertiser is in a position to offer employment, when such
is not the fact.
The respondent corporation, the complaint alleges, has adopted
a fictitious name, “Globe Agency,” which it falsely represents to
students as a separate company retained to collect overdue accounts,
and under which name it threatens customers with court proceed¬
ings and with additional charges and costs if overdue payments are
not made promptly. According to the complaint, “Globe Agency”
is none other than the respondent corporation.
No. 2897. Allegedly misrepresenting the selling price, value and
effective qualities of toilet and purported medicated soap, Hewitt
Soap Co., Inc., 289 Linden Ave., Dayton, 0., and its subsidiary,
Crown Soap Co., also trading as Dayton Soap Co., are named
respondents in a complaint charging unfair methods of competition
in the sale of such products.
According to the complaint, the respondents’ soaps are of cheap
grade, and although labeled at prices ranging from 2 cakes for
25 cents to 25 cents a cake, are sold by the respondents to their
canvassers at from 2 cents to 4J4 cents a cake, and are com¬
parable to soaps ordinarily sold at retail at from 2 cakes for
5 cents to 10 cents a cake, or 3 for 25 cents.
The prices marked on the soap products, the complaint alleges,
are fictitious and exaggerated, are intended by the respondents
and their canvassers to be far in excess of the prices actually
charged consumers, and such soap products are never sold at the
labeled prices.
No. 2899. Use of unfair methods of competition to promote
the sale of a shoe polish designated “Sav-An-Upper,” in violation
of Section 5 of the Federal Trade Commission Act, is alleged in a
complaint issued against Perfect Manufacturing Co., 3325
Madison Road, Cincinnati.
The complaint charges that agents and dealers selling “Sav-An-
Upper” cannot, as the respondent corporation allegedly represents
in its advertising matter, realize an enormous margin of profit,
such as 202 per cent, on quick and easy sales; do not become
“independent” by handling the product, nor are their profits
guaranteed or limited in amount only by their own efforts.
No. 290th False claims for the therapeutic value of “Nuga-
Tone” are alleged in a complaint issued against National Labora¬
tory, 767 Milwaukee Ave., Chicago, which sells that product as a
treatment for diseases of the stomach, intestinal and other organs.
The respondent corporation is said to advertise in newspapers,
magazines and over the radio, that the product is an efficient
remedy for indigestion and stomach trouble, removes the cause
of aches and pains in the muscles, nerves and bones and gives
new power to the muscular and nervous system.
Such representations are false, according to the complaint,
which alleges that the product is of a potentially harmful char¬
acter and particularly dangerous in the hands of lay users.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 2629. An order to discontinue unfair methods of competi¬
tion in the sale of toilet articles has been entered against Sterling
Company, 112 11th St., Des Moines, Iowa, its former president,
Don Parmelee, and Paul H. Williams and Sibley F. Everett,
who control the corporation.
The respondents are directed to stop representing that prizes
announced in certain of their advertising matter are awarded
to those who transmit most promptly accurate solutions or an¬
swers to problems, puzzles, or questions set forth in such adver¬
tising matter, and that any person has won a prize in such
contest, when such are not the facts.
Persons who most promptly submitted solutions of puzzles, to¬
gether with $2, were led to believe, the Commission found, that
they not only would be given an assortment of “Bonnie Day”
articles, but would share in the distribution of the prizes, when,
in fact, they were merely purchasers of the respondents’ products
and could become, if they chose, salesmen of such products and
enter the contest for the prizes offered.
No. 2843 Chicago Macaroni Company, trading as A. Morici
6 G. Matalone Company, 2148 Canalport Ave., Chicago, has
been ordered to cease and desist from the use of unfair methods
of competition in the sale of a product designated “Italy Brand
Table Oil”.
The order directs the respondent company to discontinue rep¬
resenting in advertising matter, on labels or by radio broadcast¬
ing, that A. Morici & G. Matalone Company is an Italian or
Italian-American concern engaged in the business of importing
olive oil from Italy, or that the olive oil ingredient of its product
is produced in or imported from Italy, unless such is a fact.
No. 2858. False representations as to the characteristics, effec¬
tiveness and curative value of “Neway Latex Bandages” and the
earnings to be made in selling such products shall be discontinued
under an order to cease and desist entered against Roy C. Green¬
berg and Sarah J. Rosenheim, trading as Neway Manufactur¬
ing Co., 30 South Clinton St., Chicago.
The order prohibits the respondents from representing in any
manner that their “Neway Latex Bandage” is porous, allowing
the skin to “breathe” and the wound to heal much quicker;
that it holds snugly and comfortably, yet admits air while keep¬
ing out dirt and germs and resisting water; that there is no need
to buy arch supports or expensive devices for bunions as this
product helps to correct all foot ailments; that it is used to
assist in slenderizing large ankles, and that doctors and hospitals
are aware that it offers “the safest way on earth” to treat
patients.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
No hearings are scheduled for the Commission during the week
beginning Monday, October 24.
The Broadcast Division at a regular meeting has taken the fol¬
lowing action:
APPLICATIONS RECONSIDERED AND
GRANTED
KTAT — KTAT Broadcast Co., Inc., Fort Worth, Tex. — Granted
consent to voluntary assignment of license from KTAT
Broadcast Co., Inc., to Raymond E. Buck (1240 kc., 1 KW,
unlimited time).
KOMA — National Radio Mfg. Co., Olkahoma City, Olka. — Granted
voluntary assignment of license from National Radio Mfg.
Co. to Hearst Radio, Inc. (1480 kc., 5 KW, unlimited time).
WACO — Central Texas Broadcasting Co., Inc., Waco, Tex. —
Granted voluntary assignment of license from Central Texas
Broadcasting Co., Inc., to KTSA Broadcasting Co. (1420
kc., 100 watts, unlimited time).
APPLICATIONS GRANTED
KFGQ — Boone Biblical College, Boone, Iowa. — Granted special
temporary authority to operate from 2:30 to 4 p. m., CST,
September 1, 1936.
WAAF — Drovers Journal Publishing Co., Chicago, Ill.- — Granted
special temporary authority to operate from 5 to 6 a. m.,
CST, for the period beginning September 1, 1936, and con¬
tinue as long as Eastern Standard Time is in official use in
Chicago, but not later than March 1, 1937.
WOW — Woodmen of the World Life Ins. Association, Omaha,
Nebr. — Granted extension of special temporary authority to
operate with power of 5 KW at night for the period August
30 to September 28, 1936.
KUSD — University of South Dakota, Vermillion, S. Dak. —
Granted extension of special temporary authority to re¬
main silent for the period September 1 to September 14,
1936, in order to observe summer vacation.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted extension of spe¬
cial temporary authority to use studio located at Zion, Ill.,
as main studio, pending action on application to move
studio to Chicago, for the period August 22 and ending no
later than September 20, 1936.
KOTN — Universal Broadcasting Corp., Pine Bluff, Ark. — Granted
extension of special temporary authority to operate un¬
limited time for the period August 24 to September 22,
1936, in order to broadcast special Arkansas Centennial
Program each night.
WDBJ — Times-World Corp., Roanoke, Va. — Granted extension of
special temporary authority to operate station without an
approved frequency monitor for the period August 24 to
September 22, 1936.
WCOA — Pensacola Broadcasting Co., Pensacola, Fla. — Granted
special temporary authority to operate a 50-watt portable
test transmitter between 12 midnight and 6 a. m., EST,
for the period August 15 to September 13, 1936, in order
to conduct site tests.
KBTM — Beard’s Temple of Music, Jonesboro, Ark. — Granted
authority to operate from 6:30 p. m., CST to the close of
Northeast Arkansas Centennial Pageant at Wallcott, Ark.,
on night of September 5 ; denied request to operate special
hours on August 6 and 7 and 10, and September 6.
1485
WNAC — Shepard Broadcasting Service, Inc., Boston, Mass. —
Granted license to cover C. P. authorizing installation of
new equipment and increase in day power to 5 KW.
WCOL — WCOL, Inc., Columbus, Ohio — Granted license to cover
C. P. authorizing changes in equipment.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
Granted modification of C. P. to change tubes in the last
radio stage and make changes in directional antenna.
KGGC — The Golden Gate Broadcasting Co., San Francisco, Cal.
■ — Granted C. P. to install new equipment.
WTHT — The Hartford Times, Inc., Hartford, Conn. — Granted
license to cover C. P. to erect new broadcast station to
operate on 1200 kc., 100 watts, daytime.
WNBF — Howitt-Wood Radio Co., Inc., Binghamton, N. Y. —
Granted C. P. to install new antenna and move transmitter
locally.
WFOR — Forrest Broadcasting Co., Inc., Hattiesburg, Miss. —
Granted license to cover C. P. authorizing installation of
new equipment and move of studio locally.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Granted C. P.
to install new equipment.
WSBC — WSBC, Inc., Chicago, Ill. — Granted license to cover C. P.
authorizing move of station locally and erecting a new
antenna system.
WGH — Hampton Roads Broadcasting Corp., Newport News, Va.
— Granted C. P. to install vertical radiator and move
transmitter locally.
WEAN — Shepard Broadcasting Service, Inc., Providence, R. I.—
Granted modification of C. P. to move transmitter site 750
feet northwest of present approved site, and approving
new transmitter and directional antenna system.
WCAZ — Superior Broadcasting Service, Inc., Carthage, Ill. —
Granted license to cover C. P. authorizing local move of
station and installing new equipment.
WRR — City of Dallas, Texas. — Granted modification of license
for use of same antenna systems by stations WRR and
KVPA.
WAWZ — Pillar of Fire, Zarepath, N. J. — Granted authority to in¬
stall automatic frequency control equipment.
KTW — First Presbyterian Church, Seattle, Wash. — Granted au¬
thority to make changes in automatic frequency control
equipment.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted authority to make
changes in automatic frequency control equipment.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
C. P. to install new equipment.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio. —
Granted license to cover C. P. authorizing installation of
new equipment, increase in day power from 1 to 5 KW,
and installation of directional antenna nighttime operation;
1260 kc., 1 KW night.
WLBC — Donald A. Burton, Muncie, Ind. — Granted license to
cover C. P. authorizing installation of new equipment and
vertical antenna and increase in day power from 100 watts
to 250 watts; 1310 kc., simultaneous day, sharing WTRC
at night.
KRBC — The Reporter Broadcasting Co., Abilene, Texas — Granted
modification of C. P. approving transmitting and studio
sites, and install new equipment.
KYOS — Merced Star Publishing Co., Merced, Cal. — Granted modi¬
fication of C. P. approving transmitting and studio sites;
install vertical radiator.
MISCELLANEOUS
KCMO — Lester E. Cox, Thomas L. Evans & C. C. Payne, Kansas
City, Mo. — Upon consideration of protests to its action of
June 20, 1936, in granting application for modification of
license to move studio locally and change hours of opera¬
tion from specified to unlimited, for station KCMO, filed
by the Midland Broadcasting Co. (KMBC), and The
First National Television, Inc., both of Kansas City, Mo.,
the Commission reconsidered its action in granting this
application and directed same be designated for hearing.
KCMO issued special temporary authority to operate un¬
limited time pending hearing and decision on protests of
Midland Broadcasting Co. and First National Television,
Inc.
ORAL ARGUMENTS
Granted request for oral argument in re Examiner’s Report No.
1-246, on the application of Missouri Broadcasting Corp. (WIL),
St. Louis, Mo., for C. P. and Star-Times Publishing Co., St.
Louis, for C. P., and directed said oral argument be heard on
September 10, 1936.
Granted request for oral argument in re Examiner’s Report
No. 1-255, on application of Wichita Falls Broadcasting Co.
(KGKO), Wichita Falls, Tex., for C. P., and directed said oral
argument be heard on September 17, 1936.
SET FOR HEARING
NEW — Michael F. Murray. — Designated for hearing (to be heard
with other St. Cloud applications) C. P. for new station,
560 kc., 500 watts, daytime. Site to be determined.
WCFL — Chicago Federation of Labor, Chicago, Ill. — Set date for
hearing on C. P. to install new equipment and increase
power to 50 KW ; to be heard September 24, 1936, before
the Broadcast Division.
APPLICATIONS DENIED
WELI — City Broadcasting Corp., New Haven, Conn. — Denied
authority to operate from LS to 8 p. m., EST, with 50 watts,
for period of 30 days from September 1, 1936.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Denied authority
to operate from LS to 9 p. m., PST, with 100 watts, on,
1200 kc., for period of 30 days.
The Broadcast Division has taken the following actions, sub¬
ject to ratification at its next regular meeting:
APPLICATIONS GRANTED
WJEP — The Stromberg Carlson Television Mfg. Co., Rochester,
N. Y. — Granted special temporary authority to operate
broadcast pickup station WJEP as licensed August 13 to
15, inclusive on dredge boat off Port of Rochester, N. Y.
Also granted special temporary authority to operate sta¬
tion August 20 to 25, inclusive in order to broadcast edu¬
cational program on Coast Guard Cutter Jackson.
W2XKI — National Broadcasting Co., Inc., New York City —
Granted extension of test period for 30 days beginning
August 18.
KFNF— KFNF, Inc., Shenandoah, Iowa. — Granted special tem¬
porary authority to operate a portable mobile transmitter
during the period August 18 and ending no later than
August 23, as a broadcast pickup station for the purpose
of broadcasting annual Sidney, Iowa, Rodeo; frequencies
31100, 34600, 37600, 40600 kc., 50 watts.
KGLO— Mason City Globe Gazette Co., Mason City, la. —
Granted special temporary authority to operate a 40-watt
portable test transmitter between hours of 9 a. m. and 5
p. m., CST, for a period not to exceed 10 days from August
17, in vicinity of Mason City, in order to make local sur¬
vey.
WHAS — The Courier-Journal Co. and the Louisville Times Co.,
Louisville, Ky. — Granted extension of special temporary
authority to operate a 50-watt portable test transmitter
from 12 midnight to 6 a. m., CST, for period August 18
and ending not later than Sepember 16, 1936, in order to
determine new transmitter site.
WGST — Georgia School of Technology, Atlanta, Ga. — Granted
extension of special temporary authority to operate a 100-
watt portable test transmitter on 890 kc. between hours of
12 midnight and 6 a. m., EST, for period August 12 to
September 10, 1935, in order to determine new antenna
location.
WQBC — Delta Broadcasting Co., Inc., Vicksburg, Miss. — Granted
special temporary authority to operate from 6:45 p. m. to
12 midnight, CST, August 25, in order to broadcast elec¬
tion returns.
KIDO — Boise Broadcast Station, Boise, Idaho. — Granted exten¬
sion of special temporary authority to operate with tempor¬
ary antenna for a period beginning August 22 and ending
not later than September 20, 1936, pending completion of
construction.
WABI — Community Broadcasting Service, Bangor, Maine —
Granted special temporary authority to operate from 2
to 6 p. m., EDST, August 24 to 29, inclusive, in order to
broadcast from Bangor, Maine, fairgrounds.
WLBL — State of Wisconsin Department of Agriculture and Mar¬
kets, Stevens Point, Wis. — Granted extension of special
temporary authority to operate without an approved
frequency monitor for the period August 14 to September
12, 1936.
1486
WMBR— Florida Broadcasting Co., Jacksonville, Fla.— Granted
special temporary authority to operate without an antenna
ammeter for a period not to exceed 15 days from August
9, 1936.
WSYR-WSYU— Central New York Broadcasting Service, Syra¬
cuse, N. Y. — Granted extension of special temporary auth¬
ority to operate a 100-watt portable test transmitter be¬
tween the hours of 12 midnight and 6 a. m., EST, for a
period beginning August 8 and ending in no event later
than August 27, 1936.
WPRP — Julio M. Conesa, Ponce, P. R. — Granted extension of
special temporary authority to operate station without an
approved frequency monitor for a period beginning Au¬
gust 8 and ending not later than September 6, 1936.
WELI — City Broadcasting Corp., New Haven, Conn. — Granted
special temporary authority to operate from 8 p. m. to 12
midnight, EST, on August 29, in order to broadcast a talk
by Wm. Lemke; on September 16, in order to broadcast a
talk by Rev. Coughlin, and on September 22 in order to
broadcast dinner of Rotary Club.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted special temporary authority to operate from local
sunset (7 p. m., CST) to 10 p. m., CST, August 25, in
order to broadcast Alumni Federation of Louisiana State
University.
W8XIN — Radio Air Service Corp., Cleveland, Ohio. — Granted
extension of special temporary authority to operate a radio
transmitting apparatus as a general experimental broadcast
pickup station for the period August 3 to September 1,
1936, to broadcast political activities; frequencies 31100,
34600, 37600, 40600 kc., 10 watts.
KDYL — Intermountain Broadcasting Corp., Salt Lake City, Utah
— Granted extension of special temporary authority to
operate station without plate voltmeter for a period not to
exceed 7 days from August 13, 1936.
KSEI — Radio Service Corp., Pocatello, Idaho — Granted special
temporary authority to operate station without an antenna
ammeter for a period beginning August 11 and ending no
later than August 26, 1936.
WSMK — WSMK, Inc., Dayton, Ohio — Granted special temporary
authority to operate simultaneously with KQV from 10 to
11 p. m., EDST, on August 18, in order to broadcast the
Sharkey-Louis fight.
KGFL — KGFL, Inc., Roswell, New Mexico— Granted special tem¬
porary authority to operate from 7:30 p. m. to 12 mid¬
night, MST, August 18, 1936, in order to broadcast elec¬
tion returns.
KFRO — -Voice of Longview, Longview, Texas — Granted special
temporary authority to operate from local sunset (7 p, m„
CST) to 12 midnight CST, August 17 to 22, inclusive, 1936,
in order to broadcast political speeches of candidates for
public offices in Texas and Gregg.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
extension of special temporary authority to operate station
without antenna ammeter for period August 16 and end¬
ing no later than August 25, 1936.
WNYC — City of N. Y. Dept, of Plant and Structures, New York
City — Granted extension on a temporary basis only of
auxiliary license for the period August 1 to September 1,
1936, pending receipt and/or action on renewal application.
APPLICATIONS SET FOR HEARING
KJR — Fisher’s Blend Station, Inc., Seattle, Wash. — Application
for C. P. to install new equipment and increase power to
10 KW.
The Broadcast Division reconsidered its action of July 22, 1936,
in granting the petition filed by Geo. W. Young, licensee of
station WDGY, Minneapolis, Minn., requesting that the Commis¬
sion return to the National Battery Broadcasting Co., one of its
two pending applications for C. P. for a new station in St.
Paul, Minn., and directed that application File No. B4-P-1160
of the National Battery Broadcasting Co. be designated for
hearing, to be heard with that company’s application File No.
B4-P-1143.
APPLICATIONS DISMISSED
KMTR — KMTR Radio Corp., Los Angeles, Cal. — The Broadcast
Division, upon its own motion, (1) reconsidered its action
of August 27, 1935, in designating the application for re¬
newal of license of station KMTR for hearing, and directed
that said application be dismissed from the hearing docket
and (2) granted a regular renewal of license, effective Sep¬
tember 1, 1936. The Division further directed that an order
be entered accordingly and forwarded to all interested
parties.
ORAL ARGUMENT GRANTED
WOL — Ex. Rep. No. 1-247: American Broadcasting Co., Wash¬
ington, D. C. — The Broadcast Division, upon consideration
of requests for oral argument in this Examiner’s Report
filed by the National Broadcasting Co., Inc., licensee of
stations WRC and WMAL; the Indianapolis Power &
Light Co., licensee of station WFBM, WCAE, Inc., and the
Monocacy Broadcasting Co., and motion of the American
Broadcasting Co. to strike said requests, and petition of
the American Broadcasting Co. suggesting that the case be
reopened for oral argument, rescinded its action of July 22,
1936, in granting the application for station WOL to move
transmitter, change frequency from 1310 kc. to 1230 kc.,
and increase power from 100 watts to 1 KW, unlimited
time (directional antenna), and directed that oral argument
be held upon exceptions to Ex. Rept. No. 1-247, said oral
argument to be heard on September 10, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KELW, Burbank, Cal.; KFDY, Brookings, S. Dak.; KFEL,
Denver, Colo.; KFKA, Greeley, Colo.; KFNF, Shenandoah, la.;
KFPY, Spokane, Wash.; KFRU, Columbia, Mo.; KFSD, San
Diego; KFYR, Bismarck, N. Dak.; KGHL, Billings, Mont.; KGKO,
Wichita Falls, Texas; KGW, Portland, Ore.; KHQ, Spokane,
Wash.; KXL, Oakland, Cal.; KOAC, Corvallis, Ore.; KOMO and
auxiliary, Seattle, Wash.; KPRC, Houston, Tex,; KSAC, Man¬
hattan, Kans.; KSFO, San Francisco; KVI, Tacoma, Wash.;
KVOS, Denver, Colo.; WAAF, Chicago; WBAA, W. Lafayette,
Ind; WBEN and auxiliary, Buffalo, N. Y.; WCHE, Charleston,
W. Va. ; WCOC, Meridian, Miss.; WDAF, Kansas City, Mo.;
WDBO, Orlando, Fla.; WDEV, Waterbury, Vt. ; WEAN, Provi¬
dence, R. I.; WEEI, Boston; WFIL and auxiliary, Philadelphia;
WFLA-WSUN, St. Petersburg and Clearwater, Fla.; WGBF,
Evansville, Ind.; WGBI, Scranton, Pa.; WGR, Buffalo, N. Y.;
WHJB, Greensburg, Pa.; WGST, Atlanta, Ga.; WIBW, Topeka,
Kans.; WILL, Urbana, Ill.; WJAX, Jacksonville, Fla.; WKY,
Oklahoma City; WMC and auxiliary, Memphis, Tenn.; WMT,
Cedar Rapids, la.; WOSU, Columbus, Ohio; WQAM and auxil¬
iary, Miami, Fla.; WQAN, Scranton, Pa.; WREC, Memphis,
Tenn.; WSPA, Spartanburg, S. C.; WSUI, Iowa City, la.; WTAD,
Quincy, Ill.; WTMJ, Milwaukee, Wis.; WWNC, Asheville, N. C.
APPLICATIONS RECEIVED
First Zone
NEW — Lawrence K. Miller, Pittsfield, Mass. — Construction per-
930 mit for a new station to be operated on 930 kc., 250 watts,
daytime.
WOV — International Broadcasting Corp., New York, N. Y. —
1130 Authority to transfer control of corporation from John
Iraci, Giustina B. Iraci and Mariannina C. Iraci to Arde
Bulova, 766 shares of common stock.
NEW — Eugene Meyer & Co., d/b a£ The Washington Post, Wash-
1310 ington, D. C. — Construction permit for a new station to be
operated on 630 kc., 250 watts, 500 watts day, unlimited
time. Amended to change type of equipment, changes in
antenna, change frequency from 630 kc. to 1310 kc., power
from 250 watts, 500 watts day, to 100 watts, 250 watts day,
and omit request for facilities of WMAL.
NEW — Hearst Radio, Inc., Albany, N. Y. — Construction permit
1240 for a new station to be operated on 970 kc., 1 KW, un¬
limited time. Amended to change frequency from 970 kc.
to 1240 kc., change transmitter site from Rural, Albany,
N. Y., to New Albany, N. Y., and make changes in equip¬
ment.
NEW — Hearst Radio, Inc., Washington, D. C. — Construction per-
1240 mit for a new station to be operated on 1240 kc., 1 KW,
unlimited time; to use directional antenna.
NEW — Oliver C. Harriman & Ralph Clark, New York, N. Y. —
Construction permit for a new visual broadcasting station
to be operated on 42000-56000, 60000-86000 kc., 2 KW.
NEW — Oliver C. Harriman & Ralph Clark, New York, N. Y. —
Construction permit for a new general experimental station
to be operated on 42000-56000, 60000-86000 kc., 1 KW.
1487
NEW — Oliver C. Harriman & Ralph Clark, New York, N. Y. —
Construction permit for a new general experimental broad¬
cast station to be operated on 31600, 35600, 38600, 41000
kc., 2 KW.
Atlantic Broadcasting Corp., New York, N. Y. — Authority to
transmit programs to CFRB, Toronto, and CKAC, Mon¬
treal, and to stations of the Canadian Radio Commission
or its successor.
Second Zone
NEW — The Schuylkill Broadcasting Co., Pottsville, Pa. — Con-
580 struction permit for a new station to be operated on 580 kc.,
250 watts, daytime.
NEW — Lou Poller, Scranton, Pa. — Construction permit for a new
930 station to be operated on 930 kc., 250 watts, daytime.
WBAX — John H. Stenger, Jr., Wilkes-Barre, Pa. — Modification
1210 of license to change hours of operation from specified hours
to unlimited time.
WADC — Allen T. Simmons, Akron, Ohio.- — License to cover con-
1320 struction permit (B2-P-689) for changes in equipment and
increase in power.
WLVA — Lynchburg Broadcasting Corp., Lynchburg, Va. — Con-
1390 struction permit to change frequency from 1200 kc. to 1390
kc., make changes in equipment, increase power from 100
watts, 250 watts day, to 500 watts day and night, and install
directional antenna for night use.
NEW — Roanoke Gospel Tabernacle, Earl T. Favro, Pastor,
1500 Roanoke, Va. — Construction permit for a new station to be
operated on 590 kc., 100 watts, specified hours. Amended
to change frequency from 590 kc. to 1500 kc., give studio
and transmitter sites as Route No. 2, Box 585-A, Roanoke
County, Virginia.
Third Zone
KTSA — KTSA Broadcasting Co., San Antonio, Tex. — Construction
550 permit to install a new transmitter.
WGST — Georgia School of Technology, Atlanta, Ga. — Construc-
890 tion permit to install a new transmitter and antenna and
increase power from 500 watts, 1 KW day, to 1 KW night,
5 KW day, and move transmitter from Third and Cherry
Streets, Atlanta, Ga., to site to be determined, Atlanta, Ga.
WNOX — Continental Radio Co., Knoxville, Tenn. — Construction
1010 permit to install a new transmitter and antenna, increase
power from 1 KW, 2 KW day, to 1 KW, 5 KW day, and
move transmitter from Holston Hills, near Knoxville,
Tenn., to Anderson Road, near Knoxville, Tenn.
WRR — City of Dallas, Texas, Dallas, Tex. — Authority to deter-
1280 mine operating power by direct measurement of antenna
for auxiliary transmitter.
WRR — City of Dallas, Texas, Dallas, Tex. — Authority to use the
1280 transmitter of Station KVPA (W. E. Type 6-B, 1 KW) as
an auxiliary transmitter.
KRMD — Radio Station KRMD, Inc., Shreveport, La. — Construc-
1310 tion permit to make changes in equipment, install new
antenna, increase power from 100 watts to 100 watts night,
250 watts day.
KFRO — Voice of Longview, Longview, Tex.— Construction permit
1370 to make changes in equipment and increase power from
100 watts to 250 watts.
KCMC — KCMC, Inc., Texarkana, Ark. — Construction permit to
1420 install a new transmitter and vertical antenna.
WAPO — W. A. Patterson, Chattanooga, Tenn. — Modification of
1420 construction permit (B3-P-588) as modified for a new
station on 1420 kc., 100 watts, daytime, to further request
change in frequency from 1420 kc. to 1200 kc., power from
100 watts to 100 watts night, 250 watts day, hours of opera¬
tion from daytime to unlimited time, make changes in
equipment, and move studio from Read House, 9th and
Broad Sts., Chattanooga, Tenn., to site to be determined,
Chattanooga, Tenn.
WBIG — North Carolina Broadcasting Co., Inc., Greensboro, N. C.
1440 — Special experimental authorization to operate on 1 KW
night and day for period of three months.
KPLT — The North Texas Broadcasting Co., Paris, Tex. — Modifi-
1500 cation of construction premit (B3-P-442) for a new station,
requesting authority to change type of equipment, install
antenna, give exact transmitter site as Paris, Tex. (no street
address), and move studio from 34-36 Lamar Avenue,
Paris, Tex., to corner Main and Austin Streets, Paris, Tex.
Fourth Zone
KFEQ — KFEQ, Inc., St. Joseph, Mo. — Construction permit to
680 install a new transmitter and antenna and move transmitter
from Pauline and Elwood Sts., St. Joseph, Mo., to The
South 15 acres of the East 40 acres of the N.W. of Sec.
33-57-36, St. Joseph, Mo.
WIB— University of Minnesota, Minneapolis, Minn. — Construc-
760 tion permit to install new transmitter, make changes in
antenna, change frequency from 1250 kc. to 760 kc., power
from 1 KW to 5 KW, hours of operation from specified
hours to share-WCAL (2/3 daytime).
WTCN — Minnesota Broadcasting Corp., Minneapolis, Minn. —
1250 Modification of license to change hours of operation from
specified hours to unlimited time. Requests facilities of
Stations WLB and WCAL (contingent upon B4-P-1292 and
B4-P-1293).
WCAL — St. Olaf College, Northfield, Minn. — Construction permit
1250 to make changes in equipment, install a new antenna, change
frequency from 1250 kc. to 760 kc., power from 1 KW, V/2
KW day, to 5 KW day, and hours of operation from specified
hours to share- WLB (1/3 daytime).
KOIL — Central States Broadcasting Co., Omaha, Nebr. — Modifi-
1260 cation of license to move studio from 600 Huntington Ave¬
nue at Fairmont Park, Council Bluffs, Iowa, to Omaha
National Bank Building, Omaha, Nebr.
NEW — Arthur H. Croghan, Minneapolis, Minn. — Construction
1310 permit for a new station to be operated on 1310 kc., 100
watts, daytime.
KFJM — University of North Dakota, Grand Forks, N. Dak. —
1370 Modification of construction permit (B4-P-501) for changes
in equipment, change of frequency, and increase in power,
requesting changes in authorized equipment, move of trans¬
mitter 0.12 mile from present site, University Campus,
Grand Forks, N. Dak., and for approval of vertical antenna.
WEOA — Evansville on the Air, Inc., Evansville, Ind. — Construc-
1370 tion permit to make changes in equipment and increase
power from 100 watts to 100 watts night, 250 watts day.
WCBS — WCBS, Inc., Springfield, Ill. — Construction permit to
1420 make changes in equipment, install a vertical antenna and
move transmitter from 319 East Jefferson Street, Spring-
field, Ill., to 2200-2206 S. 6th Street, Springfield, Ill.
WBBM Broadcasting Corp., Chicago, Ill. — Authority to transmit
programs to stations CFRB, Toronto, and CKAC, Montreal,
and to stations of the Canadian Radio Commission or its
successor.
Fifth Zone
KGW — Oregonian Publishing Co., Portland, Ore. — Authority to
620 determine operating power by direct measurement of an¬
tenna.
KGW— Oregonian Publishing Co., Portland, Ore.— License to cover
620 construction permit (B5-P-1136) for changes in equipment.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Con-
1210 struction permit to make changes in equipment.
W9XJI — The Reynolds Radio Co., Inc., Portable-Mobile. — License
to cover construction permit for a new general experimental
broadcast pickup station.
W9XJI — -The Reynolds Radio Co., Inc., Portable-Mobile. — Modi¬
fication of license to change name from The Reynolds Radio
Co., Inc., to KLZ Broadcasting Co.
1488
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 42
AUG. 27, 1936
IN THIS ISSUE
Page
Broadcasting Not Affected by Robinson-Patman Law . 1489
No Reply from Herman Starr . 1489
Rule 229 Amended . 1489
Globe Advertising Agency . 1489
Radio Previews Attempts Chisel . 1489
Recommends Changes for KRNT . 1489
Commission Rescinds Its Action . 1490
Securities Act Registrations . 1490
Radio Safeguard Urged . 1490
Federal Trade Commission Action . 1490
Federal Communications Commission Action . 1491
BROADCASTING NOT AFFECTED BY
ROBINSON-PATMAN LAW
The Federal Trade Commission has been very reticent in making
any statement in connection with the new Robinson-Patman law.
It is therefore of great interest to note that in a discussion of that
legislation as it will occur in the forthcoming annual report of
the Commission, that body has made the following official an¬
nouncement:
“Authority to enforce compliance with the new Act, as dis¬
tinguished from criminal proceedings, is by virtue of Section 11
of the Clayton Act vested in the Commission in all cases in which
the new Act is not applicable to common carriers subject to the
Interstate Commerce Act, as amended, to common carriers en¬
gaged in wire or radio communications or radio transmission of
energy or to banks, banking associations and trust companies.
“The Interstate Commerce Commission has authority to enforce
compliance by common carriers subject to the Interstate Commerce
Act as amended; the Federal Communications Commission has
authority to enforce compliance in cases applicable to common
carriers engaged in wire or radio communication or radio trans¬
mission of energy; while the Federal Reserve Board has authority
to enforce compliance where the Act is applicable to banks, bank¬
ing associations, and trust companies.”
NO REPLY FROM HERMAN STARR
Under date of July 31, 1936, the Managing Director addressed
to Herman Starr, President of the Music Publishers Holding Cor¬
poration, a telegram reading as follows:
“Understand MPHC filed application last evening for reinstate¬
ment in the ASCAP stop will appreciate full statement by telegraph
and information concerning any steps that have been taken to
refund moneys received by MPHC directly from stations since
January first nineteen thirty six.”
To date no reply has been received to this telegram.
RULE 229 AMENDED
The Federal Communications Commission announced this week
that it has amended Rule 229. In this connection the announce¬
ment states:
The Commission on August 14, 1936, amended Rule 229 by
adding the following frequencies for experimental broadcast:
38,900, 39,100, 39,300, 39,500, 39,700, 39,900,
40,800 and 41,400 kilocycles.
The Broadcast Division will promulgate rules governing the
broadcast stations that will be assigned to these frequencies.
GLOBE ADVERTISING AGENCY
According to correspondence with the Globe Advertising Agency,
213 West Austin Avenue, Chicago, Illinois, that agency is repre¬
senting Norman T. Baker. It will be remembered that Norman T.
Baker was once the licensee of a radio station (KTNT) at Mus¬
catine, Iowa; that Mr. Baker claims to have a cure for cancer;
and that his radio license was denied by the Federal Radio Com¬
mission.
Under date of August 18 we addressed the following letter to
the Globe Advertising Agency:
“Our attention has been directed to the account which you have
submitted to certain radio broadcasting stations, having to do with
a health book. We will greatly appreciate it if you will forward
a copy of this health book together with a copy of the follow-up
correspondence sent to persons who make inquiry.”
In reply to this letter we received a communication signed “Baker
Hospital, by R. A. Bellows, Superintendent for Lessee.” There
were enclosed with Mr. Bellows’ letter two booklets, one entitled
“America’s Greatest Crime” and the other, “Cancer is Curable.”
Although it is believed that few stations today are accepting per
inquiry accounts, this experience indicates the dangers which are
involved in carrying blind advertisements.
RADIO PREVIEWS ATTEMPTS CHISEL
The undated letter recently mailed to several broadcasting
stations by Leon Lee, President, Radio Previews, Inc., should
draw a prompt reply from members based upon the provisions
contained in Paragraph 6 of the NAB Code of Ethics.
This letter, which is actually an insult to the intelligence of the
stations to which it is sent, seeks a franchise agreement whereby
the station would receive for the purpose of radio broadcasting
a complete one-half hour program, electrically recorded, to be
known as the “Movie Review of the Week,” or under such other
title as the station may from time to time determine. According
to the proposed agreement these programs shall consist of five or
six excerpts from the forthcoming major film releases, of the
station’s own choosing, and shall contain dialogue, songs and
tax-free music from such productions. Under the proposed fran¬
chise agreement the station would agree to broadcast these pro¬
grams as a sustaining feature each week and to furnish to the
Radio Review, Inc., a signed statement in standard form to be
furnished, of the date and the time allotted to such broadcast.
The station would agree not to broadcast these recordings during
the hours of 8 to 10 p. m., and would further agree not to broad¬
cast any other recordings transcribed directly from motion picture
productions during the term of the contract.
This is an out and out attempt to obtain free radio advertising
for motion pictures. The franchise agreement as proposed would
not even amount to an exchange of' time for talent because the
station would agree, in the case of sponsorship, to pay $5.00 upon
delivery each week for each recorded program received.
Happily, broadcasting stations have learned that it pays to
treat all their advertisers alike and they will not be misled by
Mr. Lee.
RECOMMENDS CHANGES FOR KRNT
Broadcasting station KRNT, Des Moines, Iowa, operating on a
frequency of 1320 kilocycles, filed an application with the Federal
Communications Commission to increase its power from 500 to
1,000 watts at night and from 1,000 to 5,000 watts until local
sunset, and to install a directional antenna. The station operates
with unlimited time.
Examiner George H. Hill, in Report No. 1-281, recommended
that the application be granted. He found that there is need for
the service proposed, and that the operation of KRNT as pro¬
posed “would improve the service of other stations now operating
on the 1320 kilocycle frequency.” The Examiner states also that
increasing the daytime power of the station will extend its service
to an area not now receiving such service “of approximately 11,000
1489
square miles, and the population served will be increased from
661,930 to 1,038,845.”
COMMISSION RESCINDS ITS ACTION
The Broadcast Division of the Federal Communications Com¬
mission announced this week that it has rescinded its action of
July 2 in denying the application of the Central Broadcasting
Company, Eau Claire, Wis., “and requested that copies of the
order and statement of facts and grounds for decision therein be
returned to this office for cancellation.”
At the same time this announcement was made the Commission
also announced that it had entered a final order in the case of this
company granting the application for a construction permit for a
new broadcast station to operate on 1050 kilocycles, 250 watts
daytime, the site to be determined subject to the Commission’s
approval. The application was granted subject to Rules 131, 132
and 139. It is effective 3 a. m., Eastern Standard Time, Sep¬
tember 15.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Roxborough Knitting Mills, Inc., Philadelphia, Pa. (2-2376,
Form A-l)
Hamilton Manufacturing Company, Two Rivers, Wis. (2-2377,
Form A-l)
Peerless Casualty Company, Keene, N. H. (2-2378, Form A-2)
Tulsa Oil Development Company, Tulsa, Okla. (2-2379, Form
A-l)
Peerless Corporation, Cleveland, Ohio. (2-2380, Form A-2)
Silver Syndicate, Inc., Wallace, Idaho. (2-2381, Form A-l)
Homestead Fire Insurance Co., Baltimore, Md. (2-2383, Form
A-2)
Mergraf Oil Products Corp., Detroit, Mich. (2-2384, Form A-l)
American Refrigerator Transit Co., St. Louis, Mo. (2-2385,
Form A-2)
Creameries of America, Inc., Los Angeles, Calif. (2-2386, Form
A-2)
G. S. McKenzie et al., Los Angeles, Calif. (2-2387, Form F-l)
W. H. Barber Co., Minneapolis, Minn. (2-2388, Form A-2)
Cook Paint & Varnish Company, North Kansas City, Mo. (2-
2390, Form A-2)
Masonite Corporation, Chicago, Ill. (2-2391, Form A-2)
Coca-Cola Bottling Co., of New York, Inc., New York City.
(2-2392, Form A-2)
Oakhurst Garden Apts. Corp., Lynbrook, N. Y. (2-2393, Form
A-l)
Allied Annie Laurie Gold Mines, Inc., Kimberly, Utah. (2-2394,
Form A-l)
Rio Grande Water Power Company, New York City. (2-2396,
Form E-l)
Dividends Shares, Inc., Jersey City, N. J. (2-2397, Form A-l)
Mansul Chemical Company, Jacksonville, Fla. (2-1955, Form
A-l)
RADIO SAFEGUARD URGED
Federal Communications Commissioner George Henry Payne,
talking this week before the Rotary Club of Bayshore, L. I., urged
the public to a keener interest in the great developments that are
taking place in the radio world in order that there should not
grow up a monopoly against the public interest.
“Developments and inventions that are now going on and being
made in the radio field,” said Commissioner Payne, “will affect the
mental life and education, and possibly the material interests, of
every person in the country. Behind this development, fraught
with so much importance to our people, a fierce struggle is going
on for the control of the great resource of the air.
“Private interests favoring private monopoly are naturally
anxious that there be just as little governmental ‘interference’
(regulation) as possible in what they call their ‘business.’ Those
who believe that we must not repeat the mistakes of the past and
allow the wasteful private exploitation of our resources are just
as keenly aroused in behalf of the government taking a strong
stand to protect the public interests.
“The indifference of the public to the importance of this struggle
is lamentable. Fascinated by the wonders of radio and the
astonishing developments in the entire field of communications,
little attention has been given to the economic control of these
new developments. Unless the public is aroused, its interests are
apt to be neglected and lax administration is apt to creep in.
In this way private monopoly, without warrant of law, estab¬
lishes itself and, too late, the public bestirs itself to recover ground
that never should have been lost.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
Nos. 2901-2902-2903-2904-2905. Five New York jobbers of
foodstuffs and flavoring extracts have been served with complaints
charging unfair competition in the sale of extracts.
The respondent companies are: National Kream Company,
Inc., 360 Furman St., Brooklyn; Eldeen Spice Company, 336
Delancey St., New York; Solomon Hornick and Fannie Hor-
nick, trading as Italian-American Spice Company, 320 Henry
St., New York; Trieste Importing Company, 19 Vestry St.,
New York; and Saul Cohen and David Jawetz, trading as
Eagle Spice Company, 1412 66th St., Brooklyn.
Bottles containing flavoring extracts offered for sale are alleged
to have borne labels on which appeared the following language in
Italian: “Diploma No. Cl35-Registration 352, Bertola Extract,
Incomparable, First Prize at the Expositions in Milan and Florence
— 1903, Rosolio Rosa, National Chemical Laboratory, Milan, Italy;
Imported Products; General Agents, Paramount Sales Co., N .Y.,
U. S. A. Oz.”
These representations, according to the complaints, indicated to
the public that the flavoring extracts were prepared and packaged
by the National Chemical Laboratory at Milan, Italy, that they
were imported into the United States, and implied that the prod¬
ucts were awarded first prize at certain Italian expositions, when,
in fact, the complaint alleges that these representations were not
true and that the extracts sold were prepared and packaged in
the State of New York by American manufacturers.
The respondents’ representations are alleged to cause purchasers
to believe that they are buying imported extracts superior in merit
to domestic products.
No. 2906. Charging the respondent with making certain mis¬
representations in advertising and selling safety razor blades,
alleged to be in violation of Section 5 of the Federal Trade Com¬
mission Act, a complaint has been issued against K. H. Macy &
Company, of New York City, in which the respondent company
is allowed until September 25, next, to show cause why it should
not cease and desist from the practices named.
The complaint sets out that the respondent company sells safety
razor blades designated as “Macy’s Double Edge DeLuxe Blades,”
and that these blades are purchased by the respondent from the
manufacturer thereof, the Utility Blade Corporation, of Maple¬
wood, N. J. This manufacturer, says the complaint, at the request
of the respondent company, packs said blades in small containers
of ten blades each and upon the package prints the designation
mentioned, also the words “Made of English Razor Steel.” In
advertising its safety razor blades, the complaint sets out, the
respondent company makes the following representation:
“We went to Pennsylvania for a new secret-process, high-speed
steel. In ingots, we took it to England to be rolled to a ribbon,
because the British armorers roll steel with unbeatable accuracy.
We brought the ribbon-reels back from England and had them
cut into blade-shapes, then honed and stropped with more loving
care than we’ve ever seen put into such a job.”
The complaint says that in fact the blades are stock blades made
by the Utility Blade Corporation, are made for sale and are sold
to retailers generally; are not made under the respondent’s super¬
vision ; are not made of English razor steel, but of steel made and
fabricated in the United States, except that the steel is rolled in
England. The complaint avers that there are other retailers of
safety razor blades who purchase blades from the same manu¬
facturer, and from other manufacturers, who do not misrepresent
them and that the misrepresentations alleged have the capacity and
tendency to divert business to the respondent company from its
competitors, to the injury of such competitors.
No. 2907. Charging unfair competition in the sale of flavoring
extracts, a complaint has been issued against Anna R. Barletta,
of 2100-2102 East 177th St., New York City, trading as Barletta
Manufacturing & Packing Co., and Hercules A. Barletta.
Bottles containing flavoring extracts sold in interstate commerce
are alleged to have been labeled with Italian designations indicat¬
ing that the products were prepared and packaged by modern
1490
Italian laboratories in Naples or Milan, Italy, and that they were
imported into the United States. Counter display cartons are
said to have shown that the respondents’ products had won a
prize at an Italian exposition. These representations, according
to the complaint, were not true, and the products as sold had
been compounded and packaged by the respondents in New York
State.
Deception of buyers and diversion of trade to the respondents
from competitors are alleged to have resulted from the respond¬
ents’ practices, which, according to the complaint, constituted
violation of Section 5 of the Federal Trade Commission Act.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 2409. The Metropolitan Surgical Instrument Council,
Inc., of New York City, its officers and 48 member firms or com¬
panies, have been ordered to cease and desist from combining to
fix and establish uniform prices at which members or others shall
sell surgical instruments and supplies.
The order also prohibits the printing and publishing of lists
containing names of dealer-members so as to include in such lists
only so-called regular or “recognized” dealers, distributors and
wholesalers, and to exclude and identify as such so-called “non-
recognized” dealers, distributors and wholesalers, and the supplying
of such lists to manufacturers of surgical instruments and ap¬
pliances.
Maintenance of coercive and concerted action, boycott and other
united action against manufacturers, dealers and others to require
them to refrain from selling to non-member dealers, is also barred
under the order.
The respondents are directed to cease procuring adherence by
association members to a price schedule agreed upon, by means
of a system of fines exacted from members making sales of
surgical instruments and supplies at prices less than those set out
in the schedules.
The Commission granted leave to certain respondents to sign
answers or amended answers agreeing to issuance of an order to
cease and desist from the practices alleged in the complaint.
The complaint against 16 individual respondents was dismissed
because it was believed the order to cease and desist against the
48 member firms or companies effectively restores free and open
competition between and among all respondents selling surgical
instruments and appliances in interstate commerce. These in¬
dividual respondents are Ben Gordon, Oscar Cochran, John C.
Lindsey, C. Invedinato, Edward Low, Anthony J. Jamison, and
H. S. Nussbaum, officers of the council, all of New York City, and
the following active members: Nathan S. Low, Victor W. Filler,
Benjamin J. Perlstein, E. G. Pfarre, S. B. Amsterdam. George J.
Young, Maurice F. Powell, and Robert Horwitz, all of New
York City, and George Dornhaefer, Jersey City, N. J.
The complaint in so far as it applied to Samuel Wasserman,
trading as City Surgical Co., was dismissed because this respondent
was not a member of and did not participate in activities of the
council, and that against Barney B. Rifkin, of New York City,
was dismissed because of his retirement from business.
Nos. 2612-2662. Orders have been issued requiring Ucanco
Candy Co., Inc., of 600 East Fourth Street, Davenport, Iowa,
and Brecht Candy Company, 2111 North Speer Blvd., Denver,
Colo., to cease and desist from selling and distributing to jobbers
and wholesalers candy so packed and assembled that sales to the
general public are made, or are designed to be made, by means
of a lottery, gaming device, or gift enterprise.
The orders also direct the respondents to stop supplying whole¬
salers or jobbers with “push cards” for use in the sale of candy to
the public.
The Denver firm is also prohibited from packing or assembling
in the same assortment of candy for resale to the public, pieces
of candy of uniform size and shape having centers of a different
color, together with larger pieces or small packages of candy, which
larger pieces or small packages are to be given as prizes to the
purchaser procuring a piece of candy with a center of a particular
color.
No. 2755. An order has been issued requiring eight manufac¬
turers dealing in sportswear in Boston, Brockton and Dorchester,
Mass., to discontinue any understanding or combination among
themselves to restrict and eliminate competition in the interstate
sale of flannel skirts, by agreeing to quote and sell them at a
uniform price.
The order also prohibits distribution to customers of identical
notice to the effect that the price of flannel skirts would be at a
uniform price.
Sportswear dealers named as respondents are: Boston Sports¬
wear Co., 72 Kneeland St.; Kobert Hamilt, 75 Kneeland St.,
trading as Bobby Sportswear Co.; Gordon Maid Skirt Co.,
Die., 75 Kneeland St.; Louis Wadnian Co., 75 Kneeland St.,
trading as Oxford Sportswear Co.; Louis Maltzman, 75 Knee¬
land St., trading as Simmons Sportswear Co.; Schwartz Sports¬
wear Co., Inc., 75 Kneeland St., all of Boston; Weatherproof
Clothing Mfg. Co., 146 Court St., Brockton, Mass., and David
A. Sallop, trading as Peerless Sportswear Co., 1394 Dorchester
Ave., Dorchester, Mass.
Findings are that the respondent companies, in October, 1935,
entered into an understanding or combination, agreeing to quote
and sell flannel skirts at a uniform price of $16.50 a dozen, and
that they distributed identical written notice to that effect, and
sales were made at that price.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, September 1
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — North Jersey Broadcasting Co., Inc., Paterson, N. J. —
C. P., 620 kc., 250 watts, daytime.
NEW — Wm. H. Davis, Dixon Pyles, W. H. Johnson, d/b as Mag¬
nolia Broadcasting Co., Jackson, Miss. — C. P., 1420 kc.,
100 watts, unlimited time.
Wednesday, September 2
HEARING BEFORE AN EXAMINER
(Broadcast)
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Au¬
thority to transfer control of corporation to WJR, The
Goodwill Station; 1450 kc., 500 watts, 1 KW LS, unlimited
time.
Thursday, September 3
HEARING BEFORE AN EXAMINER
(Broadcast)
KMMJ — The M. M. Johnson Company, Clay Center, Nebr. —
C. P., 740 kc., iy2 KW LS, limited time. Present assign¬
ment: 740 kc., 1 KW LS, limited time.
KSD — The Pulitzer Publishing Co., St. Louis, Mo.- — Modification
of license, 550 kc., 1 KW, 5 KW LS, unlimited time (re¬
quests facilities of KFUO). Present assignment: 550 kc.,
1 KW, 5 KW LS, shares with KFUO.
KFUO — Evangelical Lutheran Synod of Missouri, Ohio, and Other
States, Rev. R. Kretzschmar, Chairman, Board of Control
of Concordia Seminary, Clayton, Mo. — Renewal of license,
550 kc., 500 watts, 1 KW LS', shares with KSD.
The Broadcast Division has taken the following action subject
to ratification at its next regular meeting:
APPLICATIONS GRANTED
WJER — The Journal Co., Milwaukee, Wis. — Granted authority to
operate broadcast pickup station on frequencies 1606, 2020,
2102, 2760 kc., August 23 to 29, inclusive, to broadcast
Wisconsin State Fair.
KFEL — Eugene P. O’Fallon, Inc., Radio Station KFEL, Denver
Colo. — Granted authority to extend test period 30 days from
August 20.
KIGA-KABE — National Battery Broadcasting Co., St. Paul, Minn.
— Granted authority to operate broadcast pickup stations
as licensed, September 4 to 12, inclusive, for testing and
broadcast Minnesota State Fair.
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Granted
special temporary authority to operate with reduced power
of 1 KW for a period beginning August 19 and ending in
no event later than September 1, 1936, in order to comply
with terms of modification of permit.
1491
WINS— Hearst Radio, Inc., New York City. — Granted extension
of special temporary authority to operate a 100-watt trans¬
mitter on 1180 kc. between hours of 1 and 6 a. m., EST,
in vicinity of Jersey Meadows, for a period beginning
August 23 and ending no later than September 21, in order
to make field tests to determine new transmitter site.
WSBT — South Bend Tribune, South Bend, Ind. — Granted special
temporary authority to operate a 100-watt portable trans¬
mitter on 1010 kc. during daytime hours for the period be¬
ginning August 24 and ending in no event later than Sep¬
tember 22, in order to make transmitter site tests in the
South Bend area.
WRBL — WRBL Radio Station, Inc., Columbus, Ga. — Granted
special temporary authority to operate a 100-watt portable
transmitter between the hours of 1 and 7 a. m., CST, for
a period not to exceed 10 days, in order to conduct a loca¬
tion survey.
WDAE — Tampa Times Co., Tampa, Fla. — Granted special tem¬
porary authority to operate without plate voltmeter for
the period August 20 and ending in no event later than
September 3, 1936.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
special temporary authority to operate from 10 p. m. to
11:30 p. m., EDST, on August 28, 1936, in order to broad¬
cast Col. Knox speech, and to operate from 8 p. m. to 12
midnight, EDST, September 8, to broadcast election
returns.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Granted ex¬
tension of special temporary authority to operate simul¬
taneously with station WKBO from 10 to 11 a. m. and from
5 to 6 p. m„ EST, for the period August 25 to September
23, 1936, pending agreement on division of time due to
adoption of Daylight Saving Time in Easton, Pa.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Granted extension of special temporary authority to operate
with a temporary antenna pending the rebuilding of towers
demolished by storm, for period August 27, 1936, and end¬
ing not later than September 25, 1936.
WCAU — WCAU Broadcasting Co., Philadelphia, Pa. — Granted
special temporary authority to operate on 860 kc. and 1020
kc. in addition to 1170 kc. for test purposes between 2 and
6 a. m., EST, for the period August 24 to August 28, in
order to make a comparison of fading on three frequencies
approximately 150 kc. apart.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted special temporary
authority to operate station without antenna ammeters for
a period beginning August 23 and ending no later than
September 1, 1936.
WJIM — Capital City Broadcasting Co., Lansing, Mich. — Granted
special temporary authority to operate station without an¬
tenna ammeter for a period not to exceed 10 days pending
repair to that apparatus.
WDEV— Mary M. Whitehill, Executrix of Estate of Harry C.
Whitehill, Waterbury, Vt. — Granted special temporary au¬
thority to operate from 7 to 10:30 p. m., EST, August 28,
1936, in order to broadcast speech by Col. Frank Knox.
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Granted
modification of C. P. to change type of equipment author¬
ized by original C. P.
WDAE — Tampa Times Co., Tampa, Fla. — Granted petition to
withdraw its application for modification of license (Docket
No. 4082), without prejudice, under provisions of Rule
103.8.
WJDX — Lamar Life Ins. Co., Jackson, Miss. — Granted petition
to intervene in the hearing of application of Magnolia
Broadcasting Co., Jackson, Miss., for C. P.
WKBB — Sanders Bros. Radio Station, E. Dubuque, Ill. — Granted
petition to intervene in the hearing on application of Tele¬
graph Herald, Dubuque, Iowa, for C. P.
WMCA — Knickerbocker Broadcasting Co., Inc., New York City. —
The Commission, upon consideration of the protests by the
Central New York Broadcasting Corp., WKBN Broadcast¬
ing Corp., WFIL Broadcasting Co., and the Southern Con¬
necticut Broadcasting Corp., protesting the action of the
Commission on July 2, 1936, in granting without a hearing
application of WMCA to increase power from 500 watts to
1 KW, directed that said application be designated for hear¬
ing in accordance with the provisions of Rule 104.4 and that
the effective date of the Commission’s action on said appli¬
cation be postponed until the date of the Commission’s
decision after hearing on protests.
APPLICATION DENIED
WKEU — Radio Station WKEU, Griffin, Ga. — Denied special tem¬
porary authority to operate from local sunset (6:30 p. m.,
CST) to 12 midnight, CST, August 26, 1936.
RENEWAL OF LICENSES
The Commission granted the following applications for renewal
of broadcast station licenses, for the regular period:
KGBU, Ketchikan, Alaska; KGFX, Pierre, S. Dak.; KHJ and
auxiliary, Los Angeles, Calif.; KLZ, Denver; KPOF, near Denver;
KTAR, Phoenix, Ariz.; KWTO, Springfield, Mo.; WCAO and
auxiliary, Baltimore; WELI, New Haven, Conn.; WFMD, Fred¬
erick, Md. ; WICC, Bridgeport, Conn.; WIP, Philadelphia; WIS,
Columbia, S. C.; WJAR, Providence, R. I.; WJAY, Cleveland,
Ohio; WKBN, Youngstown, Ohio; WKRC, Cincinnati; WKZO,
Kalamazoo, Mich.; WLBL, Stevens Point, Wis.; WLBZ, Bangor,
Maine; WMAL, Washington, D. C., and auxiliary; WNAX, Yank¬
ton, S. Dak., and auxiliary; WORL, Boston, Mass.; WOW, Omaha,
Nebr.; WSYR-WSYU and auxiliary, Syracuse, N. Y.; WTAG,
Worcester, Mass.; WTAR and auxiliary, Norfolk, Va.; WWJ,
Detroit, Mich.
WMFJ — W. Wright Esch, Daytona Beach, Fla. — Granted renewal
of license for the period ending January 1, 1937.
W8XO — The Crosley Radio Corp., near Mason, Ohio. — Granted
renewal of special experimental license for experimental
service, effective August 21, 1936, to expire November 21,
1936, in exact conformity with existing license.
WlXAC — Shepard Broadcasting Service, Inc., Quincy, Mass. —
Granted renewal of special experimental license for experi¬
mental service, effective August 21, 1936, to expire Novem¬
ber 21, 1936, in exact conformity with existing license.
APPLICATIONS RECEIVED
First Zone
NEW — Bay State Broadcasting Corp., Providence, R. I. — Con-
720 struction permit for a new station to be operated on 720
kc., 1 KW, limited time.
WORL— Broadcasting Service Organization, Inc., Boston, Mass.—
920 Construction permit to install directional antenna for day
and night use, increase power from 500 watts to 1 KW, and
change hours of operation from daytime to unlimited.
WAWZ— Pillar of Fire, Zarephath, N. J. — Modification of license
1350 to increase power from 500 watts night, 1 KW day, to 1
KW night and day.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Modifica-
1410 tion of construction permit (Bl-P-1212) for changes in
equipment, requesting to install a new transmitter.
Second Zone
NEW — Statistical Research Laboratories, Inc., Cleveland, Ohio. —
1200 Construction permit for a new station to be operated on
1200 kc., 100 watts night, 250 watts day, unlimited time.
WXYZ — Kunsky-Trendle Broadcasting Corp., Detroit, Mich. —
12401 Modification of license to change name from Kunsky^
Trendle Broadcasting Corporation to King-Trendle Broad¬
casting Corporation.
WASH — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
1270 Mich. — Modification of license to change name from Kunsky-
Trendle Broadcasting Corp. to King-Trendle Broadcasting
Corp.
WOOD — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
1270 Mich. — Modification of license to change name from Kunsky-
Trendle Broadcasting Corporation to King-Trendle Broad¬
casting Corporation.
NEW — Waldo Abbot, Ann Arbor, Mich. — Construction permit for
1550 a special broadcast station to be operated on 1570 kc.,
1 KW, unlimited time. Amended to request frequency
1550 kc., transmitter and studio sites to be determined,
Ann Arbor, Mich.
Third Zone
NEW — Seaboard Investment Co., Inc., Montgomery, Ala. — Con-
610 struction permit for a new station to be operated on 610 kc.,
500 watts night, 1 KW day, unlimited time. Amended to
change requested power from 500 watts, 1 KW day, to 250
watts night, 500 watts day.
1492
NEW — Texhoma Broadcasting Co., Wichita Falls, Tex. — Con-
630 struction permit for a new station to be operated on 630 kc.,
1 KW, unlimited time.
KWKH — International Broadcasting Corp., Shreveport, La. — Ex-
1100 tension of special experimental authorization to operate on
1100 kc., unlimited time, with directional antenna at night
for period 2-1-36 to 8-1-36. Amended: For period from
8-1-36 to 2-1-37.
WDAE — Tampa Times Co., Tampa, Fla. — License to cover con-
1320 struction permit (B3-P-622) for equipment changes and
increase in power.
KUOA — KUOA, Inc., Fayetteville, Ark. — Modification of license
1260 to move main studio from Fayetteville, Ark., to Campus of
John Brown University, Siloam Springs, Ark.
NEW — Radio Enterprises, partnership of R. Lacy and J. R.
1310 Curtis, Lufkin, Tex. — Construction permit for a new station
to be operated on 1310 kc., 100 watts, daytime.
WDAH — Tri-State Broadcasting Co., Inc., El Paso, Texas — Modi-
1310 fication of license to use the transmitter now licensed to
KTSM located at corner Texas and Stanton Streets, El
Paso, Tex.
KPDN— Pampa Daily News, Inc., Pampa, Tex. — Voluntary as-
1310 signment of license from Pampa Daily News, Inc., to R. C.
Hoiles.
NEW — H. W. Wilson and Ben Farmer, Wilson, N. C. — Construc-
1310 tion permit for a new station to be operated on 1310 kc.,
100 watts, daytime.
NEW — William Avera Wynne, Wilson, N. C. — Construction per-
1310 mit for a new station to be operated on 1310 kc., 100 watts,
daytime.
NEW — Paul B. McEvoy, Pub., Hobart Democrat-Chief, Hobart,
1420 Okla. — Construction permit for a new station to be operated
on 1420 kc., 100 watts, unlimited time.
Fourth Zone
WOWO — Main Auto Supply Co., Fort Wayne, Ind. — Modification
1160 of license to change name from Main Auto Supply Co. to
Westinghouse Radio Stations, Inc.
WIBO — Wm. C. Forrest, Poynette, Wis. — Construction permit to
1210 install a new transmitter.
WHBL — Press Publishing Co., Sheboygan, Wis. — Construction per-
1300 mit to install a new transmitter and change power from
2S0 watts to 250 watts night, 1 KW day.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — License to cover
1350 construction permit (B4-P-848) as modified authorizing
installation of new equipment and removal of transmitter.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — Authority to de-
1350 termine operating power by direct measurement of antenna.
WMBH — Joplin Broadcasting Co., Joplin, Mo. — Construction per-
1420 mit to make changes in equipment; install directional an¬
tenna for night use; change frequency from 1420 kc. to
1380 kc.; increase power from 100 watts, 250 watts day,
to 500 watts; move transmitter from 1334 Roosevelt Ave.,
Joplin, Mo., to 1 mile east of city limits of Joplin, Mo.,
and studio from 1334 Roosevelt Avenue, Joplin, Mo., to
401 Main Street, Keystone Hotel, Joplin, Mo. Amended to
make further changes in equipment.
W10XDD — Evansville on the Air, Inc., Portable-Mobile.- — Con¬
struction permit to change power from 2.4 watts to 35
watts and make changes in equipment.
Fifth Zone
NEW — John R. & Joe L. Peryatel and Richard K. Beauchamp
1210 d/b as Peryatel Bros. & Richard K. Beauchamp, Ration,
New Mexico — Construction permit for a new station to be
operated on 1210 kc., 100 watts, unlimited time.
KHUB — F. W. Atkinson, Watsonville, Calif.— Modification of
1310 construction permit (B5-P-781) for a new station, request¬
ing authority to install vertical antenna, approval of trans¬
mitter site at Santa Cruz Highway, Watsonville, California,
and studio at Near Watsonville-Santa Cruz Highway, Wat¬
sonville, Calif.
NEW — W. E. Whitmore, Hobbs, New Mexico — Construction per-
1500 mit for a new station to be operated on 1210 kc., 100 watts,
unlimited time. Amended: To change frequency from 1210
kc. to 1500 kc., and hours of operation from unlimited time
to daytime only.
Hawaiian Zone
KGU — Marion A. Mulrony & Advertiser Publishing Co., Ltd.,
750 Honolulu, Territory of Hawaii — Construction permit to
make changes in equipment.
1493
Bj$gPo$
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * * *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 43
SEPT. 1, 1936
American Society of Recording Artists, Inc.
As information to members, there is printed below a report and opinion in respect of
the American Society of Recording Artists, Inc.
TABLE OF CONTENTS
OF
OPINION AND BRIEF
Page
The Organization of ASRA . 1495
Methods of Operation . 1496
Radio Stations that have taken licenses . 1496
Percentage of Recordings Affected by ASRA . 1496
Defects in form of License to Stations
A) Specific objections to form of license . 1497
B) General objections to form of license . 1499
Disadvantages of Contracting with ASRA . 1499
Advantages of Contracting with ASRA . 1500
Legal Rights of ASRA . 1500
Rights of ASRA to Damages . 1500
Conclusions . 1501
EXHIBITS
Articles of Incorporation dated May 16, 1934 . 1501
Permit to sell its Securities dated July 17, 1934 . 1502
Letter to Artists dated February 15, 1934 . 1503
Application by Artist for Membership (enclosed with above
letter) . 1503
Letter to Broadcasters dated April 1, 1935 . 1503
Application by Radio Station for License (enclosed with
above letter) . 1504
By-Laws referring to “Licensee Members” (enclosed with
above letter) . 1504
Application by Artist for Membership (later form than on
Page 1503) . 1505
Letter to Broadcasters dated February 10, 1936 . 1506
List of ASRA Artists (enclosed with above letter) . 1507
Resolution of ASRA Board of February 1, 1936 (enclosed
with above letter) . 1508
Excerpts of Waring decision (from Variety) (enclosed with
above letter) . 1508
Notice to Radio Stations with references to Court decisions
(Undated) . 1509
CRAWFORD & SPRAGUE
117 Liberty Street
New York, N. Y.
August 28, 1936.
The National Association of Broadcasters,
National Press Building,
Washington, D. C.
Gentlemen :
You have requested me to investigate the activities of the
American Society of Recording Artists, Inc., a California Corpora¬
tion, and to report to you the results of my findings, and to submit
to you an opinion and brief with respect to the rights of performers
who have made phonograph records as against radio stations who
broadcast such records.
THE ORGANIZATION OF ASRA
The American Society of Recording Artists, Inc., filed Articles of
Incorporation in the office of the Secretary of State of the State
of California on May 3, 1934. The incorporators and first direc¬
tors of the Corporation named in the Certificate are G. Brandt,
C. Andrews and E. Hensgen, all of whom gave their addresses as
403 Lane Mortgage Building, Los Angeles, California. The Cor¬
poration is authorized to issue 2500 shares of stock of $10 par
value, all of which is common stock, so that the total capitalization
is $25,000.00. The Articles state that the principal office will be
located in the County of Los Angeles, in the State of California.
The Corporation is given broad general powers. The specific
powers deal generally with the business of dealing in, for broad¬
casting and other commercial purposes, records of “the voice talents
or work of artists”, promoting the popularity of recording artists,
contracting for the reproduction or use of records for broadcasting
and commercial purposes, and to deal in copyrights and patents.
The Charter appears to have been filed by Leonard J. Meyberg, an
attorney at law, located in the Lane Mortgage Building in Los
Angeles, and who is now General Counsel of ASRA. A copy of the
Articles of Incorporation is attached at the end of this report as
Exhibit “1”.
On July 17, 1934, the Department of Investment of the Division
of Corporations of the State of California granted the application
of ASRA for a permit authorizing it to sell its stock and issued a
permit with the expiration date of January 17, 1935, authorizing
the sale and issuance of not to exceed 2,000 shares at par in cash
to the three Incorporators named in the Articles of Incorporation,
and to Arthur Levy and William Leeds, or to any of them. No
application for an extension of the permit beyond January 17, 1935,
is shown on the records of the Secretary of State, so the Corpora¬
tion either complied with the permit and issued the shares, or
permitted the permit to lapse. I believe it is a fair presumption
that at least some of the shares have been issued. It is impossible
to ascertain the names of the present stockholders and the amount
of their holdings without approaching the Executives of ASRA for
this information, and this was deemed unwise at present. The
application filed by ASRA for the permit is likewise not available
from the Division of Corporations, except upon order of ASRA,
or its attorney. A copy of the permit is inserted at the end of this
report, as Exhibit “2”.
It is known that G. Brandt, named in the Certificate as one of
the Incorporators and Directors, is Secretary to Leonard J. Mey¬
berg, the attorney who prepared and filed the Articles of Incor¬
poration. It seems quite likely that C. Andrews and E. Hensgen,
the other two Incorporators and First Directors, are likewise asso¬
ciated with Mr. Meyberg and have no financial interest in the
Corporation, or are acting for undisclosed parties. The appearance
of the names Arthur Levy and William Leeds in the permit leads
one to the conclusion that these men are the real parties in interest.
Mr. Levy is listed on the letterheads of ASRA as “Executive Secre¬
tary”. Mr. Leeds has been in New York City recently soliciting
licenses from broadcasting stations. It is possible, however, that
stock was issued to Brandt, Andrews and Hensgen and that they
either retained it for themselves, or transferred it to parties who
did not desire their names to appear. The maximum capitalization
under the permit is $20,000.00, and this amount would not be in¬
creased without additional permits from the State of California. The
actual capital may, however, be substantially less than $20,000.00,
1495
as the permit did not require the issuance of 2000 shares, that
figure being merely the upper limit.
METHODS OF OPERATION OF ASRA
Between May 3, 1934, and February IS, 1935, ASRA undertook
to establish the nucleus of a membership of artists. It established
an Executive Committee with A1 Jolson as its Chairman. It con¬
tacted some of the makers of phonograph records and endeavored
to have them become members. The plan was that ASRA would
keep ten per cent, of the income from royalties and would divide
the balance equally between the artist members and the Recording
Company members.
On February IS, 1935, a form letter went out to artists over
the name of the Chairman of the Executive Committee, inviting
the recipient to accept membership in ASRA in order to secure a
share in the income which it expected to collect from broadcasters
“estimated up to $5,000,000 annually”. A copy of this letter is
attached as Exhibit “3”.
Enclosed with the letter from ASRA to the artists was a form
of “Application for Regular Membership,” which contained an
assignment to ASRA for five years of “all rights of reproduction
for use for broadcast and/or commercial purposes * * * with
the right to determine royalties * * *. Rights, otherwise con¬
tained in contracts now existing between me and Recording Com¬
panies are not included herein.” It was further provided that the
artist would pay no dues, initiation fees or assessments, and would
not be liable for any debts or obligations of ASRA. By this agree¬
ment the artist was to receive forty-five per cent, of the royalties
collected by ASRA for broadcasting phonograph recordings of the
artist. A copy of this application appears as Exhibit “4” at the
end of this report.
On April 1, 1935, ASRA sent a form letter to most all of the
broadcasting stations in the United States, acquainting the recipi¬
ents with the Organization of ASRA and its purposes, and that it
then had “hundreds of the World’s leading recording artists” as
members. The letter stated that it had adopted “Licensee member¬
ships” whereby broadcasters might be represented and obtain
licenses to broadcast the talents of the members of ASRA through
the medium of phonograph records, and stating that it intended to
begin the collection of royalties on May 1, 1935, and that any one
desiring to continue to broadcast with the consent of the artist
should have his signed application in the hands of ASRA not later
than April 15, 1935. A copy of this letter of April 1 is attached
as Exhibit “5”.
With the letter of April 1, 1935, there was enclosed a printed
form of “Application for Licensee Membership.” A typewritten
copy of this form is attached to this report as Exhibit “6”.
On the reverse side of the printed form there was printed Sections
1 to 14 of Article XII of the by-laws of ASRA referring to licensee
members and a typewritten copy of this map appears as Exhibit “7”
attached to this report.
On or about May 1, 1935, ASRA’s negotiations with the Phono¬
graph Companies came to an end, the Phonograph Companies de¬
clining to accept memberships. Accordingly, ASRA prepared a
new form of application to be signed by artists, containing an
assignment of “all rights of reproduction or use for broadcasting
and/or commercial purposes * * * of the applicant’s recorded
voice, talents or work, together with the right to determine the
royalty * * * excluding therefrom, however, any and all
rights included in any contract now existing between applicant
and a Reproduction Company.” The agreement specifically ex¬
cluded such “rights of reproduction for ordinary recording purposes,
as are now contained in the general form contracts used by Victor,
Columbia or Brunswick Companies, copies whereof are on file in
the office of the Society * * *” The right is also given ASRA
to sue in its own name, or in the name of the applicant, to enforce
any of the rights granted by the applicant, but at the sole expense
of ASRA. The applicant further agreed to pay ASRA ten per
cent, of the sums thereafter received by the applicant by reason of
the applicant’s work with Recording Companies, or for mechanical
reproduction of the applicant’s voice, talent or work, whether the
contracts were obtained by ASRA or not, it being stated that this
additional compensation was agreed upon in view of the increased
returns contemplated by the parties from the sale of records
through the efforts of ASRA. A copy of this application for mem¬
bership is attached to this report as Exhibit “8”. It is not known
which artists have signed this form of application and which have
signed the application previously used and referred to herein as
Exhibit “4”.
On February 10, 1936, another circular form letter was sent to
broadcasting stations by ASRA over the signature of its Executive
Secretary, Mr. Arthur W. Levy, to which was attached a copy of
a resolution of the Board of Directors of ASRA, held February 1,
1936, and a reprint from page 55 of “Variety” of January 22, 1936,
regarding the decision in the Court of Common Pleas in Philadel¬
phia, in the case of Fred Waring v. Station WDAS. On the back of
the letter of February 10, there was printed a list of artists whom
ASRA claimed had previously assigned to it the right to use their
talents for broadcasting purposes through the medium of record¬
ings, pursuant to written memorandum thereof on file with the
Society. The letter demanded that the stations refrain from
broadcasting phonograph records of these members without a
license and that the stations account and pay ASRA for each
usage made, if the stations failed or refused to abide by ASRA’s
demands. Copies of these papers are attached hereto and marked
Exhibit “9”.
Later in the Spring of 1936, ASRA sent to Broadcasting Stations
a printed circular bearing no date, but containing at the top of the
page the words “A1 Jolson, President” and at the bottom of the
first page a list of the Board of Governors and the Chairmen of
the various Committees. The inner portion of the circular con¬
tained various excerpts from Court decisions, while the back cover
bore a list of Court decisions which were supposed to be authority
for ASRA’s right to demand royalties for the broadcasting of
phonograph records. A typewritten copy of this printed circular
is attached as Exhibit “10”.
The present offices of ASRA are located in Room 205 of the
Belson Building at No. 6513 Hollywood Boulevard in Los Angeles,
California. The space occupied consists of approximately three
rooms and a sparsely furnished reception room. The name “Ameri¬
can Society of Recording Artists, Inc.” appears on the door of
Room 205 and the same name appears on the bulletin board in
the lobby of the building, together with the names of Anna Mae
Bell and Arthur W. Levy, the latter of whom is the Executive
Secretary of ASRA.
ASRA maintains another office in the Bank of America Building
in Beverly Hills, California, at No. 9470 Santa Monica Boulevard.
On the door of Room 408 of that building there appears the name
“American Society of Recording Artists, Inc.” and below it the
words “Bureau of Investigation.” The space occupied seems to
consist of only one office, or room.
The last circular letter (Exhibit “10”) carries only the Beverly
Hills address.
RADIO STATIONS THAT HAVE TAKEN ASRA
LICENSES
So far as I have been able to ascertain, only three stations
have, during the two years of existence of ASRA, entered into
license agreements with it.
This Spring, Station KMPC of Beverly Hills, California, with
500 watts power, and Station KGFJ of Los Angeles, with 100
watts power, signed ASRA contracts, but immediately ceased using
phonograph records and changed to electrical transcriptions.
These stations are required by their licenses to pay ASRA an
annual service fee of $60.00, even though no phonograph records
are broadcast.
Station KPFL of Dublin, Texas, with 100 watts power signed
an ASRA contract on March 2, 1936. When it came time to
pay its second quarterly service fee, it wrote ASRA requesting
that it be relieved of the service charge because it had broadcast
only four records of performances of ASRA artists in almost four
months, but ASRA declined to eliminate the charge.
Station KFOX of Long Beach, California, with 1000 watts
power, negotiated with ASRA, but, I am informed, has since
decided not to sign any agreement.
Each of these stations that has signed is committed for a period
of one year and for two years unless written notice is given ASRA
thirty clays prior to the end of the first year in accordance with
the terms of the agreement.
PERCENTAGE OF RECORDINGS AFFECTED BY
ASRA
I have taken the list of artists printed on the back of ASRA’s
letter to radio stations of February 10, 1936 (See Exhibit “9”)
and compared these names with the names of artists appearing
on lists of the October, 1935, Releases of Columbia and Victor,
a 1936 Circular of Releases by Decca, and the Victor Red Seal list
in its 1936 catalog with the following result:
COLUMBIA:
Of 282 selections recorded, 64 are by artists on the ASRA list,
or 23 per cent.
1496
DECCA:
Of 381 recorded compositions 88 are by artists on the ASRA
list, or 23 per cent.
VICTOR:
Of 186 recordings on the October, 1935, Victor list, 49 are by
artists on the ASRA list, or 26 per cent.
Of 2,365 recordings on the Victor Red Seal list in its 1936
catalog 653 are by artists on the ASRA list, or 27)4 per cent.
The average of the current recordings of the three companies
appears to be about 25 per cent ASRA*.
DEFECTS IN FORM OF LICENSE TO STATIONS
(a) Specific Objections to Form of License
By-Laws part of agreement
(1) The first paragraph of the agreement provides that the
station “agrees to abide * * * by the By-Laws of the Society
applicable to such ‘Licensee Memberships’ ”. The third paragraph
provides that “The By-Laws printed on the reverse side hereof shall
be binding upon the parties hereto the same as though contained
herein.” Section 4 of Article XII of the By-Laws provides that
“such application, together with the By-Laws of the Society per¬
taining thereto, shall constitute the agreement or license between
the Society and the applicant Licensee Member.” Section 6 of
Article XII of the By-Laws provides that “Each Licensee Member
shall be bound by these By-Laws * * *.” It is not clear whether
the station would or would not be bound by any By-Laws other
than those contained on the back of the Agreement. There would
seem to be no necessity for the reference to By-Laws in the first
paragraph of the agreement unless other By-Laws than those
contained on the back of the agreement were contemplated. The
clauses in paragraph 1 of the agreement and in section 4 of the
By-Laws should be eliminated and if possible a clause should be
added to the agreement that no By-Laws other than those
enumerated on the back of the agreement shall in any way affect
the terms of the agreement and that no modifications of such
By-Laws shall affect the terms of the agreement. These changes
regarding By-Laws may not be considered by some stations to be
of sufficient importance to them to justify insisting on their being
made.
Release covering past use
(2) Paragraph 4 of the agreement states:
“Provided the applicant shall have fulfilled this agreement,
upon its part, the Society agrees to release the applicant from
any and all liability to it or its Regular Members, without
compensation whatsoever, or charge therefor to it or its
Regular Members, arising from the broadcasting of its mem¬
bers’ talent through the medium of recordings, occurring prior
to the date of signing of this application.”
It is doubtful if this clause legally releases the station from
claims by ASRA members for past use. An examination of the
forms of application for membership by the artist fail to disclose
any such right being given to ASRA by the Artist. The By-Laws
applicable to such members are not available to broadcasters but in
the absence of some specific right in the By-Laws to release licen¬
sees from claims by the Artists this clause affords no protection
to the station except that it amounts to a covenant on the part
of ASRA (and not its members) not to sue the station. Even this
covenant is subject to limitations in that it is effective only if
the station fulfills the agreement. With a contract as ambiguous
as this, there will be room for many claims by ASRA of non¬
fulfillment by the station with the corresponding claim made that
by reason thereof prior claims have not been released. Any station
considering a license with ASRA should ascertain before sign¬
ing the license that the artist members of ASRA have explicitly
agreed either in the By-Laws which they have accepted or in
some other specific manner, to the granting of releases, and ( b )
endeavor to eliminate from the clause the words “Provided the
*(The computation includes recordings of orchestras conducted
by ASRA members — for instance Barbirolli conducting the London
Symphony. It is extremely doubtful whether Barbirolli has any
rights in such recordings as he plays no instrument in these per¬
formances. Also a great many recordings are of soloists with
orchestral accompaniment. The soloist may be an ASRA member
and the orchestra not or vice-versa. ASRA, since it can speak onlj
for its members, cannot give a complete license on these recordings.)
applicant shall have fulfilled this agreement, upon its part, the
Society agrees to release” and to substitute the words “Society,
for itself and on behalf of its members, hereby releases.”
Wattage, wage-length
(3) The sixth paragraph of the agreement fixes the charges for
stations with power of less than 500 watts at 5 cents, with power
of less than 1000 watts at 10 cents and with 1000 watts or more
at 15 cents per “usage.” The applicant is required to specify its
day wattage and night wattage on the application. Many if not
most stations using phonograph records have a higher daytime
power than night time power because greater power is necessary
in the daytime to cover the same area as lesser power will cover
at night. And yet under this arrangement a station may have to
pay twice or three times as much for broadcasting a record in
the daytime than for broadcasting the same record at night. I am
of the opinion that the fee should be fixed on the night time
wattage and should be no greater during the daytime and that the
agreement should be modified to expressly so provide. Section 8 of
Article XII of the By-Laws obliges the station to notify ASRA “of
any change * * * in wave length and/or wattage” and to pay
royalties covering such wattage at which the station operates.
The reference to wave length should be stricken as no change in
wave length can possibly affect the royalties payable by the
station. The remainder of the clause should be modified by adding
after the word “wattage” the clause reading “providing such
change in wattage increases or decreases the rate of royalty pay¬
able by the station.” By incorporating these changes the station
will not be put to the annoyance of reporting changes in opera¬
tion which cannot in any way concern ASRA, and the failure to
report which might amount to an innocent breach of the agree¬
ment.
Usage
(4) The sixth paragraph of the agreement provides that a fee
shall be paid for each usage of the talent of a member. Assuming
that two ASRA artists appear on one record are there two fees
payable or only one? For instance Richard Crooks sang for a
recent Victor release to the accompaniment of an orchestra con¬
ducted by Nat Shilkret. Both artists are ASRA members. The
agreement should specifically provide as follows: “Where a record¬
ing contains talent of two or more ‘Regular Members’ royalty shall
be paid as though the recording contained talent of only one ‘Regu¬
lar Member’.”
Electrical Transcriptions
(5) The eighth paragraph from the end of the agreement reads:
“Talent as herein expressed shall be the work or voice or
other reproduction from a personal effort which may be
broadcast by or through the facilities of the applicant, with¬
out the personal appearance of the artist, and whether through
the medium of recordings or otherwise.”
This clause and Section 10 of Article XII of the ASRA By-Laws
would require stations broadcasting electrical transcriptions in
which an ASRA member appeared to pay a fee to ASRA although
the maker of the transcription had already paid that artist in full
for the specific purpose of broadcasting. Electrical transcriptions
should be specifically excepted from the terms of the license.
72-Hour Restriction Clause
(6) The sixth paragraph from the bottom of the page of the
agreement reads:
“The applicant agrees to refrain from broadcasting such
talents through the medium of recordings, at such times as
may be designated from time to time in writing by the Society,
when the Society believes such broadcast may interfere with
the services of any regular member, and due notice of such
suspension shall be given the applicant not less than 72 hours
in advance of such suspension time or date.”
By this clause and Section 11 of the By-Laws of ASRA, ASRA
could conceivably restrict all recordings of every one of its “mem¬
bers” without any cause whatsoever, thereby securing by agree¬
ment an effective injunction (so to speak) which otherwise only a
Court could bring about, if at all. It is my opinion, for the reasons
set forth more fully later on in this report, that a performer cannot
legally enjoin a radio station from broadcasting a phonograph
record (provided the station is using no deception in its broadcasts
and correctly announces on the air the recording as a recording)
because the performer has no contract with the station. If a sta-
1497
tion signed a license containing this clause the Courts would quite
likely enjoin the broadcasting of records after the 72 hour notice
of restriction was given irrespective of the reasons or lack of
reasons for the ban, although there would probably be some de¬
fenses available to the station such as for instance that the per¬
former has an adequate remedy at law by way of damages. But
whatever way one looks at it the clause is detrimental to any
station who is bound to it. Therefore efforts should be made ( 1 )
to eliminate it entirely on the ground (a) that the Society does
not really need it since the agreements with artists give the
artists no corresponding right and, ( b ) that the agreement is
terminable by the Society at the end of a year in any event so
that if the Society wishes not to have broadcast recordings of any
one or more artists the license for the new period can be drawn
for only those artists who are willing to have their records
broadcast for that year, (2) to change that section reading “when
the Society believes such broadcast may interfere with the services
of any regular member” to read as follows “so as to prevent the
recording of a member to be broadcast in an area covered by a
‘live’ broadcast of that member within — hours preceding or
following such live broadcast,” or (3) to fix a limitation on the
number of recordings that can be under a ban at any one time.
The clause in its present form is broad enough to allow the
Society to ban a recording of Crumit if it believed it would inter¬
fere with the services of “John Charles Thomas,” for the language
does not provide that the talent to be banned must be that of
the member whose services might be believed by the Society to
be interfered with. This may seem rather far fetched but the
language clearly permits of such a construction. This ambiguity
should in any event be removed by ASRA.
Reporting records broadcast
(7) The third paragraph from the end of the agreement reads:
“The applicant shall forward to the Society promptly on
the last day of each week, on forms to be furnished by the
Society, a daily log sheet of all talents broadcast from records
played by it.”
This clause should be limited by inserting after the word “talents”
the words “of ‘regular members’ of Society.” ASRA should have
no interest in broadcasts of recordings other than its members.
Such information should be confidential to the station.
Service Fee of $60 a year
(8) The second paragraph from the end of the agreement reads:
“The applicant herein shall pay the Society a monthly serv¬
ice fee of $5.00, commencing with the date of acceptance
hereof, by the Society, payable quarter-annually in advance,
remittance for the first quarter to accompany this application.”
(See also Section 5, Article XII of By-Laws.)
While the amount of this “service fee” may not seem large there
seems no justification for any charge whatever. No part of this
fee goes to the Artists but only to the stockholders of ASRA.
What service is ASRA rendering to the station? ASRA should
be content with its percentage of royalties received for its “artist
members.” The service fee should be eliminated from the agree¬
ment and By-Laws.
Not a license to broadcast records but admission of
artists’ rights therein
(9) The concluding paragraph of the agreement reads:
“Nothing herein contained shall be deemed to include or
refer to or limit or extend rights to or interfere with the
playing of a phonograph record except in so far as there may
be a broadcast of the talents of a regular member of the
Society through the medium of a recording in which case it
shall be the right of the Society to control the use of such
talent for broadcasting purposes and collect compensation
therefor.”
At first glance this might appear to be harmless to the station.
On further examination, however, it is apparent that it is a specific
back-handed admission by the station that the ASRA members
have rights in phonograph records and that such members may
interfere with the broadcasting of the same and control their use
and collect royalties. Assume that the station decided a year or
two later that it could not afford to pay the royalties then de¬
manded. The station would not be in a position then to do any¬
thing but cease using records of any artist who had at any time
been an ASRA member because the station would be faced with
its prior admission in writing of the artists’ rights. If sued the
station would then find itself with either no defense or very limited
and doubtful defenses.
Assume that the station broadcasts a record containing not only
the performance of an ASRA member but (as will usually be the
case) also the performance of an orchestra, the leader and mem¬
bers of which are not ASRA members. Assume further that one
or more of the non-members sues the station and proves to the
Court or jury that this station had admitted in writing that the
ASRA artists had rights in that recording, can one seriously believe
that the station could succeed in convincing the Court or jury that
while the ASRA artist admittedly had rights that the non-ASRA
artist had none? The clause would be nearly as embarrassing
when the non-ASRA artist sued on a recording containing no per¬
formances by a co-artist of ASRA. This clause should also be
read in conjunction with my analysis of Section 13 of the By-Laws
in paragraph (11) which follows shortly hereafter. Both this
clause and Section 13 of the By-Laws should be stricken from the
agreement.
Cooperation
(10) Section 7 of Article XII of the By-Laws provides:
*“One of the purposes of the Society shall be to regulate and
collect a royalty by reason of the broadcasting of talent of its
artist or regular members through the medium of recordings.”
Section 8 of Article XII of the By-Laws concludes with the
sentence:
“Each member shall lend his every cooperation at all times
to the interest of the Society to the end that the Society may
carry out its purposes in the most economical, effective and
speedy manner.”
Just what is the purpose behind these provisions is not clear but
the purpose, whatever it may be, is certainly not for the advantage
of the broadcaster. By becoming a “licensee member” of ASRA
a station thereby subscribes in writing to the purpose of regulating
and collecting royalties for the broadcasting of records. This
admission would be damaging to a station sued by a non-ASRA
member or, after the license expired, by an ASRA member.
The “cooperation” mentioned in Section 8 might mean that a
station might be guilty of a breach of the agreement and might
thereby subject itself to damages if it failed to “cooperate” to
enable the Society to collect its royalties economically, effectively
and speedily. The cooperation called for by the Society might
conceivably be to urge the enactment of statutes giving rights to
performers in recordings. The station might be called upon to
urge other stations to become “licensee members.” Dozens of
other instances of possible cooperation might be demanded which
the station would never wish to undertake. The station could
perhaps never sue ASRA for that might be construed to be a
breach of the station’s agreement to “cooperate.” Conceivably,
if ASRA should sometime be charged to be operating in violation
of the Anti-Trust Statutes, the station might be charged as a co¬
conspirator with ASRA as a party to a common scheme.
There is no justification for the above provision quoted from
Sections 7 and 8 and they should be eliminated at all costs because
they are highly dangerous.
Not a license to broadcast records
(11) Section 13 of Article XII of the By-Laws provides:
“The licenses to be granted to the Licensee Members through
the acceptance of the application is a license under the pro¬
visions of the Application and these By-Laws to the use of
the talent of the Society’s Regular Members for broadcasting
purposes through the medium of recordings, but shall not in
any manner affect or pertain to his phonograph record or the
playing thereof.”
The meaning of this clause is not clear. Probably the language is
purposely vague, its real purpose being to protect ASRA from
damage claims by a station which has been sued by non-ASRA
members or phonograph record companies claiming rights in the
identical record containing performances of ASRA members. For
example, Benny Goodman, an ASRA member, has a trio known
as The Benny Goodman Trio. Victor made a record #25324 of
two popular dance numbers — “Too Good To Be True” and “All
My Life.” The vocal choruses are sung by Helen Ward. She
is not an ASRA member. ASRA by this clause is endeavoring
to escape any liability for claims of misrepresentation or indemnity
arising out of claims made by Helen Ward, the members of the
trio other than Benny Goodman himself, and by Victor. The
1498
agreement thus narrows itself down to a mere covenant not to sue
instead of a license to broadcast phonograph records containing
performances of ASRA artists. A station could not safely broad¬
cast any recording of an ASRA member pursuant to a contract
with ASRA without first ascertaining that no other artists had
performances recorded in the record and that the recording com¬
pany claimed no rights. The vast majority of phonograph records
contain performances of more than one artist. In fact a soloist
without an accompanist is a rarity.
A further purpose behind this By-Law may be ASRA’s desire
to escape suits for accounting by non-ASRA artists and recording
companies who may have equal rights in the recordings. This
By-Law should be eliminated.
Station’s guarantee to use certain percentage o£ records
of ASRA members
(12) We understand that recently ASRA has been adding a
rider to the contracts it attempts to secure from stations to the
effect that the station agrees that of the records broadcast at
least — % (we think it is 40%) will be of the talents of ASRA
members. We think this is an inexcusable provision and one that
should be refused by all stations. It is too much of a straight
jacket on the programming activities of the stations and is not in
the public interest.
(b) General Objections to Form of Licenses
Membership plan
(13) The corporate structure of ASRA is most unusual. The
charter, a copy of which is attached to this report, discloses that
ASRA is a stock corporation. No provision is made in the charter
for memberships. I find no provision in the Civil Code of Cali¬
fornia authorizing stock corporations to have members. The
California Code defines a stock corporation as one authorized to
issue shares of stock, and “nonstock corporations” as including all
corporations other than stock corporation. A member is defined
as a person signing the articles of a nonstock corporation and
each person admitted to membership therein. Section 303 of the
California Civil Code provides what may be regulated in by-laws
of corporations. Sections 10 and IS inclusive contain the only
provisions relating to memberships and they refer to nonstock
corporations. Since ASRA is a stock corporation as distinguished
from a nonstock corporation, it is difficult to see by what authority
it can issue memberships and make provisions for members in
its by-laws.
Both the applications signed by the artists and those for the
signatures of radio stations specifically provide that neither the
applications, nor the memberships nor licenses constitute stock or
investment security and that the member does not participate in
the Society’s profits or losses and that the membership is non¬
assessable, non-negotiable and non-voting, and the members are
to pay no dues or initiation fees and they shall not be responsible
or liable for the debts or obligations of the Society. However, it
is possible that a “licensee member” or an artist member might
not escape liability in a suit by a third party against such member
for the reason that the member has acquiesced in being classified
as a member and in being held out to the public as such. Such
members might conceivably be held to be engaged in a joint ad¬
venture, for which each member would be liable to third parties
dealing with ASRA. Since the “licensee members” have really
nothing to gain by being so classified, I am of the opinion that no
station shoidd accept such a classification, but should, if it chooses
to contract with ASRA, do so only on the basis of a simple com¬
mercial contract without any entangling alliances which might
come up to haunt the station later on.
Indemnity agreement
(14) The agreement is very defective in its present form for the
lack of an agreement by ASRA to protect the station against suits
arising out of the broadcasting of phonograph records. 7 am of
the opinion that the agreement should be modified by adding the
following language:
“The Society agrees to indemnify, save and hold the appli¬
cant harmless, and defend the applicant from and against any
claim, demands or suits that may be made or brought against
the applicant with respect to the broadcasting of recordings
on which are contained the talents of any ‘regular member’
of the Society.”
Financial responsibility under indemnity
(15) The present paid-in capital of ASRA appears to be not
in excess of $20,000. Therefore, an indemnity by ASRA would
presumably be good only to the extent of that amount of money
and perhaps much less depending upon how much money they
have left on hand. I am of the opinion that ASRA should furnish
each radio station it licenses with a good and sufficient surety
company bond guaranteeing the performance of the indemnity
agreement.
List of artist members and periods of membership
(16) The agreement refers to the talents of ASRA’s “regular
members,” but nowhere does it state the names of these members.
There should be attached to each agreement a list of each and
every “regular member” with the beginning and expiration dates
set forth beside each name or in some other satisfactory way. It
is essential that the periods of the memberships shoidd be known
to the stations in order that they may know during what period
the recordings may be broadcast, and so that they may avoid
broadcasting recordings of artists after the memberships have ex¬
pired. There should be a clause in the agreement specifically pro¬
viding that the Society agrees to notify the applicant of any
additions or deletions from the list of members and of all renewals
and expirations and that the Society will indemnify and save and
hold the applicant harmless against all claims for broadcasting
recordings of such members prior to the receipt of notice of such
changes by the station from the Society.
List of records that may be performed under license
(17) As I pointed out in some of the specific objections to the
form of this agreement no station can feel free under the terms of
the present license to broadcast a phonograph record merely be¬
cause the name of an ASRA artist is on the label for the reason
that practically every record contains the performances of two or
more artists and in most cases those two or more artists will not
all be ASRA members. The obligation of determining whether or
not any other artists or other parties have rights in these recordings
should not fall upon the radio station, but should be assumed by
ASRA since that is its business and since it is the “seller” and be¬
cause it must have access to this information. 7 recommend that
there be added to the agreement a clause specifically providing that
the Society agrees to send to thd station with the executed license
application a list of all phonograph records giving the name of each
composition, the name of the artist, the name of the manufacturer
and the manufacturer’s number which ASRA guarantees to the sta¬
tion full performance rights, excepting only the performance rights
in the musical compositions contained therein and that the Society
agrees to keep this list supplemented each month by listing record¬
ings currently being released by the recording companies.
No protection from claims by non-ASRA artists and
recording companies
(18) As indicated previously in this report and in Paragraph 17
above the present license form gives no protection against claims
by the recording companies and by non-ASRA artists whose per¬
formances may be recorded in the same records as the performances
of ASRA artists. If the indemnity agreement set forth in Paragraph
14 above can be included and if a list of guaranteed records can be
secured and kept up to date as suggested in Paragraph 17 above,
then the stations will have some measure of protection. Without
such changes the stations are acting at their peril. ASCAP in¬
demnifies the stations against all claims made by anyone claiming a
right in the musical compositions licensed by it, and so there is no
reason why ASRA should not likewise indemnify and protect the
stations against claims made by others with respect to the phono¬
graph records containing performances of ASRA members.
DISADVANTAGES OF CONTRACTING WITH
ASRA
Recognition of a non-established right
(1) As stated elsewhere in this report there are no statutes in
the United States or in any state giving artists property rights in
their performances which have been recorded. There has been
only one judicial decision in this country on the exact point, and
while that decision was in favor of the artist, it is a decision of a
lower court of the State of Pennsylvania and is subject to reversal
by the higher courts of the State. In addition the facts in that
case varied considerably from the facts that would ordinarily be
present. I am of the opinion as stated elsewhere in this report that
the decision is contrary to analogous cases decided in the United
States Supreme Court. By signing the license a station recognizes
to some extent at least the existence of the right which is being
claimed by ASRA and which has not yet been established either by
1499
statute or by any high tribunal. The United States Congress had
a bill before it last Spring which would give performing artists the
right ASRA is now contending that it has. This bill met with strong
objection by broadcasters, motion picture producers and others and
it is sufficient to say that Congress apparently did not feel the
giving of such a right was sufficiently in the public interest to
justify the passage of the bill. I believe that it will be disadvan¬
tageous to recognize the right claimed by ASRA until Congress has
passed a statute giving such a right or until the highest courts of
the land have judicially determined that such a right exists without
a statute.
Encouragement of other societies
(2) The broadcasters are well acquainted with the activities of
organized groups in the field of copyrighted music. Were the radio
stations to contract with ASRA at this time, the field would become
lucrative to other groups who would undoubtedly organize other
societies with the result that eventually one would have to have a
license from a number of different groups.
Reporting of broadcasts of records
(3) The agreement provides that every week a report must be
made to ASRA of all records broadcast by it. I have recom¬
mended that the agreement be changed by limiting the reports to
those records containing performances of ASRA members, but even
then this reporting is going to be annoying and obnoxious to the
stations and will entail considerable work.
Increased royalties in future
(4) The custom of corporations of this kind has been to in¬
crease the charges greatly after the practice of paying royalties has
become established. I believe the royalties paid by radio stations
to ASCAP has increased about 300% in the last four years. It is
to be noted that in ASRA’s letter of February IS, 1935 to artists, a
copy of which is attached to this report, that the royalties estimated
to be collected from broadcasters would be up to $5,000,000 an¬
nually. While this figure is rather fantastic because it is nearly
twice as much as ASCAP is collecting from radio stations for its
huge catalogue of copyrighted music, nevertheless it is significant of
what the stations may expect to be charged after the first year or
two of license. The station may feel now that if the fees grow
too high in the future, it may decide to litigate the right of ASRA
to collect these royalties. However, as I have pointed out more
fully in this report, the station will find its defenses greatly
weakened by the mere fact of having recognized this principle for
a period of time and having paid royalties for the use of records.
Disadvantage in form
(5) The disadvantages mentioned in the preceding four para¬
graphs are those general disadvantages which would result from
signing any contract with ASRA even in a greatly changed form.
If the changes that have been suggested previously in this report
are not made, then each of the changes that is refused adds to the
disadvantage of taking out the license.
ADVANTAGES OF CONTRACTING WITH ASRA
Relief from litigation
(1) The members of ASRA should not be able to sue for any
uses made of records containing their performances by broadcasting
during the period of the license. This is not of any particular
importance because probably very few, if any of them, would ever
bother to bring suit. From 1920 to 1935 not a single suit was
instituted by an artist against a radio station for broadcasting a
phonograph record, and the situation would be the same today if it
were not for the organization of ASRA and similar societies which
are trying to create new rights where none existed before. It
should be noted here that unless many of the changes suggested
previously in this report are made in the agreement, that the
covenant not to sue is merely a covenant on the part of ASRA and
does not bind anyone else unless such other persons are in fact
members of ASRA. Under the present form of agreement the sta¬
tion is not apprised of the names of the members.
Release of damage claims for past use
(2) As indicated in Paragraph 2 of the specific objections to the
form of license this release is of doubtful validity because it does
not appear from any of the documents that we have been able to
examine that ASRA has the right to release claims for past use.
Even if this release proved valid, it is important that it should
not be over emphasized. It would be a very difficult task for
ASRA or any artist to establish rights in the records, prove what
broadcasts were made and prove damage resulting therefrom.
LEGAL RIGHTS OF ASRA
Reference should be made here to two clauses in the latest form
of application for membership for use by artists as they may
have some bearing on the rights of ASRA. They read:
“During the term hereof, nothing herein contained shall be
deemed to include any rights of reproduction for ordinary
recording purposes, as are now contained in the general form
contracts used by Victor, Columbia, or Brunswick Companies,
copies whereof are on file in the office of the ‘SOCIETY,’
and are specifically referred to herein, and by such reference
made a part hereof.”
“Included in this assignment shall be the rights herein
mentioned for all recordings heretofore made or to be made
during the term hereof, and as to past recordings shall be all
rights to the use of any mechanical production of the ‘AP¬
PLICANT’S’ recorded voice, talents or work not included in
the contract under which the said recording was made, and
the ‘SOCIETY’S’ rights therein shall be for broadcasting,
commercial, or use otherwise.”
These clauses and the Victor, Columbia and Brunswick con¬
tracts referred to as being in the ASRA file should be carefully
studied by any station which is either contemplating a license with
ASRA or is defending a suit brought in the name of ASRA. Per¬
haps the clauses were included at the insistence of the recording
companies who also claim property rights and in order to fore¬
stall claims of interference with the contracts between the artists
and the recording companies. If ASRA has no possible rights in
certain of these records then certainly the stations should not
agree to pay royalties for using such records.
It is self-evident that ASRA can have no more rights than its
artist “members” had immediately prior to the signing of the
membership applications.
I am of the opinion that the artists never had any property
rights in the phonograph records.
See
Ingram v. Bowers, 47 F (2d) 925; 57 F (2d) 65;
Cheney Bros. v. Doris Silk, 35 F (2d) 279; cert, denied 281
U. S. 728;
Bristol v. Equitable Life, 132 N. Y. 264;
Chappell v. Fields, 210 F 864.
Even if the artists once had property rights in phonograph
records they cease to have such rights after the records are sold
as restrictions as to use do not follow chattels once they are
sold.
See
Bobbs-Merrill Co. v. Straus, 210 U. S. 339;
Bauer v. O’Donnell, 229 U. S. 1;
Dr. Miles Medical Co. v. Park, 220 U. S. 373;
Boston Store v. American Graphophone, 246 U. S. 8;
Universal Film v. Copperman, 218 F 577.
I am also of the opinion that there is no unfair competition
since the station causes no deception.
Howe Scale v. Wyckoff, 198 U. S. 118;
Gotham Music v. Denton & Haskin, 259 N. Y. 86;
Apollinaris v. Scherer, 27 F 18.
I believe that the opinion of the Court of Common Pleas of
Pennsylvania in the case of Waring v. WDAS is contrary to the
above authorities of the Supreme Court of the United States and
is based upon decisions which are distinguishable and that the
decision should not be followed by the higher courts of Pennsyl¬
vania to which it will be appealed or by courts of other jurisdic¬
tions.
For a full analysis of these and other decisions on which I
base my opinion see the draft of defendant’s brief in the case of
Crumit v. Marcus Loew Booking Agency in opposition to the
plaintiff’s motion for temporary injunction in the Supreme Court
of the State of New York, County of New York, of which a copy
has been previously sent you. (Ed. Note: A copy of this brief
will be furnished the members at an early date.)
RIGHTS OF ASRA TO DAMAGES
Assuming for the purposes of argument that ASRA and its
“members” have some property rights in phonograph records
1500
(which we believe they have not) the question arises as to whether
any money judgment can be secured against radio stations for
the broadcasting of such records.
The statutory minimum damage provisions of the Copyright
Act ($250.00) will have no application since the rights which will
be sought to be enforced will not be copyrighted.
There is no precise precedent on which to base an opinion re¬
garding damages. There have been relatively few decisions regard¬
ing damages for the wrongful use of literary property protected
by the common law, and such decisions as have been rendered
are based upon facts that are so different from the facts that
would arise on any suit by ASRA or its members that such deci¬
sions will carry little or no weight.
Such rights as may exist are of an intangible nature and most
analogous to patent and trademark rights. Therefore we have
examined cases of this nature to ascertain what the courts have
decided with respect to intangible property of that character.
It is said that in a suit in equity the net profits may be recov¬
ered as profits made by the use of the plaintiff’s property and
that the defendant, as constructive trustee, is compelled to ac¬
count for them.
It is said that in an action at law only damages can be recov¬
ered and they will be measured by the plaintiff’s loss and not by
the defendant’s gain, profits being held not to be the measure of
damages nor any element thereof where there is any other method
of ascertaining and measuring the damages (Sutherland on Dam¬
ages, page 4492).
It is my opinion that ASRA and its artists will not be able
to show any evidence of actual damage sustained by the broad¬
casting of phonograph records. Damages are to be calculated on
definite proof and not imagined ( New York City v. Ransom, 64
U. S. 487, 8; Rude v. Westcott, 130 U. S. 152 at 167). In patent
cases where the plaintiff has licensed the use of his patent on a
royalty basis the courts have allowed a recovery based upon a
reasonable royalty ( Dowagiac Mfg. Co. v. Minnesota Moline Plow
Co., 235 U. S. 641; Alliance v. DeVilbliss, 76 Fed. (2d) 503; Du-
plate v. Triplex, 81 Fed. (2d) 352). Since ASRA has fixed a maxi¬
mum royalty of $.15 a broadcast and has offered to grant licenses
to all stations on that basis or at a lesser price I am of the opinion
that the courts would use the reasonable royalty measure of
damage and that ASRA would be estopped from claiming any
greater fee.
Even assuming that ASRA could get away from the reasonable
royalty measure of damage it would be a difficult task to secure
an accounting of the plaintiff’s profits from the broadcasting of
phonograph records for the burden would be upon ASRA to ap¬
portion the net profits of the station attributable to the use of
the record because the profits in every case will be commingled
with the profits derived from the use of other program material
by the station (Westinghouse v. Wagner, 235 U. S. 604; Dowagiac
Mfg. Co. v. Minnesota Moline Plow Co., 235 U. S. 641).
It is quite probable that the courts would not require the sta¬
tions to account for profits because the stations have acted in
good faith and because there would be no evidence of fraudulent
conduct on their part (Saxlehner v. Siegel-Cooper Co., 179 U. S.
42) ; furthermore, I believe that the courts should find that the
damage has been too insignificant to warrant a decree for an ac¬
counting which was the decision in Hennessy v. Wine-Growers
Association, 212 Fed. 308 at 311. Both of the two cases cited above
are trademark cases.
The broadcasting of phonograph records has been acquiesced
in by artists ever since the inception of broadcasting in 1920, 16
years ago. The failure to assert rights should amount to laches
and should be a bar to an injunction or at least to damages (Sax¬
lehner v. Eisner, 179 U. S. 19; McLean v. Fleming, 96 U. S. 245).
CONCLUSIONS
My conclusions may be summarized as follows:
1. The artists have no legal right to prevent radio stations from
broadcasting phonograph records.
2. The disadvantages of entering into a contract with ASRA
far outweigh any possible advantages.
3. The form of agreement submitted by ASRA to radio stations
is basically defective and objectionable in many important
particulars.
4. ASRA’s right to damages is dependent upon the right to
prevent stations from broadcasting phonograph records and
since I conclude that neither ASRA nor the artists have that
right, then it follows there can be no damages.
Respectfully submitted,
STUART SPRAGUE.
EXHIBIT 1
Filed in the office of the Secretary of State of the State of
California, May 31, 1934, Frank C. Jordan, Secretary of State,
(signed) Chas. J. Hagan, Deputy.
Department of State, Corporation Number 158671.
ARTICLES OF INCORPORATION
of
AMERICAN SOCIETY OF RECORDING ARTISTS, INC.
Know all Men ry These Presents:
That we, the undersigned, G. BRANT, C. ANDREWS and E.
HENSGEN, a majority of whom are residents and citizens of
the State of California, United States of America, have this day
voluntarily associated ourselves together for the purpose of form¬
ing a corporation under the laws of the State of California;
And We Do Hereby Certify:
First: That the name of the corporation shall be
AMERICAN SOCIETY OF RECORDING ARTISTS, INC.
Second: That the purposes for which this corporation is formed,
are:
To make, manufacture, rent, lease, purchase, sell or trade in
records and recordations of voice talents or work of artists or
others, and to record for all purposes.
To acquire, buy, sell, rent, lease, trade and deal in for broad¬
casting and/or commercial purposes, or for any other purpose,
records and recordations of the voice talents or work of artists,
or any other person or persons, and to contract in relation there¬
to, and to generally deal in copyrights, royalties, patents or any
rights to records or recordations, or anything arising therefrom
or a part thereof.
To deal in recording or recordation and the reproduction of
voice talents or work of recording artists; to acquire rights of
reproduction of voice talents on work of artists, and to use and
deal in the same for all purposes.
To carry on the business of dealing in recordings and to pro¬
mote the popularity of recording for private broadcasting or com¬
mercial purposes, or any other purpose for which the said record¬
ings may be used to promote the popularity of recording artists.
To buy, sell, trade in, import, export, manufacture, rent, handle,
and use radio sets, cabinets and receiving apparatus and record¬
ing and reproduction instruments and devices, of any kind or
nature used in conjunction therewith, or incidental or accessory
thereto ; and to conduct the business of rendering service in the
installation, operation, supply of parts, repairs, maintenance and
upkeep of such apparatus, instruments or accessories.
To buy, sell, trade in at wholesale or retail, export, manufacture,
rent, handle, repair, and use acoustic devices of all sorts, musical
instruments, phonographs, phonograph records, transcription cabi¬
nets, telephones, and all sound receiving, recording, amplifying,
producing, or reproducing devices, machines, apparatus or instru¬
ments, and to do each and everything incidental thereto.
To make contracts for the reproduction of use of records or
recordings for broadcasting and commercial purposes and for such
other purposes as the same may be used, and to arrange, provide
and contract for the use thereof.
To deal in copyrights, rights of representation, licenses, and privi¬
leges of any sort likely to be conducive to the objects of the com¬
pany, and to employ persons to write, compose or invent plays,
songs, interludes, prologues, epilogues, poetry, music and dances,
and to remunerate such persons, and to print and publish, or cause
to be printed or published or recorded, any play, poem, song or
words of which the company may have the copyright or the
right to publish or record, and to sell, distribute and deal with
any matter so printed or recorded as the company may think fit ;
and to grant licenses or rights in respect of any property of the
company or that the company may acquire a right or interest in,
to any other person, firm or company.
To enter into, make, perform and carry out contracts of every
sort and kind, with any person, firm, association, corporation, pri¬
vate, public or municipal or body politic, and with the govern¬
ment of the United States, or any state, territory or colony there¬
of or any foreign government.
To purchase, lease or otherwise acquire all kinds of personal
property which the corporation may deem necessary or convenient
for the purpose of its business.
Generally to purchase, take on lease or in exchange, hire or
otherwise acquire any real and personal property, and any rights
1501
or privileges which the company may think necessary or con¬
venient for the purposes of its business.
To borrow money, to make and issue promissory notes, bills
of exchange, bonds, debentures and obligations and evidences of
indebtedness of all kinds, whether secured by mortgage, pledge
or otherwise without limit as to amount, and to secure the same
by mortgage, pledge or otherwise.
To conduct its business and have one or more offices, and un¬
limitedly and without restriction to hold, purchase, lease, mort¬
gage and convey real and personal property in or out of this
State, and in such place and places in the several States and terri-
itories of the United States, colonial possessions and territorial
acquisitions of the United States, and in foreign countries, as shall
from time to time be found necessary and convenient for the
purpose of the company’s business.
To purchase or otherwise acquire and to hold, sell, acquire,
transfer, mortgage, pledge or otherwise dispose of shares of the
capital stock and bonds, debentures or other evidences of indebted¬
ness created by any other corporation or corporations, domestic
or foreign, and, while the holder thereof, to exercise all the rights
and privileges of ownership, including the right to vote thereon.
To issue bonds, debentures or obligations of the company, from
time to time, for any of the objects or purposes of the company,
and to secure the same by mortgage or mortgages, or deed or deeds
of trust, or pledge, or lien on any or all of the real and personal
property, rights, privileges and franchises of the company where¬
soever situated, and to be acquired, and to sell, trade or otherwise
dispose of any or all of the same, all in such manner and upon
such terms as the Board of Directors may deem proper.
It is the intention that the objects and powers specified and
clauses contained in this paragraph shall, except where otherwise
expressed in said paragraph, be nowise limited or restricted by
reference to or inference from the terms of any other clause of
this or any other paragraph in this charter, but that the objects
or powers specified in each of the clauses of this paragraph shall
be regarded as independent objects and powers.
But nothing herein set forth is to be construed to authorize the
formation hereby of an insurance, safe deposit or trust company,
banking corporation or savings bank, railroad company or corpora¬
tion deemed to possess any of the powers prohibited to corpora¬
tions formed under the statutory provisions aforesaid.
To deal with patents, and copyrights, and acquire those taken
out by others, acquire or grant licenses in respect to patents and
copyrights, or work, transfer or do whatever else with them may
be thought fit.
To acquire, hold, use, sell, assign, lease, mortgage or otherwise
dispose of letters patent and copyrights of the United States or
of any foreign country, patents, patent rights, copyrights, licenses
and privileges, inventions, improvements and processes, trade¬
marks and trade names, compositions, works of art, or anything
that may become the subject of a copyright or patent, or pending
applications therefor relating thereto or useful in connection with
any business of the corporation. To purchase or by any other
means acquire, and protect, prolong and renew, whether in the
United States or elsewhere, any patents, patent rights, copyrights,
licenses, protections and concessions which may appear likely to
be advantageous or useful to the company, and to use and turn to
account any such or any right therein or thereto, and to manu¬
facture under or grant licenses and privileges in respect to the
same, and to do each and everything in connection therewith that
may be allowed by law and that may be deemed right and proper
by the Board of Directors of the company .
To do all and everything necessary, suitable, convenient, or
proper for the accomplishment of any of the purposes, or the at¬
tainment of any one or more of the objects herein enumerated,
or incidental to the powers herein named, or which shall at any
time appear conducive or expedient for the protection or benefit
of the corporation, either as holders of or interested in, any
property or otherwise; with all the powers now or hereafter con¬
ferred by the laws of California upon corporations.
Third : That the principal office for the transaction of the busi¬
ness of the corporation will be located in the County of Los
Angeles, State of California.
Fourth: That the total number of shares of stock which the
corporation shall have authority to issue is Twenty Five Hundred,
(2,500), the par value of each share shall be Ten ($10.00) Dol¬
lars; the aggregate par value of the stock of the corporation shall
be Twenty Five Thousand ($25,000.00) Dollars.
Fifth : All of said shares of capital stock shall be Common stock
without preference.
Sixth: That the number of directors of this corporation shall be
three (3); that the names and addresses of the persons who are
hereby appointed to act as first directors of this corporation are:
Name Address
G. Brandt, 403 Lane Mortgage Building, Los Angeles, Calif.
C. Andrews, 403 Lane Mortgage Building, Los Angeles, Calif.
E. Hensgen, 403 Lane Mortgage Building, Los Angeles, Calif.
Seventh : No stock shall be assessable; preemptive rights shall
be granted to shareholders.
In Witness Whereof, we, all the incorporators and directors
of said corporation, have hereunto set out hands and seals as
such incorporators and directors of said corporation in the State
of California, 16th day of May, 1934.
Signed,
G. BRANDT,
C. ANDREWS,
E. HENSGEN.
State of California,
County of Los Angeles, ss:
On this 16th day of May, 1934, before me, Paul Joseph, a
Notary Public in and for the County of Los Angeles, State of
California, residing therein, duly commissioned and sworn, per¬
sonally appeared G. BRANDT, C. ANDREWS and E. HENS¬
GEN, known to me to be the persons whose names are sub¬
scribed to the within instrument and severally acknowledged to
me that they executed the same.
In Witness Whereof, I have hereunto set my hand and seal
the day and year in this certificate first above written.
PAUL JOSEPH,
Notary Public in and for said
County and State.
EXHIBIT 2
Before the
DEPARTMENT OF INVESTMENT
DIVISION OF CORPORATIONS
of the
STATE OF CALIFORNIA
In the matter of the application of
American Society of Recording Artists, Inc.
for a permit authorizing it to sell and issue its securities
Permit, File No. 59415LA; Receipt No. LA11266
THIS PERMIT DOES NOT CONSTITUTE A RECOMMENDA¬
TION OR ENDORSEMENT OF THE SECURITIES
PERMITTED TO BE ISSUED, BUT IS
PERMISSIVE ONLY
American Society of Recording Artists, Inc.,
a California corporation, is hereby authorized to sell and issue its
securities as hereinbelow set forth:
1. To sell and issue to C. Andrews, E. Hensgen, G. Brandt,
Arthur Levy and William Leeds, or any of them, an aggre¬
gate of not to exceed 2,000 of its shares, at par, for cash,
lawful money of the United States, for the uses and pur¬
poses recited in its application, and so as to net applicant
the full amount of the selling price thereof.
This permit is issued upon the following condition:
(a) That unless sooner revoked, suspended, or renewed by the
Commissioner upon such terms and conditions as he may deem
proper, this permit and all authority to sell or issue securities
hereunder, shall terminate and expire on the 1 7th day of January,
1935.
Dated: Los Angeles, California
July 17, 1934.
EDWIN M. DAUGHERTY,
Commissioner of Corporations.
(seal)
WSP-MM
By FRANK P. BARTON (Signed)
FRANK P. BARTON,
Deputy.
1502
EXHIBIT 3
AMERICAN SOCIETY OF RECORDING
ARTISTS, INCORPORATED
GUARANTY BUILDING, HOLLYWOOD, CAL.
February IS, 1935.
In view of your prominence in the professional world, the
Executive Committee has requested that we invite you to accept
membership in our Society. This involves no obligation whatever
on your part but rather, will serve to bring you additional income
from your recordings.
We, you and I, and all other recording artists, have been losing
millions of dollars yearly through the unauthorized use of our
records for broadcasting.
As individuals, we were ignored when we asked broadcasters
not to play our records in competition with our personal services.
We were also ignored when we asked for royalties for playing our
records on the air.
But now, we have our own Society to regulate and license the
use of our records, to restrict their use when they interfere with
our personal services, to collect and distribute royalties for the
use of our records for broadcasting, and to otherwise protect our
rights. Membership already includes many prominent recording
artists too numerous to mention here.
Ours is the only organization in the world devoted exclusively
to protection of the rights of recording artists and recording
companies. We, artist-members, pay NO DUES, NO INITIA¬
TION FEES, NO ASSESSMENTS. Royalties collected from
broadcasters, estimated up to five million dollars annually, will be
distributed :
45% to the artists-members
45% to the recording company-members
10% to the Society for its expenses
Personally, I am heart and soul in this movement, which aims
to secure for recording artists what is rightfully theirs. I am sure
you want to join us and receive your share. Fill out the enclosed
application and mail it at once.
With kindest personal regards,
Fraternally,
A1 Jolson (Signed)
Chairman Executive Committee.
EXHIBIT 4
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
Guaranty Building, Hollywood, California
APPLICATION FOR REGULAR MEMBERSHIP
I hereby file application for a Membership of the American
Society of Recording Artists, Inc., and will abide by its By-laws,
applicable to such memberships. So that the Society may regulate
and license, etc., broadcasting of, or commercial use of records
or recordings heretofore, or hereafter to be made by me (meaning
reproduction of my recorded voice, talent or work) , for value
received, I hereby assign to said Society for five (5) years, irre¬
spective of date the same was, is, or will be released for sale, all
rights of reproduction for use for broadcast and/or commercial
purposes for which such recording may be used, with the right to
determine royalty, charge or use to be made therefor. Rights,
otherwise, contained in contracts now existing between me and
recording companies are not included herein. The Society at its
own expense may take such action and in such form as it deems
necessary to enforce such rights against any person whomsoever,
and I will execute such instruments from time to time as may be
required by the Society to carry out its intentions or purposes.
I shall receive a sum equal to 45% of any and all royalties col¬
lected by the Society for the broadcasting or commercial use of
records or mechanical reproductions of my recorded voice, talent
or work, payable monthly as received by the Society. Neither
this application nor membership is stock or investment security ;
it includes no participation in the Society’s profits or losses. It is
not assessable under any condition, is non-negotiable, non-voting
and non-trasferable.
IT IS UNDERSTOOD THAT I PAY NO DUES, NO INITIA¬
TION FEES, NO ASSESSMENTS, AND THAT I SHALL AT
NO TIME BE RESPONSIBLE OR LIABLE FOR ANY DEBTS
OR OBLIGATIONS OF THE SOCIETY, WHATSOEVER.
Signed .
Address .
(Give address to which you wish royalty checks mailed)
Telephone . Introduced by .
EXHIBIT 5
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
Guaranty Bldg., Hollywood, Cal.
April 1, 1935.
Gentlemen :
As a broadcaster you are undoubtedly aware of the great in¬
justices and financial losses being suffered by recording artists
through the exploitation of their talents by radio stations, their
sponsors, and advertisers, through the medium of phonograph
records without the consent or authorization of the artist by either
such radio station, its sponsor or its advertiser and without com¬
pensation to the artist therefor.
One of the contributing factors to this unauthorized, but general
practice (which is so admittedly unfair to the artist), is that such
artists collectively have had no medium or representation hereto¬
fore through which they asserted or protected their rights.
To this end the American Society of Recording Artists was
founded more than a year ago and today includes among its mem¬
bership hundreds of the world’s leading recording artists.
A purpose of the Society is to represent its members in the
broadcasting field, to license broadcasters, establish a usage rate
for each use of the artist’s talents and to collect for its artist mem¬
bers certain compensation to which, it must be admitted, they are
rightfully entitled; that is, compensation for the use of their talents
for broadcasting through the medium of recordings.
This Society has adopted “licensee memberships” whereby broad¬
casters may be represented and thus obtain for themselves and
their sponsors and advertisers, a license to broadcast such talents.
The Society believes that the responsibility for the unlicensed
use of its member’s talents for broadcasting through the medium
of recordings, rests with both the advertiser, sponsor, and broad¬
caster and such licensee membership is intended to afford protection
to all parties concerned and to offer a medium through which
broadcasters, and through them, their sponsors and advertisers,
may compensate artists reasonably for the use of their talents
through the medium of recordings.
It is intended also that such cooperation would tend to stop
legislative and other methods of prohibiting entirely the use over
the air of talent not recorded specifically for broadcast purposes.
To the applicants who respond immediately it is intended that the
licensee membership shall release the broadcaster, and through it
its sponsors and advertisers from liability to the Society’s artist
member, for the past use of his or her talent, and grant the artist
member’s rights to the use of his or her talents over the air in
the future through the medium of recordings under the provisions
and terms of its By-laws and application.
As specified in the application, there is a service fee of $5.00 per
month, payable quarter-annually in advance in addition to the
modest rate to be paid for each usajje of the artist members’ re¬
corded talents.
The Society in no way proposes to hamper or harm broadcasters,
large or small, and the moderation of its terms governing licensee
membership, the integrity of its members whose rights noted in
the licensee membership have been vested in the Society, and the
honest sincerity of purpose on which the Society is founded evi¬
dence this fact.
The so-called royalty charges may at the broadcaster’s discretion
be passed on to its sponsors or advertisers who really enjoy the
benefit of the use of the talent of the Society’s members.
You will realize, of course, the Society’s premise, that the pur¬
chase of a record which may carry with it the right to play it on
your phonograph or turn-table carries no license or authorization
from the artist to broadcast his or her recorded talents, nor have
your sponsors or advertisers such right from the artist through
your purchase of such a record.
The Society intends to begin the collection of royalties on May
1st, 1935. If it is your desire to continue the broadcasting of the
talents of its artist members, with a specific license, authorization
and the consent of the artist, the Society would like to have your
signed application filed with it at its home office not later than
April 15, 1935.
1503
Upon its receipt, log sheets will be forwarded as well as further
instructions for facilitating the tabulation of usages and the dis¬
tribution of funds collected.
Trusting that you will give this your immediate attention,
Very truly yours,
GEORGE H. HALL (Signed)
EXHIBIT 6
APPLICATION FOR LICENSEE MEMBERSHIP
to
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
GUARANTY BUILDING, HOLLYWOOD, CALIFORNIA
The undersigned hereby files application with the American
Society of Recording Artists, Inc., for the license hereinafter de¬
scribed (herein called a “Licensee Membership” of the said Society)
and if accepted, agrees to abide by the terms and regulations
herein set forth and by the By-laws of the Society applicable to
such “Licensee Membership.”
This Application, when duly executed by the Executive Secre¬
tary of the Society, shall constitute the license agreement between
the Society as assignee of the rights of its “Regular Members”
herein described, and the undersigned broadcaster as licensee of
the right to broadcast the talents of the said “Regular Members”
as herein described, and under the terms and conditions herein
named; the Society having obtained assignments from its Regular
Members for the broadcasting purposes herein described, under
which this license is to be granted.
The By-laws printed on the reverse side hereof shall be binding
upon the parties hereto the same as though contained herein. The
term of this license shall be for one year and shall renew for a
second year unless terminated by either of the parties upon written
notice thirty days prior to date of expiration.
Provided the applicant shall have fulfilled this agreement, upon
its part, the Society agrees to release the applicant from any and
all liability to it or its Regular Members, without compensation
whatsoever, or charge therefor to it or its Regular Members, arising
from the broadcasting of its members’ talent through the medium
of recordings, occurring prior to the date of signing of this appli¬
cation.
This license is granted to the applicant under the following terms
and conditions:
Payable on the Sth day of the month following such broadcasts,
by remittance addressed to the Society at its home office, the appli¬
cant shall pay to the Society for the broadcasting of the talents
of its regular members through the medium of recordings and for
the license herein granted as follows:
Class A station 1000 watts and up shall pay IS cents per usage.
Class B station S00 watts to 999 watts shall pay 10 cents per
usage.
Class C station 499 watts or less shall pay S cents per usage.
1. An uninterrupted use of talent broadcast through the medium
of a recording or reproduced from either side of a 10-inch double-
faced 78 R.P.M. record where the playing time is not more than
three minutes and forty-five seconds will constitute one usage.
2. An uninterrupted use of talent broadcast through the medium
of a recording or reproduced from either side of a 12-inch double-
faced 78 R.P.M. record where the playing time or recorded portion
thereof does not exceed five and one-half minutes shall constitute
two usages.
3. An uninterrupted use of talent broadcast through the medium
of a recording or reproduced from either side of a 10-inch double-
faced 33y§ R.P.M. record where the playing time does not exceed
six minutes shall constitute two usages.
4. An uninterrupted use of talent broadcast through the medium
of a recording or reproduced from either side of a twelve-inch
double-faced 33^ R.P.M. record where the playing time does not
exceed nine minutes shall constitute three usages.
5. Usage of talents for broadcast through the medium of single
faced records shall come under the various classifications, as noted
elsewhere herein, in proportion to the actual recorded or playing
time on the record, but in no event at the rate of less than one
usage.
6. The partial or interrupted use of the broadcasting of the said
talent through the medium of a record or recorded program for
radio broadcast purposes constitutes one usage, provided such
partial usage does not exceed at any time a period greater than
three minutes of actual playing time, subsequent usages to be
charged for at the rate noted.
The above regulations also serve to cover the broadcasting of
the said talents through the medium of recordings or records whose
outside diameter is less than ten inches and more than twelve
inches where the recorded portion comes under the various classes
as mentioned.
The broadcasting of talent reproduced from records as re-
recordings, by the transfer method commonly known as dubbing
or otherwise, shall be paid for under the same rates as an original
broadcast from such records. Talent as herein expressed shall
be the work or voice or other reproduction from a personal effort
which may be broadcast by or through the facilities of the appli¬
cant, without the personal appearance of the artist, and whether
through the medium of recordings or otherwise.
Nothing herein contained shall prohibit the applicant from
charging its advertiser, sponsor or customer for the broadcasting
of the said talents of the Society’s said “artist members” through
the medium of said recordings.
The applicant agrees to refrain from broadcasting such talents
through the medium of recordings, at such times as may be desig¬
nated from time to time in writing by the Society, when the
Society believes such broadcast may interfere with the services of
any regular member, and due notice of such suspension shall be
given the applicant not less than 72 hours in advance of such
suspension time or date.
Neither this application nor “memberships” or license is stock
or investment security and includes no participation in the Society’s
profits or losses. It is not assessable under any condition, is non-
negotiable, and non-voting.
It is understood that the applicant pays no dues, no initiation
fees, no assessments, and shall not be responsible or liable for any
debts or obligations of the Society whatsoever.
The applicant shall forward to the Society promptly on the last
day of each week, on forms to be furnished by the Society, a daily
log sheet of all talents broadcast from records played by it.
The applicant herein shall pay the Society a monthly service fee
of $5.00, commencing with the date of acceptance hereof, by the
Society, payable quarter-annually in advance, remittance for the
first quarter to accompany this application.
Nothing herein contained shall be deemed to include or refer to
or limit or extend rights to or interfere with the playing of a phono¬
graph record except insofar as there may be a broadcast of the
talents of a regular member of the Society through the medium of
a recording in which case it shall be the right of the Society to
control the use of such talent for broadcasting purposes and collect
compensation therefor.
Dated . 193 . .
Signed .
Authorized Officer
Station .
Owner .
Address .
Wattage (Day) . (Night) .
Accepted by:
American Society of Recording Artists
Incorporated
(Seal)
By . ,
Executive Secretary.
EXHIBIT 7
BY-LAWS
OF
AMERICAN SOCIETY OF RECORDING ARTISTS, INC.
Referring to Licensee Members
ARTICLE XII
Licensee Members
Section 1.
The provisions of Article XII shall refer to “Licensee Members.”
There shall be other forms of membership of the Society which shall
be described in further or other Articles, but the provisions and
sections of Article XII shall apply only to Licensee Members.
Separate and apart from stockholders of the Corporation (herein
in these By-laws sometimes termed the “Society”), and irespective
of the stockholders (the rights of stockholders being separate and
apart from rights of members), there shall be a “Licensee Member¬
ship” in the “Society.” Such membership shall be non-participating
1504
and shall have no right to vote or to hold office. No Licensee Mem¬
ber by reason of such membership shall be or be deemed to be a
stockholder of the Corporation or to have any interest in the prop¬
erty or assets thereof. Such memberships, unless otherwise specified
in the application or acceptance, may be terminated at any yearly
period after one year from the date of acceptance of such member¬
ship by the “Society.”
Section 2.
The Licensee Membership of the Society shall consist of the
owners, or owner’s representative so designated by the owner,
whether a corporation, partnership or individual, of a duly licensed
radio broadcasting station, who shall have executed applications
on the form provided by the Board of Directors of the Society, and
whose applications shall have been accepted by the Society, and
whose names shall have been entered in the Register of Licensee
Members, which shall be kept by the Executive Secretary of the
corporation.
Section 3.
Licensee Membership in the Society shall not constitute stock or
investment security ; no Licensee Membership or Member shall
participate in the Society’s profits or losses. Each such member¬
ship is non-negotiable and not transferable and shall be non-voting.
Such membership shall not be assessable or liable in any manner or
form whatever, for any debts or obligations of the Society, except
for the payment of service fees and royalties as hereinafter set
forth, and nothing shall be construed to so obligate a member
beyond the provisions of these By-laws.
Section 4.
When the application for Licensee Membership as may be
adopted by the Board of Directors of the Society, shall be executed
by the “Licensee Member Applicant” and accepted by the Society,
the applicant shall thereupon be thereafter known as a Licensee
Member, and be then entitled to the rights specified in the said
application, as well as to those rights set forth in these By-laws
applicable to Licensee Members, Licensee Memberships and/or
such applicants, and such application, together with the By-laws of
the Society pertaining thereto, shall constitute the agreement or
license between the Society and the applicant Licensee Member.
Section S.
Licensee Membership shall entail no initiation fees and no assess¬
ments except that each Licensee Member shall be obligated to pay
to the Society, payable quarter annually in advance, a service fee
of Five Dollars ($5.00) per month during the period of such mem¬
bership, and in addition thereto, the royalties as provided in Section
12 hereof. Licensee Members shall at no time be responsible or
liable for any debts or obligations of the Society whatsoever.
Section 6.
Each Licensee Member shall be bound by these By-laws, wherein
the same refer to such Applicants, Licensee Members, or Licensee
Memberships, and any and all reference thereto shall be to such
applicant as a party to such agreement or license.
Section 7.
One of the purposes of the Society shall be to regulate and collect
a royalty by reason of the broadcasting of talent of its artist or
regular members through the medium of recordings.
Section 8.
All notices or communications between the Licensee Members
and the Society shall be addressed to the Society at its home office,
and to the Licensee Member to such address as he may have there¬
tofore filed with the Executive Secretary of the Society at the home
office of the Society. Each Licensee Member must immediately
notify the Executive Secretary at the home office of the Society of
any change of address, and should the Society fail to receive such
notice, such Licensee Member shall be deemed to have waived any
notice provided for under the By-laws and rules and regulations of
the Society. Licensee Members shall forthwith notify the Execu¬
tive Secretary of the Society at the home office of the Society, of
any change in ownership and/or wave length and/or wattage, and
each Licensee Member shall be bound and obligated to pay to the
Society, royalties as provided for covering such wattage under
which he shall operate his station in the use of records. The
Society, through its Board of Directors, shall have the power to
enter into contracts with individuals who shall be known as mem¬
bers and who may or may not be stockholders of the corporation.
As a protection, however, against liability, it is expressly stipulated
and understood that no property rights or vested rights of any
kind in or to the corporation or its assets, accrue to the benefit of
members other than such provisions as may be set forth in the
application of the member, and such as may be set forth in these
By-laws, none whereof shall constitute any interest in the corpora¬
tion or its assets in favor of the Licensee Member who shall have
no liability whatever for assessments, dues or debts whatever of
the Society (service fee and royalty excepted) . Each member shall
lend his every cooperation at all times to the interest of the Society
to the end that the Society may carry out its purposes in the most
economical, effective and speedy manner.
Section 9.
All Licensee Members in good standing shall be entitled to receive
a membership certificate which shall certify to such membership or
license, which certificate shall be signed by the Executive Secretary
of the Society.
Section 10.
Talent as herein expressed shall be the work or voice or other
reproduction from a personal effort which may be broadcast by or
through the facilities of a Licensee Member without the personal
appearance of the artist, or whether through the medium of record¬
ings or otherwise. Recordings or recordation shall mean a repro¬
duction of the recorded voice, talent, or work of a member of the
Society.
Section 11.
A Licensee Member shall refrain from broadcasting such talents
of Regular Members of the Society through the medium of record¬
ings at such time or times as may be designated from time to time
in writing by the Society, when the Society believes such broadcast
may interfere with the services of any Regular Member, and due
notice of such suspension shall be given the applicant not less than
seventy-two (72) hours in advance of such suspension time or date,
such suspension notices to be over the signature of the Executive
Secretary.
Section 12.
All payments due or payable to the Society by the Licensee
Member shall be payable at the Home Office of the Society in the
manner and at the times in these By-laws or in the Application
provided. The “Regular Members” of the Society shall include
artists who shall have assigned to the Society the right to broadcast
their talents as herein described. Each Licensee Member shall pay
to the Society on the 5th of the month following such broadcast
by remittance addressed to the Society at its Home Office a royalty
for its use of talents of Regular Members for broadcasting purposes
through the medium of recordings in the amount and as specified
in the Application.
Section 13.
The licenses to be granted to the Licensee Member through the
acceptance of the application is a license under the provisions of
the Application and these By-laws to the use of the talent of the
Society’s Regular Members for broadcasting purposes through the
medium of recordings, but shall not in any manner affect or pertain
to his phonograph record or the playing thereof.
Section 14.
The Licensee Member shall have a right, if it so desires, to
charge its advertiser, sponsor or customer for the broadcasting of
the said talent of the Society’s said artist or Regular Members
through the medium of the said recordings, and the license granted
to the applicant through said acceptance of said application by the
Society shall include without further compensation the same license
in the said sponsors, advertisers or customers using such talent as
herein set forth.
EXHIBIT 8
APPLICATION FOR MEMBERSHIP
TO
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
The undersigned, hereinafter called “APPLICANT” hereby
makes application to the American Society of Recording Artists,
Inc., a California corporation, hereinafter called the “SOCIETY,”
for an agreement hereinafter called “MEMBERSHIP,” which shall
be considered effective as the agreement between the “SOCIETY”
and the “APPLICANT,” pursuant to the terms and conditions em¬
bodied herein, upon acceptance thereof by the “SOCIETY,” and
when so accepted bv the “SOCIETY” and the “APPLICANT,”
and the “APPLICANT” may thereupon be thereafter known as a
“MEMBER.”
1505
SUCH MEMBERSHIP ENTAILS NO ASSESSMENTS, NO
DUES, NO INITIATION FEES.
The “APPLICANT” shall be bound by the rules and regulations
as well as the By-Laws of the “SOCIETY,” heretofore or here¬
after adopted by the “SOCIETY,” wherein the same refer to
“APPLICANTS,” “MEMBERS,” or “MEMBERSHIPS,” and any
and all reference thereto shall be to the “APPLICANT” as a party
to this agreement.
It is understood that one of the purposes of the “SOCIETY,”
is TO TAKE SUCH ACTION AS IT DEEMS NECESSARY TO
PUT A STOP TO THE INDISCRIMINATE BROADCASTING
OF RECORDS OF THE “APPLICANT,” to the end that the
“APPLICANT” may enjoy the largest financial returns from his
work, both from returns on the sale of records, as well as from
the use of said or special recordings for broadcasting or com¬
mercial purposes.
The “SOCIETY” agrees to use its best efforts at all times to
obtain for the “APPLICANT” the largest compensation it deems
proper for the use of broadcasting or commercial purposes, of
records or recordings heretofore, or hereafter to be, made by the
“APPLICANT.”
IT IS THE INTENTION OF THE “SOCIETY” AT ALL
TIMES TO PROMOTE THE POPULARITY AND THE SALE
OF THE “APPLICANTS’ ” RECORDINGS.
Recording or recordation, as used herein, shall mean a reproduc¬
tion of the recorded voice, talents or work of the “APPLICANT,”
but nothing herein contained shall be construed to include the
use of the “APPLICANT’S” recorded voice, talents or work where
recorded as a part of the photography of a motion picture.
For value received, and so as to permit the “SOCIETY” to more
effectually carry out its purposes herein, the “APPLICANT” here¬
by assigns and transfers unto the “SOCIETY” all rights of re¬
production or use for broadcasting and/or commercial purposes
or any purpose for which any such recording may be used,
of the “APPLICANT’S” recorded voice, talents or work, together
with the right to determine the royalty or charge to be made
therefor excluding therefrom however any and all rights included
in any contract now existing between “APPLICANT” and a
reproduction company.
During the term hereof, nothing herein contained shall be
deemed to include any rights of reproduction for ordinary re¬
cording purposes, as are now contained in the general form con¬
tracts used by Victor, Columbia, or Brunswick Companies, copies
whereof are on file in the office of the “SOCIETY,” and are spe¬
cifically referred to herein, and by such reference made a part
hereof.
It is understood that included herein is the right in the “SOCI¬
ETY” to sue in its own name, the name of the “APPLICANT”
or otherwise, to enforce any of the rights herein granted and
against any person whomsoever, AT THE EXPENSE HOWEVER
OF THE “SOCIETY” AND NO EXPENSE IS TO BE AT¬
TACHED TO THE “APPLICANT” in connection with any ac¬
tion upon the part of the “SOCIETY” to enforce any of said
rights.
In consideration hereof, the “APPLICANT” shall receive from
the “SOCIETY” a sum equal to 90% of any and all receipts
obtained by the “SOCIETY,” arising on account of the rights
herein assigned during the period hereof, payable to the “APPLI¬
CANT” monthly following receipt thereof by the “SOCIETY.”
Included in this assignment shall be the rights herein men¬
tioned for all recordings heretofore made or to be made during
the term hereof, and as to past recordings shall be all rights to
the use of any mechanical production of the “APPLICANT’S”
recorded voice, talent or work not included in the contract under
which the said recording was made, and the “SOCIETY’S” rights
therein shall be for broadcasting, commercial, or use otherwise.
In view of the increased returns contemplated by the parties
hereto to be realized from the sale of records through the efforts
of the “SOCIETY,” it is understood that the “APPLICANT”
shall pay to the “SOCIETY,” when, as and if received by the
“APPLICANT,” after a period of thirty days from the date of
acceptance by the “SOCIETY” hereof, a sum equal to 10% of
any and all royalty or payments accruing in favor of the “AP¬
PLICANT” by reason of the “APPLICANT’S” work with re¬
cording companies or for mechanical reproduction of the “AP¬
PLICANT’S” voice, talent or work whether contracts therefor
have been obtained by or through the “SOCIETY” or otherwise.
It is understood that when, as and if in the opinion of the Board
of Directors of the “SOCIETY” the remuneration herein set forth
has become adequate to compensate the “SOCIETY” for its ef¬
forts in accomplishing its purpose, the “SOCIETY” may reduce
the remuneration herein provided for to such amount as it may
deem to be reasonable, but the Board of Directors of the “SOCI¬
ETY” shall be the sole judge as to any such reductions and any
such allowance shall only become effective upon written notice
from the “SOCIETY” to the “APPLICANT.” IN NO EVENT,
HOWEVER, SHALL THE REMUNERATION OF THE “SO¬
CIETY” BE IN EXCESS OF THE AMOUNT IN THIS APPLI¬
CATION SET FORTH.
NO LIABILITY TO MEMBERS:
It is understood that this application or membership is not stock
or “investment security;” that it includes no participation in the
“SOCIETY’S” profits or loss, and is non-negotiable and non¬
voting. The “APPLICANT” shall not be assessable or liable in any
manner or form whatever for any debts or obligations of the
“SOCIETY,” and nothing herein contained or otherwise shall be
construed to so obligate him. Neither this agreement, nor any
interest or right therein, or arising therefrom shall be negotiable,
assignable, or revokable by the “APPLICANT” and the term
hereof shall be five (5) years from the date of its acceptance
by the “SOCIETY.”
The “APPLICANT” shall execute such instruments from time
to time as may be required by the “SOCIETY” to carry out the
terms of this contract.
“APPLICANT” (Please Print Name After Signature)
Permanent Address (Print)
Accepted by:
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
(Seal)
By .
Executive Secretary
Dated . 193 . . .
No .
Recommended by Approved by
EXHIBIT 9
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
Guaranty Building, Hollywood, California
Telephone Gladstone 1371
Arthur W. Levy, Executive Sec’y
L. J. Mayberg, General Counsel
Board of Governors: L. E. Behymer, Honorary Chairman;
Gene Austin, Chairman; Fred Astaire, Ben Bernie, Don Bestor,
Henry Busse, Eddie Cantor, Noel Coward, Jesse Crawford, Frank
Crumit, Eli Dantzig, Jack Denny, Morton Downey, Jimmy Du¬
rante, Ted Fio Rito, Jan Garber, Ernie Golden, Jimmy Grier, A1
Jolson, Roger Wolfe Kahn, Ted Lewis, Little Jack Little, Vincent
Lopez, Freddy Martin, Jeanette MacDonald, Helen Morgan,
George Olsen, Raymond Paige, Eddie Peabody, Dick Powell,
Buddy Rogers, Lanny Ross, Nathaniel Shilkret, Frances Williams,
Victor Young. Concert-Opera Division: Georges Barrere, Lieut.
Charles Benter (United States Navy Band), Lucrezia Bori, Rich¬
ard Crooks, Mischa Elman. OsiD Gabrilowitsch, Mary Garden,
John Goss, Alfred Hertz, Jose Iturbi, Maria Jeritza, Dr. Hans
Kindler, Josef Lhevinne, John McCormack, Jose Mojica, Grace
Moore, Elizabeth Rethberg, Felix Salmond, Carlos Salzedo,
Tito Schipa, Toscha Seidel, Fabian Sevitzky, Marion Talley, John
Charles Thomas. Committees: Executive: A1 Jolson, Chairman.
Opera: Lucrezia Bori, Chairman. Concert: Mary Garden, Chair¬
man. Orchestra: Nathaniel Shilkret, Chairman.
February 10, 1936.
Gentlemen:
In its letter of April 1, 1935, this Society invited you to apply
for a “Licensee Membership” whereby broadcasters might be
represented in its structure and thus obtain for themselves and
their sponsors and advertisers a license to broadcast the talents
of its “Artist Members” through the medium of recordings, as
well as to lend their voices to the general purposes of the Society
which represents its “Artist Members” in the broadcasting field
wherein their talents are broadcast through the medium of rec¬
ords; to license broadcasters; establish a usage rate for each
such use of the artists’ talents; to collect for its “Artist Members”
the compensation to which such members may be rightfully en-
1506
titled; to remedy the inequitable and unjust practice of un¬
authorized and uncompensated use by broadcasters and advertisers
of such artists’ talents, and to avoid, where possible, litigation and
misunderstandings arising therefrom and to make it possible for
such proper use to be continued.
The Society realizes that there are several movements gaining
considerable headway, interested in prohibiting entirely the use
over the air of talent not recorded specifically for broadcasting
purposes.
The Society intends to lend its cooperation to avoid legislative
and other methods of prohibiting entirely the use over the air
of talent not recorded specifically for broadcasting purposes, and
it intends to afford its protection to all parties concerned under
the terms prescribed by it and to offer a medium through which
broadcasters, and through them their sponsors and advertisers,
may compensate artists reasonably for the use of such talents
through the medium of recordings and thus continue such a system
without hindrance, legal, statutory or otherwise.
The Society believes that the interests of all radio stations in
the broadcasting of records are not identical. That certain stations
and groups of stations would be best served if the use of records
in broadcasting were entirely eliminated through legislative or
other means, confining this field only to transcriptions. Stations
and groups of stations which specialize in the use of “live” talent
and transcriptions must realize that a complete stoppage of the
use of records on the air could probably mean the complete elimi¬
nation from the broadcasting industry of hundreds of radio sta¬
tions which because of geographic or other reasons are dependent
upon talent through the use of records to furnish the majority
of their entertainment to the listeners-in of the station. Further,
stoppage could give transcription monopolies to certain groups.
In the same way, it is to the interest of certain recording-artists
to remove from the air forever the use of their recorded talents
for broadcasting purposes and to also eliminate from such usage
the talents of all other recording artists, and we are informed
groups and organizations have been formed with this objective.
The Society is aware that at the present time the greater number
of recording artists are willing to permit the use of their talents
on the air through the medium of recordings if the broadcasters
of such talents pay the reasonable fee for each and every such
usage as required by its By-Laws.
However, the Society believes that unless broadcasters interested
in retaining talents on the air through the medium of records, co¬
operate with it, the use of all such recorded entertainment may be
completely eliminated very shortly from the air or charges there¬
for become prohibitive. The Society heretofore demanded of you
collection of royalties for your use of its “Artist Members” said
talents as of May 1, 1935, to which your station has not satis¬
factorily replied though our investigation discloses that you have
continued the unauthorized use of the talents of its “Artist Mem¬
bers” through the medium of recordings.
You are hereby notified that the “Artist Members” whose names
appear on the reverse side of this page, have heretofore assigned
to this Society the rights to the use of their talents for broad¬
casting purposes through the medium of recordings pursuant to
written memo thereof on file with the Society and that such
“Artist Members” require you to obtain permission from the
Society for such use and to make accounting and payment ac¬
cordingly. The Society therefore in its own behalf and in behalf
of each of such persons hereby demands:
1. That you must not broadcast their talents through the
medium of records without license first obtained therefor.
2. That you account for each usage of such talents including
such usage by your advertiser or sponsor, and you are ad¬
vised it will hold you liable to it for any and every failure
or refusal to abide by such demand, for accounting and pay¬
ment pursuant thereto.
The Society maintains that the responsibility for the unauthor¬
ized use of its “Artist Members’ ” talents for broadcasting through
the medium of recordings rests with the advertiser and sponsor,
as well as the broadcaster.
We want you to realize the full significance of events which
are transpiring and which we believe will profoundly affect the
broadcasting stations using recorded talent. There is enclosed a
copy of resolutions passed by the board of directors of the
Society, together with an excerpt from “Variety” of January
22, 1936, dealing with the judgment of the court in the case of
Station WDAS, of Philadelphia.
It is regrettable to the Society that it has not received a favor¬
able response from your station and that you have failed and
refused up to this time to account for your use of such talents
of its “Artist Members,” either prior or since the demand men¬
tioned, nor have you extended any cooperation. If it is case law
you are relying upon and you are not interested in the equity
and property of our position, then the responsibility for your
position now rests entirely with you.
Respectfully,
AMERICAN SOCIETY OF
RECORDING ARTISTS, INC.
(Signed) Arthur W. Levy,
Executive Secretary.
Alda, Frances
Divine, Grace
Altglass, Max
Doe, Doris
Anglo Persians
Downey, Morton
Appollon, Dave
Duncan, Myron
Arnold, Gene
Duncan, Sisters
Astaire, Fred
Dunn, Jack
Atchison. Shelby
Dunne, Irene
Austin, Gene
Durante, Jimmy
Bada, Angelo
Eckles, Charley
Baggiore, Attilio
Eddy, Nelson
Baker, Elsie
Egan, James
Ballew, Smith
Elkins, Eddie
Bampton, Rose
Elman, Mischa
Barbirolli, John
English Singers, The
Barnet, Charles
Faulknre, Georgene
Barrere, Georges
Faye, Alice
Bauer, Hermie
Ferdinando, Angelo
Bauer, Franklyn
Fio Rito, Ted
Belasco, Leon
Finston, Nat
Bernhardt, Louise
Flexer, Dorothea
Bernie, Ben
Foresythe, Reginald
Bestor, Don
Friedman, Ignaz
Black, Frank
Froman, Jane
Blue Grass Ramblers
Gabrilowitsch, Ossip
Boles, John
Gandolfi, Alfredo
Bori, Lucrezia
Garber, Jan
Bouquet, Max
Garden, Mary
Bourdon, Rosario
Golden, Ernie
Bowden, Len
Goldman, Edwin Franko
Bowlly, A1
Goodman, Benny
Boynet, Emma
Goss, John
Branson, Capt. Taylor
Green, Johnny
Branzell, Karin
Greene, Harrison
Braslau, Sophie
Grier, Jimmie
Bright, Sol Kekipi
Grofe, Ferde
Britt, Horace
Guizar, Tito
Brownie, Franklyn
Harty, Sir Hamilton
Bryant, Willie
Haumes, Joe
Bullock, Chick
Hayton, Lennie
Burtnet, Earl, Estate
Henderson, Fletcher
Busse, Henry
Hertz, Alfred
Cameron, Basil
Holman, Virginia and Betty
Campo, Del
Holmes, Floyd (Salty)
Cannon, Gus
Hoopii, Sol, Jr.
Cantor, Eddie
Hopkins, Claude
Cartwright Brothers
Hoyos, Rudolfo
Castilians, The
Hurt, Charles (Chick)
Cehanovsky, George
Iona, Andy
Chaliapin, Feodor
Iturbi, Jose
Chapman, Frank
Ja'ckson, Marian
Coakley, Tom
Jagel, Frederick
Coburn, Jolly
Jepson, Helen
Coleman, Emil
Jeritza, Maria
Continentals, The
Johnson, Edward
Coppola, Piero
Johnson, James P.
Crawford, Jesse
Jolson, A1
Crooks, Richard
Kaley, Charles
Crumit, Frank
Kahn, Roger Wolf
Coward, Noel
Kappel, Gertrude
Cozzi, Mario
Kardos, Gene
Cummins, Bernie
Karns, Virginia
Dalhart, Vernon
Kassel, Art
Dantzig, Eli
Katzman, Louis
Davis, Jimmie
Kaufman, Irving
Davis, Meyer
Keene, Hank
Davis, Walter
Kelly, Cuthbert
De Gogorza, Emilio
Kemp, Hal
De Leath, Vaughn
Kincaid, Bradley
Denny, Jack
Kindler, Dr. Hans
Diaz Rafaelo
Kline, Olive
Dickinson, Bob
Kurenko, Maria
1507
Langford, Frances
Ricci, Ruggiero
Lashanska, Hulda
Richardson, Florence
La Velle, Kay
Robbins, Sam
Lee, Carol
Roberti, Lyda
Lehmann, Lotte
Robertson, Dick
Lewis, Mary
Robeson, Paul
Lewis, Ted
Robison, Willard
Lewis, Welcome
Rodgers, Jimmie, Estate
Lhevinne, Josef
Rodgers, Judy
Lillie, Beatrice
Rogers, Chas. (Buddy)
Ljungberg, Gota
Rogers, Ginger
Little Jack Little
Rogers, Rob
Lopez, Vincent
Rollins, Todd
Los Floridians
Rosenthal, Harry
Lucas, Nick
Ross, Lanny
Luther, Frank
Sale, Charles (Chic)
MacDonald, Jeanette
Salmond, Felix
McCormack, John
Salomons, Jacqueline
McKenzie, Wm. (red)
Salter, Harry
Magnante, Charles
Salzedo, Carlos
Mann Brothers
Samaroff, Olga
Mannone, Joe (Wingy)
Schelling, Ernest
Mario, Queena
Schipa, Tito
Marsh, Lucy
Schorr, Friedrich
Martini, Nino
Schumann Heink, Ernestine
Martin, Fredie
Seidel, Toscha
Mason, Edity
Sevitsky, Fabian
Matzenaur, Margaret
Shade, Will
Medrano, Luis
Shilkret, Nathaniel
Melchior, Lauritz
Shuk, Lajos
Melton, James
Shutta, Ethel
Memphis Jug Band
Silver, Monroe
Menendez Nilo
Smeck, Roy
Minneapolis Symphony Orch.
Sons of the Pioneers
Mojica, Jose
Spalding, Albert
Monteuse, Dr. Pierre
Spielman, Milton
Moore, Grace
Stamp’s Quartet
Morgan, Helen
Stannard, William
Morgana, Nine
Stenross, Chas.
Murphy, Lambert
Stone, Mildred
Nelson, Ozzie
Sullivan, Joe
Nieto, Raquel
Swarthout, Gladys
Oakie, Jack
Talley, Marion
Olsen, George
Taylor, Jack
Olszewska, Maria
Thibault, Conrad
O’Noian, Shaun
Thomas, John Charles
Orchestre Symphonique de Parie
Thomas, Mostyn
Ormandy, Eugene
Trini, Anthony
Osborne, Verna
Tomlin, Truman (Pinky)
Paige, Raymond
Upson, Dean R.
Paris Symphony Orchestra
U. S. Marine Band
Peabody, Eddie
Van, Vera
Parker, Frank
Van Gordon, Cyrena
Pattison, Lee
Webb, Chick
Piatigorsky, Gregor
Webster, Dick
Pinza, Ezio
Weems, Ted
Powell, Dick
West, Mae
Prairie Ramblers
Williams, Frances
Rethberg, Elisabeth
Windheim, Marek
Richards, Lewis
Young, Victor
NOTE: Accounting and payment at this time is not demanded
for any member whose name does not appear on this list.
RESOLUTION
At a meeting of the Board of Directors of the American Society
of Recording Artists, Inc., duly and regularly held this 1st day of
February, 1936, the following Resolution was duly and regularly
passed and spread upon the minutes of the Society:
Be it Resolved:
That Whereas, the Society did on or about April 1, 1935, for¬
ward to all broadcasting stations throughout the United States and
its possessions, an invitation to join the structure of its organiza¬
tion in an advisory capacity by applying to it for “License Mem¬
bership” under which each such station would be licensed under
conditions named to use of the talents of “artist members” of. the
Society thru the medium of recordings on payment of certain royal¬
ties then designated, and
Whereas, at that time the Society directed the attention of the
broadcasting stations to an existing condition whereby broadcasters
were using such talents of artists for radio broadcasting without
authority from or compensation to the artists therefor, and that
such practise was wholly inequitable and unfair to the artists, and
Whereas, certain stations failed and neglected or refused to reply
to said invitation to correct the said wrong1 or inquired thru their
attorneys for case law on the subject, failing and refusing to co¬
operate with the Society or otherwise in adjusting this inequitable
and unjust situation, and
Whereas, the Board of Directors of the Society has now com¬
pleted its investigation of the facts and circumstances surrounding
this condition and has heretofore authorized its general counsel to
proceed to take legal action to enforce the rights of its “artist
members,” and a court decision now exists in the premises; and.
Whereas, in the interest of enforcing such rights and incident
thereto, the “artist members” of the Society have assigned it to all
such rights to their talents for use for broadcasting or commercial
purposes thru the medium of recordings.
Now, be it Resolved: That a further letter be addressed to each
radio station in the United States and its possessions that has failed
or refused to account for such use of the talents of its “artist mem¬
bers” for broadcasting purposes ; that such letter contain a demand
for an accounting and payment therefor in accordance with the
schedule of the Society, namely:
“Payable on the 5th day of the month following such
broadcasting, by remittance addressed to the Society at Los
Angeles, California, broadcasting stations shall pay to the
Society for the broadcasting of the talents of its “artist mem¬
bers” thru the medium of recordings and for a license to use
the same as follows:
Class A stations, 1000 watts and up, shall pay 15 cents per
usage.
Class B stations, 500 watts to 999 watts, shall pay 10 cents
per usage.
Class C stations, 499 watts or less, shall pay 5 cents per
usage.
An uninterrupted use of talent broadcast thru the medium
of the use of either side of a 10-inch, double-faced 78 R.P.M.
record where the playing time is not more than 3 minutes and
45 seconds, will constitute one usage, or of a 12-inch, double-
faced 78 R.P.M. record where the playing time or recorded
portion thereof does not exceed 5 minutes, shall constitute
two usages; or from either side of a 10-inch, double-faced 33
R.P.M. record where the playing time does not exceed 6
minutes, shall constitute two usages; or from either side of a
12-inch double-faced 33*4 R.P.M. record where the playing
time does not exceed 9 minutes, shall constitute three usages.
Single-faced records shall come under the various classifications
in proportion to the actual recorded or playing time on the
record, but in no event at the rate of less than one usage;
partial or interrupted use of broadcasting of said talent thru
the medium of a record or recorded program for broadcasting
purposes, constitute one usage, provided such partial usage
does not exceed at any time a period greater than three minutes
of actual playing time, subsequent usage to be charged for at
the rate noted.”
And be it Further Resolved: That a printed excerpt from
the decision against Station WDAS, Philadelphia, printed in
“Variety” of Wednesday, January 22, 1936, be inclosed with such
letter ;
And be it Further Resolved: That the Society shall notify each
such broadcasting station the name of each “artist member” for
whom the Society requires such payment and accounting until
further notice ;
And be it Further Resolved: That the Society shall report to
its general counsel unauthorized usages by broadcasting stations of
such talent of any such “artist members” for which accounting
and compensation has thus been demanded and accounting and/or
payment refused, or not received, with instructions to proceed to
enforce the rights of the Society and its “artist members” in the
premises.
Attest:
(Signed) Arthur W. Levy,
Secretary.
Wednesday, January 22, 1936. Variety 55
WARING DECISION
Following are pertinent excerpts from the decision handed down
last week by Judge McDevitt in the Court of Common Pleas,
Philadelphia, upholding Fred Waring’s right to restrain WDAS,
1508
Philly outlet, from using a Waring phonograph recording for
broadcasting or other commercial purposes:
In the instant case the defendant has appropriated without pur¬
chase or legal claim the creation of material produced by the com¬
plainant’s intellectual effort and application of his unique talents.
His creation represents production by organization, by the expendi¬
ture of labor, skill and money. His creative genius has perfected
something peculiarly his own, stamped with his personality and as
inseparable from him without injury as one of his limbs. His unique
talents have fashioned something as distinct and original as the
product fashioned publication. Communication and dedication are
as dissimilar as are performance and publication.
Ownership suggests possession and proprietorship, and sale repre¬
sents the conveyance of a right of any kind. At the same time,
however, one may sell his corporeal and still save his incorporeal
right. Undoubtedly the contract or covenant follows the chattel,
and only a false legal doctrine could separate the same, which would
be equivalent to putting the stamp of approval upon unfair com¬
petition.
The complainant is, therefore, entitled to the redress that he
seeks.
Let the injunction issue.
Conclusions of Law
1. The creator of a unique and personal interpretation of a
musical and/or literary composition possesses a common law prop¬
erty right in the same, and has a right to control and limit its use.
2. The individuality, personality and unusual talents of such
an artistic interpreter identify his production, creation or per¬
formance in such a manner as to make it different, and conse¬
quently, per se, a special value with pecuniary worth.
3. The interpretive talent of the complainant is creative and
vests in him an incorporeal property right, just as firmly as though
it were corporeal property.
4. Such incorporeal property is entitled to protection.
5. A creation or interpretation that may be captured or tran¬
scribed by mechanical means, and then capable of reproduction at
the will of the possessor, makes such an interpretation or creation,
property.
6. The integrity of one’s art is entitled to protection, and the law
gives such artist a right to command a return for any commercial
utilization of his talent.
7. The talents, creations and interpretations of a performing
artist, may only be used or exploited under the terms and condi¬
tions imposed by the creator. Any other use is an infringement of
his property right, and an injury to his name and commercial worth.
8. The law will follow science and arts in throwing the neces¬
sary protection about property rights, both corporeal and incor¬
poreal, tangible and intangible.
9. The making of a phonograph record or the sale of the same,
under such conditions as were imposed in the suit at issue, does
not constitute a publication.
10. The respondent’s purchase of said records vested in him a
possession and ownership, subject, however, to the special prop¬
erty right of the complainant.
11. Such a use of a phonograph record as has been made by the
respondent in this matter, is a commercial use for profit.
12. The complainant and the RCA-Victor Company were within
their legal rights in producing said records for sale and limited use.
13. The respondent’s use of said records violated the express
restriction stamped thereon, and was an unlawful interference with
complainant’s right. The respondent’s use of said records is an
interference with the complainant’s contractual relations with the
international company, with which he has a contract for his exclu¬
sive broadcasting services.
14. The limitation of use or restriction stamped upon the face of
the records was a condition or servitude inseparable from the
records.
15. The restriction stamped upon the records is not an interfer¬
ence with the purchaser of said records to use them for the purpose
intended, it is not an unreasonable condition, its enforcement would
not be in restraint of trade, and its enforcement does not create a
monopoly. It is a protection of the property right vested in the
complainant and enforceable in equity.
16. Such use of said records, as the use made by the respondent,
creates unfair competition.
EXHIBIT 10
AMERICAN SOCIETY OF RECORDING ARTISTS
Incorporated
Southern California Division
Suite 403, Bank of America Building
9470 Santa Monica Boulevard
Beverly Hills, California
WOodbury 62608
A1 Jolson, President
NOTICE
It is reported to the Society by its Bureau of Investigation that
the recorded talents of its artist-members have been broadcast for
commercial purposes in your place of business without the authority
of the Society.
The Society makes available only to licensee -members of the
Society permission to so broadcast the talents of its artist-members.
If you intend to continue such broadcasting of such talents of
the Society’s artist-members, a list of whose names is herewith
presented, the Society will give you a license therefor, upon proper
application for it.
Notice is hereby given you that the Society will hold you liable
for any and all unauthorized usages of the talents of its artist-
members and hereby makes demands upon you for payment of
damages for all unlicensed usages in the past.
Application for license is attached herewith,
American Society of Recording Artists, Inc.
Board of Governors
L. E. Behymer,
Honorary Chairman.
Ernie Golden
Jimmy Grier
Gene Austin,
Chairman.
Al Jolson
Roger Wolfe Kahn
Ted Lewis
Fred Astaire
Little Jack Little
Ben Bernie
Vincent Lopez
Don Bestor
Freddy Martin
Henry Busse
Jeanette MacDonald
Eddie Cantor
Helen Morgan
Noel Coward
George Olsen
Jesse Crawford
Raymond Paige
Frank Crumit
Eddie Peabody
Eli Dantzig
Dick Powell
Jack Denny
Buddy Rogers
Morton Downey
Lanny Ross
Jimmy Durante
Nathaniel Shilkret
Ted Fio Rito
Frances Williams
Jan Garber
Victor Young
Concert-Opera Division
Georges Barrere
Lucrezia Bori
Richard Crooks
Mischa Elman
Ossip Gabrilowitsch
Mary Garden
John Goss
Alfred Hertz
Jose Iturbi
Maria Jeritza
Dr. Hans Kindler
Josef Lhevinne
John McCormack
Jose Mojica
Grace Moore
Elisabeth Rethberg
Felix Salmond
Carlos Salzedo
Tito Schipa
Tpscha Seidel
Babian Sevitzky
Marion Talley
John Charles Thomas
EXECUTIVE
Al Jolson,
Chairman.
OPERA
Lucrezia Bori,
Chairman.
Committees
CONCERT
Mary Garden,
Chairman.
ORCHESTRA
Nathaniel Shilkret,
Chairman.
“THE LAW GIVES SUCH ARTIST A RIGHT TO COMMAND
A RETURN FOR ANY COMMERCIAL UTILIZATION
OF HIS TALENT”
(Opinion Judge McDevitt, Waring v. WDAS, Philadelphia, C. P.
January, 1936)
Excerpts from Decision Against Radio Station WDAS:
“1. A creation or interpretation that may be captured or tran¬
scribed BY MECHANICAL MEANS, and then capable of repro-
1509
duction at the will of the possessor, MAKES SUCH AN INTER¬
PRETATION OR CREATION, PROPERTY.
2. The INTEGRITY OF ONE’S ART IS ENTITLED TO
PROTECTION, and the law gives such artist a right to command
a return for any commercial utilization of his talent.
3. The creator of a unique and personal interpretation of a musi¬
cal and/or literary composition possesses a common law property
right in the same, and has a right to control and limit its use.
4. The talents, creations and interpretations of a performing
artist, MAY ONLY BE USED OR EXPLOITED UNDER THE
TERMS AND CONDITIONS IMPOSED BY THE CREATOR.
AND OTHER USE IS AN INFRINGEMENT OF HIS PROP¬
ERTY RIGHT, and an injury to his name and commercial worth.
5. * * * The reproduction by virtual theft of his performance
* * * is just as much an invasion of his privacy as would be
the tapping of the wires of one broadcasting station featuring com¬
plainant for the purpose of sending out through another station
that rendition * * * or performance * * *”
Excerpt from Musical Performers’ Protection Act of 1925, Eng.,
15 and 16 Geo. V. CH. 46, 31st July, 1935 :
(An Act to Prevent Unauthorized Reproduction of Dramatic and
Musical Performances)
“1. If any person knowingly * * * (c) uses for the purpose
of public performance any record made IN CONTRAVENTION
OF THIS ACT, he shall be guilty of an offense under this ACT,
and shall be liable, on summary conviction, to a fine * * * for
each record * * *”
Excerpt from Shafter: Musical Copyright, Page 274:
“To return to the artist: his voice is his property. He should
have the right to prevent any exploitation that will decrease the
value of his talent.”
Excerpt from Savage vs. Hoffman, 159 Federal Rep. 584:
“* * * The manner, method and art of every performer is
individual and his own property.”
Excerpt from Phonotopia vs. Bradley, 171 Federal Rep. 951 :
An injunction on the grounds of unfair competition aside from
the grounds of infringement or deception of the public, should be
granted in equity to restrain the wrongful appropriation of an¬
other’s property.
Excerpt from Supreme Court of the United States Decision De¬
livered by Mr. Justice Holmes, January 22, 1917 :
In Herbert vs. The Shanley Company, 242, U. S. 591.
“* * * They are a part of a total for which the public pays,
and the fact that the price of the whole is attributed to a particular
item in which those present are expected to order, is not important.
It is true that the music is not the sole object, but neither is the
food, which probably could be got cheaper elsewhere. The object
is a repast in surroundings that to people having limited powers of
conversation or disliking the rival noise give a luxurious pleasure
not to be had from eating a silent meal. IF music DID not PAY
IT WOULD BE GIVEN UP. If it pays, it pays out of the public’s
pocket. Whether it pays or not, THE PURPOSE OF EMPLOY¬
ING IT IS PROFIT, AND THAT IS ENOUGH.
Excerpt from Judgment of Civ., Cham., 2nd Instance Buenos Aires,
Oct. 28, 1930:
“The purchase of a phonograph record does not * * * convey
the right to broadcast its contents.”
Excerpt from Gramophone Co. & Tetrazzini vs. State Finance
(1912) Tribunal Court , Milan:
“The artistic personality of the performer is reflected in the per¬
formance which becomes a distinct product having a special value
not only artistic but also, pecuniary — so that the record incor¬
porating this performance NECESSARILY BELONGS ALSO TO
THE PERFORMER WHO LIAS CREATED IT.”
Excerpt from Remick vs. General Electric Co., 4 Fed. (2nd) 160:
“If a broadcaster procures an unauthorized performance * * *
and for his own profit makes the same available to the public,
served by receiving sets attuned to the station, it is the judgment
of this court that he is an infringer, unless express permission is
given or performance paid for according to price set by person
owning right to performance * * *”
Excerpt from Proposal 1st Int. Juridical Radio Congress:
“The radioelectrical transmission of the performance * * *
or artistic work cannot be made without the consent of the inter¬
preter.”
COURT DECISIONS
Waring vs. UHR’S Roumanian Restaurant, Phila. C. P., 1936.
Waring vs. Studio Ballrooms, Inc., Phila. C. P., 1936.
Waring vs. Robinson Recording Laboratories, Phila. C. P., 1936.
Buck vs. Jewell-LaSalle Realty Co., 283 U. S. 191.
International News Service vs. Associated Press, 248 U. S. 215.
Board of Trade vs. Christie Co., 198 U. S. 236.
Howe vs. Wyckoff, 198 U. S. 118.
Associated Press vs. KVOS, Inc., 80 Fed. (2d) 575.
The Associated Press vs. Sioux Falls Broadcasting Ass’n, U. S.
District Ct., South Dakota, Mar. 4, 1933.
Waterson Co. vs. Irving Trust Co., 48 Fed. (2d) 704.
Remick vs. General Electric, 16 Fed. (2d) 829.
Universal Film Co. vs. Copperman, 218 Fed. 577.
Werckmeister vs. American Lithographic Co., 134 Fed. 321.
Sperry & Hutchinson vs. Mechanics’ Clothing Co., 128 Fed. 800.
Melvin vs. Reid, 112 Cal. App. 285.
Chaplin vs. Amador, 93 Cal. App. 358.
Binns vs. Vitagraph Co., 210 N. Y. 51.
Messager vs. British Broadcasting Co., Ltd. (1927), 2 K. B. 543,
and (1929) A. C. 151.
Abernathy vs. Hutchinson, 3 L. J. Chancery 209.
Sarpy vs. Holland, 2 Ch. 1908.
Savage vs. Hoffman, 159 Federal Rep. 584.
Phonotopia vs. Bradley, 171 Federal Rep. 951.
1510
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * *
Copyright, 1936. The National Association ot Broadcasters
Vol. 4 - - No, 44
SEPT. 3, 1936
IN THIS ISSUE
Page
Court Action on Broadcasting Cases . 1511
Denial Recommended for New Station . 1511
Clear Channel Survey . 1511
New Oregon Station Recommended . 1511
Securities Act Registrations . 1511
Denial Richmond Station Recommended . 1512
Recommends Denying New Washington Station . 1512
Federal Trade Commission Action . 1512
FTC Closes Case . 1512
Federal Communications Commission Action . 1512
COURT ACTION ON BROADCASTING CASES
The Court of Appeals of the District of Columbia has granted a
stay order to the Wilkinson Broadcasting Company, Mason City,
Iowa, in an appeal filed in the Court against the Federal Com¬
munications Commission.
In this case the Wilkinson Company appealed against a decision
of the Commission granting a construction permit for a new broad¬
casting station at Mason City to the Mason City Globe & Gazette
Company. The Wilkinson Company in its appeal claimed that
the Commission had ignored its rights in granting the Gazette
Company the permit.
The Palmer Broadcasting Syndicate of Portland, Me., has ap¬
plied to the Court to dismiss its appeal against the Communica¬
tions Commission.
The Commission granted a construction permit to the Portland
Broadcasting System, Inc., for the erection of a new station at
Portland. The Palmer Syndicate and several others who had
applications pending for a station at the same time appealed to
the Court against the Commission’s decision. Prior to asking that
its appeal be dismissed the Court had granted a stay order to the
Palmer Syndicate.
DENIAL RECOMMENDED FOR NEW STATION
The Port Huron Broadcasting Company applied to the Federal
Communications Commission for permission to erect a new broad¬
casting station at Port Huron, Mich., to use 1370 kilocycles, 250
watts and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-282, recommended
that the application be denied. He found that the applicants
failed to show the need for daytime service in the area proposed
to be served and they do “not possess the technical qualifications
to construct and operate the proposed station.”
NEW OREGON STATION RECOMMENDED
Wike & Studebaker filed an application with the Federal Com¬
munications Commission asking for a construction permit for the
erection of a new station at Baker, Ore., to operate on 1370 kilo¬
cycles, 100 watts and 250 watts LS, and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-284, recommended
that the application be granted on certain conditions. The
Examiner found that there is need for the proposed service in the
area concerned but that interference would result if certain pend¬
ing applications are not granted. He therefore recommended that
the application be granted subject to the following conditions:
(a) That the application of Station KUJ for change of fre¬
quency from 1370 to 1250 kilocycles be granted by the
Commission.
(b) That the site selected by the applicants meet the approval
of the Commission.
(c) That the transmitter equipment comply in all respects with
the rules and regulations of the Commission.
CLEAR CHANNEL SURVEY
The clear channel survey which has been under
way by engineers of the Federal Communications
Commission for a long time has been completed.
It is expected that it will be made public on Sep¬
tember 3. Copies will be sent to all broadcasting
stations by the Commission.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
A. P. W. Paper Company, Inc., Albany, N. Y. (2-2398, Form
A-2)
Monitor Gold Mining Company, Lake City, Colo. (2-2399,
Form A-l)
Messenger Corporation, Auburn, Ind. (2-2400, Form A-2)
The Bastian-Blessing Company, Chicago, Ill. (2-2401, Form
A-2)
Paper Sales Company of Detroit, Inc., Detroit, Mich. (2-2402,
Form A-l)
Iten-Barmettler Biscuit Company, Omaha, Nebr. (2-2403,
Form A-l)
Globe Silver Mines, Inc., Wallace, Idaho. (2-2404, Form A-l)
Committee of Kansas City, Leavenworth & Western Transporta¬
tion Company, Kansas City, Mo. (2-2405, Form D-l)
Committee of Chicago, Rock Island & Pacific Rw. Co., Chicago,
Ill. (2-2406, Form D-l)
Standard Diesel Engine Company, Jersey City, N. J. (2-2407,
Form A-l)
965 Fifth Ave., Corporation, New York City. (2-2408, Form
A-l)
Scottish Dye Works, Ltd., Vancouver, B. C. (2-2409, Form A-l)
Hussman-Ligonier Company, St. Louis, Mo. (2-2410, Form
A-2)
Lanova Corporation, New York City. (2-2411, Form A-l)
El Paso Natural Gas Company, El Paso, Texas. (2-2412, Form
A-l)
Edgar P. Lewis & Sons, Inc., Malden, Mass. (2-2413, Form
A-2)
Eaton & Howard Management Fund “B”, Boston, Mass. (2-
2414, Form A-l)
Alabama Gas Company, Montgomery, Ala. (2-2415, Form A-l)
Woodall Industries, Inc., Detroit, Mich. (2-2416, Form A-2)
Politics, Inc., Washington, D. C. (2-2417, Form A-l)
Emerald Park Mining & Development Co., Buffalo, Wyo. (2-
2418, Form A-l)
Binks Manufacturing Company, Chicago, Ill. (2-2419, Form
A-2)
Sterling Gold Mining Corporation, Houston, Texas. (2-2421,
Form A-l)
Rotating Valve Corporation, New York City. (2-2423, Form
A-l)
Industrial Securities Corporation, Middletown, Conn. (2-2424,
Form E-l)
Managed Estates, Inc., Philadelphia, Pa. (2-2425, Form A-l)
Washington Gas Light Company, Washington, D. C. (2-2426,
Form A-2)
Mueller Brass Company, Port Huron, Mich. (2-2428, Form
A-2)
Kermath Manufacturing Company, Detroit, Mich. (2-2429,
Form A-2)
The Ohio Finance Company, Columbus, Ohio. (2-2430, Form
A-2)
1511
Marine Airlines, Inc., New York City. (2-1809, Form A-l-
refiling)
Peerless Corporation, Cleveland, Ohio. (2-2380, Form A-2-
refiling)
DENIAL RICHMOND STATION RECOMMENDED
The Times-Dispatch Publishing Company, Inc., applied to the
Federal Communications Commission for a construction permit
for the erection of a new broadcasting station at Richmond, Va.,
to use 1500 kilocycles, 100 watts and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-285, recommended
that the application be denied. He found that while there may
be some need in the area for additional service, the interference
which granting of this application would cause with existing sta¬
tions is even more important. Under the circumstances, says the
Examiner, granting of the application would not be in the public
interest.
RECOMMENDS DENYING NEW WASHINGTON
STATION
Gomer Thomas applied to the Federal Communications Com¬
mission for a construction permit for the erection of a new broad¬
casting station at Bellingham, Wash., to use 1420 kilocycles, 100
watts and unlimited time on the air.
Examiner John P. Bramhall, in Report No. 1-283, recommended
that the application be denied. He found that the applicant does
not possess the technical and financial ability to construct and
operate the proposed station, and he further found that “the evi¬
dence fails to establish need for additional service in the area
proposed to be served.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition in
complaints against the following firms. The respondents will be
given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2908. Alleging unfair competition in the sale of advertising
cards or coupons redeemable in silverware, a complaint has been
issued against National Publicity Bureau, Inc., National Pub¬
licity Bureau and Rogers Silverware Distributors, and Hugh
J. Wanke, individually and as president of National Publicity
Bureau, Inc., trading as Rogers Silverware Distributors. The
respondents have headquarters in Baltimore, with an office in the
Rollins Building.
In soliciting local retail and wholesale dealers, the respondents
are alleged to have sold their advertising cards or coupons for
stimulation of the dealers’ business. Representing themselves as
agents of William A. Rogers or William A. Rogers, Ltd., the re¬
spondents are alleged to have advertised the silverware used in
redemption of the coupons as of a high quality and as genuine
William A. Rogers silverware. The respondents are alleged to
have represented that their sales plan had been adopted by the
silverware manufacturer as an advertising campaign for introduc¬
ing and advertising its products, such advertising taking the place
of regular newspaper and magazine advertising.
However, the complaint alleges that the respondents were not
representatives of any concern manufacturing silverware, that
their plan offered to merchants was not an advertising campaign,
and that the silverware used for redemption was not of high
quality and was not the well-known William A. Rogers silverware.
No. 2909. National Krearn Company, Inc., and National
Foods, Inc., both of 360 Furman St., Brooklyn, N. Y., are charged
in a complaint with unfair competition in the sale of jams, jellies
and preserves.
In labeling their products as “pure jams”, “pure jellies” and
“pure preserves”, the respondent companies are alleged to have
made misleading representations, as their products, according to
the complaint, were not prepared according to the formula recog¬
nized by the trade for the manufacture of these foods.
The complaint points out that the trade and public understand
jams, jellies and preserves to be made from a mixture of fruits
and sugar in a proportion of at least 45 pounds of fruit to 55
pounds of sugar, but that the respondents’ products were adul¬
terated by substitution in part for fruit of a mixture of water,
sugar and pectin, so that their products contained substantially
less fruit than the pure or genuine jams, jellies and preserves.
This deficiency of fruit and the presence of substitutes were not
disclosed on the labels, according to the complaint, and the re¬
spondents’ practices are alleged to have placed in the hands of
dealers an instrument of fraud by which they have been able to
mislead the public, and to have resulted in diversion of trade to
the respondents from their competitors.
No. 2910. Alleging unfair competition in the sale of “Kodicon”,
a medicinal preparation, a complaint has been issued against
Bernard M. Wolf, 5 Bloomfield St., Boston, trading as Kodicon
Products Company.
The respondent is alleged to have advertised “Kodicon” as an
adequate treatment for head colds, and as an effective treatment
for rheumatism, arthritis, neuritis, neuralgia and other ailments,
and that “Kodicon” would stop pain. These representations are
alleged to be false and misleading.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
Nos. 01433-01438. Entering into stipulations, six companies
selling commodities in interstate commerce have agreed to end
certain unfair advertising methods.
Four of the companies signing stipulations deal in products
designed to reduce weight. These include Arthur W. Bechtold
and Emanuel Nussbaum, of Forest Hills, N. Y., trading as
Bavarian Herb Co., and selling herb tea; The Weil Co., Inc.,
New Haven, Conn., selling rubber reducing belts; Rollette Co.,
Chicago, selling a weight-reducing device, and Perfolastic, Inc.,
of New York City, dealing in the “Perfolastic Girdle”. These
respondents agreed to stop misleading representations of their
articles.
Milton R. Ney, of Washington, D. C., selling ladies’ fur coats,
fur-trimmed coats, and other apparel, agrees to stop describing
furs from which coats and collars are made, in any other way
than by use of the correct name of the fur as the last name of
the description. He also stipulates that when a dye or blend is
used to simulate a fur, the true name of the fur appearing as the
last word of the description shall be immediately preceded by the
word “dyed” or “blended”, compounded with the name of the
simulated fur. The respondent also agrees not to use a geographic
term to describe a fur unless it actually comes from the region
indicated.
Allen Henderson, operating as Henderson Beverage Co.,
Fort Smith, Ark., sells a medicinal product called “7-Up”. In
its stipulation, the respondent admitted that, according to the
weight of scientific authority, “7-Up” is not a competent treat¬
ment for over-eating, over-drinking, over-worry, over-working,
and other similar ailments, and agreed to stop representing that it
was such.
No. 2384. An order to cease and desist has been issued against
American Tap Bush Co., 6404 East Jefferson Ave., Detroit,
prohibiting unfair competition through disparagement of com¬
petitors’ products in the interstate sale of beer dispensing ap¬
pliances.
The respondent company is directed to cease representing that
taps composed wholly or in part of nickel-plated zinc are harmful
and dangerous to use in drawing beer from kegs, increasing the
beer’s acidity and producing a zinc deposit in such quantity as to
render the beer injurious to the health of consumers.
Findings are that the respondent perfected the well-known
“Peerless” system for tapping beer kegs, in which all portions of
the bush, tap and rod that come in contact with the beer are made
of nickel-plated brass. One of the parts contained in the “De
Luxe” tap, a duplicate of the Peerless, distributed by De Luxe
Manufacturing Co., of Detroit, is said to be made of nickel-plated
zinc.
No. 2470. An order has been issued directing Colonial Dis¬
tilling and Distributing Corporation, 390 Greenwich Street,
New York City, to cease and desist from unfair use of the word
“distilling” in the respondent company’s corporate name and
advertising and on stationery and labels.
The order applies to the respondent company’s sale of whiskies,
gins and other spirituous beverages, except gins produced by it
through a process of rectification whereby alcohol purchased but
not produced by the respondent company is redistilled over juniper
berries and other aromatics.
Under the order, use of the word “distilling” is barred, unless
and until the respondent company shall actually own, operate or
control a place of business in which it distills the products in
which it deals.
1512
Material allegations of the Commission’s complaint were ad¬
mitted by the respondent company to be true and the proceeding
was not contested.
No. 2562. Chase Candy Co., 5th Street and Sylvanie, St.
Joseph, Mo., has been ordered to cease and desist from selling
and distributing to dealers, candy so packed and assembled that
sales to the public are to be made, or are designed to be made,
by means of a lottery, gaming device or gift enterprise.
The order also prohibits the respondent from supplying to deal¬
ers, assortments of candy together with a “push card” device de¬
signed to be used in distribution of the candy to the public at
retail.
No. 2804. Richard Soberanes, 1485 North Vine St., Holly¬
wood, Calif., trading as Tarzana Mineral Water Co., has been
ordered to cease advertising that Tarzana Mineral Water will
prevent or cure ailments such as rheumatism, neuritis, arthritis,
stomach ulcers and high blood pressure.
Findings are that use of the respondent’s mineral water will not
prevent or cure, nor is it beneficial in the treatment of all or any
of the diseases mentioned by the respondent in his radio broad¬
casts and other advertising matter.
Other representations ordered discontinued are: That the drink¬
ing of the respondent’s mineral water will supply the body with
minerals where there is mineral deficiency in the diet; that this
water contains mineral elements in sufficient quantities to render
it different from, or of greater benefit than, any pure, potable
water, and that the diet of the average American citizen is deficient
in minerals.
No. 2874. Wilson Chemical Company, Lie., of Tyrone, Pa.,
as respondent has been ordered to discontinue certain unfair com¬
petitive practices in the sale of salves and miscellaneous mer¬
chandise on the “return or remit” plan.
In promoting the sale of its products, the respondent is directed
to stop representing that a premium is obtainable from it for a
less amount, in either services or money, than is actually the case,
and that a premium will be sent upon remittance of a stated
amount, without mention of an additional sum to cover postage
or packing, in cases where an extra remittance is required.
FTC CLOSES CASE
No. 2891. The Federal Trade Commission has issued an order
closing its case against R. E. Rappeport, 1700 West Monroe St.,
Chicago, charged in a complaint issued August 8, 1936, with
unfair competition in the sale of leather luggage.
Closing of the case was ordered because the respondent, after
service of the complaint, executed a stipulation to cease and
desist from the alleged violations of law. The case was ordered
closed without prejudice to the Commission’s right, should the
facts warrant, to reopen it and resume prosecution of the complaint
under its regular procedure.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Tuesday, September 8
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Struble, Strong & Fagan (Carl C. Struble, Curtis T. Strong,
Jane M. Fagan), The Dalles, Ore. — C. P., 1200 kc., 100
watts, unlimited time.
Wednesday, September 9
HEARING BEFORE AN EXAMINER
(Broadcast)
WCOP — Massachusetts Broadcasting Corp., Boston, Mass. — Modi¬
fication of license, 1130 kc., 500 watts, limited until LS at
KSL, Salt Lake City, Utah. Present assignment: 1120 kc.,
500 watts, daytime.
The Ogdensburg Advance Co., Inc., Ogdensburg, N. Y. — Authority
to transmit programs to foreign countries.
Thursday, September 10
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-212:
NEW— A. W. Hayes, Erie, Pa.— C. P., 1270 kc., 500 watts, 1 KW
LS, unlimited time.
NEW — Watertown Broadcasting Corp., Watertown, N. Y. — C. P.,
1270 kc., 250 watts, daytime.
Examiner’s Report No. 1-214:
NEW — Winona Broadcasting Co., Emmons L. Abeles, Secy.,
Winona, Minn. — C. P., 1500 kc., 100 watts, unlimited time.
NEW — Mankato Broadcasting Co., Mankato, Minn. — C. P., 1210
kc., 100 watts, unlimited time.
NEW — Fort Dodge Broadcasting Co., Emmons L. Abeles, Secy.,
Fort Dodge, Iowa. — C. P., 1210 kc., 100 watts, unlimited
time.
NEW — Clinton Broadcasting Co., Emmons L. Abeles, Secy.,
Clinton, Iowa. — C. P., 1310 kc., 100 watts, unlimited time.
NEW — Hastings Broadcasting Co., Emmons L. Abeles, Secy.,
Hastings, Nebr. — C. P., 1420 kc., 100 watts, unlimited time.
NEW — Grand Island Broadcasting Co., Emmons L. Abeles, Secy.,
Grand Island, Nebr. — C. P., 1370 kc., 100 watts, unlimited
time.
NEW — Appleton Broadcasting Co., Emmons L. Abeles, Secy.,
Appleton, Wis. — C. P., 1500 kc., 100 watts, unlimited time
NEW — Wausau Broadcasting Co., Emmons L. Abeles, Secy.,
Wausau, Wis. — C. P., 1310 kc., 100 watts, unlimited time.
NEW — Northern Broadcasting Co., Inc., Wausau, Wis. — C. P.,
1370 kc., 100 watts, unlimited time.
Examiner’s Report No. 1-215:
WPAR — Ohio Valley Broadcasting Corp., Parkersburg, W. Va. —
C. P., 1420 kc., 100 watts, 250 watts LS, unlimited time.
Present assignment: 1420 kc., 100 watts, unlimited time.
Examiner’s Report No. 1-246:
NEW — Star-Chronicle Publishing Co., St. Louis, Mo. — C. P., 1250
kc., 1 KW, unlimited time.
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — C. P., 1250
kc., 1 KW, unlimited time. Present assignment: 1200 kc.,
100 watts, 250 watts LS, unlimited time.
Examiner’s Report No. 1-247:
WOL — American Broadcasting Co., Washington, D. C. — C. P.,
1230 kc., 1 KW, unlimited time. Present assignment:
1310 kc., 100 watts, unlimited time.
Examiner’s Report No. 1-271:
NEW — Black River Valley Broadcasts, Inc., Watertown, N. Y. —
C. P., 1420 kc., 100 watts, 250 watts LS, unlimited time.
Friday, September 11
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Duluth Broadcasting Co., Duluth, Minn. — C. P., 1200 kc.,
100 watts, unlimited time.
NEW — Walker Jamar, Duluth, Minn. — C. P., 1200 kc., 100 watts,
unlimited time. '
APPLICATIONS RECEIVED
First Zone
WABY — Adirondack Broadcasting Co., Inc., Albany, N. Y. — Con-
1370 struction permit to install a new transmitter ; erect a vertical
antenna; increase power from 100 watts to 100 watts night,
250 watts daytime; move transmitter from Strand Theatre
Bldg., 110 N. Pearl St., Albany, N. Y., to Baintree and
Newton Sts., 500 N. of Albany City Line, Colonie, N. Y.,
and studio from Strand Theatre Bldg., 110 N. Pearl St.,
Albany, N. Y., to 87 State St., Albany, N. Y. Amended to
make changes in proposed equipment and omit request for
increase in day power.
W2XMI — Bamberger Broadcasting Service, Inc., Portable-Mobile.
— License to cover construction permit for high frequency
broadcast station for 31100, 34600, 37600, 40600 kc., 2
watts.
W2XMJ — Bamberger Broadcasting Service, Inc., Portable-Mobile.
— License to cover construction permit for high frequency
1513
broadcast station for 31100, 34600, 37600, 40600 kc., 2
watts.
W2XMK — Bamberger Broadcasting Service, Inc., Portable-Mobile.
—License to cover construction permit for high frequency
broadcast station for 31100, 34600, 37600, 40600 kc., 2
watts.
Second Zone
WKRC — WKRC, Inc., Cincinnati, Ohio. — Modification of con-
550 struction permit authorizing new equipment, increase in
power to 1 KW night, using directional antenna, S KW day¬
time, subject to agreement with WOSU requesting further
changes in equipment.
WHAS — The Courier- Journal Co. and The Louisville Times Co.,
820 Louisville, Ky. — Voluntary assignment of license from The
Courier- Journal Co. and The Louisville Times Company to
The Louisville Times Company.
NEW — Science Surveys, Inc., Cleveland, Ohio. — Construction per-
880 mit for new broadcast station to be operated on 880 kc.,
1 KW night and 5 KW day power, unlimited hours of op¬
eration, and use directional antenna at night.
WLMU — Lincoln Memorial University, Middlesboro, Ky. — Modi-
1210 fication of construction permit (B2-P-1130) to make changes
in equipment and increase power from 100 watts to 100
watts night, 2S0 watts day power.
WMBC — Michigan Broadcasting Co., Detroit, Mich. — Modifica-
1420 tion of construction permit (B2-P-910) for changes in
equipment, requesting changes in authorized equipment and
extend commencement and completion dates.
Third Zone
WQAM — Miami Broadcasting Co., Miami, Fla. — Authority to
560 make changes in automatic frequency control of auxiliary
transmitter.
KARK — Arkansas Radio & Equipment Company, Little Rock,
890 Ark. — Modification of construction permit (B3-P-197) for
equipment changes, increase in power, move of transmitter
to site to be determined, Little Rock, Ark., to further re¬
quest authority to install a new transmitter and vertical
antenna, and for approval of transmitter site at Jackson
Boulevard, North Little Rock, Ark.
WNAD — University of Oklahoma, Norman, Okla. — Authority to
1019 make changes in automatic frequency control.
NEW — Neil O. Davis and F. M. Gleason, d/b as North Georgia
1200 Broadcasting Co., Rossville, Ga. — Construction permit to
erect a new broadcast station to be operated on 1200 kc.,
100 watts power, unlimited time. Amended to omit name
of Neil O. Davis from applicant’s name.
NEW — Knoxville Journal Broadcasting Co., R. R. Spilman, Ira
1200 A. Watson, Roy N. Lotspeich and R. H. Clagett, Knoxville,
Tenn. — Construction permit for a new station to be op¬
erated on 1200 kc., 100 watts night, 250 watts daytime, un¬
limited time.
WSOC — WSOC, Inc., Charlotte, N. C. — Authority to make changes
1210 in automatic frequency control.
WSGN — The Birmingham News Co., Birmingham, Ala. — Con-
1310 struction permit to install new transmitter.
WATL — J. W. Woodruff and S. A. Cisler, d/b as Atlanta Broad-
1370 casting Company, Atlanta, Ga. — Voluntary assignment of
license from J. W. Woodruff and S. A. Cisler, d/b as Atlanta
Broadcasting Co. to J. W. Woodruff, d/b as Atlanta Broad¬
casting Co.
KALB — Alexandria Broadcasting Company, Inc., Alexandria, La.
1420 — Modification of license to change time from daytime to
unlimited time, using 100 watts power, contingent upon
B3-P-975, WJBO, if and when WJBO leaves 1420 kc. fre¬
quency. Amended to request change in frequency from
1420 kc. to 1210 kc. and omit request that this application
be contingent upon WJBO.
WNBR — Memphis Broadcasting Co., Memphis, Tenn. — Construc-
1430 tion permit to install a new transmitter and antenna ; move
transmitter from 1690 S. Lauderdale St., Memphis, Tenn.,
to mile northwest Five Points, intersection U. S. High¬
way 70 and Macon Road, Shelby County, Tennessee.
WRDW — Augusta Broadcasting Co., Augusta, Ga.— Construction
1500 permit to move transmitter from 309 Eighth Street, Augusta,
Ga., to Satcher Estate on edge of city, North Augusta, S. C.,
and install vertical antenna.
WHBB — W. J. Reynolds, Jr., J. C. Hughes and J. S. Allen, d/b
1500 as Selma Broadcasting Company, Selma, Ala. — Modification
of license to change time from daytime to unlimited time,
using 100 watts power.
Fourth Zone
WTAD — Illinois Broadcasting Company, Quincy, Ill. — Construc-
900 tion permit to install new transmitter and vertical antenna,
and increase power from 500 watts to 1 KW, and move
transmitter from 510 Main Street, Quincy, Ill., to North
24th Street, Quincy, Ill.
WCLO — Gazette Printing Co., Janesville, Wis. — License to cover
1200 construction permit B4-P-1038 for move of transmitter and
new antenna.
NEW — Walter H. McGenty, Rice Lake, Wis. — Construction per-
1210 mit to erect a new station to be operated on 1200 kc., 100
watts night, 250 watts day power, and unlimited time.
Amended: Change frequency from 1200 kc. to 1210 kc.,
time from unlimited to daytime.
WEBC — Head of the Lakes Broadcasting Co., Superior, Wis. —
1290 Modification of license to move studio from 1225 Tower
Avenue, Superior, Wis., to Spaulding Hotel, Duluth, Minn.
KFH — The Radio Station KFH Company, Wichita, Kans. — Au-
1300 thority to determine operating power by direct measure¬
ment.
WSBT — The South Bend Tribune, South Bend, Ind. — Construc-
1360 tion permit to install a new transmitter.
Fifth Zone
KFVD — Standard Broadcasting Co., Los Angeles, Calif. — Con-
1000 struction permit to make changes in equipment, install
directional antenna, increase power from 250 watts to 1
KW, and change hours of operation from limited time to
unlimited time. Amended to change requested hours of
operation from unlimited time to limited time.
KJBS — Julius Brunton & Sons Co., San Francisco, Calif. — Con-
1070 struction permit to install a new antenna; change frequency
from 1070 kc. to 1080 kc. ; and move studio and trans¬
mitter from 1380 Bush Street, San Francisco, Calif., to
1476 Pine Street, San Francisco, Calif. Amended to omit
request for change in frequency.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Modification of
1310 construction permit (B5-P-444) for new equipment, move
of transmitter, change in frequency, increase in power, and
change in hours of operation, requesting changes in authorized
equipment and move of transmitter 1 mile from present
authorized site, Wolf Point, Mont. (Request of attorney.)
KGCX — E. E. Krebsbach, Wolf Point, Mont.- — -Modification of
1310 construction permit (B5-P-444) for changes in equipment,
increase in power, change frequency and hours of operation,
and move transmitter, requesting changes in authorized
equipment.
KIUP — C. Guy Shepard, Durango, Colo. — Voluntary assignment
1370 of license from C. Guy Shepard to San Juan Broadcasting
Company.
KVL — KVL, Inc., Seattle, Wash. — Construction permit to make
1370 changes in equipment, change frequency from 1370 kc. to
1070 kc., power from 100 watts to 250 watts, hours of
operation from share-KRKO to daytime. Amended to
change frequency from 1070 kc. to 1270 kc., hours of
operation from daytime to unlimited time using 250 watts
power, install vertical antenna, and move transmitter from
Smith Tower, 2nd and Yesler Way, Seattle, Wash., to site
to be determined, Seattle, Wash. Contingent upon KOL
being granted change in frequency from 1270 kc.
KPQ — Westcoast Broadcasting Company, Wenatchee, Wash. —
1500 Construction permit to make changes in equipment.
NEW — A. W. Mills, Gallup, N. Mex. — Construction permit for a
1500 new station to be operated on 1500 kc., 100 watts, un¬
limited time. Amended to make changes in antenna.
NEW — S. H. Patterson, Denver, Colo. — Construction permit for
1570 special broadcasting station for 1570 kc., 1 KW power, un¬
limited time.
W6XLN — Ben S. McGlashan, Portable-Mobile. — License to cover
construction permit for 31100, 34600, 37600, 40600, 90000,
150000, 300000, 600000 kc., 100 watts power, unlimited
time.
1514
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D, C.
JAMES W, BALDWIN, Managing Director
NAB REPORTS *
Copyright, 1936. The National Association of Broadcasters
Vol. 4 - - No. 45
SEPT. 10, 1936
IN THIS ISSUE
Page
Carpenter Heads Commercial Section . ISIS
Church Renamed Chairman Committee of Five . 1515
Warner Brothers Questionnaire . ISIS
Palmer Appeal Dismissed . ISIS
New Ohio Station Recommended . ISIS
No Terminal Charge Reductions . ISIS
Recommends Against California Station . ISIS
Gordon Bergquist . 1516
Federal Trade Commission Action . 1516
Federal Communications Commission Action . 1517
CARPENTER HEADS COMMERCIAL SECTION
President Myers has appointed H. K. Carpenter, Vice President
and General Manager, Radio Station WHK, Cleveland, Ohio, as
Chairman of the Commercial Section.
Simultaneous with his appointment of Mr. Carpenter to head the
Commercial Section, Mr. Myers appointed Buryi Lottridge, Gen¬
eral Sales Manager, Radio Stations KOIN-KFAB, Omaha, Ne¬
braska, as chairman of the Sales Managers’ Division and John J.
Gillin, Jr., Commercial-Program Director, Radio Station WOW,
Omaha, Nebraska, as chairman of the Industry Promotion Division.
CHURCH RENAMED CHAIRMAN
COMMITTEE OF FIVE
Arthur B. Church, President, KMBC, Kansas City, Missouri,
has been reappointed by President Myers as Chairman of the
Committee of Five. This Committee will represent the NAB on
the Joint Committee on Radio Research.
WARNER BROTHERS QUESTIONNAIRE
“Do you wish to subscribe to our free motion picture preview
transcription service sent to you in advance of film release?”
There is a great deal more in the questionnaire mailed to radio
stations last week by Martin Gosch, Warner Brothers Radio
Director, but the meat of the proposition is contained in the above
question.
This is not unlike other propositions submitted to members from
time to time by other film companies. The film people are con¬
scious of the fact that radio offers the most efficient means for
exploiting their pictures. By means of “Hollywood News,” “Com¬
mentaries by leading film stylists,” etc., the film personalities
may be kept constantly before the listeners on 29,000,000 receiving
sets. By means of song plugging (by special permission) and
dramatizations, radio popularizes new songs and invites listeners
to see their favorite performers.
If the Warner proposition does not seek, as others do, to obtain
free time — -free exploitation of their pictures — why does not Mr.
Gosch place an order for time and pay for that time at the rates
specified in the stations’ rate cards. He has all the facilities for
building excellent commercial programs. He must know that
talent costs are in addition to time costs. He ought to know that
radio stations cannot discriminate between advertisers.
There is even more at issue here. One fact that cannot be
ignored is that while radio stations are popularizing film music,
they are building a music repertory that requires an expenditure
of 5 per cent of their receipts for “time on the air” even though
music is not used in certain programs. Another is that after
popularizing orchestra leaders and other talent (often identified'
with motion pictures) radio is threatened with litigation if they
do not cease broadcasting the recordings of such persons or pay
heavy royalties for their use — and regardless of the fact that the
musical selections involved are contained in the ASCAP repertory.
“Free offerings,” regardless of their source, should receive search¬
ing inquiry before acceptance. It may be found that some of them
contain the kind of food it takes to build a Frankenstein. A good
example of this may be found in the recent offering by “Words
and Music” Music Publishers, of a record made by Jan Garber
and his Orchestra of two song hits. In the letter transmitting the
record Mr. Piantadosi said, “We would greatly appreciate it if
you would use this record at every opportunity on your future
programs. Thanking you and with best wishes.” This offering
was made late in July. In August Jan Garber permitted the use
of his name in a suit brought by the American Society of Record¬
ing Artists against a member station (KFWB). In this suit Jan
Garber alleges in substance and among others that the use of his
record (Victor Record No. 24S67 — Brunswick Record No. 6740)
was unauthorized; that its use for broadcasting diminished his
income, created unfair competition, etc., and demanded an ac¬
counting and damages for the “unlicensed” and “unauthorized”
use of his record. Will Jan Garber make the same claims con¬
cerning his selections offered to stations by “Words and Music”
in July?
But back to motion pictures. There is a basis for business
relations between radio broadcasting and motion pictures. It is
founded on the NAB Code of Ethics. Adherence to the principles
in it will eliminate discriminatory practices. That is in the public
interest.
PALMER APPEAL DISMISSED
The Court of Appeals of the District of Columbia has dismissed
the appeal of the Palmer Broadcasting Syndicate of Portland, Me.,
against the Federal Communications Commission. It was dis¬
missed at the request of the applicant.
In this case the Commission granted a construction permit to
the Portland Broadcasting System, Inc., for the erection of a new
station at Portland. The Palmer Syndicate and several others
who had applications pending for a station at the same time ap¬
pealed to the Court against the Commission’s action.
NEW OHIO STATION RECOMMENDED
C. A. Rowley filed an application with the Federal Communica¬
tions Commission asking for a construction permit for the erection
of a new broadcasting station at Ashtabula, Ohio, to use 940 kilo¬
cycles, 250 watts, and daytime operation only.
Examiner John P. Bramhall, in Report No. 1-287, recommended
that the application be granted. He found that need for the day¬
time service “in the area proposed to be served has been clearly
established.” The Examiner states that the applicant is in all
ways qualified to erect and operate such a station as proposed and
he finds that it would serve the public interest.
NO TERMINAL CHARGE REDUCTIONS
Officials of the Federal Communications Commission deny that
the American Telephone & Telegraph Company has filed tariffs
with the Commission reducing the terminal costs in cases where
four terminals or more are used. It was explained at the Com¬
mission that certain stories appearing in the daily press to this
effect were due to a misunderstanding of the tariffs filed.
RECOMMENDS AGAINST CALIFORNIA STATION
The Valley Broadcasting Company applied to the Federal Com¬
munications Commission for a construction permit for the erection
of a new broadcasting station at Pomona, Calif., to use 1160
kilocycles, 250 watts, and daytime hours of operation.
Examiner R. H. Hyde, in Report No. 1-286, recommends that
the application be denied. The Examiner found that granting of
the application would cause interference to one foreign station
and two Los Angeles stations “and be subject to interference from
these stations.” The Examiner further stated that “it does not
1515
appear from examination of the evidence that there is such need
for the service of the proposed station as would justify the com¬
promise with engineering standards that would be necessary to pro¬
vide the operating assignment applied for.”
GORDON BERGQUIST
It is suggested that any member who is contemplating the
employment of Gordon Bergquist communicate with NAB head¬
quarters.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will be
given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2658. An amended and supplemental complaint has been
issued charging Knight Electric Company, Inc., 16 Hudson
Street, New York City, and associated companies, with unauthor¬
ized use of well-known trade names and the appropriation of the
reputation and good will of certain established companies, in the
sale of radio receiving sets, tubes and accessories.
The original complaint in this case, issued in December, 1935,
charged Knight Electric Company, Inc., with appropriating the
names “Majestic International,” “Victor International,” “Victor
Radio Stores,” and “Edison Radio Stores,” without the authority
of the owners of such names, namely, Grigsby-Grunow Co.,
RCA-Victor Co., and Thomas A. Edison, Inc.
The amended and supplemental complaint names as respondents
several additional companies and individuals and alleges the use
on name plates attached to radio products sold by them of other
names and letters or symbols in addition to those mentioned in
the original complaint. Among these are trade names containing
the names Marconi, Edison, Bell, Victor, Majestic and Brunswick,
the name Brunswick being the property of Brunswick Radio Cor¬
poration, and symbols and letters alleged to simulate the letters
“RCA” and “GE” as owned by Radio Corporation of America
and General Electric Co., respectively.
The complaint alleges that the sale to dealers in radio sets, tubes
and like products of escutcheons or name plates, stamped or
branded with well-known names, marks, and symbols owned by
other companies, without the latter’s consent, and the sale of such
sets, tubes, and accessories, branded or marked with these names,
without authority of the owners, places in the hands of dealers
and others the means whereby injury may be done to competitors
and the purchasing public in violation of Section 5 of the Federal
Trade Commission Act.
Besides Knight Electric Company, Inc., the amended complaint
names the following companies engaged as essentially a single
business in manufacturing and assembling radio sets, tubes, and
like products: Temple Electric Corporation, Acme Radio
Corporation, Pirate Radio Corporation, Gillet Radio Cor¬
poration, Radio Products Corporation, and Franklin Sales
and Distributing Company, Inc., all of 16 Hudson Street,
New York City.
No. 2911. A complaint has been issued against G. F. and M. F.
Pergande, of Milwaukee, trading as Pergande Institute, Per-
gande Civil Service Institute, Pergande Publishing Company,
Civil Service Institute, and Pergande Civil Service Publish¬
ing Company.
Advertisements and other representations made by the respond¬
ents are alleged to have a tendency to deceive purchasers and
prospective purchasers of their correspondence courses and books
into believing that the respondents and the correspondence school
operated by them are connected with or otherwise represent the
United States Government or the United States Civil Service
Commission, and that their courses and material are made use of
by the Government in connection with civil service examinations
for positions in the classified civil service.
No. 2912. Charging unfair competition in the interstate sale
of tinted or colored photographic enlargements, a complaint has
been issued against Frank McKinnon, 710 Eddy St., Providence,
R. I., trading as Eastern Art Company and United Art Asso¬
ciation.
Selling enlargements of family pictures and other photographs,
and the frames therefor, the respondent is said to have employed
agents to visit prospective customers in various parts of the coun¬
try operating under one or the other trade names, neither of the
two trade name companies selling in the same territory at the
same time.
Among representations made to customers, according to the
complaint, were the following: That pictures sold customers were
portrait paintings, oil paintings or water color paintings, when
this was not true ; that pictures sold by the respondent were worth
as much as $40, or had been bought by prominent people for
$1,000, when, in fact, the respondent’s product was a cheap product
costing around $1.25 each; that the respondent operated an art
school and gave work to unemployed artists, when this was not
true; that customers would get free pictures in lottery drawings,
and that the respondent conducted a contest in connection with
national advertisers, in which the winning picture of a child would
be selected and the parents made the recipient of a prize and of
royalties.
Nos. 2913-2916. Alleging unfair competition in the sale of
candy through use of methods which promote lotteries or gift
enterprises, complaints have been issued against Marcelle Candies,
Inc., 223 Peachtree St., N. W., Atlanta, Ga.; C. E. Gheens, 817
South Floyd St., Louisville, Ky., trading as Bradas & Gheens;
Billing & Co., Dakota and Morris Streets and Chocolate Ave.,
Indianapolis, Ind., and Maple City Candy Co., 405 Tyler St.,
La Porte, Ind.
No. 2917. Unfair competition in the sale of poultry remedies
in interstate commerce is alleged in a complaint against Merck
and Co., Inc., Rahway, N. J.
Selling “Iodine Suspensoid Merck” and “Iodine Vermicide
Merck,” the respondent company is alleged to have advertised in
a manner leading prospective purchasers to believe that “Iodine
Vermicide Merck” will remove all kinds of worms from pullets;
that this product will prevent worm infestation of poultry, and
that “Iodine Suspensoid Merck” will, without other precautionary
measures being taken by the user, control coccidiosis, when, ac¬
cording to the complaint, the medicines will not accomplish these
results.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 01439. Breslau, 1109 F St., N. W., Washington, D. C.,
selling women’s fur trimmed coats, agrees to cease advertising furs
used in trimming its coats in any other way than by employing
the correct name of the fur as the last name of the description.
The respondent company agrees that when a dye or blend is used
in simulating another fur the true name of the fur appearing as
the last word of the description will be immediately preceded by
the word “dyed” or “blended” compounded with the name of the
simulated fur.
No. 01440. A. R. Patterson, Rochester, N. Y., operating
under the name, Patterson School, stipulates that he will cease
representing that a person pursuing his course of instruction will
be sure to pass government examinations, or receive an appoint¬
ment, or that the passing of an examination and procuring of a
position are guaranteed or insured. The respondent also agrees to
stop asserting that he accomplishes anything other than the im¬
parting by correspondence of certain information that may help
purchasers of his course to pass civil service examinations. He
also agrees to discontinue alleging that undoubtedly many emerg¬
ency positions would be put in the classified civil service and
opened up to civil service examinations.
No. 01441. Mrs. G. Charvat, 210 West 8th St., Kansas
City, Mo., trading as Byron Tyler and selling a food product
called Tyler’s Macerated Wheat, will no longer advertise that that
product will keep the joints, ligaments, arteries and muscles elastic,
or that it is an adequate treatment or competent remedy for
indigestion, nervousness and stomach troubles. Other like repre¬
sentations will be discontinued.
No. 01442. Olive Tablet Company, 29 E. 5th St., Columbus,
Ohio, selling “Dr. Edward’s Olive Tablets,” stipulates that it will
not advertise its preparation as a competent treatment or effec¬
tive remedy for constipation, unless this assertion is limited as
referring to temporary relief. The product will also not be repre¬
sented as a substitute for calomel. Other similar representations
will be discontinued.
No. 01443. Larre Laboratories, Inc., 334 Broadway, Den¬
ver, Colo., selling a medicinal preparation called “Zeptabs,” will
discontinue employing the representation that “Zeptabs” are
absolutely safe and harmless, unless notice is given that they must
be used strictly according to instructions. The respondent com¬
pany agrees to stop representing that this product is a competent
remedy for certain women’s diseases and that it is antiseptic,
unless, in the manner in which its use is recommended, it meets
the scientific tests of an antiseptic.
No. 01444. Ben Turoff, Lee’s Summit, Mo., selling a me¬
dicinal preparation called “Tar-Zeme,” agrees to bar the repre-
1516
sentation that “Tar-Zeme” is a cure for psoriasis, or that when
used in such cases it will produce permanent results. Turoff also
agrees to stop asserting that “Tar-Zeme” is an effective treatment
for eczema, unless the assertion is limited as referring to relief
from burning or itching.
No. 01445. Lewis Hotel Training School, Inc., 23rd St.
and Washington Circle, Washington, D. C., agrees to cease
and desist from representing directly or by inference that the
Lewis Hotel Training School has jobs to be filled, or needs addi¬
tional students to meet requirements of its placement service.
Other representations to be discontinued are that salaries range
from $1,800 to $5,000 a year in the hotel field; that Clifford Lewis
has been “appointed managing consultant” to more than 300
hotels; that the course sold by this school will increase the earn¬
ings of a student by a definite amount ; that a student receives
“individual guidance” “under the personal supervision of Clifford
Lewis,” and other similar assertions.
No. 1741. Glame, Inc., 226 Grand St., Hoboken, N. J., dis¬
tributor of manicure preparations, agrees to stop representing
that its “Glame Polish Remover” feeds or nourishes the nails or
cuticle of users, also to discontinue use of the words “feeds” or
“nourishes” in any way implying that its product, or the glycerin
content thereof, has the power or capacity to feed or nourish the
nails or skin.
No. 1755. R. H. Macy & Co., Broadway & 34th St., New
York City, in the sale of a cosmetic, “Macy’s Skin Food,” agrees
to stop use of the words “Skin Food” as a trade designation for
its product, and to discontinue use of this term or of any other
words of similar meaning on labels or in advertising, implying
that the product is a skin food or that it will feed or nourish the
skin when applied externally, or that it possesses value in excess
of what is actually the fact.
No. 1758. Vimay-Chany, Inc., 5835 W. Washington St.,
Culver City, Calif., in selling its “Amphoteric” cosmetics, agrees
to stop advertising that use of the respondent’s products will
correct an over-acid or over-alkaline condition of the skin. The
respondent company agrees to cease asserting that its products
will “normalize” the skin; that the use of soaps or of other facial
creams will cause or aggravate an over-acid or over-alkaline con¬
dition; or that the respondent’s products will change the funda¬
mental nature of excretions of the skin.
No. 1766. Fred E. Delaney and Cora Lee Delaney, trading
as Fred E. Delaney Co., Ill East 5th St., Charlotte, N. C.,
in the sale of a line of cosmetics under the trade name “Mata-
Hari,” will cease using the word “medicated” to describe prepara¬
tions not impregnated with a drug or other medicinal ingredient,
and will discontinue employing the phrases, “Skin Tissue Food,”
“Anti-Wrinkle Cream,” or “Skin Tonic and Freshener,” to desig¬
nate substances which do not feed the tissues, prevent wrinkles, or
act as a skin tonic.
The respondents agree to cease representing their demonstrators
as “beauticians” or “skin specialists,” unless such persons have
appropriate degrees or scientific training entitling them to these
designations. The respondents agree to stop advertising that
they make, or teach others to make, scientific diagnoses of skin
conditions, and will abandon use on labels and in other advertise¬
ments of the words “New York” and “Washington,” unless and
until they own, occupy, and conduct branch offices in those cities.
No. 1768. Tril-O-Gy Beauty Service, Inc., 4051 Broadway,
Kansas City, Mo., stipulates that it will not advertise its products
as being prepared in accordance with the prescription of a derma¬
tologist, “beautician,” or other scientifically qualified person, or
that it is equipped to, and does, prescribe individual corrective
service based on a scientific analysis by an expert “beautician.”
The respondent company agrees to bar the assertion that its prep¬
arations possess properties as which nourish or rejuvenate the
skin, to smooth away lines, restore elasticity, or stimulate the
circulation; or that its products will penetrate the skin or the
pores and make the skin free from blemishes. Also, the respondent
company will cease alleging that it has a factory or laboratory
wherein the products it sells are made or compounded, when this
is not true.
No. 2471. Campbell’s Distilleries, Inc., 110 Erie St., Cam¬
den, N. J., has been ordered to cease and desist representing
itself, through use of the word “Distilleries,” as a distiller of
whiskies, gins or other spirituous beverages. The respondent com¬
pany, according to findings, purchases, rectifies, blends and bottles
liquors but is not a distiller.
The respondent company’s practices are held to be in violation
of the Federal Trade Commission Act.
Findings are that the respondent company’s stock, equipment
and other assets were sold by a receiver and trustee in bankruptcy,
but that “nothing appears to show that respondent’s corporate
existence has not been maintained or that in the future it might
not, unless prohibited therefrom, again engage in business as a
rectifier and resume the acts and practices * * * described.”
No. 2490. A cease and desist order has been issued against
T. S. Craig, 812 Wayne St., Dallas, Tex., trading as United
Silk Co. The order prohibits unfair methods of competition in
the sale of hosiery.
Engaged in the sale of hosiery by the house-to-house canvass
method, the respondent is ordered to discontinue filling orders
with hosiery different from the size, color or quality ordered, and
from accepting all or any part of the purchase price when hosiery
of the size, color or quality ordered is not delivered to the pur¬
chaser at the time promised.
Craig is directed to cease representing to purchasers that a free
pair of hose will be shipped with an order, unless this is actually
done without added cost to the purchaser, and from asserting that
a certain number of pairs will wear for a specified time and that,
if they do not, the worn hosiery will be replaced with new until
the expiration of the time specified. This part of the order is
effective unless and until, under normal wear, the hosiery will
last for the time specified; or, if the hosiery does not wear for the
time indicated, unless and until the respondent fulfills his re¬
placement promise.
No. 2508. Calafo Company, Inc., 620 West Olympic Blvd.,
Los Angeles, dealer in medicinal preparations has been ordered
to cease and desist from advertising that “Calafo Asthmatic
Powder,” “Calafo Mentholated Powder,” and certain other prepa¬
rations sold by it will cause asthma or hay fever and the symptoms
thereof to disappear.
The respondent company also directed to discontinue asserting
that persons afflicted with asthma or hay fever will regain their
health if they use these preparations or that the preparations con¬
stitute a competent and effective remedy for treating and curing
asthma or hay fever. Advertising that the respondent’s prepara¬
tions may safely be used by all persons afflicted with asthma or
hay fever is also prohibited in the order.
No. 2524. Prohibiting certain unfair competitive methods in
the sale of correspondence school courses has been issued an order
to cease and desist against Charles L. Johnson, 1502 Hinman
Ave., Evanston, Ill., trading as National Institute of Account¬
ancy, Inc.
The respondent is ordered to discontinue representing that his
enterprise has offices in the Institute Building, Chicago, and that
it is a large, substantial correspondence school, comparable with
the leading correspondence schools in the United States, with a
staff of trained and experienced teachers, and that the respondent
is its “president,” “treasurer,” or “director.”
Findings are that the respondent does not have offices in the
Institute Building, Chicago, and that the National Institute of
Accountancy, Inc., is not a large school with a staff of trained
and experienced teachers, but is a “one man” concern without
any teaching staff, with the exception of the respondent, Johnson,
and at times one or two persons who assist in grading papers.
No. 2625. An order has been issued requiring Richard B.
Yancey and Mrs. E. Y. Councill, of Salisbury, N. C., trading
as International China Co. and as Baker Pottery Co., to cease
and desist from certain unfair competitive methods in the inter¬
state sale of chinaware, earthenware and other pottery.
Specifically, the respondents are directed to stop misrepresent¬
ing the number of complete sets of dishes or other chinaware or
earthenware that may be made up from various pieces contained
in their assortment designated “odds and ends.”
According to findings in the case, the respondents’ “odds and
ends” assortment, containing more than 1,000 pieces, was repre¬
sented as providing in every instance at least three complete sets
of 36 pieces each, of uniform design, pattern or decoration, when,
in fact, it was impossible to assemble even one set from such
“odds and ends.”
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, September 14
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Telegraph Herald, Dubuque, Iowa — C. P., 1340 kc., 500
watts, daytime.
NEW — Stanley Reid & Charles Withnell Boagel, Jr., d/b as The
1517
Rapids Broadcasting Co., Cedar Rapids, Iowa — C. P.,
1310 kc., 100 watts, unlimited time.
WKBB — Sanders Brothers Radio Station, Dubuque, Iowa — C. P.
to move; 1500 kc., 100 watts, 2S0 watts LS, unlimited time.
Tuesday, September 15
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— Smith, Keller & Cole, San Diego, Calif.— C. P., 1200 kc.,
100 watts, daytime.
Wednesday, September 16
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— C. F. Gaarenstroom, Fairmont, Minn— C. P., 1420 kc.,
100 watts, 250 watts LS, unlimited time.
KSO — Iowa Broadcasting Co., Des Moines, Iowa— C. P., 1430 kc.,
500 watts, 2 y2 KW LS, unlimited time. Present assign¬
ment: 1430 kc., 500 watts, 1 KW LS, unlimited time.
NEW— The Times Publishing Co., St. Cloud, Minn.— C. P.,
1420 kc., 100 watts, unlimited time.
Thursday, September 17
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-217:
NEW — C. C. Hill, Geo. D. Walker, Susan H. Walker, Winston-
Salem, N. C.—C. P., 1250 kc., 200 watts, daytime.
Examiner’s Report No. 1-220:
NEW— A. Steneart Graham, E. V. Baxter, Norman Baxter, d/b
as Pittsburg, Broadcasting Co., Pittsburg, Kans.— C. P.,
790 kc., 1 KW, daytime.
Examiner’s Report No. 1-222:
WMBG— Havens & Martin, Inc., Richmond, Va.— C. P., 1350
kc., 500 watts, unlimited time.
NEW— Century Broadcasting Co., Inc., Richmond, Va.— C. P.,
1370 kc., 100 watts, daytime.
Examiner’s Report No. 1-255:
KGKO— Wichita Falls Broadcasting Co., Wichita Falls, Texas—
C. P., to move to Ft. Worth; 570 kc., 250 watts, 1 KW LS,
unlimited time.
The Broadcast Division has taken the following action subject
to ratification at its next regular meeting:
APPLICATIONS GRANTED
WFAB— Fifth Avenue Broadcasting Corp., New York City, N. Y.
— Granted special temporary authority to operate station
without a plate voltmeter for a period not to exceed 15 days.
WTCN— Minn. Broadcasting Corp., Minneapolis, Minn.— Granted
special temporary authority to use transmitter of station
WLB to broadcast its programs for the period August 21
to August 24 ; and to use station WTCN’s transmitter with
temporary antenna from August 24 for a period of 30 days.
WNAX — WNAX Broadcasting Co., Yankton, S. Dak.— Granted
special temporary authority to operate without a plate
ammeter for the period August 26 to September 5, 1936.
KALB — Alexandria Broadcasting Co., Alexandria, La. — Granted
special temporary authority to operate from 6:15 to 11 p. m.,
CST, nights of September 4 to 14 inclusive, to broadcast
results of Evangeline League Championship Playoff.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla.
— Granted extension of special temporary authority to op¬
erate station without an approved frequency monitor for
the period August 29 to September 7, 1936.
WNBC — State Broadcasting Corp., New Britain, Conn. — Granted
special temporary authority to operate unlimited time on
the nights of August 29, September 16 and 22, in order to
broadcast a rally, tendered to Representative Lemke, a speech
by Reverend Coughlin and a Testimonial Dinner to Paul
Harris, founder of International Rotary.
WMAZ — Southeastern Broadcasting Co. Inc., Macon, Ga. — Granted
extension of special temporary authority to operate without
antenna ammeter for a period beginning August 20 and end¬
ing not later than September 18.
KSCJ — Perkins Bros. Co. (The Sioux City Journal), Sioux City,
Iowa — Granted special temporary authority to operate sta¬
tion without antenna ammeter for the period August 24 to
September 3, pending repair of apparatus.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted ex¬
tension of special temporary authority to operate on 560
kc., with power of 1KW night during month of September,
1936, pending filing of and action on license application.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Granted
extension of special temporary authority to operate with
power of 50 watts from local sunset to 11 p. m., EST, on
Tuesdays, Thursdays, Saturdays and Sundays during month
of September, pending action on application for modifica¬
tion of license.
WMBG — Havens & Martin, Inc., Richmond, Va. — Granted ex¬
tension of special temporary authority to operate from 5:30
to 7 p. m., EST, on Sundays during the month of Septem¬
ber (provided WBBL remains silent), in order to broadcast
special programs.
WDBO— Orlando Broadcasting Co. Inc., Orlando, Fla. — Granted
extension of special temporary authority to operate with
additional power of 750 watts at night for the period
August 29 to September 27, 1936.
WTMV — Miss. Valley Broadcasting Co. Inc., E. St. Louis, Ill. —
Granted special temporary authority to operate station
without antenna ammeter for the period August 28 to Sep¬
tember 6, 1936, pending repair of apparatus.
WKBB — Sanders Bros. Radio Station, E. Dubuque, Ill. — Granted
special temporary authority to operate station without an¬
tenna ammeter for a period beginning August 28 and end¬
ing no later than September 6, 1936.
KSEI — Radio Service Corp., Pocatello, Idaho — Granted extension
of special temporary authority to operate station without
an antenna ammeter for the period beginning August 27
and ending no later than 10 days thereafter.
WSYB — Philip Weiss Music Co., Rutland, Vt. — Granted special
temporary authority to operate from 9 to 10 p. m., EDST,
on September 8, 1936, in order to broadcast election returns.
(Action taken 8-29.) Also granted special temporary au¬
thority to operate from 9 a. m. to 10 a. m., EDST, for the
period beginning September 7 and ending September 12,
inclusive, for the purpose of broadcasting special features
of the Rutland County Fair.
KOAC — Oregon State Agricultural College, Corvallis, Ore. —
Granted extension of special temporary authority to operate
from 8 a. m. to 2:30 p. m. and from 6:30 to 8 p. m., PST,
during September (instead of unlimited time as licensed)
in order to observe summer vacation.
WCPO — Continental Radio Co., Cincinnati, Ohio. — Granted spe¬
cial temporary authority to operate a 100-watt portable test
transmitter from 12 midnight to 6 a. m., EST, for the
period September 1 to September 7, 1936, in order to de¬
termine new transmitter site.
KGGF — Powell & Platz, Coffeyville, Kans. — Granted extension of
special temporary authority to operate from 7:15 to 9:15
p. m., CST, September 1, 3, 8, 10, 15, 17, 22, and 24, and
from 8:15 to 9:15 p. m., CST, on September 2, 9, 16, 23,
1936 (provided WNAD remains silent), in order that
WNAD may observe summer vacation.
WNAD — University of Oklahoma, Norman, Okla. — Granted ex¬
tension of special temporary authority to remain silent on
above dates in order to observe summer vacation.
WSUI — State University of Iowa, Iowa City, Iowa. — Granted
extension of special temporary authority to operate a mini¬
mum of 6 hours daily, instead of unlimited time, for the
period September 1 to 20, 1936, in order to observe summer
vacation.
KFGQ — Boone Biblical College, Boone, Iowa. — Granted special
temporary authority to operate from 2:30 to 4 p. m., CST,
September 1, for a special broadcast.
KGKB— East Texas Broadcasting Co., Tyler, Tex. — Granted ex¬
tension of special temporary authority to operate from
7 a. m. to 2 p. m. and from 4 to 10 p. m., CST, during
month of September, 1936, instead of hours now licensed,
pending compliance with Rule 131.
KELW — Evening Herald Publishing Co., Burbank, Calif. — Granted
extension of special temporary authority to use transmitter
of KEHE, with power of 500 watts, for the period Septem¬
ber 1, 1936, to March 1, 1937, pending completion of con¬
struction of station KEHE.
1518
WTAD — Illinois Broadcasting Corp., Quincy, Ill.— Granted special
temporary authority to operate a portable test transmitter
not more than SO watts on 900 kc. between the hours of
12 midnight and 6 a. m., CST, for a period not to exceed
30 days.
KGCX — E. E. Krebsbach, Wolf Point, Mont.— Granted special
temporary authority to operate from 9:30 a. m. to 12 noon
and from 9 to 11 p. m., MST, on September 12, in order
to broadcast speech by Senator Wheeler and other prominent
Montana Democrats.
KCRJ — Charles C. Robinson, Jerome, Ariz. — Granted special
temporary authority to operate from 8 p. m., September 8,
to 2 a. m„ September 9, 1936, MST, in order to broadcast
election returns.
KFDY — South Dakota State College, Brookings, S. Dak. — Granted
special temporary authority to remain silent September 7th
in order to observe national holiday.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga. —
Granted special temporary authority to operate from 8:15
p. m. to 12 midnight, EST, on September 7, 8 and 9, 1936,
in order to broadcast pre-election and election night activi¬
ties.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Granted
extension of special temporary authority to maintain main
studio at Moline, Ill., instead of Rock Island, for the period
September 4 to October 3, 1936.
WILL — University of Illinois, Urbana, Ill. — Granted special tem¬
porary authority to operate simultaneously with KFNF
from 8 to 11 a. m. daily, CST, except Sunday, during the
month of September, 1936.
KFNF — Henry Field Co., Shenandoah, Iowa. — Granted special
temporary authority to operate simultaneously with WILL
from 8 to 11 a. m. daily, CST, except Sunday, during
month of September, 1936.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted extension of special temporary authority
to operate a 100-watt portable test transmitter between
hours of 12 midnight and 6 a. m., EST, for period August
28 to September 11, 1936.
KCMO — Lester E. Cox, Thomas L. Evans and C. C. Payne, Radio
Station KCMO, Kansas City, Mo. — Granted extension of
program test period for 30 days from August 28, 1936.
W2XK — National Broadcasting Co., Inc., New York City-
Granted extension of tests for 30 days from August 27, 1936.
KNEF — Radio Service Corp. of Utah, Salt Lake City, Utah. —
Granted authority to operate station KNEF as licensed,
August 30 to September 5, inclusive, to broadcast automo¬
bile speed runs on salt beds near Salduro, Utah.
KLZ — KLZ Broadcasting Co., Denver, Colo. — Granted extension
of program test period for 30 days from August 29, 1936.
WKRC — WKRC, Inc., Cincinnati, Ohio. — Granted extension of
special experimental authority to operate with 1 KW from
September 1, 1936, to March 1, 1937.
KSCJ — The Sioux City Journal, Perkins Bros. Co., Sioux City,
Iowa. — Granted license to cover C. P. as modified; fre¬
quency 1330 kc., 1 KW night, 2^4 KW day, unlimited time.
KFEL — Eugene P. O’Fallon, Denver, Colo. — Granted license to
cover C. P., 920 kc., 500 watts, share equally with KVOD.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Granted
extension of special experimental authority to operate with
1 KW daytime.
WEED — Wm. Avera Wynne, Rocky Mount, N. C. — Granted
license to cover C. P., 1420 kc., 100 watts night, 250 watts
day, unlimited time, share night with WCHV.
WIP — Pennsylvania Broadcasting Co., Philadelphia, Pa. — Granted
extension of special authority to operate with 1 KW to
March 1, 1937.
WKZO — WKZO, Inc., Kalamazoo, Mich. — Granted C. P. to
install new equipment.
WHP — WHP, Inc., Harrisburg, Pa. — Granted C. P. to move sta¬
tion locally.
KTSA — KTSA Broadcasting Co., San Antonio, Tex. — Granted
C. P. to install new equipment.
WAWZ — Pillar of Fire, Zarephath, N. J.— Granted C. P. to install
new equipment in accordance with Rules 132 and 139.
KID — KID Broadcasting Co., Idaho Falls, Idaho. — Granted modi¬
fication of C. P. for new transmitter site and new antenna
system.
KLZ— KLZ Broadcasting Co., Denver, Colo. — Granted license to
cover C. P., 560 kc., 1 KW night, 5 KW day; also granted
authority to determine operating power by direct measure¬
ment of antenna power.
KGW — Oregonian Publishing Co., Portland, Ore. — Granted license
to cover C. P., 620 kc., 1 KW night, 5 KW day, unlimited;
also granted authority to determine operating power by
direct measurement of antenna power.
WGBF — Evansville on the Air, Inc., Evansville, Ind. — Granted
renewal of license for 630 kc., 500 watts, simultaneous day¬
time operation with KFRU and share time at night with
KFRU for period September 1, 1936, to March 1, 1937.
WMCA — Knickerbocker Broadcasting Co., Inc., New York City. —
Granted renewal of license for the regular period; 570 kc.,
500 watts, unlimited time.
WMCA — Same for auxiliary.
KARK — Arkansas Radio & Equipment Co., Little Rock, Ark. —
Granted renewal of license for the regular period.
KFDM — Sabine Broadcasting Co., Inc., Beaumont, Tex. — Granted
renewal of license for the regular period.
WSVA — Shenandoah Valley Broadcasting Corp., Harrisonburg, Va.
—Granted renewal of license for the regular period.
KFQD — Anchorage Radio Club, Inc., Anchorage, Alaska. — Granted
temporary extension of present license for a period of 1
month from September 1, subject to such action as may be
taken on pending application for renewal.
KSD — Pulitzer Publishing Co., St. Louis, Mo. — Granted temporary
extension of present license for a period of 3 months from
September 1, 1936, subject to such action as may be taken
on application for renewal and related pending applications.
WOCL — A. E. Newton, Jamestown, N. Y. — Granted renewal of
license to December 1, 1936.
WOEH — National Broadcasting Co., Inc., Aboard Airplane NC-
223-Y. — Granted special temporary authority to operate
regularly licensed temporary broadcast pickup station on
plane piloted by Howard Hughes on frequencies 4797.5,
6425, 8655, 12862.5, 17310 kc., in addition to licensed fre¬
quencies, to describe flight from New York City to Paris,
for period August 30 to September 28, 1936.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
special temporary authority to operate from 11 a. m. to 12
noon, 1:30 to 5 p. m. and 7 to 8 p. m., EDST, on August 31
and September 2; from 11 a. m. to 12 noon and 1:30 to 8
p. m., EDST, on September 1, 3 and 5, and from 11 a. m.
to 12 noon and 1:30 to 5 p. m., EDST, September 4, in
order to broadcast Champlain Valley Fair.
WBPH — Transcontinental & Western Air, Inc., Aboard NC-13711.
— Granted extension of special temporary authority to
operate regularly licensed airplane transmitter aboard NC-
13711 as a broadcast pickup station on August 29, 30,
September 5, 6, 7, 12, 13, 19 and 20.
WKP-WQW-WQP-WQH — RCA Communications, Inc., Rocky
Point, N. Y. — Granted special temporary authority for
point to point telegraph stations in addition to authority
contained in present licenses covering operation of these
stations, to communicate with broadcast pickup station
WOEH for contact control communication service to facili¬
tate reception of program material by Riverhead, N. Y.,
receiving station for delivery to a National broadcast chain,
for the period August 30 to September 28, 1936.
W8XUN — Radio Air Service Corp., Cleveland, Ohio — Granted ex¬
tension of special temporary authority to operate radio
transmitting apparatus as general experimental broadcast
pickup station for period September 2 to October 1, 1936,
to broadcast public activities.
W9XPL-W9XPM — KFNF, Inc., Shenandoah, Iowa — Granted spe¬
cial temporary authority to operate portable-mobile trans¬
mitters (2) on September 2, 1936; frequencies 31100, 34600,
37600, 40600 kc., 5 watts.
W9XPK — WDZ Broadcasting Co., Tuscola, Ill. — Granted special
temporary authority to operate portable-mobile broadcast
pickup transmitter on September 1, 2, 3 and 4, 1936.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KEHE, Los Angeles; KTSA, San Antonio, Tex and WPRO,
Providence, R. I.
Licenses of the following stations were extended on a temporary
basis only for the period September 1 to October 1, 1936, pending
receipt and/or action on renewal applications:
KFRC and auxiliary. San Francisco; KMJ, Fresno, Cal.; KUSD.
Vermillion, S. Dak.; WMMN, Fairmont, W. Va. ; WPEN and
auxiliary, Philadelphia, and WRAX and auxiliary, Philadelphia;
1519
WCAU (auxiliary) Philadelphia; WNYC (auxiliary) New York
City; WRDO, Augusta, Maine; WWAE, Hammond, Ind.
WWL — Loyola University, New Orleans, La. ; KWKH — Inter¬
national Broadcasting Corp., Shreveport, La. — Special tem¬
porary experimental authorizations further extended for the
period September 1 to October 1, 1936, subject to the same
conditions as contained in existing authorities to said sta¬
tions, pending consideration of pending petition of WLWL
and petitions in opposition thereto.
The following stations were granted renewal of licenses on a
temporary basis only, subject to such action as the Commission
may take on their pending applications for renewal:
KFUO, Clayton, Mo.; KSEI, Pocatello, Idaho; WIND, Gary,
Ind.; WPHR, Petersburg, Va.
W9XAF — The Journal Company, Milwaukee, Wis.— Present li¬
cense extended on a temporary basis only for the period
September 1 to October 1, 1936, pending action on appli¬
cation for renewal.
W2XBH — Radio Pictures, Inc., Long Island City, N. Y. — Present
license extended on a temporary basis only for the period
September 1 to October 1, 1936, pending action on applica¬
tion for renewal.
MISCELLANEOUS
NEW — Central Broadcasting Co., Eau Claire, Wis. — The Broad¬
cast Division, upon consideration of a petition filed by the
Central Broadcasting Co., reconsidered its action of July 2,
1936, in denying application for C. P. for new station to
operate on 1050 kc., 250 watts, daytime. (Site to be de¬
termined subject to Commission’s approval), recalled its
decision of August 7, 1936, in this case, and granted said
application effective Sept. 15, 1936.
The Broadcast Division granted the request of the Black River
Valley Broadcasters, Inc., that oral argument be granted in con¬
nection with Ex. Rep. No. 1-271, and that such argument be
heard at the same time as, and in consolidation with, the argu¬
ment scheduled to be heard on September 10, in connection with
application of the Watertown Broadcasting Corp., involving Ex.
Rep. No. 1-212.
The Broadcast Division denied the petition of J. R. Maddox
and W. B. Hair, d/b as the Chattanooga Broadcasting Co., Chatta¬
nooga, Tenn., requesting that the Commission reopen the hearing
on its application for C. P. to establish a broadcast station at
Chattanooga (Exp. Rep. 1-252). The Broadcast Division granted
the request for oral argument in this case, and extended the time
for filing exceptions to the Ex. Report until September 1, 1936.
APPLICATIONS RECEIVED
First Zone
WMAL — National Broadcasting Co., Inc., Washington, D. C. —
630 Modification of license to change operating power of aux¬
iliary transmitter from 250 watts night, 500 watts day to
250 watts night and day.
WGY— General Electric Co., Schenectady, N. Y.— Authority to
790 install automatic frequency control for main transmitter.
WGY— General Electric Co., Schenectady, N. Y— Authority to
790 install automatic frequency control for auxiliary transmitter.
NEW — Troy Broadcasting Co., Troy, N. Y. — Construction permit
1240 for a new station to be operated on 1240 kc., 500 watts,
daytime.
WCAM — City of Camden, Camden, N. J. — Authority to make
1280 changes in automatic frequency control.
WDRC — WDRC, Incorporated, Hartford, Conn. — Authority to
1330 determine operating power by direct measurement of an¬
tenna.
WILM — Delaware Broadcasting Co., Chester, Pa. — Construction
1420 permit to install vertical antenna, move transmitter from
Baynard Blvd. & March Rd., Carrcroft, Delaware, to site to
be determined, Chester, Pennsylvania, and studio from 920
King Street, Wilmington, Delaware, to site to be determined,
Chester, Pennsylvania.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
1450 Modification of construction permit (Bl-P-225) for changes
in equipment, install directional antenna and increase power,
requesting extension of completion date from 10-1-36 to
10-31-36.
W2XBH — Radio Pictures, Inc., Long Island City, N. Y. — Modifi¬
cation of license to delete frequencies 2000-2100, 42000-
56000, 60000-86000 kc., and add 1614, 2398, 23100, 41000,
86000-400000 kc., and additional frequencies 1600, 2012-
2016 or 2276-2280, 41600 kc. for possible interference for
free facsimile transmission. Amended: To delete frequen¬
cies 1600, 2012-2016 or 2276-2280, 41600 kc., and add
frequency of 2012 kc.
WlXO — Travelers Broadcasting Service Corp., Portable and Mo¬
bile — Construction permit to change equipment and in¬
crease power from 7.5 watts to 50 watts.
WlXT — The Travelers Broadcasting Service Corp., Portable-Mo¬
bile — Construction permit for replacement of transmitter
and increase power from 7.5 watts to 100 watts.
XXX — National Broadcasting Co., Inc., New York, N. Y. — Exten¬
sion of authority to transmit programs to stations CFCF
and CRCT and the Canadian Radio Broadcast Commission.
XXX — National Broadcasting Co., Inc., New York, N. Y. — Exten¬
sion of authority to transmit recorded programs to foreign
radio stations (CJOR, CFAC, CJOC & CJCA).
Second Zone
NEW — Berks Broadcasting Co., Pottsville, Pa.— Construction per-
580 mit for a new station to be operated on 640 kc., 250 watts,
daytime. Amended to change frequency from 640 kc. to
580 kc.
WAVE — WAVE, Inc., Louisville, Ky. — License to cover construc-
940 tion permit (B2-P-1225) for a new transmitter.
WEXL — Royal Oak Broadcasting Co., Royal Oak, Mich. — Con-
1310 struction permit to install a new transmitter and make
changes in antenna.
WBTM — Piedmont Broadcasting Corp., Danville, Va. — Construc-
1370 tion permit to make changes in equipment.
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Con-
1450 struction permit to install a new transmitter and increase
power from 500 watts, 1 KW day, to 5 KW.
WGAL — WGAL, Inc., Lancaster, Pa. — Construction permit to
1500 install a vertical antenna, move transmitter from 4042 N.
Christian Street, Lancaster, Pa., to 4-10 W. King Street,
and studio from 8-10 W. King Street to 4-10 W. King
Street, Lancaster, Pa.
Third Zone
WWNC — Citizen Broadcasting Co., Inc., Asheville, N. C. — Volun-
570 tary assignment of license from Citizen Broadcasting Co.,
Inc., to Asheville Citizens-Times Co., Inc.
NEW — The Birmingham News Co., Birmingham, Ala. — Construc-
590 tion permit for a new station to be operated on 590 kc.,
500 watts night, 1 KW day, unlimited time. Amended to
install directional antenna for night use and approval of
transmitter site at Section 28, Township 17 South, Range 3
West, 800 feet N.W. intersection of Bankhead Highway
and Arkadelphia Road, East Thomas, Birmingham, Ala.
KPRC — Houston Printing Co., Houston, Tex. — Modification of
920 license to change name from Houston Printing Co. to
Houston Printing Corporation.
WAPI— WAPI Broadcasting Corp., Birmingham, Ala. — Authority
1140 to install automatic frequency control.
NEW — Dr. William States Jacobs Broadcasting Co., Houston,
1220 Tex. — Construction permit for a new station to be operated
on 1220 kc., 1 KW, unlimited time.
NEW — William Avera Wynne, Wilson, N. C. — Construction per-
1310 mit for a new station to be operated on 1310 kc., 100 watts,
daytime. Amended to make changes in antenna.
NEW — Red Lands Broadcasting Association, Ben T. Wilson, Presi-
1310 dent, Lufkin, Tex. — Construction permit for a new station
to be operated on 1310 kc., 100 watts, daytime.
KBST — Big Spring Herald Broadcasting Co., Big Spring, Tex. —
1370 Modification of construction permit (B3-P-440) for new
station, further requesting authority to make changes in
equipment, install vertical antenna, approval of transmitter
site at Big Spring, Tex. (no street address), and move studio
from 208 E. 3rd St., Big Spring, Tex., to The Crawford
Hotel, 114 West Third St., Big Spring, Tex.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla. — License
1420 to cover construction permit (B3-P-735) as modified for
new equipment, increase in power, and move of transmitter.
NEW — Paul B. McEvoy, Pub., Hobart Democrat-Chief, Hobart,
1420 Okla. — Construction permit for a new station to be operated
on 1420 kc., 100 watts, unlimited time. Amended to change
hours of operation from unlimited time to daytime.
1520
Fourth Zone
KLPM — John B. Cooley, Minot, N. Dak. — Construction permit
1240 to make changes in equipment, install a vertical antenna,
change frequency from 1240 kc. to 1360 kc., increase power
from 250 watts to 1 KW day and night, change hours of
operation from specified hours to unlimited, and move
transmitter from 26 E. Central Avenue, Minot, N. Dak.,
to near Minot, N. Dak.
WRJN — Racine Broadcasting Corp., Racine, Wis. — License to
1370 cover construction permit (B4-P-370) as modified for new
equipment, increase in power, and move of transmitter.
WGL — Westinghouse Electric & Manufacturing Co., Fort Wayne,
1370 Ind. — Voluntary assignment of license from Westinghouse
Electric & Manufacturing Co. to Westinghouse Radio Sta¬
tions, Inc.
Fifth Zone
KSFO — The Associated Broadcasters, Inc., San Francisco, Calif. —
560 Voluntary assignment of license from The Associated Broad¬
casters, Inc., to Western Broadcast Co.
KMPC — Beverly Hills Broadcasting Corp., Beverly Hills, Calif. —
710 Authority to transfer control of corporation from Pacific
Southwest Discount Corp. (a Delaware Corp.), to George
A. Richards, 1000 shares common stock.
KXA — American Radio Telephone Co., Seattle, Wash. — Authority
760 to make changes in automatic frequency control.
KVOD — Colorado Radio Corp., Denver, Colo. — Construction per-
920 mit to install a new transmitter, erect a vertical antenna,
increase power from 500 watts to 1 KW night, 5 KW day
and move transmitter from outside of Denver, Colorado
to site to be determined, outside of Denver, Colorado.
KYOS — Merced Star Publishing Co., Inc., Merced, Calif.— Modi-
1040 fication of construction permit (B5-P-673) as modified for
a new station, to further request authority to install new
transmitter.
KDON — Monterey Peninsula Broadcasting Co., Del Monte, Calif.
1210 — Construction permit to change frequency from 1210 ke.
to 1280 kc., install a new transmitter and increase power
from 100 watts to 250 watts night, 1 KW day.
KGVO — Mosby’s Incorporated, Missoula, Mont. — Construction
1260 permit to make changes in equipment.
KMED — Mrs. W. J. Virgin, Medford, Ore. — Construction permit
1310 to make changes in transmitter, install new antenna, move
transmitter from Sparta Bldg., Main & Riverside Avenues,
Medford, Oregon, to Ross Lane, Medford, Oregon. Amended:
To change hours of operation from specified hours to un¬
limited time and change transmitter site 2.4 miles from re¬
quested site, Ross Lane, Medford, Oregon.
NEW — Wm. C. Grove & S. H. Patterson, a partnership, Cheyenne,
1420 Wyo. — Construction permit for a new station to be operated
on 1420 kc., 100 watts night, 250 watts day, unlimited time.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — License to
1430 cover construction permit (B5-P-2837) as modified for new
equipment, increase in power, and move of transmitter
locally.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — Authority
1430 to determine operating power by direct measurement of
antenna.
KVOE — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
1500 Calif. — Modification of construction permit (B5-P-912) to
make changes in authorized equipment.
KDB — Santa Barbara Broadcasters, Ltd., Santa Barbara, Calif. —
1500 Construction permit to make changes in equipment and in¬
crease power from 100 watts to 100 watts night, 250 watts
day.
Puerto Rican Zone
WPRA — Puerto Rico Advertising Co., Inc., Mayaguez, Puerto
1370 Rico. — Modification of construction permit (B-P-668) for
approval of transmitter site at about 350 feet from Insular
Road No. 2, Mayaguez, Puerto Rico, and studio about 1
mile from center of city, Mayaguez, P. R.
NEW — Juan Piza, San Juan, Puerto Rico. — Construction permit
1500 for a new station to be operated on 1500 kc., 100 watts
night, 250 watts daytime, unlimited time.
1521
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
. . Vol.4-.No. 46
SEPT. 17, 1936
NAB REPORTS
Copyright, 1936. The National Association of Broadcasters
IN THIS ISSUE
Page
Recommends Voluntary Assignment . 1523
Securities Act Registrations . 1523
Telephone Rate Investigation . 1523
Broadcast Station Changes . 1523
Federal Trade Commission Action . 1524
Federal Communications Commission Action . 1526
RECOMMENDS VOLUNTARY ASSIGNMENT
The First Congregational Church of Berkeley, Calif., licensee of
broadcasting station KRE, has applied to the Federal Communi¬
cations Commission for consent to voluntary assignment of
the license of the station to the Central California Broadcasters,
Inc., of Berkeley, Calif.
Examiner R. H. Hyde in Report No. 1-288 recommends that
the application be granted. The Examiner found that the appli¬
cant for the assignment of the station license is “legally, techni¬
cally, financially and otherwise qualified to continue the operation
of the station,” also tHat “the application may be granted within
the purview of Section 310 of the Communications Act of 1934.”
It was found also by the Examiner that “the public interest,
convenience and necessity would be served by the granting of
the application.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Peoples Bridge Corporation, New York City (2-2431, Form A-2)
Ryan Aeronautical Company, San Diego, Calif. (2-2432, Form
A-l)
Compressed Industrial Gases, Inc., Chicago, Ill. (2-2433, Form
A-2)
Stokely Brothers & Company, Inc., Indianapolis, Ind. (2-2434,
Form A-2)
National Bond & Investment Company, Chicago, Ill. (2-2435,
Form A-2)
Super Mold Corporation of California, Lodi, Calif. (2-2436,
Form A-l)
Locke Steel Chain Company, Bridgeport, Conn. (2-2437, Form
A-2)
Magnolia Gold Mining Company, Denver, Colo. (2-2438, Form
A-l)
Hamilton Depositors Corporation, Denver, Colo. (2-2439, Form
C-l)
Standard Life Insurance Co., of Ind., Indianapolis, Ind. (2-2440,
Form A-l)
Texas Hydro-Electric Corporation, Seguin, Texas (2-2441, Form
A-l)
Wolverine Tube Company, Detroit, Mich. (2-2443, Form A-2)
Pittsburgh Steel Company, Pittsburgh, Pa. (2-2444, Form A-2)
The Trane Company, La Crosse, Wis. (2-2446, Form A-l)
Commercial Banking Corporation, Philadelphia, Pa. (2-2447,
Form A-2)
The Gleen L. Martin Company, Middle River, Md. (2-2448,
Form A-l)
Commonwealth Telephone Company, Madison, Wis. (2-2450,
Form A-2)
TELEPHONE RATE INVESTIGATION
The Telephone Division of the Federal Communications Com¬
mission has approved a motion of Commissioner Brown calling
for a telephone rate investigation and for the appointment of
Carl I. Wheat as special counsel for this work. In this connec¬
tion the Commission has ratified the following motion of Com¬
missioner Brown:
“I move that the Commission, under the authority of Section
205 (a) of the Communications Act of 1934 and of Public Reso¬
lutions Number 8, Senate Joint Resolution Number 46, imme¬
diately initiate a rate investigation into the charges, classification,
regulation and practice of the American Telephone and Telegraph
Company in interstate commerce.
“I further move that the Chairman of the Telephone Division
of the Federal Communications Commission be directed and in¬
structed to immediately contact Mr. Carl I. Wheat of Los Angeles,
Calif., regarding his availability as special counsel to have full
charge of such investigation and that the Chairman report back
the results of such negotiations at the earliest possible date.”
The Telephone Division also took the following action in con¬
nection with Mr. Wheat:
Carl I. Wheat, of Los Angeles, Calif., is hereby appointed
Associate Counsel, Telephone Investigation, especially in charge of
long lines toll rates and other matters incident or relating thereto,
at a salary of $9,000 (Nine Thousand Dollars) per annum,
effective September 15, 1936, under the provisions of Public Reso¬
lution No. 8 of the 74th Congress and the Communications Act
of 1934, and subject to the provisions of the laws, resolutions,
or acts of Congress, and the Federal Communications Commission.
BROADCAST STATION CHANGES
The Federal Communications Commission this week issued a list containing alterations and corrections (italicized) of broadcast
stations to the edition dated January 1 for the month of August as follows:
Call
Main Studio
Frequency Time
Letters
Location
Name of Licensee
Power
(kc) Designation
KCMO
Kansas City, Mo.
Lester E. Cox, Thos. L. Evans and
lOOw
1370 S. H.
C. C. Payne
S.A. U.
KID
Idaho Falls, Idaho
KID Broadcasting Co.
250w
1320 U
M. C. P. T-nr. Idaho Falls
500w-LS
C. P. 500w-lkw-LS
KLZ
Denver, Colo.
KLZ Broadcasting Co.
lkw
560 U
T-nr. Denver
5kw-LS
KM A
Shenandoah, Iowa
May Seed and Nursery Co.
lkw
930 S-KGBZ
2^kw-LS
5. A. U
C. P. U
KOMA
Oklahoma City, Okla.
Hearst Radio Inc.
5kw
1480 U
KSCJ
Sioux City, Iowa
Perkins Brothers Co.
lkw
1330 U
(The Sioux City Journal)
2J^kw-LS
1523
Call
Letters
Main Studio
Location
Name of Licensee
Power
Frequency
(kc)
Time
Designation
KSTP
St. Paul, Minn.
T-Radio Center
C. P. T-nr. St. Paul
National Battery Broadcasting Co.
lOkw
25kw-LS
1460
U
KTAT
Fort Worth, Texas
T-Birdville
Raymond E. Buck
lkw
1240
U
WAAF
Chicago, Illinois
Drovers Journal Publishing Co.
lkw
920
D
WACO
Waco, Texas
KTSA Broadcasting Co.
lOOw
1420
U
WBLK Clarksburg, W. Va.
Formerly WEXP
The Exponent Co.
lOOw
1370
D (C. P. only)
WEAN
Providence, R. I.
M. C. P. T-E. Providence
Shepard Broadcasting Service, Inc.
C. P.
500w
lkw
780
U
WEAU
Eau Claire, Wise.
Central Broadcasting Co.
Effective 9-15-36
250w
1050
D (C. P. only)
WEED
nr. Rocky Mount, N. C.
Wm. Avera Wynne
lOOw
250w-LS
1420
U-D
S-WCHV night
WHBL
Sheboygan, Wise.
T-nr. Sheboygan
Press Publishing Co.
250w
1300
U
WHIO
Dayton, Ohio
T-nr. Dayton
Miami Valley Broadcasting Corp.
lkw
5kw-LS
1260
U
WHP
Harrisburg, Pa.
T-Lemoyne
C. P. T-Swatara Twp.
WHP, Incorporated
500w
lkw-LS
1430
U
WJNO
West Palm Beach, Fla.
Hazlewood, Inc.
C. P. covered by license
Strike out effective 1-7-36
lOOw
1200
U
WKBV
Richmond, Ind.
T. N. of Richmond
Knox Radio Corp.
lOOw
1500
S. H.
WLBC
Muncie,
Donald A. Burton
lOOw
250w-LS
1310
Simul. D.
S-WTRC night
WMBD
Peoria, Ill.
T-bet. Peoria and Pekin
Peoria Broadcasting Co.
500w
lkw-LS
1440
U
WMCA
New York, N. Y.
T-Flushing
Knickerbocker Broadcasting Co., Inc.
Strike out **lkw
500w
570
u
WNAC
Boston, Mass.
T-Quincy
Shepard Broadcasting Service, Inc,
lkw
5kw-LS
1230
u
WOL
WOLS
Washington, D. C.
Strike out all particulars
American Broadcasting Co.
Strike out C. P. T-Md.-lkw-1230
lOOw
1310
u
WTHT
Hartford, Conn.
The Hartford Times, Inc.
lOOw
1200
D
C. P. covered, by license
Strike out effective 2-4-36
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease
and desist orders should not be issued against them.
No. 21118. A complaint has been issued against John D. Myers,
trading as John Sterling Remedy Co., 1600 Bryant Bldg., Kan¬
sas City, Mo., charging him with unfair competition in connection
with the sale of a treatment for a social disease.
In a free booklet entitled “Sterling’s Royal Remedy” distributed
by the respondent he allegedly advertises that his product is a
remedy and cure for the disease and an effective treatment for it
in all stages; that it cures and removes the symptoms of the
disease and gives permanent relief.
These representations as to the efficacy of the respondent’s prod¬
uct are untrue, according to the complaint, which charges, among
other things, that use of the remedy is dangerous and detrimental
to patients and the public, increases the chance of the disease
invading the nervous system and causes gastric disturbances.
No. 2919. Alleging unfair competition in the sale of a product
designated “Genuine Texas Mineral Crystals,” a complaint1 has
been issued against the Dollar Crystal Company, having head¬
quarters in the Redick Tower Building, Omaha, Nebr.
By means of radio broadcasts and otherwise, the respondent
company is alleged to have represented that the drinking of
water in which its product has been dissolved will relieve head¬
ache, nervousness, irritability, and fatigue; will remove the cause
of disease; and will remove poisonous waste matter. The re¬
spondent is said to have advertised that its product has relieved
thousands of cases of ailments caused by a sluggish system and
that thousands of persons have found lasting relief from rheuma¬
tism, arthritis, neuritis, indigestion, constipation, and other diseases.
The complaint alleges that practically the sole constituent of the
respondent company’s crystals is hydrated sodium sulphate, or
Glauber’s Salts, which is a saline laxative and purgative and that
its only therapeutic effect is in the relief of temporary constipa¬
tion. According to the complaint, many of the symptoms and
ailments for which the respondent company represents its product
to be a relief or cure, arise from causes which hydrated sodium
sulphate will not cure or relieve, but will positively aggravate,
and the product is not effective in producing lasting relief or cure
for any of the ailments or symptoms mentioned.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 1742. Meskin Brothers Fur Corporation, 144 West
Twenty-seventh St., New York City, agrees to cease and desist,
in the sale of dyed rabbit skins, from using the words “seal” and
“beaver,” or pictorial representations of seals or beavers, as
marks, stamps or descriptions for dyed rabbit skins. Exception
to this provision is to be made when the words “seal” and
“beaver,” or either of them, are used to designate rabbit skins
which have been dyed so as to simulate seal or beaver, in which
case these words shall be immediately accompanied by other apt
and adequate words printed in conspicuous type so as to indicate
clearly that the products are dyed rabbit skins and not seal or
beaver skins.
No. 1743. The Swiss Colony Vineyards Corporation, 527
West Broadway, New York City, engaged in business as a dis¬
tributor in the sale of wines, agrees to cease using the words
1524
“Swiss Colony” in its corporate name or in any manner tending
to mislead purchasers into the belief that its business and that of
a competitor, Italian Swiss Colony, 781 Beach St., San Francisco,
are one and the same, or that it is connected in any way with
Italian Swiss Colony. The respondent corporation also will dis¬
continue use of the word “Vineyards” to imply that it owns or
controls the vineyard in which are grown the grapes from which
its wines are produced, and will stop using the word “Winery,” to
imply that it owns or controls the winery establishment in which
its wines are made, when such is not the fact.
According to the stipulation, Italian Swiss Colony is the name
of a corporation which for many years has been engaged in the
grape and wine business, and its wines, sold and distributed under
its corporate name, are said to enjoy a favorable reputation.
No. 1744. William M. Irvine and George F. Taylor, 7338
Woodward Ave., Detroit, trading until recently as Rogers
Silverware National Distributors, are engaged in selling cou¬
pons for use by retailers in connection with the marketing of their
merchandise, and in the redemption of such coupons by exchanging
them for silverware articles. They will cease using the word
“Rogers” as a part of their trade name and discontinue advertising
that they are manufacturers or distributors of Wm. A. Rogers
silverware, and that their agents are connected with the Wm. A.
Rogers silverware people.
Among other representations that Irvine and Taylor agree to
discontinue are that their agents have nothing to sell; that their
sales plan costs local merchants nothing; that their sale contract
guarantees money back or cash refund, and that the silverware
given to retailers’ customers for the redemption of coupons is free.
Use of the name “Dun & Bradstreet” or “Dunn & Bradstreet” as a
reference, without authority from that company, also will be
stopped.
Irvine and Taylor are said to be operating now as Manufac¬
turers National Silverware Distributors.
No. 1745. Tidewater Electric Corporation, 127 East Olney
Road, Norfolk, Va., distributor of “Kelvinator” electric refrigera¬
tors, agrees to stop employing in its advertisements the assertion
“Again the Government contract goes to Kelvinator,” or other
similar representations, alone or in connection with pictures of
Government buildings, battleships, or property, so as to imply that
the Government uses only Kelvinator equipment, or that Govern¬
ment awards are made to the Kelvinator Corporation, of Detroit,
to the exclusion of all other refrigerator companies, or that the
Government buildings, ships and properties illustrated are equipped
entirely with Kelvinator refrigerators, when this is not the fact.
No. 1746. S. C. Clayton, Inc., 803 Summer St., Boston,
engaged in the manufacture and sale of preserves and syrups, will
discontinue labeling its marmalade products, which are of domestic
make, with the word “Paisley’s,” in connection with a tartan and
coat of arms of foreign appearance, or which imitates the British
coat of arms. Paisley is a city in Scotland renowned for its
marmalade products, the stipulation points out, and the tartan
background of plaid, said to appear on labels or containers of the
S. C. Clayton Company’s marmalade, usually is associated with
Scotland.
No. 1748. Pontiac Refining Company, Inc., 646 South Sagi¬
naw St., Pontiac, Mich., engaged in the refining of gold, platinum
and silver, and in the distillation of mercury and compounding
of amalgams for use of dentists, agrees to stop asserting in adver¬
tisements that it is the manufacturer of its “Chief Castloy” brand
of dental amalgam, when this is not a fact; and to cease using the
brand name “white gold” to describe a product, the gold content
of which is not substantial.
The respondent company stipulates that it will no longer adver¬
tise that dentists can make an economical casting gold by the use
of gold scrap to alloy “White Castloy.” The stipulation points
out that few dentists are able to do such work properly or have
means of knowing the gold content of their scrap.
No. 1749. Kelvinator Corporation, 14250 Plymouth Road,
Detroit, and Leonard Refrigerator Company, Grand Rapids,
Mich., the capital stock of which is owned and controlled by Kel¬
vinator, agree to cease using advertising matter the import and
implication of which is that Kelvinator and Leonard electrical
refrigerating equipment is the only such equipment purchased and
used by the United States Government, and that tests or investi¬
gations have been conducted by the Government of all standard
makes of electric refrigeration before making its awards, except
when these assertions are limited to investigation made by the
Government from performance figures furnished by refrigerator
manufacturers submitting bids on proposals.
The two corporations also agree to bar the use of awards made
to them by the Government, as a basis for their advertising or for
the advertising furnished by them to or for the use of other com¬
panies.
No. 1750. National Manufacture & Stores Corporation,
578 Bankhead Ave., Atlanta, distributor of Leonard electric
refrigerators, agrees to cease the use in its advertising of the same
class of representations which will be discontinued by the Leonard
Refrigerator Company under the latter’s stipulation entered into
with the Commission.
Nos. 1753-1754. Ben Greenholtz, trading as Greemnoor
Coats Co., 237 West Thirty-seventh St., New York City, and
Hecht Brothers & Co., Inc., Baltimore and Pine Sts., Balti¬
more, in the sale of women’s coats and dresses, agree to stop using
on brands or labels affixed or intended to be affixed to their prod¬
ucts, the words “British Tweed,” independently or in connection
with the words “King Edward III” or any pictorial representation
of the British Royal Arms or of the Union Jack. These respond¬
ents also will cease employing these pictorial devices alone or in
connection with other words, so as to imply that the products so
designated are made of cloth manufactured in Great Britain, when
such is not the fact.
No. 1756. Robert McBratney & Co., Inc., 121 Franklin St.,
New York City, importer of linens, stipulates that it will cease
using the words “Non-Krush” as a brand or label for its products,
or in any way which may imply that the articles referred to are
uncrushable, when this is not a fact.
No. 1757. Sanders Manufacturing Company, 122 4th Ave.,
Nashville, Tenn., stipulates that in the sale of sewing kits it will
cease representing in advertising matter that the kits are “Made in
America” or “Made in U. S. A.,” when in fact such products are
not wholly manufactured or produced in the United States. The
company also agrees to stop selling sewing kits in cases marked
as made in the United States, unless the name of the country of
origin of the imported part of the kit is plainly marked on the out¬
side of the case.
According to the stipulation, the spools and thread in the cases
were manufactured in a foreign county.
No. 1759. George W. Stuart, Monroe, Wis., trading as
George W. Stuart Company, in the sale of cheese, agrees to
case and desist from use of the words “Little Switzerland” in
advertising or labeling those of his products made in the United
States, and from use of the word “Switzerland” independently or
in connection with “Little” or other words in a manner to imply
that his cheese products are made in Switzerland and imported
into this country, when such is not the fact.
No. 1760. William Kahn, 807 High St., Des Moines, Iowa,
trading as Goodrich Raincoat Co., stipulates that he will discon¬
tinue use of the name “Goodrich” in connection with the trade
name under which he operates his business, and will abandon use
of the name “Goodrich” in any way which may imply that the
products he sells are the products of the B. F. Goodrich Co., of
Akron, Ohio. The respondent also agrees to bar use of the words
“manufacturer” and “factories,” when in fact he operates no fac¬
tory, and use of the term “custom-made” on labels attached to
garments not custom-made. He will also cease representing that
he is doing special advertising work, or is selling raincoats made
to individual measurement so as to advertise a particular brand
of cloth, or at the actual cost of labor in making such garments,
when this is not a fact.
No. 1761. Milton "Wolfe, 141 West Thirty-sixth St., New
York City, formerly trading under the name “Harrold’s,” in the
sale of scarves, agrees to discontinue branding, labeling or marking
such products as “hand-loom woven,” when in fact they are not
woven or manufactured on a hand-loom.
No. 1762. Goodrich Grinding Wheel Company, 1500 West
Madison St., Chicago, manufacturing grinding wheels, oilstones,
abrasive specialties and razor hones, will discontinue using on labels
or cartons, a fictitious value or price in exxcess of that at which
its products are sold or are contemplated to be sold in the usual
course of trade. The company also agrees to bar use on cartons
or otherwise of the phrase “$1 Value Now Only 25 Cents,” implying
that the price referred to has been recently reduced, when this is
not true. The respondent company stipulates that it will stop
using on cartons or otherwise the phrases “Pat. Appl’d For” and
“Pat. Pending,” to refer to products on which it has no applica¬
tion pending for patent.
No. 1764. International Latex Corporation, 607 Atlantic
Ave., Rochester, N. Y., manufacturer of bathing caps, pad shields,
crib sheets, and similar articles, under its stipulation, will discon¬
tinue advertising by means of the words “Not Rubber” or “Looks
like rubber but isn’t,” or by means of other words of equivalent
meaning, implying that its products are made of material other
than rubber, when, according to the stipulation, these products
1525
are composed of a material consisting basically of rubber hydro¬
carbon obtained from the caoutchouc tree, and therefore are not
properly designated as “not rubber.”
The respondent corporation also agrees to stop employing repre¬
sentations to the effect that its products prevent perspiration,
make sweating impossible, or other similar assertions, and to desist
in the use of advertising matter employing the word “sterilized”
or other synonymous terms which may tend to deceive buyers
into believing that the articles sold are free of bacteria, when this
is not true.
No. 1765. New Process Co., Warren, Pa., selling dry goods,
including hosiery, by mail-order, will cease using in advertising or
in any other way, the representation “Originally $1.59 a pair — now
eight pairs for only $5.55,” so as to imply that the hose so offered
for sale and sold has a present day market value of $1.59, or that
the price has recently been reduced from $1.59 a pair to eight
pairs for $5.55 or 69j£ cents a pair. The respondent corporation
also agrees to cease advertising that $1.59 hose is being offered
at approximately 69J4 cents a pair or that the offer is a limited one
or is based on a limited quantity, when such are not the facts.
No. 1769. Isador Abramovitz and Benjamin Kapplan, 108
West Twenty-seventh St., New York City, trading as A. & S.
Ribbon Co., agrees to cease employing the word “manufacturers,”
either alone or in connection with other words, on printed matter
distributed in interstate commerce, when they do not make or
manufacture the ribbon sold by them.
No. 1771. Continental Distilling Corporation, 260 South
Broad St., Philadelphia, in selling whiskey designated “Old
Hickory,” agrees to cease using in advertising matter any and all
testimonials unless they are the genuine, honest, and unbiased
opinions of the authors, arrived at from the personal use of “Old
Hickory” whiskey.
No. 1772. The Corozone Air Conditioning Corporation,
4122 Hanna Bldg., Cleveland, manufacturing electrical devices
for purification of indoor air, stipulates that it will stop advertising
or offering for sale any of its products as “air conditioners,” or
from representing in advertisements or otherwise that these devices
will perform air conditioning, unless such apparatus actually be¬
longs to the class of devices known to the trade and public as air
conditioners.
The stipulation points out that the words “air conditioning”
signify control by a mechanical device of the temperature, humidity,
and circulation of air in rooms, buildings, and railroad passenger
trains, and that the non-performance of any one or more of these
functions disqualifies a device for designation as an air conditioner,
as understood by the trade and purchasing public.
No. 1773. Sampson Solarz, 14 South Hanover St., Balti¬
more, trading as Solarz Thread & Yarn Co., agrees to abandon
use of the words “silk” and “satin” on labels to designate products
not composed of silk.
No. 2456. An order has been issued against the Blackwell
Journal Publishing Co., of Blackwell, Okla., publisher of The
Blackwell Daily Journal, requiring it to cease and desist from
unfair competitive methods in violation of Section 5 of the Federal
Trade Commission Act.
Practices of the respondent publishing company were found to
have had a capacity and tendency to injure its competitor, the
Blackwell Tribune Publishing Co., publisher of The Blackwell
Morning Tribune.
The order prohibits certain specific practices entered into for
the purpose of injuring competitors engaged in interstate commerce
either through their circulation of newspapers outside of Oklahoma
or through their obtaining contracts from national advertisers.
These practices are: (1) Circulation of false, disparaging state¬
ments concerning the financial condition and responsibility of its
competitor or competitors; (2) offering to newspaper subscribers
of its competitor or competitors subscriptions to its own news¬
paper without cost; and (3) quoting or charging advertising rates
which are below the cost to the publisher of the advertisements
as set up and published.
No. 2528. National Salesmen’s Training Association, 21
W. Elm St., Chicago, has been ordered to cease and desist from
certain representations in the sale of correspondence courses and
printed matter relating to salesmanship and sales management.
The respondent is directed to stop representing expressly or by
implication that the earnings of persons studying or persons who
have completed the courses are greater than their usual and ordi¬
nary earnings under normal conditions ; and that the demand from
employers of salesmen for such persons exceeds the demand that
actually exists.
The order also prohibits the use in advertising of testimonials
containing statements as to increased earnings attributed to the
respondent’s courses of study when the amounts mentioned were
not actually earned under normal conditions.
Other practices prohibited by the order are the representation
that the respondent will obtain positions for purchasers of the
courses at greatly increased salaries ; that it will refund the purchase
money paid for courses to students who are not satisfied with the
training received, unless, in the latter instance, the respondent does
actually make such refunds without imposing additional conditions
No. 2711. Foster-Milburn Co., 1280 Main St., Buffalo, N. Y.,
has been ordered to discontinue false and misleading advertising in
connection with the sale of Doan’s Pills, or any other medicinal
preparations or compounds possessing similar properties.
The order directs the respondent corporation to cease represent¬
ing that Doan’s Pills give quick relief and will “Wash out 15 miles
of kidney tubes”; that certain bladder conditions indicate that the
kidneys need cleansing, and may be a danger signal and mean loss
of vitality ; and that if the kidneys do not perform certain func¬
tions, the body will absorb poisons, causing serious trouble.
Nothing in the order is to be construed as preventing the re¬
spondent corporation from making proper therapeutical claims or
recommendations which are based upon reputable medical opinion
or recognized medical or pharmaceutical literature.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, September 21
HEARING BEFORE AN EXAMINER
(Broadcast)
WSBT — The South Bend Tribune, South Bend, Ind. — C. P., 1010
kc., 1 KW, unlimited time. Present assignment: 1360 kc.,
500 watts, share WGES.
WEMP — Milwaukee Broadcasting Co., Milwaukee, Wis. — C. P.,
1010 kc., 250 watts, 500 watts LS, unlimited time. Present
assignment: 1310 kc., 100 watts, daytime.
NEW — Glenn Van Auken, Indianapolis, Ind. — C. P., 1050 kc., 1
KW, daytime.
Tuesday, Septembr 22
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Theodore E. Johnson, Houston, Texas — C. P., 1210 kc.,
100 watts, unlimited time.
NEW — Bayou Broadcasting Co., Houston, Texas — C. P., 1210 kc.,
100 watts, daytime.
NEW — H. J. Laubengayer, Salina, Kans. — C. P., 1500 kc., 100
watts, unlimited time.
Wednesday, September 23
HEARING BEFORE AN EXAMINER
(Broadcast)
WBBR — Peoples Pulpit Association, Brooklyn, N. Y. — C. P., 1300
kc., 1 KW, 5 KW LS, share WEVD, WFAB, WHAZ.
Present assignment: 1300 kc., 1 KW, share WEVD, WFAB,
WHAZ.
WROW — Augusta Broadcasting Co., Augusta, Ga. — C. P., 1240
kc., 250 watts, 500 watts LS, unlimited time. Present as¬
signment: 1500 kc., 100 watts, unlimited time.
NEW — John S. Allen and G. W. Covington, Jr., Montgomery, Ala.
— C. P., 1210 kc., 100 watts, daytime.
Thursday, September 24
HEARING BEFORE THE BROADCAST DIVISION
WCFL — Chicago Federation of Labor, Chicago, Ill. — C. P., 970 kc.,
50 KW, unlimited time, experimentally. Present assignment:
970 kc., 5 KW, unlimited, experimentally.
KJR— Fisher’s Blend Station, Inc., Seattle, Wash. — C. P., 970 kc.,
10 KW, unlimited time. Present assignment: 970 kc., 5
KW, unlimited time.
The Broadcast Division has taken the following action subject to
ratification at its next regular meeting:
APPLICATIONS GRANTED
WEBC — Head of the Lakes Broadcasting Co., Superior, Wis. —
Granted special temporary authority to operate without
antenna ammeter for a period not to exceed 30 days.
1526
WAGM— Aroostook Broadcasting Corp., Presque Isle, Maine. —
Granted special temporary authority to operate from 10
p. m., EST, to 11 p. m., EST, September 1, 3, 8, 10, 1936;
from 8 p. m. to 9 p. m., EST, September 2, 5, 6, 9, 11, 1936;
from 7 to 8 p. m., EST, September 4, 1936; from 9 to 10
p. m., EST, September 12, 1936, and from 8 p. m. to 12
midnight, EST, September 13, in order to broadcast political
speeches.
WEBQ— Harrisburg Broadcasting Co., Harrisburg, Ill— Granted
special temporary authority to operate station without an¬
tenna ammeter for a period not to exceed IS days.
WJIM — Capitol City Broadcasting Co., Lansing, Mich. — Granted
extension of special temporary authority to operate station
without antenna ammeter for a period not to exceed 10
days.
KOIN — KOIN, Inc., Portland, Ore. — Granted special temporary
authority to rebroadcast program from Tillamook Light,
station KCBO, consisting of description of light located on
rock in Pacific near entrance to Columbia River, between
4 and S p. m., PST, September 9, 1936.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Granted special
temporary authority to operate station without an approved
frequency monitor for the period September 9 to October 9,
1936.
WAML — New Laurel Radio Station, Laurel, Miss. — Granted spe¬
cial temporary authority to operate from 7 to 9 p. m., CST,
Wednesday, September 9; Thursday, September 10; Friday,
September 11; Sunday, September 13; and from 10:30 to
12 noon, CST, Sunday, September 13, in order to rebroad¬
cast from 1st Methodist Church.
WIEX — National Broadcasting Co., Inc., Aboard Western Air
Express Corp. Airplane NC-13306. — Granted special tem¬
porary authority to operate the regularly licensed aircraft
transmitter KHAQY, owned by United Airlines Transport
Corp. aboard Western Air Express Boeing plane as a broad¬
cast pickup station on frequencies 2760 or 2790 kc. for
test and program transmission in connection with program
Boulder Dam World Power Congress, for period September
7 to 12, inclusive, frequencies 1606, 2020, 2102, 2760 or
2790 kc., SO watts.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Granted spe¬
cial temporary authority to operate simultaneously with
station WKBO from 9:30 to 9:45 p. m., EDST, on Septem¬
ber 7, 14, 21 and 28, 1936, and from 9 to 9:30 p. m„ EDST,
on September 19, in order to broadcast Democratic State
network schedule; and from 10:15 to 10:30 p. m., EDST,
on September 21, 22, 28, 29 and October 5 and 6, 1936, in
order to broadcast Democratic National Committee Schedule.
KUMA — Albert H. Schermann, Yuma, Ariz. — Granted special
temporary authority to operate from 10 p. m., MST, on the
night of September 8, 1936, until termination of election
returns.
WGBE — Onondaga Radio Broadcasting Corp., Syracuse, N. Y. —
Granted authority to operate WGBE as licensed September
7, 8 and 9, 1936, to broadcast special events at New York
State Fair.
KABJ — Central States Broadcasting Co., Lincoln, Nebr. — Granted
authority to extend service tests through September 11 and
operate KABJ Thursday, September 3, to broadcast Presi¬
dent Roosevelt Parade, Des Moines, Iowa.
WJEP- — Stromberg Carlson Tel. Mfg. Co., Rochester, N. Y. —
Granted authority to operate WJEP as licensed September
2 to 10, inclusive, broadcast international Star Boat Races
off Port of Rochester from Coast Guard Cutter Jackson.
KIIH — KFAB Broadcasting Co., Lincoln, Nebr. — Granted au¬
thority to operate KIIH as licensed September 6 to 11, in¬
clusive, broadcast Nebraska State Fair.
WJEP — The Stromberg Carlson Tel. Mfg. Co., Rochester, N. Y. —
Granted authority to operate WJEP as licensed September 7
to 16, inclusive, to broadcast special events at Rochester
Exposition.
KIFI — George W. Young, Minneapolis, Minn. — Granted authority
to operate KIFI as licensed September 9 to 11, inclusive,
broadcast special events of State Fair.
WADC — Allen T. Simmons, Tallmadge, Ohio. — Granted license to
cover C. P., 1320 kc., 1 KW night, 5 KW day, unlimited
time.
KPPC — Pasadena Presbyterian Church, Pasadena, Calif. — Granted
C. P. to make changes in equipment.
KGU — Marion A. Mulrony and Advertiser Pub. Co., Ltd., Hono¬
lulu, T. H. — Granted C. P. to install new equipment.
WABY — Adirondack Broadcasting Co., Inc., Albany, N. Y. —
Granted C. P. approving vertical antenna, transmitter and
studio sites and installation of new equipment.
KWK — -Thomas Patrick, Inc., St. Louis, Mo. — Granted modifica¬
tion of license to determine operating power by direct meas¬
urement of antenna input.
WBLY — Herbert Lee Blye, Lima, Ohio.— Granted modification
of C. P. approving transmitter and studio sites and installa¬
tion of new equipment.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Granted
modification of C. P. to install new transmitter.
KFJB — Marshall Electric Co., Inc., Marshalltown, Iowa. — Granted
modification of C. P. approving transmitter site and install¬
ing vertical radiator.
KWK — Thomas Patrick, Inc., St. Louis, Mo. — Granted license to
cover C. P., 1350 kc., 1 KW night, 5 KW day, unlimited
time.
KABE-KIGA — National Battery Broadcasting Co., St. Paul, Minn.
— Granted authority to operate stations as licensed on
September 14 to 26, inclusive, to broadcast Minnesota Safety
Drive Council.
W4XCA-W4XBS — Memphis Commercial Appeal, Memphis, Tenn.
- — Granted authority to extend test stations W4XCA and
W4XBS 90 days beginning June 18, 1936.
KIIQ — KMTR Radio Corp. — Granted authority to operate station
as licensed on September 14 to 19, inclusive.
KABJ — Central States Broadcasting Co., Lincoln, Nebr. — Granted
authority to extend service tests for 30 days from September
12, 1936.
WDAE — Tampa Times Co., Tampa, Fla. — Granted authority to
extend program test period for 30 days from September 13.
WAVE — WAVE, Inc., Louisville, Ky. — Granted extension of test
period for 30 days from September 1.
WPRP — Julio M. Conesa, Ponce, P. R. — Granted extension of
special temporary authority to operate station without an
approved frequency monitor for a period of 30 days from
September 7, 1936.
WLAK — Lake Region Broadcasting Co., Lakeland, Fla. — Granted
special temporary authority to operate without antenna
ammeter for a period not to exceed 15 days from September
15, 1936.
KOTN — Universal Broadcasting Corp., Pine Bluff, Ark. — Granted
special temporary authority to operate without an approved
frequency monitor for a period not to exceed 30 days from
September 14.
KTSM — Tri-State Broadcasting Co., El Paso, Tex. — Granted ex¬
tension of special temporary authority to carry program of
station WDAH for period September 12 to October 11, 1936.
KMA — May Seed & Nursery Co., Shenandoah, Iowa. — Granted
extension of special temporary authority to operate un¬
limited time for a period beginning September 11 and end¬
ing not later than October 1, 1936, pending action and com¬
pletion of construction as specified in application.
WLBL — State of Wisconsin, Department of Agriculture and Mar¬
kets, Stevens Point, Wis. — Granted extension of special tem¬
porary authority to operate station without an approved
frequency monitor for the period September 13 to October
12, 1936.
National Broadcasting Co., Inc., New York City. — Granted exten¬
sion of authority to transmit programs of National Broad¬
casting Co. to all stations under control of Canadian authori¬
ties that cannot be consistently received in continental
United States. Programs originating at the studios of sta¬
tions associated with NBC may be transmitted by NBC but
must pass through its regular chain facilities. For period
of 6 months.
Atlantic Broadcasting Corp., New York City. — Granted authority
to transmit sustaining and commercial programs to stations
of Canadian Radio Broadcasting Commission provided
such programs are transmitted through the main control
channels of stations WBBM and/or WABC.
WBBM Broadcasting Corp., Chicago, Ill. — Granted WBBM Broad¬
casting Corp. authority to transmit sustaining and com¬
mercial programs of Columbia Broadcasting System to
stations of the Canadian Radio Commission, provided such
programs are transmitted through main control channels
of stations WBBM and/or WABC.
APPLICATIONS RECEIVED
First Zone
WTBO — Associated Broadcasting Corporation, Cumberland, Md. — ■
800 Modification of license to change hours of operation from
1527
daytime until sunset at Dallas, Tex., to unlimited time, using
250 watts power.
WOCL — A. E. Newton, Jamestown, N. Y. — Construction permit
1210 for equipment changes to comply with Rule 132. Amended
to make further changes in equipment.
WOCL — A. E. Newton, Jamestown, N. Y. — Voluntary assignment
of license from A. E. Newton to James Broadcasting Co.,
Inc.
WCAP — Radio Industries Broadcast Co., Asbury, N. J. — License
1280 to cover construction permit (Bl-P-1110) for antenna
changes.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
1450 Modification of construction permit (Bl-P-225) as modified
for increase in power and equipment changes, to further
request authority to install new transmitter.
WMBQ — Joseph Husid, Receiver, Metropolitan Broadcasting
1500 Corp., Brooklyn, N. Y. — Involuntary assignment of license
from Metropolitan Broadcasting Corp. to Joseph Husid,
Receiver, Metropolitan Broadcasting Corp.
World Broadcasting System, Inc., New York, N. Y. — Extension
of authority to transmit programs from the World Broad¬
casting System, Inc., to the Northern Electric Co., Ltd., and
all radio broadcasting stations licensed in the Dominion of
Canada, and Newfoundland radio stations.
NEW — Olean Broadcasting Co., Inc., Portable-Mobile. — Construc¬
tion permit for a high frequency relay broadcasting station
for 31100, 34600, 37600, 40600 kc., 25 watts power.
Second Zone
W1IKC — Associated Radiocasting Corporation, Columbus, Ohio. —
640 Construction permit to install new transmitter; increase
power from 500 watts to 1 KW night, 5 KW day; and
change in time from limited to unlimited time; antenna
changes; and move of transmitter from Sharon Road (10
miles north), Columbus, Ohio, to site to be determined,
Columbus, Ohio.
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — License to cover
890 construction permit (B2-P-506) as modified for changes
in equipment, increase in power, and move of transmitter.
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — Construction
890 permit to install new transmitter and increase power from
500 watts night, 1 KW day, to 1 KW night and 5 KW day.
WSPD — Toledo Broadcasting Co., Toledo, Ohio. — Voluntary as-
1340 signment of license from Toledo Broadcasting Co. to The
Fort Industry Co.
WBNS — WBNS, Inc., Columbus, Ohio. — Construction permit to
1430 install a new transmitter and increase power from 500 watts
night, 1 KW day, to 1 KW night, 5 KW daytime.
NEW — Berks Broadcasting Co., Portable-Mobile (Reading, Pa.). —
Construction permit for a high frequency relay broadcasting
station on 31100, 34600, 37600, 40600 kc., 1 watt power.
NEW — Reading Broadcasting Co., Portable-Mobile (Reading, Pa.).
— Construction permit for a high frequency relay broad¬
casting station on 31100, 34600, 37600, 40600 kc., 1 watt
power.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Construc¬
tion permit for a high frequency relay broadcasting station
to be operated on 86000-400000 kc., 2 watts. Amended
to request 90000, 100000, 200000, 400000 kc.
NEW — WJR, The Goodwill Station, Portable-Mobile. — Construc¬
tion permit for a high frequency relay broadcasting station
to be operated on 86000-400000 kc., 40 watts. Amended
to request 90000, 100000, 200000, 400000 kc.
Third Zone
WQAM — Miami Broadcasting Co., Miami, Fla. — Authority to
560 make changes in automatic frequency control of main trans¬
mitter, R.C.A. 1-D.
NEW — Texhoma Broadcasting Co., Wichita Falls, Tex. — Con-
630 struction permit for a new station to be operated on 630 kc.,
1 KW, unlimited time, studio and transmitter to be deter¬
mined, Wichita Falls, Tex. Amended to install directional
antenna night, non-directional antenna day, and give trans¬
mitter site as Wichita River and Byers Road, Wichita Falls,
Tex.
NEW — Observer Co. & News Publishing Co., Charlotte, N. C. —
880 Construction permit to erect a new broadcast station to be
operated on 880 kc., 500 watts night and 1 KW day power,
unlimited time.
KFRO — Voice of Longview, Longview, Tex. — Construction permit
1370 to make changes in equipment and increase power from 100
watts to 250 watts. Amended: Change type of equipment.
KELD — Radio Enterprises, Inc., El Dorado, Ark. — Construction
1370 permit to install a new transmitter and make changes in
antenna.
KMAC — W. W. McAllister, San Antonio, Tex. — Construction per-
1370 mit to install a new transmitter and vertical antenna, in¬
crease power from 100 watts to 100 watts night and 250
watts day, move transmitter from 430 North St. Mary’s
St., San Antonio, Tex., to 319 Avenue A, San Antonio, Tex.
Fourth Zone
KFUO — Evangelical Lutheran Synod of Missouri, Ohio, and other
550 states, Rev. R. Kretzschmar, Chairman, Board of Control
of Concordia Seminary, Clayton, Mo. — Construction permit
to install a new transmitter; install directional antenna for
night use; increase power from 500 watts night, 1 KW day,
to 1 KW night, 5 KW day; and change hours of operation
from S-KSD to time. (Requests part of facilities of
KSD.)
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — License to
600 cover construction permit (B4-P-1021) as modified to make
changes in equipment and increase power.
KFRU — KFRU, Inc., Columbia, Mo. — Construction permit to in-
630 stall a new transmitter.
WTAD — Illinois Broadcasting Corporation, Quincy, Ill. — Con-
900 struction permit to install new transmitter and vertical an¬
tenna, increase power from 500 watts to 1 KW, move trans¬
mitter from 510 Main St. to North 24th St., Quincy, Ill.
Amended to omit request for increase in power.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
1310 Authority to make changes in automatic frequency control.
WMBD — Peoria Broadcasting Co., Peoria, Ill. — Construction per-
1440 mit to install new transmitter and increase power from 500
watts night and 1 KW day to 1 KW night and 5 KW day.
WTMV — Mississippi Valley Broadcasting Co., Inc., East St. Louis,
1500' Ill. — Construction permit to install new transmitter, in¬
crease power from 100 watts to 100 watts night and 250
watts day. Amended to change type of equipment to
W.E. 351E-1.
KOVC — George B. Bairey, Valley City, N. Dak. — Modification of
1500 construction permit (B4-P-224) to install new transmitter
and antenna, and for approval of transmitter site at 312J4
Fifth Avenue, Valley City, N. Dak. Amended to make
changes in antenna and change transmitter and studio ad¬
dress from 312J4 Fifth Avenue to 312 Fifth Avenue, Valley
City, N. Dak.
Fifth Zone
KVI — Puget Sound Broadcasting Co., Inc., Tacoma, Wash. —
570 Modification of construction permit (B5-P-602) for new
equipment and increase in power, antenna changes, move
of transmitter, to further request change in type of equip¬
ment to W.E. 355 D-l.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Modification of con-
590 struction permit (B5-P-925) as modified for equipment
changes, increase in power, move of transmitter, to further
request move of transmitter .6 mile (same address) and
extend commencement and completion dates 30 and 180
days, respectively.
KJR-KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Con-
970 struction permit to make changes and move the present
920 licensed auxiliary transmitter of KOMO to 26th Avenue,
S.W., and Florida St., West Waterway, Seattle, Wash., to
be used as an auxiliary transmitter for stations KOMO and
KJR, using the same antenna.
NEW — Peninsula Newspapers, Inc., Palo Alto, Calif. — Construc-
1160 tion permit for a new broadcast station to be operated on
1160 kc., 500 watts power, daytime operation. Amended:
Change type of equipment to RCA ET 4250, and the re¬
quested power from 500 to 250 watts.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Construction per-
1270 mit to make equipment changes.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Modification of
1310 construction permit (B5-P-444) to make changes in au¬
thorized equipment. Amended to change type of transmitter
to be installed.
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
1350 Station, Boise, Idaho. — License to cover construction per¬
mit (B5-P-1165) for new transmitter and antenna and
move of transmitter.
1528
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, M anaging Director
NAB REPORTS * * * * *
Ctpyrioht. 1936. The National Association of Broadcasters
Vol. 4 - - No. 47
SEPT. 23, 1936
TABLE OF CONTENTS
Monday Morning Pages
Call to order — President Fitzpatrick . 1529
Address of welcome — Barnet Hodes . 1529-1530
Address of the President . 1530
Address — Eugene Octave Sykes . 1531-1532
Address of the Treasurer . 1532-1535
Report of the Managing Director . 1535-1537
Communications . 1537
Appointment of committees . 1537
Statements — Samuel Rosenbaum . 1537-1538
Mefford R. Runyon . 1538
Alfred J. McCosker . 1538
Tuesday Morning
Appointment of committees . 1538
“Cooperative Bureau of Radio Research” —
Arthur B. Church . 1538-1541
Discussion . 1541
“What the Radio Business Census Means to the
Radio Broadcasting Industry” — C. H. Sandage.. 1541-1542
Discussion . 1543
Panel Discussion . 1543-1550
Resolution passed by Texas Broadcasters Associa¬
tion commending services of Managing Director
Baldwin . 1550-1551
Invitation from Hawaii . 1551
Tuesday Afternoon
Report of Commercial Committee — Arthur B. Church 1551-1552
Discussion . 1552-1555
Report of Engineering Committee — J. H. DeWitt .. 1555
Discussion . 1555-1557
Wednesday Morning
Reports — Nominating Committee . 1557
Resolutions Committee . 1557-1563
Presentation of Independent Ticket . 1563
Election of officers . 1563-1565
Presentation of dues amendment . 1565
Election of officers . 1565-1566
Action to postpone consideration of amendments . . . 1566
Election of officers . 1566
Installation of officers . 1566-1567
Acceptance speech — President Myers . 1567
Introduction of officers . 1567
Adjournment sine die . 1567
JULY 6, 1936
Monday Morning
The opening session of the Fourteenth Annual Convention of
the National Association of Broadcasters, held in the Boulevard
Room, Stevens Hotel, Chicago, convened at 10:30 o’clock, Presi¬
dent Leo J. Fitzpatrick (WJR, Detroit) presiding.
CHAIRMAN FITZPATRICK: I’d like to have the officers of
the Association kindly come to the platform here.
While we are waiting for the officers of the NAB to gather here,
I want to take this opportunity of formally welcoming you to this
annual convention of the NAB.
It is a double pleasure for me as your President particularly at
this time because among your group I have found one who has
been missing from our ranks for several years who has devoted
many, many years of marvelous service to the cause of radio.
And I’d like to have him stand just a moment so we can welcome
him back— and that is Paul Morency.
. . . The convention arose and applauded. Paul Morency arose
and acknowledged the applause. . . .
CHAIRMAN FITZPATRICK: And now that the meeting is
officially opened, I want to read a telegram to Mr. Glenn Snyder:
“I regret extremely that the necessity for my remaining over
at my summer home until tomorrow makes it impossible for
me to have the pleasure of being present personally at the
opening of your convention as I had definitely planned. I am,
therefore, sending the Honorable Barnet Hodes, Corporation
Counsel for the City of Chicago, to represent me officially
and extend my cordial greetings to your fine organization as
well as my hearty welcome to your visiting members. Best
wishes for a most interesting, enjoyable and successful con¬
vention. Edward J. Kelly, Mayor.” (Applause)
I now have the pleasure of introducing Barnet Hodes, Corpora¬
tion Counsel for the City of Chicago. Mr. Hodes. (Applause)
BARNET HODES (Corporation Counsel, City of Chicago):
Mr. Chairman and Members of the NAB:
His honor, the Mayor, had planned to be here in person and he
found it was impossible for him to be here, so he asked that I give
to you his own message, which is very short, and I am going to
take the privilege of reading it to you.
“Chicago deeply appreciates the honor of your convention,
and it is my earnest hope that you will be shown every possible
hospitality while you are guests in our city.
“After all, it is fitting that you meet here since many of the
improvements which have been made in broadcasting were
developed here.
“Your group can rightfully take pride in your industry,
for you have contributed in no small measure to increased
happiness, education and progress of the world in general.
“I believe firmly that radio broadcasting has been a tre¬
mendous factor in developing a finer and broader intelligence
among the people of America.
“Both children and adults who have had to forego the
advantages of attending schools regularly have found in the
radio a splendid opportunity to gain an education and en¬
hance their value to themselves and their communities.
“The radio has given all of us a keener appreciation of good
music, literature and the theater.
“It has been a boon to the farmers — not only in the pro¬
viding of information for better farming but also in keeping
them up to the minute on market conditions.
“And what a godsend radio has been to the sick and the
crippled, the shut-ins of all kinds, whose drab lives have been
brightened beyond measure.
“Our citizens, because of the countless broadcasting facilities,
are now able to keep in direct touch with the doings of our
national government and its various political subdivisions.
Important issues can quickly be brought to the attention of the
public, and it is quite often vital that reactions be obtained
from our citizens immediately in order to support a good
measure or destroy a harmful one.
“Yes, indeed, ladies and gentlemen, radio broadcasting does
play a definite and positive part in the life of America, and
the influence of your activities will continue to grow more and
more.
“I think that your group is entitled to generous commen¬
dation for your fine efforts to keep broadcasting clean in every
sense of the word. You have kept your industry on a very
high plane, and you should be proud of this accomplishment.
“It is my hope that all of your time while you are here will
not be confined to business.
“We’d like to have you take the opportunity of getting
around Chicago and becoming better acquainted with us.
“We want you to leave our city with a real sense of admira-
1529
tion and good will, and a feeling that you have been well
treated here and want to come back again.
“You’ll find us a friendly city — always willing to do every¬
thing possible for our guests.
“I trust that out of your sessions here will come genuinely
constructive ideas for the general advancement of broadcasting,
and I wish you every measure of success not only in your con¬
vention but for all time to come.” (Applause)
CHAIRMAN FITZPATRICK: Thank you and will you convey
to your Mayor our grateful thanks for the sentiments you so ably
expressed.
As you will see by your program, the next address is by your
President.
I have been going back in my mind over the past thirteen years,
recalling the year when a small group got together and formed
the National Association of Broadcasters. There are several present
here today who recall what our plans were at that time, what
aspirations we had, and what objectives were created for the bet¬
terment of the industry as a whole.
I think it is quite obvious that the men who formed the NAB
were very farsighted because in the succeeding years radio has
certainly been confronted with more problems than fall to the
lot of the average youthful industry. It is equally true that that
same body of men continued to have the welfare of the broadcast¬
ing business constantly at heart.
I have reviewed the time from 1923 to the present in my mind
for a very definite reason. I think it brings up a comparison and
a situation which we ought to face. Last year, after serving as
a director, vice president and in other capacities, you unanimously
elected me as your President. I suppose I can be permitted the
frankness of saying that, perhaps because of early newspaper train¬
ing, I always felt that a position of this kind was a thankless one.
My sentiments in this respect are well known to you. When I
became your President, I did not feel I was the man for the job.
I have not done the job in such a way that this organization is
held together one hundred per cent, which should be the achieve¬
ment of the man in that office. But I also say that I don’t believe
there is a man in this room who could achieve that, a man in this
room who could worthily fulfill my conception of the official head
of the National Association of Broadcasters.
That is something we are very prone to forget here and it is
one of the big reasons why our ranks have split. We have in radio
both the big and the little stations. That does not mean, as most
of us seem to think, that we have just two sets of problems, one
for the little fellow and one for the big fellow. It means we have
three sets of problems, a triangle of which two sides together are
equal to the third — we have the problems of the small station, the
problems of the big station and, enveloping them all, the problems
of radio as a whole. And that, I contend, is how this organization
should view its obligations.
I have contended from the very first that we need some one to
eliminate all the petty bickering or strife, to weed out the quarrel¬
ing, and to cement broadcasters together in their common purpose
and duty and obligation to the listening public.
However, as your President, I am very thankful to have this
official privilege of saying to you just what is in my heart with
regard to broadcasting.
The National Association of Broadcasters, during the past year,
has been fraught and beridden with factional discord greater
than at any time in the past. I don’t doubt that much of this
is due entirely to misconception — to misconception of what is
meant by progress and what is or is not beneficial to the industry.
No one would ask that this, or any other organization, get along
without some discord or quarreling. I am one of a very large
family of children — an Irish family in addition— and I know that
a certain amount of quarreling and bickering is inevitable in any
family, even one of the most devoted! But, the broadcasters
have failed to do what a devoted family does and that is, spring
together to form a united front when threatened by danger from
the outside.
The men who founded this organization could not possibly have
anticipated a year like this present one. I think it would have
broken their hearts had they done so because the NAB was
founded not only with farsightedness but with hopes and ideals.
We haven’t even done what ninety-nine out of a hundred families
will do — and that is wash our dirty linen in our own back yard!
During the past twelve months much of our dirty linen has
been washed right under the public gaze. In Detroit, I am living
right at the heart of one of the biggest industries in the world,
constantly associating with men every day who have it upper¬
most in their minds — that is, the automobile business — and if there
is one-tenth of one per cent, the trouble and dissension in the
automobile industry, I, for one, certainly haven’t heard of it.
They do keep their problems decently to themselves. It seems
to me there are more changeable, erratic people, more sheer gos¬
sips, in the radio industry than in any other body of sound-minded
or capable business men in the country. That is a strong state¬
ment but I’ll add one even stronger — that I have never seen so
many petty maneuverings, so many insidious intrigues or so many
political practices as I have in this group. And we are not going
to help that situation any so long as we have no more privacy
in our meetings than a county fair!
The NAB was founded for progress, I sincerely believe, but
until we grow up and throw out a lot of juvenile proceedings,
we might as well abandon any idea of progress. The most suc¬
cessful combatants are always those who know the enemy’s moves
in advance. The most vital thing in a successful campaign is
secrecy of movements. We have never had that. Every step
that we have proposed to take, every move that we have pro¬
posed to make, has been exploited or exposed long before ever
we were ready to advance.
This is about the second time I have ever spoken to you as a
body. As I said before, I am frankly — and without any apology
or hedging — taking advantage of the fact that I am, ostensibly,
the acting head of this organization. And, whatever remarks I
may make are built just around one idea — and that is a plea
that here in this organization we clean house mentally, absolve
ourselves from selfishness and then pull for a common cause !
And, if there is any man who doesn’t believe that radio has
problems confronting it which need a united front, then he is
blind, deaf and dumb to what is going on!
Just as I said a moment ago, whatever goes on in the broad¬
casting business is well publicized in advance. So we have been
advised (and it is indicated by published reports) that at this
annual convention of the NAB for 1936 we are going to have a
split in the ranks. This organization, with hundreds of thousands
of dollars invested capital, with the work of a lifetime, with the
responsibility of running a business, a public service of which very
few other people know anything at all — (because we have been
the pioneers and have had to make all the mistakes and profit
from them) — this organization, with its hands full of trouble, is
going to pull apart!
There is an old saying, “United We Stand; Divided We Fall.”
There is another old saying, “Divide To Rule.” I have just one
thing to say in my last appearance as President of the NAB, that
whatever are the forces which threaten the disruption of this
group, let us analyze them fully and see whether they want the
continued progress of the radio industry or whether they seek only
to follow that old rule of military and political strategy — Divide
To Rule! I urge you to forget petty personalities, to present a
united front in every effort. We inherited a responsibility from
the first year that NAB was formed. And it should be our duty
to recognize that, to realize that radio is not merely an industry
or business but it is also the greatest molder of public sentiment
there is today, one of the greatest gifts that God in His kindness
has made possible for His human beings to use and enjoy on this
earth. It ought to be our purpose to re-envision the bright future
that lies ahead of radio and march toward it shoulder to shoulder.
If we don’t, radio will go ahead without us ! It will go ahead
with other men at the helm, those perhaps who are not nearly
so capable of fulfilling its destiny as we ourselves because, as I
say again, we have nursed the industry along through its growing
years — it should be our understanding of it which profits both
radio and ourselves the most at this time when it is more or
less grown up. You can’t stop progress. Radio will go forward.
We’ll either continue to be at the helm — or we’ll turn into mere
bits of grit which those mighty spinning wheels will toss off in their
steady advance toward greater things.
The radio industry has the greatest responsibility there is in
this country today. Let us view that responsibility as men!
This is my first plea to you as President of this Association. I
assure you it is my last!
And, I thank you for your patience in listening to my first
plea. (Applause.)
One of the few privileges you have in being the official head of
this organization is to pay tribute to one whom you have admired
for years. Ever since the inception, practically, of the Federal
Radio Commission I have admired and enjoyed the friendship and
association of our next speaker who understands far more than
I can express to you the problems that confront us all.
It gives me pleasure to introduce to you at this time one who
needs no introduction but your friend and counselor — Judge Sykes.
1530
(The convention arose and applauded.)
JUDGE EUGENE OCTAVE SYKES (Chairman, Broadcast
Division of the Federal Communications Commission, Washing¬
ton) :
Mr. President, Members of the Association, Ladies and Gentle¬
men:
Eight years ago, in the summer of 1928, it was my privilege
and pleasure to address your Association at its meeting in this
same comfortable and hospitable hotel. At that time, the Federal
Radio Commission was in its swaddling clothes, about a year
and a half old, and your Association was likewise an infant of
about the same age. As I recollect it, your membership at that
time also included members of the Radio Manufacturers Associa¬
tion. Much water has passed over the dam since that meeting.
A rather strange coincidence is the fact that at that time I dis¬
cussed with you the legal meaning and effect of the Davis Amend¬
ment which had been enacted into law in March of that year. At
this time I shall discuss with you the legal meaning and effect of
the repeal of the Davis Amendment.
You will recall that Section 9 of the Radio Act of 1927, by
which the Commission was created, in part read as follows:
“In considering applications for licenses and renewals of
licenses, when and in so far as there is a demand for the
same, the licensing authority shall make such a distribution
of licenses, bands of frequency of wave lengths, periods of
time for operation, and of power among the different States
and communities as to give fair, efficient, and equitable radio
service to each of the same.”
You will recall that under this Act the Radio Commission was
to exercise for one year the original powers therein granted
and, after that year, these powers were to be exercised by the
Secretary of Commerce with the right of appeal to anyone dis¬
satisfied with his decision to the Radio Commission; or, in other
words, after one year the Commission was to become an appellate
body in radio matters from decisions of the Secretary of Com¬
merce. Likewise, you will recall that the Deficiency Bill, which
carried the appropriation for the newly created Radio Commis¬
sion, failed to pass at that session of Congress and the only avail¬
able funds were those appropriated for the Radio Division of the
Department of Commerce, which funds were shared with the
Radio Commission.
This bringing order out of chaos was a much bigger job than
Congress contemplated. The Commission, due to a lack of funds,
was unable to employ any staff except some clerical help. It
was impossible to pass on a great many applications and it was
impossible to bring order out of chaos during the first year.
At that time, the cream of the radio facilities were being used
in the large cities. Congress thought that the Commission was
dilatory in making its distribution of these facilities among the
states, and this led to the passage of the Davis Amendment. This
Amendment, in brief, provided that these radio facilities should
be divided equally, as nearly as possible, among the five zones and
then the facilities of the zone should be further equitably divided
among the states, as nearly as possible, in accordance with popu¬
lation. The object and purpose of Congress, namely, to bring
about a fair division of radio facilities throughout the entire
county, was most praiseworthy but the formula laid down for
this division was too much of a mathematical formula and failed
to take into consideration a number of salient facts, such as, dis¬
parity in size of the five zones, that there was no way of stopping
the carrier wave interference of stations and that, in effect, the
Amendment would really operate in favor of the smaller zones and
the smaller states with a dense population.
As a result of this Amendment, in the fall of 1928, the Commis¬
sion, as a yardstick, adopted certain quota figures which allocated a
value to stations of certain classes and power. It gave to each of
the five zones eight high-powered, clear-channel assignments. It
likewise gave, as nearly as possible, to each of the zones its share of
regional and local stations. This brought about a number of
changes within the country. This allocation, from the standpoint
of radio listeners, which we must primarily consider, was an im¬
provement on the first allocation of the Commission.
It soon became evident, under this allocation, that the states
with a large area and sparse population were lacking in radio
service, though over quota under the Davis Amendment. The
Commission likewise found that the day power of a number of
stations could be increased without interference but in order to
do this, it became necessary to separate night and day quota. This
was done and radio reception was greatly improved by increases
in day power of stations.
Bearing in mind the fact that a great many of the rural popu¬
lation have no radio reception, except that of a secondary nature,
and that these of our people should be given more reception if
possible, the Commission, from time to time, recommended to
the Congress that the Davis Amendment be repealed and the
original provision in the Radio Act, above quoted, be reenacted
into law. This recommendation was also made to the Committees
of the Senate and the House when the Communications Bill was
under consideration.
A secondary recommendation, made at that time, was that if
the Davis Amendment were not repealed, then the Commission
be authorized to put in local stations, regardless of quota, which
would not create interference with existing stations.
The Congress, at that time, accepted this second recommenda¬
tion as to local stations and a number of construction permits,
for this class of station, have been granted by the Commission.
Right here I would call your attention to the fact that a local
station is to serve a particular community and that, if possible, it
should be owned and controlled by the people of that community
and not outsiders. The Commission has had a number of ap¬
plications from people of different communities and different
states to establish local stations. A lot of these applications smack
of the nature of promotional and speculative schemes. These ap¬
plications are most carefully scrutinized and studied by the
Commission and these facilities, whenever possible, have been
allocated to persons of the local communities.
You will also remember that the Davis Amendment provided
that a station be charged to the state wherein is located its studio.
In hearings before the various committees of the Senate and the
House, certain states, more particularly one, claimed that the
stations of a great city were using this little state as a dumping
ground for their transmitters, that while the transmitters were
located within the little state, the studios were in the large city
and the stations, in truth and in fact, were stations of that city.
Hence, we find incorporated in the Davis Amendment the further
provision that a station belonged to the state wherein its studio
was located, and since some stations have a number of studios,
the Commission properly decided that the studio mentioned in
the law was the principal studio of the station.
The recent session of Congress repealed, as recommended by the
Communications Commission, the Davis Amendment and re¬
enacted in its stead the original provision of the Radio Act, from
which I have already quoted, with a slight change in phraseology.
This Amendment also abolishes the five zones into which the
country was divided. Consequently, the Broadcast Division has
repealed those rules relating to quota made necessary by the
Davis Amendment.
In all applications for new stations or increases in power,
changes in hours of operation, and so forth, of existing stations,
the main questions now for consideration are:
1. Will interference be caused with existing stations by such
grant ?
2. Would it be to the benefit of the listening public to grant
the application?
3. Will the granting of the application tend to bring about a
fair, efficient and equitable radio service among the states
and the communities?
Also, the Commission will be able to decide, upon the facts
presented, to what state and community ' the station is to be
charged.
I feel sure that, under the present amendment, the Commission
will be enabled to give these rural listeners better radio service
than they now enjoy.
No new general allocation has been made by the Commission
since that of 1928, under the Davis Amendment. Since then many
technical improvements have been made in equipment, including
antenna design. All of us have learned a great deal in that time.
The Commission has in its files the result of the extensive field
survey of the coverage and characteristics of broadcasting stations.
With these improvements, and this knowledge, it should be pos¬
sible to make improvements in the allocation. This question has
been receiving the careful study of the Commission.
On the second instant, the Broadcast Division decided to hold
such an informal hearing beginning October S. Those who desire
to participate will be furnished information as to the results of
the above studies so that you may carefully consider this data
in preparing to make your suggestions and recommendations at
the hearing. I am sure that you will appreciate the great im¬
portance of this conference to the listening public, the entire
broadcasting industry and to the Commission.
1531
Here I will digress from my written remarks to say that there
were a number of plans considered by us as to what we should
do in the calling of this informal conference. Should we first
tentatively set up one, two or three plans to be criticized by you
or should we instead of giving you any proposed plans to criticize,
first call all of you in? As I stated a moment ago, we have
learned a lot in the eight years since we made the allocation under
the Davis Amendment — not only the members of the Commission
but all of you. Our touchstone always is to improve reception
to the listening public. That being true, we finally decided that
the best way to do it was to have you gentlemen all come in,
after studying what we have in our files relating to the coverage
of all stations in the United States, to have you gentlemen come
in to us and suggest what possible improvements, if there be
any, that can be made under the old 1928 allocation. One ad¬
vantage of that is, some people might have thought if the Com¬
mission had set up one, two or three plans, that the burden of
proof, so to speak, was on you gentlemen to convince us that
none of those plans was a good one, whereas with no plan in
view but with a conference on as we have called it, we believe
that after that conference, instead of before, in other words, we
will be able the better to make any changes if such should be
made in the old allocation of 1928.
Returning now to my notes, there are other changes and im¬
provements, in our present Communications Law relating to broad¬
casting which are quite well known and about which I shall not
trespass upon your time.
Speaking technically — and I am not an engineer, you know —
the constant effort of the Communications Commission has been
to improve broadcast service to the listening public. A great
step in this direction is through betterment of station broad¬
casting equipment. The Commission has no jurisdiction over
receiving sets and cannot prescribe standards for their produc¬
tion. I am informed by engineers — and as I said, I am not an
engineer so if this statement is incorrect, blame the engineers
and not me — but, I am informed by engineers that the trans¬
mission quality of broadcasting stations now surpasses the recep¬
tion capability of a majority of broadcast receiving sets. I
hope and believe that the set manufacturers will improve the
fidelity of receiving sets.
There have been adopted, within the last year, a number of
regulations dealing with technical aspects of broadcast transmis¬
sion. These are aside from the changed rules and regulations
governing services outside of the conventional broadcast band. In
these new regulations our desire has been to help the broadcasters
help themselves. Very little complaint has been received about
these new rules and we, therefore, infer that they must be good.
Some of the greatest improvements I think are those relating to
antenna design. It has been learned that the radiating system of
the broadcasting station is as important as its transmitter and that
though a station may have the finest modern transmitting appa¬
ratus, its job will be a poor one unless it has the proper antenna
system.
Our new rule No. 131 requires broadcasters to meet certain speci¬
fications respecting antennas. This is in order to enable the broad¬
caster and the listening public to get the utmost available service
out of his plant. Based on our survey, we believe that approxi¬
mately fifty per cent, of the stations, by this improvement, will
vastly expand their radio coverage without any increase in power.
Rule No. 132 requires broadcasting stations to clean up in their
transmitter rooms. This is for the safety of employees and visitors
and should be most carefully followed.
By rule No. 139, we now require the installation of modulation
monitors to improve the coverage and fidelity of transmission.
These new rules provide a gradual improvement in broadcasting
equipment and are working most satisfactorily.
I regret to say that we have not yet been able to reach an
agreement with Mexico relating to broadcast channels. The result
is that we still have interference with some of our stations. This
matter is continuing to receive the consideration of the State De¬
partment and the Communications Commission and we trust that
some time, some day, a satisfactory agreement may be reached.
Just a fortnight ago there was held in Washington a conference
involving projected uses of channels in the very high frequency
band. The conference envisages the development of such services
as television, fascimile, very high frequency broadcasting, and other
experimental services which you broadcasters eventually will be
called upon to nurture. Outstanding men in all phases of radio
and communications, including the various governmental services,
appeared before the Commission and presented their views. From
this testimony the Commission hopes to formulate allocation plans
governing future development of these new bands.
From statements made at this conference we are sure that im¬
portant strides have been made in television, although perhaps it
is not yet ready for general use. Facsimile seems to be well per¬
fected and it is possible that the Commission, in the near future,
may make provision for its transmission. This question, however,
has not yet been settled.
I would also call your attention to the importance of the com¬
mittee composed of educators and broadcasters to bring about a
method of cooperation relating to the broadcasting of educational
and other like programs. This committee, as you know, is headed
by Dr. John W. Studebaker, Commissioner of Education. It is
composed of practically an equal number of leading educators and
broadcasters. It is our sincere hope that a plan bringing about
this cooperation may be worked out. I would, therefore, impress
upon the members of that committee the importance of attending
its meetings and helping to solve this question.
A good deal has been said in the past relating to the program
content of some broadcasts over stations. I congratulate you upon
the valuable service rendered by your diligent and efficient Manag¬
ing Director, Mr. James W. Baldwin, in contacting in your behalf
the Commission, The Federal Trade Commission, The Post Office
Department and The Department of Agriculture upon this ques¬
tion. I would call your further attention to the fact that, while
an alleged cure-all remedy may not be harmful if taken, it might
be harmful because it prevented a patient who was sick from
consulting a doctor in time to cure or alleviate his trouble.
I want to assure you of our deep appreciation for the cordial
cooperation you have always shown our Commission and we feel
sure that this will continue.
In my service, since the creation of the Radio Commission in
1927, I have seen radio broadcasting and the radio business grow
with stupendous strides. Now broadcasting reaches practically
into the homes of all of our people, and correspondingly with this
growth in the industry, your responsibility and ours has grown.
You should ever remember that your programs reach the homes
and firesides of our entire citizenship and you should especially re¬
member that they reach the ears of the children of tender age in
that plastic stage when their character, for good or bad, is being
molded. Therefore, your every thought, your every aspiration and
your every act should be to see that each and every program
broadcast by your station should tend to improve and develop
and make better American citizens of every man, woman and child
within its service range.
In conclusion, Mr. President, I want to congratulate you, and
your very efficient Managing Director, and your Association upon
its growth and development and upon your splendid administration
as the head of this Association. As an evidence of the value to
your membership, I would refer to the excellent preparation and
the illuminating testimony presented by your Association in the
so-called educational hearing before the Broadcast Division. A
like valuable service to the country and to your Association will
be presented in the hearing upon the question of proposed changes
in the allocation of 1928. Also, you have grave and serious prob¬
lems over which the Commission has no jurisdiction but of which
you are cognizant and which we trust you may be able to solve
satisfactorily.
All of these matters, in my opinion, make your Association a
most important one, not only to your membership but to the
entire radio industry and to the citizenship of the country. This
cooperation and collaboration among all of us is necessary in order
that we may improve radio service and strive to give to all of the
people the best public broadcasting service in the world. There¬
fore, I hope and trust, Mr. President, that ere long every broad¬
caster in the United States may become a member of your Asso¬
ciation.
. . . The convention arose and applauded. . . .
CHAIRMAN FITZPATRICK: I can assure you, Judge Sykes,
that the outburst of applause expresses far better than mere words
our feeling toward you for your splendid epitome of the work of
the Federal Communications Commission. I do hope you will
carry back to Washington with you the heartfelt appreciation of
this organization for your attendance here today, and may you
live a thousand years to be with us!
The next portion of our program is an address by our Treasurer,
Mr. Isaac D. Levy of WCAU Broadcasting Company, Philadelphia.
It gives me pleasure to present to you our Treasurer for the past
few years, Mr. Levy. (Applause)
ISAAC D. LEVY (Treasurer, NAB; WCAU, Philadelphia):
Mr. President, Judge Sykes, Members, and Ladies and Gentlemen:
So that there would be no misunderstanding as to what I say
today and to be sure that this wasn’t going to be construed as an
1532
impassioned speech but merely a declaration of facts, I have re¬
duced this talk to writing.
This is the day I have waited for since last August and it was
only with the greatest restraint that I contained myself.
At the last meeting I asked you to elect me as Treasurer so that
I could carry on your copyright fight. There were opposed to
me, at that time, nine out of ten on the Nominating Committee
and a certain element of the Board of Directors.
I placed the issue squarely before you. If you elected me, it was
because you wanted me to carry on the copyright fight. This mem¬
bership disregarded the views of the faction of the Board who
opposed me, and, by my election, you mandamused me to carry
on that fight. I accepted that command. We would have had no
trouble with copyright, and you members would all have paid less
than you are now paying, had I been permitted to carry out your
views.
But, the majority of your Board of Directors had no intention
of following your desires in the matter and proceeded immediately
to do things in their own way. They were your Directors, which
means that they were men elected by you to carry out your ex¬
pressed wishes. These gentlemen ignored your desires, ignored me,
and, by doing so, said to you, “We don’t care what you want; we
will do what we please.” With the aid of Mr. Baldwin, they
brought about what Mr. Baldwin, himself, termed in his 22,000
word document, “the most humiliating failure this organization
has ever suffered.”
Because this organization is so set up that members of the Board
serve from one to five years, a condition presents itself where these
Directors may continue to ignore your wishes and you are help¬
less. It makes no difference what you want them to do ; they will
do as they please. Your Constitution is just a little cute and
tricky.
My complaint is not with this membership; it is with the ten
gentlemen on the Board and Mr. Baldwin, and, when I tell you
the story, my complaint will be your complaint; you are entitled
to know how your Directors and Mr. Baldwin behaved themselves.
You placed in my hands a responsibility that I was anxious to
assume and carry. I, therefore, owe you an explanation as to what
occurred, and for that purpose alone I come to you today, and,
when I have told you what transpired in the last year, I will re¬
main in this room long enough to answer any attempts at justifica¬
tion by the guilty parties. Some of you may think this Associa¬
tion would be better off without me; I have no desire to change
your opinion. But I know I will be better off without this Asso¬
ciation, and so at the conclusion of the copyright discussion, I
resign, on behalf of Station WCAU, as a member of NAB.
And, since it is the last time I will be before you, please listen
attentively to what I have to tell you, and then judge the facts as
the business men that you are, and realize what position you have
been placed in as a member of this Association.
When I returned to Philadelphia last summer, after a short trip
to California, I immediately communicated with Mr. Baldwin and
requested that he call a meeting of the Board of Directors — this
was by letter dated August 26.
The purpose of this Directors’ meeting was to have you accept
immediately the offer of ASCAP to extend your contracts for five
years. As I told you in my last talk, I wanted this offer accepted
immediately — before Warner Brothers withdrew from the organi¬
zation. Some sixty-five of you accepted my word for it and signed
that extension agreement. There would have been plenty of time
for the rest of you to accept it had the Board meeting been called
when I first requested it.
This meeting was not called until October 17, 1935, about two
months after I requested it, and it took place at the St. Regis Hotel
in New York. Before the meeting was opened, ten or a majority
of the Directors met secretly and prepared a plan of their own.
Your President, Mr. Fitzpatrick, was ignored, as well as I. He
has been shamefully treated during his entire term, despite the fact
that he was elected unanimously by this organization. They con¬
sidered him an outsider, and many were the insults heaped upon
him. Since I can remember, Mr. Fitzpatrick has been one of the
most powerful influences in this Association. He is recognized as a
leader in the broadcasting industry. He was a hard-working
President, and a clear thinker, but the ten on your Board treated
him as a traitor, and I would not have blamed him if he had not
even come to this meeting.
After listening to the plan of the secretive element of the Board,
I suggested to the whole Board that they pass a resolution to have
Mr. Baldwin send a letter to the membership, advising them to
accept the offer of ASCAP of June 17, 1935. The resolution was
passed. Mr. Baldwin was directed to notify the members, but he
didn’t do it.
Had Mr. Baldwin notified you to accept the ASCAP offer, you
would then have guaranteed to you by ASCAP the Warner Cata¬
log for which a large number of you are now paying a considerable
sum of money.
We had been guaranteed substantially the same catalog that
ASCAP had, which included Warner Brothers. We would have
had a united front. Warner Brothers would have had no one
to turn to, and how long would it have been then before Warner
Brothers would have been back with ASCAP?
I had been informed that Warner Brothers were about to with¬
draw. There was no reason why Mr. Baldwin should not have sent
that communication in October. He had been ordered to do so —
it was a mandate ! Since the Board had acted, it was his duty
to send that letter, but he refused to notify you.
Time was very important because I wanted those letters of
acceptance sent by you before Warner Brothers withdrew. I tele¬
phoned Mr. Baldwin several times, begging him to notify you of
the resolution passed by the Board. I asked him to call a general
meeting of the membership; this he also refused to do. Several
months elapsed and nothing happened.
On December 3, 1935, one day less than seven weeks after this
important information was to be sent you, I telephoned Mr. Fitz¬
patrick and urged him to have Mr. Baldwin send a telegram
urging the broadcasters to accept this offer. I also called Mr.
Baldwin. I told Mr. Baldwin he would have to assume responsi¬
bility if he did not send the telegram as directed by the Board on
October 17, 1935.
Mr. Fitzpatrick agreed with me that a telegram be sent immedi¬
ately. Mr. Baldwin told me he would call Mr. Fitzpatrick, which
he did. Then Mr. Baldwin told me he was going to poll the Board.
Why, I don’t know, when he already had the order to send the
notice. ASCAP regarded this quarrel with Warner as a private
fight of their own, one within their own ranks, and told us that
we had no concern with it. Here were two members of the Execu¬
tive Committee, Mr. Fitzpatrick and myself, composing a ma¬
jority, demanding that the Managing Director notify you of a
resolution, and Mr. Baldwin deliberately ignored us.
Then, the next day, Mr. Baldwin sent the telegram. But the
very next day after that Warner Brothers withdrew, which was on
December 4. After sending the telegram, the very next day Mr.
Baldwin sent another telegram repudiating his first one. I told
him if he did not send the first telegram that I would send one
to all the broadcasters. I could not understand why or how he
could assume the responsibility of disobeying the order of the
Board and jeopardizing your position.
Then came a series of telegrams, letters, manuscripts, books,
pamphlets and every sort of written memoranda, giving you advice
that no intelligent person in the world could understand — not even
the senders — hysterical rambling, hopeless confusion, to which I
refused to contribute.
The publicity released by Mr. Baldwin during the past year
tore into shreds this Association. He was a Managing Director,
employed by us, who assumed the role of a dictator. He forgot
there was such a thing as an Executive Committee with whom he
was to consult ; he forgot there was a President ; he forgot there
was a Treasurer; he did as he pleased, influenced by a number
of men who haven’t yet the slightest conception of what it is all
about.
About this time Mr. Baldwin sent a plan to members of the
Board to solve your problem. It proposed that stations use
records and music in the public domain (this was a new idea), and
that they curtail their hours of operation. He wanted to tell you
to cut down your time and use music in the public domain.
This was his idea of a solution to this problem. Now, there
may be some of you who think this is all right. If so, you can
still do it. I won’t complain if anyone cuts down his hours of
operation, or uses music in the public domain, but those of you
who do can’t expect us to be so silly. That suggestion might be
expected from Fred Allen or Jack Benny in their comedy talks.
I would insult your intelligence if I were to go on any further in
discussing this suggestion.
This copyright situation is one that is not understood at all by
Mr. Baldwin or any of the ten members of the Board who sup¬
ported him. I daresay that even this membership is of the belief
that for every violation of the copyright, the court assesses the
damages at $250.00. This is not true, and never was. But I
cannot be surprised if you think so when no one on the Board
knew differently. So that you may understand it, the Supreme
Court of the United States held in the La Salle Case, which is re¬
ported in 283 U. S., page 202, in the year 1930, that the $250.00
minimum award applies to infringements not exceeding twenty-
five in number. This means that the court, in the absence of
1533
actual proof of greater damage, could not award less than $250.00,
nor more, for any number of infringements up to twenty-five. It
might be interesting for you to have your lawyers read that case.
One man who had just recently stepped into the picture said,
“I don’t know why everybody could not give a power of attorney
to one man and let him settle it in a half hour.” Why, we had
been working for years to settle the problem — and here was a
novel suggestion. I turned to him and asked him if he would
do it, and said that we would be very happy if he would. It did
not take over two or three minutes to show him he knew nothing
of the matter. I went to several other meetings of the Board, and
on December 16, at the St. Regis, I found that a committee had
been dealing with Starr of Warner Brothers. It was at this meet¬
ing that one of your members of the Board had a thick document
from which he read, and earnestly excited himself to a peroration
with the fervor of an Aimee McPherson; rising on the spreading
wings of an eagle to the apex of an all cure for ills, and, while he
was soaring above the clouds, he let us in on his great solution that
Mr. Baldwin was to be in complete charge of copyright. The
deafening thunder of applause and yells of “Halleluiah” recalled
to me the program of Elder Michaux. You must understand that
no copyright committee was appointed by the Board. Everybody
was going to be on the committee, but that everybody eliminated
me, because the secret ten were running the hippodrome show.
I tell you this to show you how this mass voting unit caused you
to spend money foolishly.
You may consider it boastful if you wish, my saying that I
was the only one who understood this situation. Call it conceit,
if you wish, but the results prove that you are paying now for
Warner Brothers as well as ASCAP, whereas you would be paying
to ASCAP only, had you followed my advice. You may say
that Warner Brothers would have withdrawn anyhow and that the
question of whether or not ASCAP had guaranteed their catalog
would be a litigated one. The answer to this is that not only I
but all the able counsel I have consulted, are of the opinion that
ASCAP guaranteed to deliver Warner to its licensees. You may
ask why I didn’t play the Warner music. It was because I didn’t
want to encourage the different members of ASCAP to withdraw.
I didn’t want to be confronted with a dozen of the members of
ASCAP, each of them seeking a special license fee. I know some
other broadcasters refused to play Warner music. But we who have
signed the extension agreement with ASCAP are entitled to play the
Warner catalog without additional cost to us.
At the meeting on December 16 I reminded the Board that
you had elected me to carry on this fight but that made no
difference to them. They were going to do as they pleased —
your wishes meant nothing to them.
When I saw I could be of no use in the deliberations and
that the secret ten were running things to suit themselves, I
withdrew from the meeting and told them there was nothing
further I could do. It was just as in 1932 — the Board again
ignored your wishes. I could speak of a number of acts of dis¬
courtesies, when Mr. Baldwin promised to send me copies of
resolutions before he sent them out and never sent them to me;
also, I would receive some of the correspondence weeks after
you got them. But, that is unimportant now.
Mr. Baldwin appointed his own committees, appointing some
who were not even members of our organization. For the
miserable mess you are in, you thank these ten members of
the Board.
Last July it was considered frightful to have your contract
extended, for five years but this same crowd did not hesitate
to advise you to pay ASCAP the same amount and pay an
additional substantial sum to Warner Brothers.
Now, I have no confidence in Mr. Baldwin or the secret ten
on copyright — you may have, but you have a right to your
opinion as I have to mine.
We have had a year of ballyhooing by him and his associates —
plenty of circus antics; no one interfered with him. I sent no
letters to disturb this march to hell. It would have been of no
use to do so and it would only have made it more confusing.
They decided they wanted full credit for their accomplishments
and now they have it. They took the reins and ran wild. They
failed because they were fundamentally wrong and still are. As
Baldwin, in his memorable document, admits, it was a humiliating
failure.
Three of the ten men on the Board protected themselves after
the meeting last July by signing an extension of the ASCAP
agreement. They didn’t write to you and tell you that, and they
may attempt to explain why, but, if I were one of you that was
advised to do nothing about accepting the extension, I would ex¬
pect that the three men on the Board who signed it themselves
would, at least, let me know what they had done. Why did
they do it, if they thought it was not the proper thing to do
and, if it was the proper thing to do, why didn’t they tell you
about it?
I don’t worry about what people say; I watch what they do.
No words can eradicate that exhibition from my mind. And
yet these men, secure themselves, violated your instructions to
them but didn’t tell you what they were doing to protect them¬
selves. You may be satisfied with that conduct; I am not.
They may attempt to explain; if so, weigh their explanation,
test it by common sense, test it by reason and when you have
heard it all, the outstanding fact will be that they signed the
extension themselves but didn’t tell you anything about it.
This Association, as far as I am concerned, is for the purpose
of serving its members in a body when the expense would be
too great for the individual to secure it alone. I never regarded
it as a social organization or a political body. We joined it
because we thought it would be mutually beneficial. We paid
our dues and expected to get something for them. We received
less than nothing for our money. Oh, yes, I forgot. . . . Before
one of the meetings each Director received an imposing book
bound in black composition leather with the name of the Director
on the cover in gold. It is a very pretty book and I am going
to keep it because I like the cover. I am sorry one was not
sent to each of you. As for the value of its contents, well, that
didn’t amount to much but you could remove it and keep some¬
thing interesting in it. (Laughter.)
I am for peace in this organization as much as anyone in it
but you will never have peace in it with mismanagement. It
will be only a short time before the organization collapses if
you run it the way you have been running it. The hand¬
writing is on the wall! Yes, I am for peace but not when it
means disaster. Peace means contentment. Is there in this
room a person who is contented? In the last year I have found
this organization a total failure. Politics have developed. Mem¬
bers were cliquing. Certainly no member of this Association
would share the profits of his station with any other. None
of them will pay each other’s bills. Each of you will get all
the business you can. So, there is a community of interest only
as to the protection of your business from unjustified assaults.
I have received a number of letters from members urging me
to form an organization apart from NAB. I will form such an
organization. We will give service to our members. We will
not allow politics to creep in. We will not allow outsiders,
with no experience, to dominate our activities by creating feel¬
ing within our organization. If there is anybody in this Asso¬
ciation who wishes to join the one I propose forming, let him
do so with the knowledge that we will work with no one getting
medals, that we will serve the members intelligently. All are
welcome.
One of the things I want this new association to do is to
render some legal service for which the stations now pay lawyers.
Very frequently the stations are obliged to secure information
in Washington or be apprised of the conditions concerning prob¬
lems in which they are interested, where it is unnecessary to
engage a lawyer because a messenger boy could render the same
service. This new organization will render that service without
cost.
In our organization there will be no kings and no big shots —
all will be plain members — it will be a democratic organization.
We will have a Managing Director; he will be a person who
understands the technical as well as the business side of this
industry. He will set up his organization in Washington and
whenever anything of importance comes up, he will notify all
the members to come to Washington and participate in the
discussion.
I have already asked a prominent lawyer to come into this
organization, not only as general counsel but as general adviser.
There will be no President nor any Board of Directors. Those
who are not able to appear will receive a written report of what
has transpired, but all will be welcome to attend the meetings.
The dues will be less than your present dues; smaller stations
will pay much less than they are now paying.
What are you getting for the dues and assessments you are
now paying? Not much — and I understand there is a proposal
by the Board that your dues be increased fifty per cent. That
won’t be sufficient if they keep squandering their money as they
did in the last year. There were more Directors’ meetings last
year than there were altogether in the history of your organiza¬
tion, and how expensive they were! It was necessary to pay
1534
some of the Directors as much as $300.00 or more for their
expenses to attend a single meeting. Each meeting probably cost
around $1,200.00 and you were paying for it.
You see, this is the first meeting of our Association where the
talk on copyright preceded the report of the Managing Director
and, necessarily, I am compelled to anticipate what I know will
be proposed to you, since these matters were passed on favorably
by your Board, and don’t get any idea that there was any unani¬
mity on the Board; these ten stuck together and were able to
accomplish what they wanted because they were in the majority.
You owners of small stations are being kidded. It may be that
I will have to answer some of the representations made by the
Managing Director because I preceded him in this talk and, if so,
I will reserve that right.
Now, there is to be a proposal to spend some $200,000 on a
revised Program Foundation Fund. Baldwin has already ap¬
pointed a Director of New Bureau of Copyright — I heard of it
through NAB REPORTS.
While I think this $200,000 fund is ridiculous, still it will
probably be put through only to find that you won’t collect
$20,000; I only collected about $40,000 for the copyright fight.
In the voluminous report, and reports, Mr. Baldwin sent you,
he inadvertently neglected to tell you as to what happened
with the Radio Program Foundation and its fund. This organi¬
zation was formed against my advice. You may recall when it
was first proposed by Mr. Schuette that I opposed it and spoke
of its futility.
Most of you to whom I have spoken believe that it was
formed by NAB and you contributed money to it without a clear
impression as to what was to happen to that money other than
to buy music catalogs to which you were given the right of usage.
Since Mr. Baldwin has not told you about this, in any of his
many communications to you, let me give it to you.
Three gentlemen, Hostetler, Loucks and Schuette, formed a
corporation and they acquired a little music. You were to pay
for its use, and some of you did. Each one of these three men
was in the employ, at the time, of NAB and being paid for his
services. If this corporation had been a great success, the profits
would flow to the stockholders — Schuette, Loucks and Hostetler.
When they decided to abandon this project as a failure, there
was $5,000 left which they divided among themselves and sent
a letter to the NAB Board justifying their action. They never
could have secured the subscription of the members of NAB
had they explained in full that whatever profits there would be
would go to them, individually. From those members of NAB
with whom I have spoken, who contributed to this Program
Foundation, I learn that they were under the impression that
this was a project of the Association and not a private venture.
Certainly this was not an altruistic movement where they were
going to pay for the expenses of incorporating, about $100.00,
and not profit, if any money was to be made out of the proposi¬
tion. This letter was even too much for the Board to act on.
Even the secret ten couldn’t go along on this, so it was tabled,
but you who have paid should know about it, and now you
have it.
A few months ago I returned the balance of the money I col¬
lected in the copyright fund to the members who had contributed.
The Board had passed a resolution that I turn it over to them.
This I refused to do since it was not the money of the Associa¬
tion. I attended the Board meeting in Chicago and told the
members that, regardless of what they decided should be done
with this money, I was going to return it to those who sent it,
that this money was impressed with a trust, and I would ignore
the decision of the Board. They finally came around to my
way of seeing that.
I had requested Mr. Baldwin, by letter, to place me among
the speakers of this Convention so that I could tell you what had
transpired. This letter was ignored and so, at the Board meet¬
ing in Chicago, I requested that they authorize Mr. Baldwin to
list me as a speaker and frankly told them that my request was
merely a formal one; I would speak anyhow and if they refused
to pass the resolution, I would tell you members of my request
and they would not be able to stifle me. They saw this my
way, too. In other words, the only things they saw my way
were those over which they had no control.
As far as I am concerned, history of NAB now ends and
prophecy begins.
A year has gone by and there has been no furtherance of the
Government suit.
I have heard so much of the per-piece plan that I tried to get
a number of publishers to submit their catalogs with the price
opposite each piece. Not one of them was willing to do so, even
though Mills requested it. I am for the per-piece plan, as you
should know, if and when it becomes practical or possible, but
I am against it as long as it will double, or triple, our costs
for music.
Just think of a man like Mr. Loucks, with his experience,
writing an article for the Broadcast Magazine advocating the
per-piece plan when he knows that there isn’t a Chinaman’s
chance of putting it through. I might as well ask you to agree
to buy the Wrigley Building in Chicago for $10,000. What
chance would we have of getting it? You have about an equal
chance of having ASCAP agree to the per-piece plan, and yet
Loucks writes articles about it.
Here is indeed a strange situation, where a number of these
ten have come to me, telling me that I know more about it
than anyone else, and when it comes to the vote, they stick
together in legion and vote against me. One of these men wrote
me a letter, telling me I know more about it than anyone else,
that he was disgusted with the way things were going, and even
offered to pay me a fee as a lawyer to advise him as to what to
do. I can’t understand that sort of nonsense. Are there any of
you who would employ any of this Board to handle your copy¬
right matters?
There is no use going any farther into what has happened
in the last year; I have told you this ASCAP story many times.
It is sufficient to say that, had you been advised properly by
the Board, you all would be better off and paying less than you
are paying now, and the burden has come, as always, on the
little fellow who has been misled.
As it is, I have been trying to do something for you. I have
been working with some publishers to purchase the Warner
catalog and put it back in ASCAP. This would relieve you who
have signed for the Warner catalog from further payments for
that catalog but you would receive the same without additional
cost under your contract with ASCAP.
Because I did not go along with Mr. Baldwin or the secret
ten in their schemes, malicious lies were spread about me. They
even went so far as to condemn my contract with ASCAP, wired
the Attorney General to the effect that I was conspiring with
ASCAP and condemned me generally for not participating in
their failure. But, to me, the most important part of their exhi¬
bition was not what thev did to me but the fact that they had
disobeyed your orders.
I am not attacking Mr. Baldwin personally but I am attack¬
ing his ability and his knowledge.
The only thing I seem to have been able to gain in this
organization is the suspicion of those who want to run the show.
I have made lots of friends among you broadcasters; I appreciate
that friendship. I have made friends all my life and I never want
to lose one — I can’t spare one of them. When I find the man
who hasn’t many friends, I find the man who hasn’t done all he
could for those he knows. During the year, I received many
letters from broadcasters on all subjects, I answered them imme¬
diately, as many of you know. There is nothing that I wouldn’t
do, individually, for any of you. For that reason I don’t relish
the idea of never seeing you again in a body, but that can’t be
helped. If at any time I can help or be of any use, I am at
your service.
I want peace. We all want peace — but an honorable peace —
and an organization which will be honest with its members. And,
we do not have this now. '
You and I have been shamefully treated by a self-seeking few.
You are paying and will continue to pay for their irrational
schemes. That is my prophecy.
With the secret ten and Mr. Baldwin directing your affairs,
you must fail. And so, for that reason, I am stepping out.
(Applause) .
CHAIRMAN FITZPATRICK: Continuing our Monday morn¬
ing’s program, the next will be the report of the Managing
Director, Mr. James W. Baldwin. (Applause).
JAMES W. BALDWIN (Managing Director, NAB, Washing¬
ton): My report will be brief. All major developments of
interest to you have been fully described in the NAB REPORTS
and it is waste to consume your time here in discussing in full what
has already been reported to you.
Membership
The membership of the NAB is larger today than at any time
in the history of the Association. There are 407 members, an
increase of 22 since the last convention.
1535
Finances
As of July 1 last we had a balance of $46.56. Receipts in the
period from July 1, 1935 to June 30, 1936 totaled $97,043.44.
Expenditures for the same period amounted to $79,638.51, leaving
a balance of $17,451.49 as of June 30, 1936.
Cooperative Bureau of Radio Research
I want to speak to you very briefly about the Cooperative
Bureau of Radio Research. At the session tomorrow morning
you will hear a report on this Bureau. It is important that all
of you attend that session. Your Committee of Five, working
in cooperation with committees of the ANA and AAAA have
done some very constructive work. The report on radio set
figures by counties reported last week is the best example of
the good that can be accomplished through cooperation by the
seller, the buyer and the agency. This is the first time in the
history of radio that fundamental information has been issued
with the joint approval of the advertiser, the agency and the
broadcaster. There is much that remains to be done. New
projects will require new financing. Thus far the National
Broadcasting Company and the Columbia Broadcasting System
have paid the expenses of the committee. It is not right for them
to bear all these expenses. There is not a single station that does
not benefit by all the work that has been done and each station
should bear its proportionate share of the expense. I do not wish
to trespass further on the report you will hear tomorrow morning.
Again let me say it is in your interest to attend that session and
participate in the discussion.
Informal Engineering Conference Held By FCC
And now a word about the informal engineering conference
held by the Federal Communications Commission. All of you
are aware of the importance which attaches to the so-called
informal engineering conference held by the Federal Communi¬
cations Commission beginning June 15. Through the courtesy
of Purdue University we were able to obtain the services of Dr.
Charles B. Aiken as Technical Consultant. His statement and
that of the Managing Director made at the hearing have been
furnished you in NAB REPORTS dated June 27. In selecting Dr.
Aiken, it was our endeavor to choose a man of outstanding quali¬
fications and one who could impartially approach the problems
involved. Widespread comments made by radio engineers since
Dr. Aiken testified confirm the confidence we had placed in him.
I am sure that the NAB made a substantial contribution to the
scientific and technical data which must be considered by the
Commission in the formulation of future policies. This hearing
will be the subject of further comment by the Engineering
Committee.
Amendment of FCC Rule 229
Also I should call to your attention the amendment of FCC
Rule 229. The Engineering Division of the Federal Communica¬
tions Commission held an informal engineering conference on
June 8, 1936 to explain and hear comments on Rule 229, as
amended. The new rule which was to go into effect July 1 was
printed in full in NAB REPORTS dated May 24. As of June 8
we had not had time to receive an expression of views from the
members and because of this and the great importance which
attaches to the modifications, the effective date has been post¬
poned until August 1. This also is a matter which will be cov¬
ered by your Engineering Committee report tomorrow after¬
noon and I urge you to give the matter careful attention.
Cost Accounting System
Few stations have availed themselves of the opportunity to
obtain the uniform accounting forms approved at the last con¬
vention. The system which you approved is sufficiently flexible
to provide for the smallest and largest stations. I have no doubt
that all stations, and particularly the smaller ones, could benefit
greatly by installing the system.
Agency Recognition Bureau
By resolution (No. 13) adopted at the convention last year,
you instructed the Managing Director to proceed immediately
with the creation of a bureau of agency recognition with the
understanding that the said bureau will be finally established
only if the cost of its first year of operation is underwritten
by the stations proposing to avail themselves of its services.
Steps were taken last July to effectuate your policy. The project
failed to receive financial support. Only thirty-seven members
contracted to support the bureau. The replies received from non¬
subscribing members divide into three classes: (1) one group of
members advised that they already maintained or had available
to them adequate facilities for meeting the problem in question;
(2) another group explained that their losses through uncollectible
accounts were too small to justify the expense of maintaining such
a bureau; and (3) the third group advised that the small amount
of national advertising handled by them would not justify the
expense involved.
Legislation
The Second Session of the Seventy-fourth Congress, which
adjourned June 20, enacted into law only two radio bills which
affect the radio broadcasting industry. Only one of these is of
special interest and that one repealed the Davis Amendment —
an action long advocated by the NAB.
Of the bills which failed of enactment and which received any
serious consideration, two are of special interest. The so-called
Copeland Pure Food and Drug Bill was the subject of many
conferences during the closing hours of the session. The bill
as passed by the Senate placed the responsibility for administra¬
tion on the Department of Agriculture. The House modified
the bill so as to place the responsibility of administration on the
Federal Trade Commission. The bill failed of enactment because
of the dispute over which department of the Government should
administer it. Action on this type of legislation may be expected
at the next session of Congress. It is my opinion that our in¬
dustry should support it with reasonable limitations. A moderni¬
zation of the statute respecting foods and drugs is needed. It
would be in keeping with the self-imposed restrictions which you
already have placed on commercial credits.
The Duffy Copyright Bill failed of enactment in the House
after favorable action in the Senate. Extended hearings were
held by the House Patents Committee. The case of the broad¬
casters was ably presented by counsel specially retained for the
purpose. You have no cause to be ashamed of the record made
by the NAB at that hearing. A review of the transcript of pro¬
ceedings before that committee will disclose to any impartial
person that the bill was not reported out because of the bias
and prejudice of the committee chairman. There is every reason
to believe that the Duffy Bill would have passed the House if it
had been reported out by the committee. In addition to the
chairman of that committee, there are certain members, as the
record will disclose, who, it would seem, are unfriendly to broad¬
casters as compared with other interests. However, this is not
the only bill that failed of enactment. There were thousands
of other bills which, like the Duffy Bill, will come up for further
consideration at the next session of Congress. You should make
it a point to inform vour congressmen and senators of the im¬
portance of this legislation to the broadcasting industry.
Copyright
The actions of your Officers and Directors in respect to copy¬
right matters have been fully reported to you. Hours might be
consumed in discussing the many ramifications of the copyright
problems. The injustices which have and do now prevail are
recognized by the great majority. But the important thing is
not to waste our time in post-mortems. Let us look to the
future. Your Board of Directors has approved the establishment
of a Bureau of Copyright within the NAB. A program of activity
has been outlined for execution by that Bureau. Consistently with
authority given him by the Board, the Managing Director has
appointed a Director of that Bureau. He is a man of exceptional
experience in the field of music. He has had experience in the
business of publishing music. He is a composer and an arranger
of music; and he has had extended experience in the building
of musical programs for radio presentation. Now, what does this
mean? It means that for the first time the broadcasters have
decided to pay attention to their own business and build for
themselves a supply of raw material to tide them over in times
of emergency. It is fundamental that without a supply of your
own raw material, you are subject to whatever toll a monopoly
may choose to exact from you. The Director of the Bureau
of Copyright is now engaged in compiling and arranging Public
Domain music of a quality which will tide you over in periods
of emergency and give you an opportunity to bargain. More¬
over, I can assure you it is not necessary to restrict the Copyright
Bureau to the field of public domain music. I know some of you
are impatient. But the job cannot be done in a day. I estimate
two years are required to place you in a position which will en¬
able you to free yourselves from all the existing inequalities. It
can be done. With your cooperation, it will be done. Each
1536
member then will have a bargaining power which will permit him
to handle his own negotiations. And, when this task is accom¬
plished, the controversies such as have arisen incidental to nego¬
tiations for equal contracts can be taken out of the NAB.
I shall not attempt to answer the statements that have been
made this morning. I only commend to your reading and con¬
sideration the report which was made to the membership follow¬
ing the Board of Directors’ meeting held on February 3, 1936.
I am sure that there is no statement on which any question
might arise in your minds that cannot be answered to your satis¬
faction by the facts enumerated in that report.
Doubtless, numerous questions concerning broad policies occur
to you and there are many phases of the copyright problem
which I might discuss. I feel, however, that discussion of them
here in an open meeting would be prejudicial to the best interests
of you as individuals as well as the Association.
Increase in Dues
There will be presented for your consideration an amendment
to the By-Laws which will increase the dues of members fifty per
cent. This increase is proposed in order that the Association
may arrange for the completion of certain research projects.
These projects deal particularly with listening habits, station
coverage and related subjects. I have already explained that the
expenses of the Radio Research Bureau thus far have been borne
by the National Broadcasting Company and the Columbia Broad¬
casting System. At least the major portion of such expenses
should be paid by the NAB. The necessity of obtaining informa¬
tion that can be accepted as impartial and authentic need not be
emphasized. The need for uniform standards likewise is recog¬
nized by everyone. It is my recommendation that such work
be accomplished through arrangements with an adequately
equipped university. The results of their work will be acceptable
to all and the cost under such an arrangement will be considerably
less than it would be if you set up your own organization.
There is also a need for research in the technical field. The
engineering hearing just concluded by the Federal Communications
Commission serves as a good example of the need of some ar¬
rangement whereby the industry can have available at all times
quantitative data on all technical and scientific questions that
arise. Here again I would recommend an arrangement with a
qualified university so as to minimize expense and insure ac¬
ceptability.
In conclusion, I merely want to say this: during the last year
the ship NAB has traveled through some heavy seas. There have
been a few cases of seasickness. That is to be expected when
you are carrying more than 400 passengers. Some of your pas¬
sengers may decide to get off the ship. I predict that for each
passenger that gets off, two new ones will come aboard.
The great majority of broadcasters in this country appreciate
the need of a strong organization. Such an organization can
exist only when it seeks to serve all its members on an equal basis.
I urge all of you to unite with that aim in view. In no other
way can you protect the American system of broadcasting and
your own investments.
Finally, I want to express my appreciation to the officers, the
directors and the members for the support and cooperation given
me during my term as Managing Director. Also, I want to pay
tribute here to the personnel employed at the headquarter’s office.
Such service as I have been able to render would have been
impossible without their ability and willingness to serve. (Ap¬
plause.)
CHAIRMAN FITZPATRICK: I have a number of announce¬
ments I would like to call your attention to at this time.
(Announcements.)
Here are three letters from Saint Paul:
“It gives me great pleasure, as Governor of Minnesota, to
extend to your Association an invitation to hold your 1937
convention in the State of Minnesota. Your associates here
will gladly make every arrangement for the success of your
convention and the pleasure of those who attend.
“The State of Minnesota will be honored by your presence,
and a cordial welcome awaits you.”
“Sincerely yours, (Signed) Floyd B. Olson, Governor of
Minnesota.”
The next is from the Mayor:
“As Mayor of the City of Saint Paul, it is a sincere
pleasure for me to join in the invitation which you are
receiving to hold your next meeting in Minnesota’s capital
city.
“Saint Paul takes great pride in its reputation as a host
city. During the past few years we have a very representa¬
tive cross section of national, regional and state conven¬
tions; and the city as a whole has endeavored to take an
active part in welcoming the people who make up these
meetings. Our citizens always have felt that the meeting of
a particular group was not entirely the problem of the local
members of that organization, and have been happy to join
in making the convention a success.
“With that in mind, Saint Paul has gone forward in pro¬
viding the best in auditorium facilities and in encouraging the
development of the finest hotels and most outstanding recrea¬
tional facilities for your use.
“Saint Paul’s geographical location and its climatic and
vacational advantages have been conducive to record attend¬
ance at many meetings. It is my hope that these advantages
will appeal to you and that I may have an opportunity to
personally welcome your Association to Saint Paul.
“Cordially yours, (Signed) Mark H. Gehan, Mayor.”
And, the third letter is from the Saint Paul Association of Com¬
merce :
“It is my privilege to represent the civic and commercial
interests of the City of Saint Paul in again joining in the invi¬
tation which is being extended to your Association to hold its
next annual convention in Minnesota’s capital city.
“We feel that there are a number of sound reasons why
your National Association would have an enjoyable and suc¬
cessful convention in Saint Paul next year. Geographically,
our city offers your membership the opportunity to come from
the East or the West in the same time and from the same
distance. Climatically, we have an advantage over cities in
other parts of the country ; and in housing and meeting facili¬
ties, we feel sure of being equal to any city which may invite
you.
“Moreover, Saint Paul offers the opportunity to your mem¬
bers to combine their trip to the convention with a delightful
vacation in Minnesota, America’s leading summer playground.
This unusual attraction of a metropolitan area with all of the
expected convention facilities, so closely combined with an
ideal vacation country, has brought heavy attendance to many
national organizations which have chosen Saint Paul as their
convention city.
“May we repeat what we have been pleased to say to your
Saint Paul members, that the Convention Department will
consider it not only an honor but a privilege to cooperate
heartily on all convention details, should our city be chosen.
“Sincerely yours, (Signed) Julius L. Perlt, Secretary-Man¬
ager.”
The next procedure, according to our schedule, is the appoint¬
ment of committees. There will only be two committees appointed
at this time, the Nominating Committee and the Resolutions Com¬
mittee.
NOMINATING COMMITTEE
Mallory Chamberlin, Chairman
J. Thomas Lyons
Burt Squire
Glenn Snyder
Donald Withycomb
RESOLUTIONS COMMITTEE
John J. Gillin, Jr., Chairman
E. B. Craney
Ralph R. Brunton
Harrison Holliway
Gardner Cowles, Jr.
I want to express my appreciation for the expeditious manner
in which this convention was carried on this morning. We have
reached the end of our schedule but before adjourning, I think it
is only fitting and proper that I should ask if there are any ques¬
tions or any discussion of any nature that you should like to have
at this time.
SAMUEL ROSENBAUM (WFIL, Philadelphia): Mr. Chair¬
man, I have to apologize for taking the time of this convention
to address it on an occasion when this is the first time I have ever
attended one of these conventions. However, it doesn’t seem to
me right that the burning subject of discussion which has been
brought up by our Treasurer should be passed over entirely with¬
out comment. I joined because Ike Levy urged me to. It was the
right thing to do !
1537
It is a long time since I have heard any such tongue-lashings and
diatribes as Mr. Levy has addressed to us this morning. Now, he
may be entirely right. I do not profess to be well enough versed
in the subject to be able to cast judgment without further study
and discussion of everything said. But there is one portion of his
remarks which I think should be the subject of discussion without
being passed over and forgotten.
It is perfectly apparent that there is some very deep feeling in
Mr. Levy’s breast with regard to the manner in which he has been
treated and he has stated that as a result of the manner in which
he has been treated and his ideas have been disregarded, he pro¬
poses to pull out and organize another association.
Now, Mr. Chairman, I submit to you, and I think it should be
well weighed and considered by every member of this Association,
that it might be that that suggestion from Mr. Levy emanates
from a kind of personal feeling which is not the proper thing to
animate a member of this Association who wishes to work for the
good of the whole.
I say to Mr. Levy that he does have something to gain by
being a member of this Association. There is no man who is so
shrewd, whose conniving ability is so great, whose satisfaction with
his own abilities is so deep that he can say to a group of men who
come here from distant points for the purpose of cooperation, that
he can get along better himself than he can with us.
I don’t believe Mr. Levy realizes the implication of the attitude
he is taking, and as a member of this Association and as a friend
of Ike Levy, I call upon Mr. Levy in the presence of his friends —
and I am sure there are many — that that idea is not cooperative,
is not American and is not the way we get things done ! (Ap¬
plause)
CHAIRMAN FITZPATRICK: Anyone else who has any further
remarks to make relative to anything that has transpired this
morning?
MEFFORD R. RUNYON (Columbia Broadcasting System,
New York, N. Y.) : Mr. Chairman, I am a relatively newcomer
at these meetings, this being only my fourth one. I have, however,
during these four years, become deeply interested in the activities
of this body and during the past two years, and particularly the
past year, I have been somewhat distressed by the feeling I had
that we were going on divergent ways.
It is my feeling that a trade association should handle on behalf
of its members largely issues which are non-controversial and in
that way, we will not have, as Mr. Fitzpatrick pointed out, dirty
linen to wash in our back yards.
There are many problems confronting this industry on which
we can and do have a united front. Those are things which I
think can be undertaken on behalf of these people by the NAB.
I feel it has a very real function to perform and a service which
it can render all of us.
However, there seems to me to be one burning issue which has
grown in importance over the past several years and that is the
issue of copyright, and on copyright it seems we have many
divergent views. It is probably not one of the problems which
Mr. Fitzpatrick would have included in his classification of the
“problems of radio” because there are apparently so many views on
what should be done that it is impossible to reconcile them in a
united front.
Every speaker who has spoken has said he wants peace. I, too,
want peace. And, I am going to make a suggestion for your con¬
sideration during the rest of this convention which may achieve
peace. It is that we take the controversial issue of copyright en¬
tirely out of NAB and that we present a united front on the many
other problems of radio on which we do have substantial unanimity
of opinion. (Applause)
CHAIRMAN FITZPATRICK: Anyone else?
ALFRED J. McCOSKER (WOR, Newark, New Jersey): Mr.
President and members of the convention, I propose to speak very
briefly at this time but I do want to say, in view of the fact that
Mr. Levy has not said so for himself, that the impression of the
gentleman from WFIL that Mr. Levy may have been actuated
by a personal attitude, I happen to know is entirely wrong. His
attitude springs from experience, hard work and an honest purpose
to do something, first, for broadcasters as a whole and if this is
not permitted him, to at least apply it to the benefit of his own
station.
In addition to this, I want to say that I echo heartily the sugges¬
tion made by the previous speaker, Mr. Runyon, that there be
maintained an organization that will be truly representative of
broadcasters and if this can be done only by the elimination of this
harassing copyright situation, that copyright be removed from
the province of the Board of Directors and the Officers of the
National Association of Broadcasters.
I am not here to delay you, to be vituperative or argumentative
but I must say in all justice that my observation of the proceedings
of the last several meetings of the Board of Directors have led
me to the conclusion that the group referred to as the secret ten —
and I haven’t counted them; I don’t know that the adjective is
deserved because I found them especially public and articulate at
those meetings! I must say that, in my opinion, many of the
ideas that they advocated and the methods that they chose to
execute their ideas, were far from my conception of what is best
for organized broadcasting and I was almost invariably voting
with the minority.
Thank you. (Applause)
CHAIRMAN FITZPATRICK: I think that those who take
the opportunity of addressing this meeting at this time reflect their
interest in the industry. Are there any others who would like to
speak? If not, a motion is in order for adjournment.
(Announcements.)
(The meeting adjourned at 1:05 o’clock.)
JULY 7, 1936
Tuesday Morning
The meeting convened at 10:30 o’clock, President Fitzpatrick
presiding.
CHAIRMAN FITZPATRICK: Will you kindly take your
places as rapidly as possible?
At this time I would like to appoint two other committees:
ELECTIONS COMMITTEE
Warren Williamson, Jr., Chairman
Herbert Hollister
John J. Storey
Lee Coulson
Hugh A. L. Halff
CREDENTIALS COMMITTEE
Dean Fitzer, Chairman
Lambdin Kay
Martin Campbell
Walter J. Damm
Dale Robertson
Your program today — and I might say before starting the pro¬
gram that due to a sudden illness, it will be necessary for your
President to leave the meeting in just a short time and it will be
impossible to return before you adjourn and so I want to thank you
again for the privilege of presiding this year and for your appre¬
ciation of my work, and I trust I will see you all again next
year.
The first speaker is Arthur B. Church of Midland Broadcasting
Company, Station KMBC, Kansas City, Missouri, who will speak
on the “Cooperative Bureau of Radio Research.” (Applause.)
ARTHUR B. CHURCH (KMBC, Kansas City, Missouri) : Mr.
Chairman and members of the Association, one of the important
shortcomings of radio today is the lack of basic authenticated data
as to the factors having bearing upon the use of stations and net¬
works by advertisers. I do not mean to imply that radio has no
information to offer the advertiser. Indeed, there is a profusion of
information, compiled and published by a host of sources. I would
not be surprised if stations, networks, advertisers and agencies, com¬
bined, spent in the neighborhood of $1,000,000 annually on radio
research. Much of this information is highly valuable. If properly
culled, a wealth of information is revealed, highly valuable and
generally equal, at least, to that supplied by other media.
However, this research fails in several respects. In the first
place, there is no single source of fundamental information which
can be looked to as official and which receives the sanction of the
buyer, the seller and the middleman (the agency) in the advertis¬
ing field. Rather there is a variety of source and presentation
which sometimes is embarrassing and always confusing.
In the second place, little of the data now provided by broad¬
casters, advertisers and agencies is comparable by reason of the
fact that different fundamental concepts, different methods of col¬
lecting and compiling information, and different applications even
of the same method, exist with regard to almost every piece of
research conducted. This is a healthy condition in one sense, for
it lays the groundwork for sound scientific research by pioneering
and experimentation. But, radio has progressed past that point.
Enough is known about the general problems of radio research to
make standardization of techniques possible and necessary.
This dissimilarity of approach, execution and interpretation has
1538
also caused much research to miss its mark. The average station
manager knows little about research. There are no agreed stand¬
ards of application for the various methods in the field. As a
result, I would say that at least half, and perhaps more of the
radio research done annually is at least partially wasted in that
it fails to get the information desired and to live up to full poten¬
tialities. Please do not construe me to say that other media do
not have this problem. None is pure white, any more than radio
is pure black. But, because of our newness, the problem is par¬
ticularly pressing in our fields.
These shortcomings in radio research point definitely to the
need of some organization for broadcast advertising which will
fulfill the fundamental function inherent in the Audit Bureau of
Circulation in the periodical field. I conceive the fundamental
function to be that of supplying fundamental authenticated in¬
formation regarding the medium. Please note that I say “funda¬
mental.” No cooperative venture of that type can or should try
to provide all information. Ample room is left for competitive
research and for study of more restricted and intensive aspects of
the use of the medium. But fundamental information is definitely
an industry matter and can be collected best by the industry as
a whole.
Such a cooperative organization would confer material advan¬
tages upon the broadcasters even as it would benefit advertisers
and agencies.
1. It would provide a source of basic, authentic information and
would increase confidence in the entire radio advertising, medium.
2. It would eliminate much duplication of effort in the research
field. This would result in a saving of money on the part of indi¬
vidual broadcasters. The broad fundamental approach also would
improve the general quality of the results secured for each dollar
expended.
3. Such a bureau would tend to eliminate the waste entailed in
competitive research of a defensive nature; that is, research neces¬
sitated to refute the extreme claims of competitors made without
any foundation and possible only because of the non-existence of
basic authenticated information on the medium.
4. It would furnish a common denominator whereby stations and
groups of stations could be compared. Please note that it would
not make competition cut and dried, any more than has the A.B.C.
in the newspaper field. It merely would establish a sound basis
on which to build further competitive effort.
5. Indirectly it could not help but result in the general improve¬
ment of radio research and in the establishment of sound standards
of procedure which would ensure the station manager getting his
money’s worth for the dollars spent in research.
Many of the leaders in the industry have recognized this situa¬
tion for some time. As early as 1931, Philip G. Loucks, then
Managing Director of the NAB, began studying the idea. In 1934
the interest of Mr. Loucks and other members of the industry
culminated in the appointment by the NAB of a Committee of Five
empowered to study the advisability of a cooperative bureau of
radio research, its practicability and the problems relating to its
establishment; and also to deal with the representatives of the
ANA and AAAA with regard to such a joint endeavor.
Dr. Herman S. Hettinger, Assistant Professor of Marketing at
the Wharton School of Finance and Commerce, was secured as
Director of Research of the NAB for the period of a year and was
instructed to assist the committee in its work. Dr. Hettinger’s
services were invaluable in this field and much that transpired
since has been the result of his early efforts and subsequent advice.
In the spring of 1935, the deliberations of the NAB committee
reached the point where it was ready to extend an invitation to
the ANA and AAAA jointly to consider the subject. An invitation
to this effect was extended to both organizations. As a result,
there was formed in the fall of 1935 the Committee of Fifteen,
later known as the Joint Committee of Radio Research, composed
of five members each from the NAB, ANA and AAAA. This com¬
mittee was given the task of conducting exploratory studies and
deliberations looking to the ultimate establishment of a bureau.
At the first meeting of the committee, in September 1935, discus¬
sion took place as to the scope of the work to be undertaken, but
no final conclusion was reached. It was decided that the explora¬
tory work should give attention to the following fields: (1)
methods for arriving at the number of radio sets in use in the
United States by counties; (2) listener habits; (3) station cover¬
age and circulation; and finally some attention was to be paid to
the exploration of program popularity methods.
A Committee of Seven was formed from the Committee of
Fifteen membership to act as its representative between meetings.
A Technical Committee, composed of leading research experts, was
also formed to advise the Committee of Fifteen on technical
matters.
The Technical Committee was immediately instructed to recom¬
mend the best means of estimating the number of radio families
in the United States by counties. It reported on a stop-gap method
for securing an immediate figure as of January 1, 1936, and in
addition, reported that a final comprehensive set count could be
made only by recourse to several hundred thousand interviews in
the field. This was in October.
The Technical Committee was instructed to proceed with the
stop-gap method and to estimate radio families by counties as of
January 1, 1936, as soon as possible. Work was begun in Novem¬
ber. Data collected in the past was studied and evaluated as a
base on which to build the 1936 estimates. Delay was experi¬
enced by reason of the extreme difficulty in securing satisfactory
data from set manufacturers as to set sales by geographical districts.
By the middle of March this information was secured from enough
of the enterprising and leading companies to make possible the
estimates by states. In reviewing the information then available,
the Technical Committee did not feel that it possessed enough
data to proceed with county estimates. It so advised the Commit¬
tee of Fifteen.
Mr. Baldwin and I pointed out strongly that state informa¬
tion was of little if any value to the individual station and urged
reconsideration. Attention was attracted to the possible use of
what is known as the multiple correspondence method, developed
and applied in market research by Dr. L. D. H. Weld, Director
of Research of the McCann-Erickson Agency, and chairman of
the Committee of Seven. Mr. Baldwin raised the question as to
the possibility of using this method to get county data. Mr. Weld
stated he believed it could be done and the Technical Committee
unanimously approved the idea.
Use of the method involved a tremendous amount of detailed
statistical work before results were available. I am happy to
say that the county figures were prepared and have been ap¬
proved by the Committee of Fifteen. When you arrive home
from the convention, you will find a full set of them on your
desk. I am advised by Dr. Hettinger, the technical consultant of
your Association, that, in his opinion, they are the best infor¬
mation on this point thus far made available and that the results
even exceeded his own somewhat optimistic expectations.
I cannot over-emphasize the importance of this achievement.
It took time. There were many delays, mostly unavoidable.
There was much preliminary experimentation to be done. But —
for the first time in the history of the medium authoritative,
fundamental information, bearing the stamp of the advertiser,
agency and broadcaster, has been released to the public l This
marks a most significant step forward on the part of the broad¬
casting medium.
But one step is not an entire journey. Much remains to be
done. Immediately this task was completed, the Committee of
Fifteen turned its attention to the more fundamental considera¬
tions involved in the possible creation of a cooperative radio re¬
search bureau. Fundamental reorganization of the method of
committee procedure also was necessary. The Committee of
Seven was shown to be impractical and was disbanded. The
Technical Committee was augmented by the inclusion of Dr.
Weld, who now became its chairman, Dr. George Gallup of
Young Rubicam, and Dr. Smelser of the Procter & Gamble
Company. Since the next steps involved a great deal of detailed
study and analysis, it was deemed necessary to place the project
under the direction of a full time research expert. Mr. Paul
F. Peter was proposed by the NAB and was unanimously ap¬
proved by the Committee of Fifteen. He was secured for the
position.
Let me say a word regarding Mr. Peter. Naturally, we be¬
lieved him to be the best qualified person for the position or we
would not have proposed him. In this we were seconded by
those research experts whom we consulted on the problem. As
Chief Statistician of the National Broadcasting Company, Mr.
Peter either directed, conducted or analyzed every kind of re¬
search conducted in the broadcast advertising field. Later duties,
as statistician for the Radio Corporation of America, gave him
further insight into the radio set count problem. General funda¬
mental research in broadcasting problems gave him a broad in¬
dustry viewpoint. His desirability as director of the project
was further enhanced by a reputation for thoroughness and com¬
plete intellectual honesty among his colleagues in the research
profession. I feel that we have been most fortunate in securing
Mr. Peter to direct the exploratory work looking to the eventual
establishment of a bureau.
1539
At the present time the Committee of Fifteen has retained Mr.
Peter for a period of six months for the following purposes: (1)
to survey all methods of determining coverage of stations and
listening habits now in use by broadcasters, advertisers, agencies
or research organizations and to report on their validity and
results; (2) to make recommendations to the Committee of
Fifteen on those methods which yield the most reliable results
in the quickest time and at least expense.
Mr. Peter already has begun work. Your station probably has
received a letter by now requesting that you send him any in¬
formation that you may have on file. Will you please do so as
soon as possible? I may add that a similar request is being
made of advertising agencies and advertisers.
This brings us up to date. Now — where do we go from here?
The appointment of Mr. Peter is but the first essential step in
the exploratory work which is necessary. Similarly, the analysis
which Mr. Peter, or anyone in his position, can make of the
research material furnished him is but a beginning. True, it
will be a valuable beginning but it can indicate only two things:
(1) which methods are worthy of further study and intensive
testing in the actual field, and (2) what gaps exist in our knowl¬
edge of radio research technique.
From here on, much remains to be done. While Mr. Peter is
engaged in this task, the Committee of Fifteen and the groups
it represents must decide what should be the scope of the infor¬
mation which can be logically furnished by the bureau when it is
set up.
This is not as simple as it may seem. It involves a good deal
of hard thinking and careful planning. It is easy to say that
radio set ownership, listening habits and some measure of basic
station coverage or circulation should be included. But then
we come to a question of specific definitions. What shall we find
out about sets? What listening habits are of fundamental con¬
cern? Specifically, what information is necessary?
Until we can decide this in our own minds, Mr. Peter can give
us little in the way of our answer. He cannot evaluate methods
until he knows what information they are intended to reveal.
Neither can Mr. Peter’s evaluation of the data you provide
him furnish a final answer by itself. There will not be enough
comparable information to yield a final answer.
The only way final methods can be determined will be to take
those which seem most promising, to apply them in certain test
areas at the same time or under analogous conditions and in this
way to determine their exact value. This will entail field re¬
search. It will also require both money and organization. Do
not forget, also, that in a few months we must begin to figure
what should be done in the way of carrying forward our county
set figures into 1937.
But let me return to the question of exploratory study. How
can we best organize this larger exploratory research and how can
we maintain it at minimum expense with maximum results?
Mr. Baldwin and your committee have given this question
considerable study. We have recognized that certain funda¬
mental requirements must be fulfilled. Organization must be
effected. This organization must be sufficiently comprehensive
and permanent to carry the project to a successful conclusion —
and I doubt that six months will be sufficient. Quite likely a
year will be required. The organization must be completely un¬
biased and must possess unquestioned scientific authority. It must
be equipped to handle the work at minimum expense. •
In reviewing these requirements we recall the success achieved
by the outdoor advertising industry in solving a similar problem
by placing its exploratory research at a great university — in this
instance, Harvard.
We felt that lodging the exploratory study at a university, in
similar fashion, would be the most logical solution of our own
problem. We believe this to be true for several reasons: (1) a
university possesses the desired permanence of organization, (2)
it has the necessary equipment in the way of business and tabu¬
lating machinery, statisticians, tabulating experts, marketing ex¬
perts, engineering experts and other technicians to provide facilities
and personnel adequate to assist Mr. Peter in successfully con¬
cluding the exploratory research, (3) being a non-profit organi¬
zation, a university can furnish these facilities at a minimum ex¬
pense, while the very permanence of its organization precludes the
high overhead which necessarily attends the creation of any large
temporary organization, (4; a university’s interest is purely
scientific, precluding any special bias or interest, and (S) a uni¬
versity possesses prestige and unquestioned authority.
Perhaps it is quite natural that your committee should give first
consideration to the Wharton School of Finance and Commerce
of the University of Pennsylvania, where Dr. Hettinger has con¬
ducted a vast amount of fundamental research in broadcast ad¬
vertising and broadcasting economics. Much of this was done for
the NAB.
Your committee made careful investigation of the school and
as a result we feel it possesses the following advantages: (1) as
the oldest school of business in the United States, the Wharton
School possesses a prestige both in this country and abroad cer¬
tainly exceeded by no similar institution; (2) its Bureau of In¬
dustrial and Economic Research has proven its value to business
and government, including the National Retail Dry Goods Asso¬
ciation, National Association of Hosiery Manufacturers, Wool
Institute, Cotton Textile Institute, United States Coal Commis¬
sion and others; (3) we already know the work of the Wharton
School in the radio field and its interest in such work; (4) the
school, located in Philadelphia, is strategically situated with
regard to the centers with which contact must be maintained.
Your committee held conversations with Dr. Joseph Willits,
Dean of the Wharton School, to ascertain whether the school
would be interested in conducting such exploratory research, pro¬
vided our plan was deemed acceptable by the Committee of
Fifteen. Dr. Willits expressed a definite interest on the part of
the school, provided (1) that the study should be a fundamental
scientific one, (2) that the results would be generally available
and (3) that it would be adequately financed.
Your committee is unanimous in its preference of the Wharton
School. It is important you clearly understand that any program
which is finally decided upon must result from complete mutual
agreement of the members of the Committee of Fifteen represent¬
ing the American Association of Advertising Agencies, the Asso¬
ciation of National Advertisers and the National Association of
Broadcasters. The plan presented by your committee represents
a vast amount of investigation and thought and has been unani¬
mously approved by the committee members including the net¬
work members.
Accomplishment of the exploratory project, of course, re¬
quires money. Both the Columbia and the National networks
have been exceedingly generous in their contributions. The mem¬
bers of this Association who will eventually receive many of the
benefits of the work, will, of course, wish to do their share. It
is estimated that not more than $50,000 will be required to finish
the exploratory work. A year ago I asked the Board of Directors
to approve a contribution up to $5,000 to be used on the project
if necessary as I felt that the networks should not be asked to
carry the full burden. The Board decided, however, that the
financial condition of the Association at that time was such that
action on my recommendation should be postponed.
I am sure the membership of this Association will agree with me
that this constructive work is so important that it should be
pushed forward as rapidly as practical and that the individual
stations through their national organizations will wish to pay
their share of the cost. I hope this convention will approve my
recommendation which is contained in a separate resolution to
approve the setting aside of $10,000.00 or, at the discretion of the
Board of Directors, a greater amount if this appears necessary and
if the withdrawal of such additional funds will not, in the opinion
of the Board, seriously deplete our treasury.
Your Committee on Radio Research during the last year has
numbered five. We now believe, in order that the committee of
the radio industry may properly represent the various classes of
stations* as well as the major networks, that your committee for
the ensuing year should number seven. It may be necessary, in
order to work to best advantage with the agencies and the adver¬
tisers who prefer small committees, to limit our executive com¬
mittee to five members. In this event, it will perhaps be desirable
to select five of the committee as a committee to meet with the
joint Committee of Fifteen.
Briefly summarizing, your Committee on Radio Research recom¬
mends (1) that you endorse the general plan for completion of
the exploratory project on the basis we have presented it to you;
(2) that you authorize your Committee on Radio Research to
offer this plan to the joint Committee of Fifteen as the plan the
broadcasting industry would prefer to have employed; (3) in¬
crease the number of the committee from five to seven members,
which shall include a representative from each major network
subscribing to the project, also representatives from local, regional
and dear-channel or high-power station classifications; the Man¬
aging Director of the Association shall also be a member of the
committee; and (4) that $10,000 shall be made available for
use on the project as necessary and that an additional amount may
1540
be devoted to the project by the Board of Directors if, in the
Board’s opinion, this is desirable.
In closing, I wish to make some remarks of a somewhat per¬
sonal nature. It has been my opportunity for many years to serve
this Association. The work of this particular assignment has
given me more pleasure than anything else I have tried to do
for the NAB. I believe I can foresee tremendous benefits, not
only to every member of this Association but also to everyone
directly or indirectly connected with the broadcasting industry.
The need for fundamental information acceptable to advertisers,
agencies and broadcasters has long been recognized. We have
actually begun to meet these needs through the joint efforts and
the cooperation of the Committee of Fifteen. The buyers and the
sellers of radio advertising are actually working shoulder to shoul¬
der to benefit each other to the utmost. It is with such construc¬
tive work as this that our Association should be primarily con¬
cerned.
Your Radio Research Committee has really been an active com¬
mittee during the past year. The cooperation I have had from every
member has been one of the most gratifying experiences and the
cooperation all of us have had from John Benson, from Paul West
and their respective committees has been indeed remarkable,
especially in view of the varied problems and interests of the three
groups. The untiring assistance of Dr. Hettinger has been in¬
valuable to us. The enthusiastic and intelligent cooperation of our
Managing Director, Jim Baldwin, has also helped to make this
work pleasurable to me.
I hope that this Association will appreciate both the value of
the progress already made and the importance of the completion
of exploratory work for the ensuing year. Give your new com¬
mittee your enthusiastic endorsement on its report of progress and
its recommendations.
I thank you.
And now, before I sit down, I want to introduce to you, if he
will stand up, the man we are so enthusiastic about who is ac¬
tively engaged in conducting the work for the committee, Paul
Peter. Where are you, Paul? (Applause.)
(Paul Peter arose and acknowledged the applause of the con¬
vention.)
CHAIRMAN FITZPATRICK: Thank you, Arthur. That was
very interesting and very educational. I am going to ask Mr.
Myers if he will not take the chair.
And, before he does, I just want to disillusion you about that
old story of the man who had two sons, one of whom went to
sea and the other became Vice President of the NAB, and the
father hasn’t heard from either one of them since. (Laughter.)
As I said in my opening salutation, it is imperative that I leave
Chicago at 1:00 o’clock by plane and so I am going to present as
presiding official of the meeting your Vice President, Mr. Myers.
May I express to you, Mr. Sandage, my deep regret in leaving
before hearing your talk but I assure you I shall read it with the
keenest of pleasure. (Applause.)
(Mr. Myers took the chair.)
CHAIRMAN MYERS: First of all, you have heard the report
of Arthur Church. Are there any comments or questions or any
discussion of that very important report?
There is no doubt that report covers one of the major activities
of the Association during the past two years. Last year there was
no comment on the report; it was adopted as read. It seems this
must be of very great interest to almost every person in this
room. I would like to hear some discussion of Mr. Church’s re¬
port. Has some one something to say about it?
Has anyone any comments at all on the ABC of radio, meaning
it in two ways — the ABC of Arthur B. Church and the ABC as
applied to the Audit Bureau of Circulation? What we are trying
to do is give advertising buyers an Audit Bureau of Radio. Mr.
Church has spent weary days and nights on this, as have his com¬
mittee, for many months. Have we anything at all to say about it ?
J. BURYL LOTTRIDGE (KOIL-KFAB, Omaha and Lincoln,
Nebraska) : I have no criterion in this matter. I think Mr. Church’s
report is complete as it is.
CHAIRMAN MYERS: Aren’t there some questions, any points
not entirely clear?
If there are no comments, the report will be accepted. It is
covered by resolutions which will be presented for discussion by
the Resolutions Committee.
It is now my privilege to introduce a gentleman whom most of
you have heard of and whom we all take pleasure in listening to.
Our next speaker will give an address on “What the Radio Busi¬
ness Census Means to the Broadcasting Industry” — C. H. Sandage,
Chief of the Division of Communications, Bureau of the Census,
Philadelphia. (Applause.)
C. H. SANDAGE (Chief, Division of Communications, Bureau
of the Census, Philadelphia, Pa.) The invitation to appear on this
program was accepted with particular pleasure because it gives
me an opportunity not only to discuss with you the current census
of the broadcasting business but also to thank you for your
splendid cooperation in this census. You are helping to make it a
distinct success. At this date all but five broadcast stations in the
entire country have filed their census schedules and these five will
soon be in, I believe. This is by far the best return the broad¬
casting industry has ever made to any business inquiry and is a
tribute to the confidence which the industry has in the Census
Bureau.
The Census Bureau has watched with interest the development
of the broadcasting industry, as demonstrated by the increasing
volume of radio advertising, the number of receiving sets in use
and other tangible evidences of growth. Figures compiled by the
Bureau and estimates made by a joint committee representing
various advertising organizations show an increase in the number
of families having radio receiving sets, from 12,048,762 in 1930 to
22,869,000 in 1935, or 90 per cent in five years. Revenue from
the sale of radio time increased tremendously at a time when
revenues in most industries were on the decline. According to
estimates made by Dr. Herman Hettinger and your own Associa¬
tion, gross billings from the sale of time increased 250 per cent,
from 1929 to 1935. Paralleling this growth has been the recogni¬
tion of radio as an outstanding agency of communication.
Recognizing all this, the 1935 Census of Business set apart for
the first time the radio broadcasting industry as a separate but
distinct part of the Business Census. In developing the character
and scope of this study, the Division of Communications of the
Census Bureau received the able counsel and advice of officers of
your Association and other members of the radio industry.
As a result of these conferences, a schedule was devised for
collecting information from radio stations and networks. Ques¬
tions were limited to such basic items as revenue, employment and
pay rolls.
It is not possible to give you the official results of this census
now, since reports are yet to be obtained from five stations. Also
figures have not been released for radio networks. It is possible,
however, to give you the data for all radio stations except those
located in Illinois and Louisiana. There were 560 regular radio
stations in operation in the United States December 31, 1935,
which sold time during that year. The other 68 stations were
operated by churches and schools, or were inactive. Of the 560
time-selling stations, figures have been released for 51 7, or 90
per cent, of the total number.
The net revenue from the direct sale of time by these 51 7 sta¬
tions, plus the sums they received from networks, amounted to
$47,957,501 in 1935. This figure represents net time sales, that
is, gross billings after time and quantity discounts have been
deducted but including agency discounts. This is in harmony
with the Government practice to collect all sales and revenue data
in terms of net. Your own figures, however, have been in terms
of gross billings and, hence, are not entirely comparable.
The breakdown of this $47,957,501 shows some interesting facts.
Some $24,000,000 or almost exactly one-half of station revenue
was received from local advertisers — that is, those business houses
selling their merchandise or services largely in one trading area.
Of the remainder, almost one-half was derived from national and
regional “spot” advertisers and an equal amount from networks
as payment for carrying network commercial programs. This
latter figure for these 517 stations amounted to $11,920,543.
The total non-network time sales of these 517 stations amounted
to $36,036,958. This figure is only $308,465 less than the estimate
of station time sales for 1935, made by your Association. Your
estimates were indeed conservative. An industry — especially an
advertising industry — that understates rather than overstates its
size and importance is a rarity. You are to be congratulated!
The breakdown of broadcast station revenue clearly indicates
that local advertising was the backbone of the 1935 business of
radio stations. The relative importance of local advertising, how¬
ever, varies by geographical areas. Thus about 61 per cent, of the
time sales of stations in the mountain states came from local
advertisers while the middle Atlantic states received only 46 per
cent, of their time sales from this source. Vermont, Nevada and
Wyoming — those three states combined — obtained 86 per cent, of
their time sales revenue from local advertisers. The comparable
ratio for Kentucky stations was about 35 per cent.
Naturally, the inclusion of network figures will change the rela¬
tive position of local advertising in terms of the total broadcasting
business. Individual stations, however, should give serious thought
to the local factor in their operations.
1541
Employment and Pay Rolls
Employment data for broadcast stations outside Illinois and
Louisiana show that an average of 11,446 persons were employed in
1935. They received an annual pay roll of $18,972,845. More
than 90 per cent, of this sum was paid to full-time employees. The
total pay roll amounted to more than 40 per cent, of the advertis¬
ing revenue of those stations.
Employment and pay roll figures include only those persons in
the direct employ of broadcast stations. Many persons appearing
before the microphone are employed and paid by the advertisers
and by networks. The latter are to be shown separately in our
final report as network personnel. Direct employees of advertisers
are not reported.
A more detailed analysis of employment for a representative
week shows that station talent, including artists and announcers,
make up the largest number of employees and receive a greater
portion of the annual pay roll than any other functional group.
Station technicians are second, both in number and pay roll. Em¬
ployment figures indicate that a relatively large part of the revenue
of stations is paid out for personnel service, the greatest single por¬
tion going to those who appear before the microphone.
With the exception of artists, or those furnishing entertainment,
most employment is on a full-time basis. It is difficult to define
part-time employment but taking the figures as reported, about
53 per cent of all artists employed by stations worked on a part-
time basis. They accounted for more than 75 per cent of all
part-time employment.
The figures I have given are based upon the data already released.
Included in these releases are 90 per cent of all stations selling time
in 1935. Reports for Illinois and Louisiana and for the United
States as a whole are to be released soon. This latter report will
include data for networks. These will be followed later by a
final report. We hope to present in the final report a classification
and breakdown of data in such a way that valuable analyses and
comparisons can be made. The character and extent of these
fundamental classifications have not yet been entirely determined.
We are sure that it will be possible to make basic comparisons that
will be of outstanding value to the broadcasting industry in further¬
ing their present studies and initiating new ones. Your suggestions
concerning the character of this final report are requested.
I wish to emphasize that in any reports that are issued, no
breakdown of figures will be made which will disclose exactly or
approximately the business of any individual station or network.
The Bureau of the Census is a factual body only. It is not con¬
cerned with the enforcement of laws or the regulation of business.
Its primary interest is the collection of basic facts that will be
of value to industry and society. Data submitted to the Bureau
by individual respondents are held strictly confidential. Such indi¬
vidual data are guarded from all except sworn employees of the
Census Bureau and cannot be replevined or examined by other
governmental agencies.
Practical Uses of the Census
Of course, your primary interest in this census is in terms of
what practical uses you can make of our published reports. A
number of apparent values can be listed now. Others will un¬
doubtedly develop after you have had an opportunity to study
our final reports.
Of outstanding importance and value is the fact that this census
does establish for the first time a complete base against which
sample studies of a detailed and analytical nature can be measured.
Government research is necessarily of a broad and fairly general
character. Detailed studies pertaining to specific problems of an
industry must be sponsored by those engaged in the industry and
carried out either as individual or group projects. Unfortunately,
such studies must be confined to a sample basis, for no agency
other than the Government is generally able to obtain anything
that approaches complete coverage.
For the last few years a number of sample studies have been
made by your Association and your consulting economist. These
studies have been well conceived and admirably carried out. They
have been of real worth to your industry. The 1935 census
material will not only supplement such studies but will help to
improve and expand the fine work your Association has done so
far. And your surveys will add value to the census material by
providing interim reports on a sample basis which will make pos¬
sible a current running picture of the progress of your industry.
Today, when the importance of research is just beginning to be
recognized and appreciated, I feel that the radio broadcasting in¬
dustry is to be congratulated for having done so much along this
line at a time when radio is still in its infancy. Likewise I feel
that it is fortunate to have a full census of the broadcasting busi¬
ness completed at this early stage of its history.
Another value of this census is the fact that these are official
figures of the business aspects of the radio broadcasting industry.
This first census begins to build a fund of accurate information
which will help you in hearings before the Commission, in dealings
with other groups such as music publishers, in making comparisons
with other advertising media, and in clearing up misconceptions
which some may have concerning this business.
The data collected in the present census can be presented in
such breakdowns as to provide definite aids in a study of the
relationships existing between station power, network affiliation,
station location and revenue. It cannot be claimed that the
census figures will provide an answer to those problems but they
will serve as an important point of departure for individual
studies. It is my opinion that figures showing the degree of
correlation between station power and revenue, for example, will
be quite revealing and perhaps surprising.
Another element to be considered is the trend of this important
industry. This first census cannot, in itself, show the trend of
the radio broadcasting business. It takes more than one to estab¬
lish the direction and degree of growth. There must, however, be
a beginning. This has been made. If in future censuses of busi¬
ness you insist on the continuance of a census of broadcasting as a
distinct part of such studies, you will soon be able to chart ac¬
curately and conclusively the trends of your industry. Such
periodic Government studies will also serve as a basis for keeping
your own statistical surveys revised in terms of the actual changes
that have occurred. The character and scope of any future census
will undoubtedly be changed in so far as possible to meet the de¬
sires and needs of a majority engaged in this business.
In addition to the many uses which the radio broadcasting in¬
dustry as a whole might make of the census data, there is much
to be gained by individual stations from use of this material. For
example, you can compare the operations of your station with the
average of other stations of the same general type operating in
similar areas. Comparisons of revenue, number of employees,
pay roll, and so forth, can be made with stations in given power
groups, with or without a network affiliation. You can determine
whether you are obtaining as much revenue from local advertising
and from your national business as the average of similar stations.
Such information will help to focus attention on the possibilities
of developing new business.
Up to this time I have talked about the radio broadcasting
census. The broadcasting industry, however, has fully as great an
interest in the use of data developed in certain other fields by the
Census of Business. Advertising agencies and advertising media
have found the census retail trade figures of outstanding value in
measuring the actual and relative fertility of different trade areas.
Such figures have been of great worth in the establishment of sales
potentials for advertising clients.
The vast majority of radio advertising is for consumption goods.
Retail trade statistics thus provide an admirable index of the ad¬
vertising possibilities in any given trading area. You operators of
individual radio stations can use these data not only in establishing
a factual basis for soliciting advertising business but also as a
partial yardstick for measuring the results of advertising efforts.
Thus the retail census will show you the amount of total potential
business in your trading area; the broadcasting census will show
you the proportion of the total local and national radio adver¬
tising you are getting. By using both you will be able to con¬
centrate your selling efforts most effectively. Until 1935 retail
reports are available, good use can be made of the retail census
for 1933.
I hope the complete results of the broadcasting census will be
ready for distribution in the near future. We shall exert every
effort to provide you with these data as soon as possible. The
start in census taking has been made ; future studies can be molded
to an appreciable degree by you. You should not hesitate to
express your opinions in writing concerning the results of the
present census as well as your desires concerning the continuance
of such a project. It is certainly not the aim of the Bureau of
the Census to burden the radio or any other industry with ques¬
tionnaires for the sake of collecting a mass of figures. The sole
aim is to serve the various agencies in our business and social
society. If individual surveys or specific aspects of such surveys
are useless, they should be discontinued. Your individual and
group expressions will be of distinct value in molding the future
course of a census of the broadcasting business. And again, I
wish to express the appreciation of the Census Bureau for your
splendid cooperation in the first census of the broadcasting industry.
CHAIRMAN MYERS: I am sure you all join in the very heartv
appreciation of Mr. Sandage’s talk.
1542
WILLIAM E. VOGELBACK (WIRE, Chicago, Illinois): I
should like to ask whether pending the publication of that,
there will be any interim reports.
MR. SANDAGE: I might say already seven releases have been
made by the Bureau showing the character of broadcast station
revenue, employment and pay roll for stations in those particular
regions. Those releases have been mailed to newspapers in the
particular region affected. The results have also been carried in
radio magazines.
Within the next two and a half weeks I believe we can guarantee
that a United States summary report showing both network and
station revenue for the entire United States will be available. If
you wish copies of that United States summary report or if you
wish copies of any particular regional report, if you will address
the Bureau of the Census, Philadelphia, a copy will be mailed to
you without cost. I am sure also that results of this United
States summary report will be carried in the trade magazines.
CHAIRMAN MYERS: Are there any other questions? If not,
we will pass on to the next item on the program which is a panel
discussion to be led by Mr. H. K. Carpenter.
(H. K. Carpenter (WHK, Cleveland) took the chair.)
CHAIRMAN CARPENTER: Members of the convention, ladies
and gentlemen, if this develops into any one man’s meeting, it will
not be with the help of your chairman. This is to be a meeting
where each man present may speak his piece, should he so desire.
Our general subject is “Organizing a Station for the Sale of
Broadcast Advertising.” Quite evidently the subject is sufficiently
broad that little could be accomplished in the time allotted to us
if we were to approach the matter without some semblance of
organization.
Accordingly, we have roughly divided the main subject into
seven topics, each of which is to be handled by a member of the
panel. But, to facilitate matters, rather than ask each of these
men to give a formal discussion, the chairman will ask each mem¬
ber of the panel a series of questions. It is requested that there
be no interruption during the preliminary answering of questions
but after each man has given a brief answer to each of the ques¬
tions pertaining to his topic, the entire topic will be open to dis¬
cussion both by other members of the panel and from the floor.
This general discussion may take the form of questions addressed
to the particular speaker or general statements or suggestions
which anyone present may care to make. We shall try to limit
remarks so that everyone may have an opportunity to speak. We
hope that the exchange of ideas will bring to light many points
of practical value to you. It is not our intention, however, to
arrive at any general conclusions or establish any fixed general
policies.
It is requested that as you rise to speak, you give your name
and business. Furthermore, The Chair reserves the right to limit
the length of any remarks, to pass on the relevancy of any remarks,
to proceed to the next question at any time and to adjourn the
meeting at his discretion.
And now, may I present the members of the panel. It should
be understood that we of this panel appear before you not as
experts, not with any feeling that we are particularly qualified to
discuss any of these matters. These men were selected, rather, be¬
cause we felt they had sufficient knowledge and interest to be
able to make some comments and would, talk whether they were up
here or down on the floor. We have just saved time by asking
them up here, in the first place.
The first — and I should have a gavel, at least a bell, because
some of the men insist on being called stooges. The first man to
stand and take a bow is Edgar Bill of WMBD. (Applause.)
(Mr. Bill arose and acknowledged the applause.)
CHAIRMAN CARPENTER: Martin Campbell of WFAA. (Ap¬
plause.)
(Mr. Campbell arose and acknowledged the applause.)
CHAIRMAN CARPENTER: I don’t believe Wright Gedge is
here. If anybody sees him, send him up right away.
John Gillin is on the Resolutions Committee but will be here
in a few minutes.
Herman Hettinger, University of Pennsylvania. (Applause.)
(Mr. Hettinger arose and acknowledged the applause.)
CHAIRMAN CARPENTER: I. R. Lounsberry of WGR and
WKBW. (Applause.)
(Mr. Lounsberrv arose and acknowledged the applause.)
CHAIRMAN CARPENTER: Fred Palmer, WMMN. (Ap¬
plause.)
(Mr. Palmer arose and acknowledged the applause.)
CHAIRMAN CARPENTER: John Van Volkenberg, KMOX.
(Applause.)
(Mr. Van Volkenberg arose and acknowledged the applause.)
CHAIRMAN CARPENTER: Now, the seven general topics for
discussion are as follows and they will be considered in the order
in which we name them:
1. Sales Personnel.
2. The Market for a Station’s Services.
3. Sales Promotion.
4. Outside Sales Personnel.
5. Selling the Local Market.
6. Preparing Programs for Sale.
7. Sales Policies — dealing especially with rate cards and state¬
ments on rate cards.
And now, the first stooge. By the way, may I say, “Take
advantage of this all you can while you have the chance.”
Martin Campbell. All right, Martin, stand up here so they can
hear you.
Here is the first question: What should be the sales manager’s
place in a station organization?
MARTIN CAMPBELL (WFAA, Dallas, Texas) : The sales man¬
ager’s place in a sales organization is or should be one of the most
if not the most important. Because of the fact that he is the
fellow that is on the firing line bringing in the business to the
station, he should be consulted on programs and other policies.
CHAIRMAN CARPENTER: I have a few questions I want
to ask Martin and then you ask him any you want to or make
any statement you want to make.
The second question is: What are the principal qualifications
of a good sales manager?
MR. CAMPBELL: He should be almost the equivalent of a
one-man agency. He should know advertising. He should be
able to go to a potential advertiser and not only sell him radio
time but a planned program or at least consult with him on the
planned program.
CHAIRMAN CARPENTER: May I inject: Is it advertisah
or advertiser? (Laughter.) He’s from Texas.
The third question: What provisions should be made for train¬
ing salesmen ?
MR. CAMPBELL: That is a rather difficult question to answer.
I think every station should anticipate the changes in sales staff
and have men on the staff who could be moved in to the sales
department.
CHAIRMAN CARPENTER: Now, here is a nice one. I
know you all want this answered. How can you secure good
salesmen ?
MR. CAMPBELL: Really, I don’t know. We prefer when we
make changes to have some one such as a junior member of an
advertising agency. I personally am very keen for having men
with advertising experience on our staff.
CHAIRMAN CARPENTER: Should salesmen be permitted to
work in any other department, such as continuity, announcing or
performing?
MR. CAMPBELL: I think that depends on the station set-up.
To attempt to generalize would be far from the point. I prefer
to refer to my own case where we do not. I will qualify that
by saying our sales manager was an orchestra leader and still
conducts occasionally but his principal duties are sales.
CHAIRMAN CARPENTER: Here is the last: What methods
of compensation do you recommend for salesmen?
MR. CAMPBELL: You better not ask me to recommend
methods of compensation for salesmen because the boys on com¬
mission would not like it at all. Again, that depends on the
station. I know stations where commission works out satisfac¬
torily. In our own case it did not and our men are on salary.
CHAIRMAN CARPENTER: All right. Now we are ready for
questions or statements from the floor or any other member of
the panel.
There is one question another man has a different slant on —
should salesmen be permitted to work in any other department —
and I’d like to ask Ed Bill if he has anything to say on that?
EDGAR BILL (WMBD, Peoria, Illinois) : I think very likely it
makes a better salesman of him if he knows more than just straight
sales. If the salesman knows a lot about programs, he is in a much
better position to sell. It is true in our own little station that
several of the salesmen do work even on the microphone, not
regularly but once or twice a week. I think it makes better
salesmen, in certain cases. That might not be true in a large
station but I believe it might be true in a small station.
CHAIRMAN CARPENTER: Somebody told me yesterday that
they regularly combined the job of salesman and announcer. May
we do that or have you seen an instance where you think it
didn’t work?
1543
Now, listen, you are not going to spoil this meeting by keeping
still. There are about forty or fifty seats up front here. I am
sorry we haven’t a little shuttle train to bring you up.
Now, I am sorry but we will have to eliminate one particular
group who can not take part in the discussion and that is the
National Order of Shrinking Violets sitting in the rear of the
room. (Laughter.) You just can’t take part in the discussion;
you are too far away.
Any comments by any members of the panel on this question
of sales personnel?
A. C. PRITCHARD (WWL, New Orleans, Louisiana) : I’d like
to ask in what respect the salesman on commission does not work
out satisfactorily.
CHAIRMAN CARPENTER: Captain Pritchard wants to know
in what respect salesmen on commission do not work out satis¬
factorily. Martin, will you comment on that?
MR. CAMPBELL: Some four years ago at WFAA we had
several salesmen on drawing account and commission, and we
found, with all due respect to the fellows, that they were more
interested in their own finances than anything else and we found
they were taking advantage of the station. Now, I do not say
that with any malice or anything of the sort. It is a perfectly
natural thing for them to do. We had one case where one of the
men tried to prevent the advertiser from placing his advertising.
CHAIRMAN CARPENTER: Earl, what do you do in Char¬
lotte ?
E. J. GLUCK (WSOC, Charlotte, North Carolina): We have
one salesman who has a program of his own and he has been
very successful in selling advertisers on that program. He believes
in it because he puts it on himself.
CHAIRMAN CARPENTER: Do you find any difficulty in at¬
tempting to sell some advertisers that are inclined to go on other
programs that one of the regular salesmen would sell?
MR. GLUCK: No, it doesn’t work out that way. He keeps his
own program pretty well filled up, and as long as he does that
we don’t kick.
CHAIRMAN CARPENTER: Anyone else? Well, then, we will
go to question number two, or rather, series number two or stooge
number two. Come up here, Herman. Now, incidentally, I told
Herman to get this down out of the clouds and not too dryly
statistical. (Laughter.)
HERMAN S. HETTINGER (Wharton School of Finance, Uni¬
versity of Pennsylvania, Philadelphia) : You mean up. (Laughter.)
CHAIRMAN CARPENTER: How much money do the stations
of the country get from the sale of their facilities through various
portions of the medium?
DR. HETTINGER: Dr. Sandage has really answered that in
pointing out that one-quarter of the station revenues come from
payments by networks for the broadcasting of network programs,
or rather slightly less than one-quarter, and slightly more than
one-quarter from national and regional advertisers, and slightly
more than one-half from local program sponsors.
CPIAIRMAN CARPENTER: What has been the trend as to
relative growth of national and local broadcast advertising over
stations?
DR. HETTINGER: I am going to use 1934 as a basis of com¬
parison, the first five months of 1934, because I want to show
the trend since the depression. Your national business has gone
up about 45 per cent, and your local business has gone up about
22 per cent — that is for the first five months of 1935 above the
first five months of 1934. The interest is in the lagging local
business during the last year. The local business only went up
about 2 per cent. (1.8 per cent to be exact) in 1936 against the
same five months in 1935 while the national went up 34 per cent.
Your local business is definitely lagging and constitutes a prob¬
lem right, now.
CHAIRMAN CARPENTER: Incidentally, we are going to have
some questions on local business in a few minutes.
What kinds of products are the most important advertisers in
the national non-network or national spot field?
DR. HETTINGER: There are three groups of business that
have been the most important during the first quarter of 1936.
They are drugs first with about one-quarter, food second with
about one-fifth and automotive third with about 12 per cent
(11.9 per cent) or one-eighth. Incidentally, that automotive is ex¬
tremely interesting because in 1934 it constituted just 5 per cent.
It has gone up almost twice.
CHAIRMAN CARPENTER: What have been the trends re¬
garding radio advertising sponsorship in the national network
field ?
DR. HETTINGER: Here is where if you start in dealing with
statistics, they would just look at you and call you a consummate
liar because most of them run into the hundreds in per cent.
Your automotive business has gone up 167 per cent in the
national field. Household equipment has gone up 79.6. Soaps and
kitchen supplies have gone up 121 per cent. Tobacco has gone
up from $19,937 in the month of May, 1934 to $262,320 for
May, 1935. Your foodstuffs have gone up 27.1 per cent and your
accessories have gone up 27.8 per cent.
CHAIRMAN CARPENTER: You’d know he is a college pro¬
fessor. It would be a pleasure to be called a “consummate liar.”
What kinds of products are important in the local field?
DR. HETTINGER: Your local field presents a different pic¬
ture from the national spot field. You find “miscellaneous” is
first, and anything and everything is classified in that, and that
leads. About two years ago I tried to break it down and had
200 groups. Miscellaneous accounts for one-fourth of the total.
Your clothing is 13.6 per cent. Your food is 13.7 per cent.
Household is 9.5 and department stores— and I say “shame” on
the radio industry as well as the department stores — is only
7.6 per cent. There is something wrong there.
CHAIRMAN CARPENTER: We will come to that department
store business later, too.
What have been the trends as to the sponsorship of local ad¬
vertising ?
DR. HETTINGER: They very definitely follow the retail trend.
Your automotive has led with 195 per cent. Clothing is next
with 63.2. Household equipment is third with 53. All the other
gains were rather slight and spotty just as the retail trade has
been in those fields for the most part.
CHAIRMAN CARPENTER: What have been the trends in the
use of live talent, transcriptions and announcements in recent
months?
DR. HETTINGER: Now, here is something that interested' me
more than anything in the whole set-up because you find that
there has been a definite trend toward the use of programs and
away from announcements.
For instance, in the national field, your live talent programs,
during the first five months of 1934, constituted just about 40 per
cent (38.9 per cent) of your total business but constitute 45 per cent
(45.5 per cent) in 1936.
Your announcements, on the other hand, were about 20 per
cent (19.0 per cent) in 1934 and dropped to less than 15 per cent
(14.5 per cent) in 1936.
If you want it in percentages, your live talent went up 60 per
cent and your announcements went down 10 per cent.
CHAIRMAN CARPENTER: Here is the last question: What
general conclusions do you draw from these trends as to the
market for a station’s advertising facilities?
DR. HETTINGER: There was one other thing I should have
said about types of rendition and that is as far as local advertis¬
ing, you had a marked increase in transcription from 8 to 11 per
cent and live talent from 50 to 52 per cent while announcements
went from 38 down to 33 per cent.
Now, my general conclusions are: First, that the national and
local business which your station gets is the economic and financial
backbone of this industry. Second, that in spite of the very
pressing problems that you know as well as I do and much
better in your national spot and regional fields, your local ad¬
vertising and the problem of developing that market constitutes
one of the most pressing problems to the future of radio ad¬
vertising. And third (and this I think we can congratulate our¬
selves on) is the development of your programs in the way of
transcriptions and also in the way of live talent, show that pro¬
grams can be sold, that you needn’t take what you can get and
that the time of merely taking an announcement and thanking
the Lord you got it, is definitely past.
MR. CAMPBELL: Herman, I would like to ask one question.
You mention the increase in national spot and decrease in local.
To what extent is the fact that that national business is increasing
causing the local to go down?
DR. HETTINGER: Martin, I really wish I knew but I suspect
it is due to certain industries getting sold on national spot that
has caused it to go up.
On the other hand, the spotty showing in the local field has
been due to two things. One is the retail situation has been
more confused, as far as upward trends, than the national situa¬
tion. The second thing is, and the department stores are splendid
examples, we haven’t learned how to sell the retail market and
the retail market doesn’t know too much about broadcast ad¬
vertising. And, at the expense of saying too much, we’ll stop
there.
1544
CHAIRMAN CARPENTER: I am glad these men are being
brief to start out with — but just say what you have to say.
Ed, what has been your experience in local and national spot?
ED CRANEY (KGIR, Butte, Montana) : Our national spot
has increased quite a bit more than local spot.
CHAIRMAN CARPENTER: Your national has increased con¬
siderably more than your local.
Do any have the situation where the local has increased more
than national? I am not asking you to brag, now. (Laughter.)
Don’t say how much but say relatively. There is a rump party
going on over there. Will one of you men let us in on it?
FRANK SMITH (KXYZ, Houston, Texas) : I think they are
trying to get me to brag a little. (Laughter.)
CHAIRMAN CARPENTER: Well, these Texas men!
MR. SMITH: We do about 98 per cent local business. I think
I can sum it up pretty briefly. We employ three salesmen on
straight salary for several reasons. One is that we haven’t been
able to attract the type of men for commissions. We started
drawing accounts but they would get such a pile up against them
that it didn’t work out.
I might say in quoting local business, we don’t quote so many
times. We quote all our bids for business at so much a month.
We try to make our local accounts average $150 a month and
our ambition is some day to get 100 of them.
HARRY TRENNER (WNBF, Binghamton, New York) : I am
from a hundred watter up in the country and, consequently, our
market being small, we are in the graveyard of agency appropria¬
tions when it comes to national spot business. When they get
down to the end of the list, if they have any left, it goes to
the hundred watter but very often it is a mad scramble and we
get very little. Consequently, our local spot is considerably more
than our national spot.
We are in the very fortunate position of having four depart¬
ment stores with all on the air and now they have the bear by
the tail and none can let go. (Laughter.)
CHAIRMAN CARPENTER: I want you to comment more
when we get to department stores.
RALPH E. SMITH (KGER, San Marino, California) : I don’t
know whether this question is appropriate but has there been
any method worked out whereby the station can determine for
the advertiser that the advertising is actually bringing them
results? I think that is along department stores.
CHAIRMAN CARPENTER: The question is, when you go to
sell a man and he says, “I don’t believe that will produce any¬
thing for me,” what have you got to show him it will? As
I said, I don’t want you to brag but won’t some of you come
forward and make some suggestions as to what other people can
do on that? How can you tell them what you have got?
MR. TRENNER: Mr. Carpenter, what has any medium got to
prove to the potential advertiser who has never used that medium ?
The only thing any medium can present is the success story of a
like business and if a man has used your medium and has been
successful, he knows what it will do. If he has never used a
newspaper or billboard, he doesn’t know. And, if there is a
method in his town of getting business and he is a business man,
he ought to know it. And, if it is a reasonable rate and cheap
enough to try, it is good business to try a method that might
get him some business.
CHAIRMAN CARPENTER: Are there any agency men here?
FRANK S. LANE (WDOD, Chattanooga, Tennessee) : We find
this in our town that the man there that makes use of advertising
is generally the fellow that is ringing his cash register, checks his
sales pretty closely, knows where the business comes from and
what can bring it in. If we can get him in there and he sees
the sales coming in the front door as a direct result of radio, we
have proved our case to him.
In our particular case with department stores, I don’t believe
there is any recognized department store or specialty store in
our town, which includes a lot of chain stores, that does not use
our station, particularly during the heavy seasons.
CHAIRMAN CARPENTER: Anybody else? All right, we’ll
go to the next topic. I don’t believe we should stay later than
1:00 o’clock. It is five minutes after twelve and we’ll try to finish
by 1:00 o’clock, at least skim over.
John Gillin is next. Come over here, John.
JOHN GILLIN, JR. (WOW, Omaha, Nebraska) : They have just
called me for the Resolutions Committee.
CHAIRMAN CARPENTER: It will just take a minute here,
John. What is your definition of “sales promotion”?
MR. GILLIN: Well, I’ll tell you very frankly, H. K. I
have been asking a good many of our members what they thought
was a good definition of sales promotion, and the best one I have
received, believe it or not, came from the pen of our good friend
Arthur Church. He says, “Sales promotion, as applied to a
radio station, comprehends the dissemination of information to
buyers of advertising, which sells them on the use of the radio
medium.”
Now, I am very frank to any that I believe the questions Mr.
Carpenter is going to ask me here this morning are really ques¬
tions that fit everybody’s problem (that is, all radio stations)
a little differently, and I want you to know that what I am say¬
ing is in relation to the market we serve which we commonly call
the “Bread Basket of America,” which includes the western por¬
tion of Iowa, the greater portion of the State of Nebraska,
southern South Dakota, northern Missouri, northern Kansas and
southern Minnesota.
CHAIRMAN CARPENTER (interrupting) : Five dollars for a
spot announcement. (Laughter.)
MR. GILLIN: What I desire to say is this, that a newspaper-
owned station’s problems are entirely different from those of an
independently owned station. A station with power of 1,000
watts has an entirely different problem in sales promotion than
a station with power of 100 watts. Also a 1,000 watt station’s
problem, independently owned, with no network affiliation, is
different from a 1,000 watt station, independently owned that has a
network affiliation.
CHAIRMAN CARPENTER: Here is the next question: What
information does the national advertiser want from the radio
station?
MR. GILLIN: Well, that is a broad question. The national
advertiser wants, in my estimation, factual information. By
factual information I mean a good field station survey by a well
recognized firm of engineers or company. The national adver¬
tiser wants a good audience appreciation survey of your station.
He wants to know whether you are the first, second, third or
fourth station in the trade area that you survey. He wants
to know the audience appreciation of your station during the
morning, the afternoon and the evening. The two surveys which
I have just mentioned should be taken by disinterested parties.
A good mail breakdown should be given the national advertiser.
He should have information as to what network you are affiliated
with, what newspaper, if any, you are affiliated with. Who owns
the station is very important because it gives the national advertiser
the background of your station. What frequency you operate on
and the power that the Federal Communications Commission has
given you the right to use on that frequency. The advertiser
should have the actual wealth per county in the states that lay
within your certified good commercial broadcast coverage. The
advertiser should also have the local coverage picture — I mean in
the city in which you are located, the local showmanship angles
of your station.
CHAIRMAN CARPENTER: What should the station furnish
him as to coverage and listener data?
MR. GILLIN: As I have said before, a good field intensity
survey, taken by a good organized group of engineers or somebody
recognized in the industry so that when your survey goes to
the desk of the radio time buyer, it will be accepted. Secondly,
a good audience appreciation survey. Thirdly, you should have
a very live-wire presentation in picture form of your own local
showmanship and the programs you carry which meet with the
audience’s appreciation in your territory — in other words, pro¬
grams of local showmanship which compete favorably with the
network programs.
CHAIRMAN CARPENTER: I think you are getting into the
next question: What types of sales promotion have been the most
successful with national advertisers?
MR. GILLIN: Well, it all goes back to w'hat has been used and
tried and known to be best fitted to the radio time buyers’ needs
in the interest of his client, the advertiser. I have mentioned the
field intensity survey and the audience appreciation survey. You
should have, as I stated, a good promotion department which is
equipped to take pictures of every program you may have on
the air that is outstanding, programs that please your local
audience and that compete favorably with network programs —
that is, your local picture from the showmanship angle. This
picture should be correlated and set up in brochure style every
six months and sent to your national advertiser along with
definite market information which is pertinent to the national
advertiser when he is considering an advertising campaign in
any market.
One way of handling the market information every three or six
months is to have the radio station, the newspaper, outdoor ad-
1545
vertising and direct mail advertising cooperate in putting out a
definite file which can be kept by the national advertiser for
future mailings on the market. This cooperation file, so to
speak, would contain all the definite, vital information of your
market for the advertiser and condensed into such form that it
is easy to read and very easily understood. In other words, it is
just four pages that contain vital information to him when he
wants to buy a market.
Now, here is a new wrinkle that is bound to be a success.
One of the national sales representative organizations, John Blair
and Company, has just started taking pictures of the markets
their stations represent. They are making a presentation in
movie form that has a running sales story with the picture.
It is bound to be a success. I’ll tell you why. It not only gives
the agency and the advertiser a chance actually to get some
glimpses of what that individual market is — such as first in butter
production in the United States of America, or in lumber produc¬
tion, in oil production, and so forth — but it also gives him the
actual picture of the dollars rolling into that market. Also pic¬
tures that show the stableness of the market, civic pride of the
cities included in the market, such as civic auditoriums, parks,
pictures of the residential sections, memorials — pictures that make
the individual market stand out as a market that should be
considered for every national campaign. It also brings home to
the national advertiser and the national agency the fact that
radio stations are more of a local magazine, if I may express
it that way. In other words, the moving picture presentation
definitely shows that the radio station in Omaha is considered a
local station in Lincoln, Sioux City, Iowa, and in other towns —
all cities of considerable size — whereas if the advertiser has defi¬
nitely O.K.’d a newspaper campaign in that same market, in order
to cover the market satisfactorily, he will have to use the Omaha
newspapers, the Lincoln newspapers and the Sioux City, Iowa,
newspapers; whereas he can cover the entire market, including
these three cities, with one radio station.
I, for one, believe that the radio stations should give this side
of the picture much more importance in their national sales pro¬
motion activity. Also, another sales promotion activity which
I believe will be used with more success in the future is one
where the stations buy recording equipment in order to record
their local programs to send to the national sales representative
so that their national sales representative may have the national
advertiser or the agency hear the program which the agency is
considering for the client in a certain trade area.
In other words, my national representative sends me a query as
to what program we have which may meet with the approval of
a certain advertiser. I answer his letter by mailing him the
information on the program, the talent on the program, cost,
and so forth. This is information which the agency desires but
the agency says to itself after receiving the information, “It
looks fine on paper but the talent on the program may be far
below the level which we desire to present with our client’s
product.” The way to show him actually what the program is
and what the talent is on the program is to record the program,
send it to the national sales representative so that the agency can
hear it and be sure of what it is buying. We have found this
to be very helpful. I think that is all I have to say.
CHAIRMAN CARPENTER: All right. Has anybody any
questions?
MR. TRENNER: With regard to audience appreciation, just
how do you indicate that? I mean, for example, Yodeling Joe
and his guitar may make a bad looking picture but he may have
a big audience.
MR. GILLIN: I think there are two big things in presenting
audience appreciation. First of all, you have to take mail break¬
down over a period of several months, say 50,000 or 100,000
letters. The question is, how much mail was received from this
county and how many people live in the county, how many
counties are in the state? How would your state set up with the
counties on your radio station in comparison with cities located
100 miles distant.
Your listener survey should be taken into consideration by
an independent party. If the gentleman could be available, a man
who has a national reputation like Dr. Smelser, who is known
as the finest national statistician on radio surveys, who has been
the leading man in turning out Crosley surveys for years. In
other words, your station audience appreciation survey, in my
estimation, should not only give the picture to the national
advertiser of your station but of the other stations that are
competing with your station in that market, and if you are first
in some counties, say you are first, and if you are second, say
you are second; if you are third or fourth, state third or fourth.
MR. TRENNER: The other question is in regard to what you
said indicating your station is a local station within a radius of
200 miles. That strictly presents the picture of the regional station
that every small station has been fighting since in business. There
isn’t a regional station in the country that won’t sell you the
neighboring four states with a string around it! (Laughter.)
And, as far as we are concerned, as I told you before, we
are a little one-lunger up in the sticks and despite the fact that
some of these regional stations will show you everyone in the
town with his ear to the radio, we still think we are the local
station. That last picture represents a story for one phase of
what is a great big industry.
MR. GILLIN: That is right, but as I said when I started, your
particular problem as a 100 watt independent station, with no
national affiliation, is different than mine, a 5,000 watt station with
a fine network affiliation. I have to sell the advertiser on audience
and coverage. You have to sell the advertiser on audience in
your particular small area that you serve, from the standpoint of
local programs and how well your station is received in that local
area over the potency of whatever network stations of 50,000
watts there may be that have the opportunity of coming into your
local area. I think it would be well for you to find out whether
you are first, second or third in the locality that your local sta¬
tion serves. Then your problem is what programs to carry that
your audience likes and what programs not to place on the air
to compete favorably with the program that the station that
competes with you places on the air that have the audience’s
appreciation.
JAMES L. REINSCH (WHIO, Dayton, Ohio) : As far as the
visual presentation is concerned, I think it can be equally adaptable
to Gillin’s 5,000 watter and our Eastern friends 100 watter in this
respect: we have been working with it for some time and we
found there were a good many industries in the city of Dayton to
make a good presentation to the agency. The 100 watter can take
a visual presentation which can be of great benefit to the agency
and advertiser and show the industries in that particular town, the
people working there and give statistical information in an inter¬
esting manner while the 5,000 watter will spread out to four or
five states with a string around it.
CHAIRMAN CARPENTER: May I say, in conclusion, that we
must get on.
In that connection, I have always remembered what Bill Hedges
said — when you go to present data about your station, present
result data; that’s what counts.
“Outside Sales Personnel” — I. R. Lounsberry. All right. Your
name is I. R. Lounsberry. Where are you from? (Laughter.)
Here is the first one: Specifically and to what extent has the
station representative solved the problem of selling station facili¬
ties to the national advertiser?
I. R. LOUNSBERRY (WGR-WKBW, Buffalo, New York)
Carp, I feel as though you were putting me in the place where
I am sticking out my chin as that is a question that has con¬
cerned a lot of people for a long time.
My answer is, and I will try to sum it up in direct statement,
as follows: Station representatives are doing a fairly good job
of constantly presenting station and market facts to national ad¬
vertisers. Their main accomplishment is getting their station or
stations on the advertiser’s list when the advertiser’s agency has
developed a campaign. They are also fairly successful in selling
individual local live talent programs for test campaigns.
They fall down seriously, however, when selling in competition
to networks in that they do not create and record program ideas
and offer services such as the networks render — publicity cam¬
paigns and so on. They also fall down in promotional activities
as far as spot versus network is concerned. Fortunately, there
has been a healthy development in the past couple of years in
that representatives are getting closer to their stations so that
they are becoming an intimate part of the station organization.
CHAIRMAN CARPENTER: Here is the next question: Do you
believe the station should pay a national representative, or should
the compensation come from other sources?
MR. LOUNSBERRY: The national representative should be
considered by the station operator as a part of the station staff
just as the local salesmen are, and such selling commissions to be
paid are an expense of the station and to be paid for by the
station from the receipts of the sale of time.
CHAIRMAN CARPENTER: I might say that the object in
that question was to bring this out, which Ike has, that with
the agency commission, it is something which is generally con¬
sidered beyond the departmental expense of the station but
according to Ike’s way of thinking, the commission to the national
representative should be considered exactly the same as the sales-
1546
man’s commission — it is a departmental operating expense of the
station.
Do you think the idea of branch offices is feasible?
MR. LOUNSBERRY: As desirable as branch offices may be
from a theoretical standpoint, it is my opinion that the question
of economics is the regulating factor against this policy. I
believe that not more than a few stations can afford their own
branch offices.
CHAIRMAN CARPENTER: Here is the last: Is there ever a
reason for a third commission?
MR. LOUNSBERRY: No. We should pay not more than two
commissions out of the income we receive from the sale of time,
namely, agency, where it is justified, and a selling commission or
salary as the case may be. There are some special instances when
the established selling commission may rightfully be split between
national and local salesmen or between a program-producing or¬
ganization and salesmen. Where a transcription or syndicating
company is a strong factor in the accomplishment of business
through a tailor-made or special unique service, then such com¬
panies should be paid through a talent charge to be made by the
station to its client but not out of receipts for time in the form
of a third commission.
CHAIRMAN CARPENTER: Thank you, Ike. Now, I hope
you believe me. I am not trying to put anybody on the spot.
Are there any people connected with national representatives who
have ideas on that as to the relation of station and national
representative — -things the station should supply which they don’t
supply in some instances, and so on. Come right ahead and
sp&cik out
WILLIAM H. CARTWRIGHT (William G. Rambeau Com¬
pany, Chicago, Illinois) : I think with our stations we have had a
very fine example of cooperation and are learning to work better
with the stations.
In the case of WOR in New York, they supply us with the
finest of information which enables us to go out and make an
honest-to-goodness presentation. They have intensity maps, re¬
sponse and also success history. Never a week goes by but we
have complete information so in any classification we can really
give a story.
Other stations have come along and through working with them,
we have developed that same type of technique.
In conclusion, I would like to ask one question of Mr. Louns-
berry. Does he feel the representative should call direct on ac¬
counts or is that a part of the function of a representative?
CHAIRMAN CARPENTER: Ike, the question, as I got it, is,
should the representative call directly on accounts or should that
be left up to possibly some one from the station?
MR. LOUNSBERRY : The representative is a part of the sales
organization of a station. He should be so thoroughly versed in
what his station has to sell that he is qualified alone to call on
his territory for that station. He can do that on occasion with a
representative from the home office, if you may call it that, but
in cooperation with him at all times.
MR. CARTWRIGHT: I mean more particularly, do agencies
object to the representatives calling directly on the accounts — in
other words, is the agency willing to cooperate with the repre¬
sentatives of the industry? We have found them so. But, do
they want to cooperate or want the representatives to go to the
accounts ?
CHAIRMAN CARPENTER: May I pass that back to some
agency man here. The question is, does the agency object to the
national representative calling direct on the client with a sales
presentation of a particular station?
OSBORN BOND (Joseph Katz Company, Baltimore, Mary¬
land) : I have a very bad throat and I am using this means to talk
to you all in answering that question.
We never at any time object to representatives of the radio
station home office — newspapers, magazines or any kind of
media — calling direct on our accounts. We find generally that in
almost too large a number of cases, the representatives from the
home office or from the national selling organizations when they
call on our accounts very rarely have anything to present to the
account which is of a very definite and concrete manner that
could not have been presented by us.
We don’t mean by that that the station should allow the agency
to be the last court as to whether or not a certain station’s or
certain stations’ program ought to be sold. Stating again our par¬
ticular feeling in the matter, we have no objections at all to
station managers calling on our accounts direct or corresponding
with them.
Now, if I may just go back to one of John Gillin’s questions,
about what agencies need and clients need. I think in my files
and probably in a lot of other agency files there is much station
material, really elaborate, with a lot of nice pictures, a lot of nice
pages between the two covers, the cover itself is stamped with
some kind of gold or bronze, but between those two covers there
are two or three paragraphs that really mean anything to us in
the way of actual information. Ownership is terribly important;
what your wave length is and success stories of some of the things
you have on the air. We are not particularly interested in know¬
ing you have 40 or SO employees, that you have a very good
looking station with lovely studios. Those things could be con¬
centrated on one page rather than making 90 per cent of the
book what you have in the studio building or broadcasting station.
Your audience doesn’t care anything about that unless you invite
them in groups of two or three thousand to sit around, and I
think there are very few stations that have those accommodations.
The thing we want to know is what type of homes you have
in your city as an indication of the wealth of the people who live
in that area and that they can afford to buy the manufacturer’s
product. There isn’t a town in the United States on which some
newspaper hasn’t prepared some kind of promotional material.
I don’t mean you should do what the newspapers do but the
newspapers have been presenting promotional material and a
lot of factual information, and it won’t hurt you to get hold of
that and present your market in the same way they have.
MR. GILLIN: I would like to ask Mr. Bond a question. Do
you think it is only courtesy on the part of a national representa¬
tive at least to notify the agency and tell them what their plans
are in contacting the account so that you will be able to advise
them what you think is best for this particular client?
MR. BOND: That is perfectly true, Mr. Gillin. I can’t remem¬
ber very many instances where anyone has gone direct to our
clients without keeping us familiar with the fact that they were
going to them, and it does help very materially to know just
what a radio station representative or manager is going to say
to your client because invariably the matter comes back to us;
we hear about it and it sometimes proves embarrassing to a repre¬
sentative when he does go direct. There are just, oh, maybe, two
or three or four per cent of the stations where the stations are
a little prone to ignore the agency entirely when they think they
have something of particular merit that the agency couldn’t help
them with anyway, and when the thing is dumped back in the
agency’s lap, they are left in a most embarrassing position.
MR. TRENNER: Along the line of station promotion. I have
a question I want to ask about sending information to the agency
because it is very seldom we get an agency man on the chopping
block. (Laughter.)
The big basic network stations send in to agencies that they
have this account and that account and all these people are using
their facilities so that they can’t duck it and that business comes
in over the transom of that station.
Now, as far as the small station is concerned, they send in a
local success story to the agency. They say to the agency that
they have this department store and this bank and this utility
on the air. Does the local picture mean anything at all to an
advertising agency man?
MR. BOND: Yes, it really does. But, you know, every adver¬
tising budget is limited to the extent he can’t use everything there
is for him to use. I mean the decision must be made as to where
we are first going to spend our money — not that the small stations
don’t get in on any of the money that is being spent but certainly
if an advertiser has very little money, he has to spread his budget
in a manner that is most economical.
MR. TRENNER: What I want to kfiow is, does that informa¬
tion have any effect?
MR. BOND: We have a peculiar system whereby the smallest
station has an opportunity to present its story just the same as
the large 5,000 watt station.
CHAIRMAN CARPENTER: I have one question I want to
ask a particular man who, I believe, is in the audience and I
hope I won’t embarrass him. I want to ask this question and
you may comment within reason on this question.
We have been working together and you have seen this broad¬
cast picture developing for ten years or so. Do you notice any
definite trends? Are there any movements you would like to
see takine place more rapidly? Mr. Gamble?
FREDERIC R. GAMBLE (Executive Secretary, American
Association of Advertising Agencies, New York, New York): That
is a broad enough question, Mr. Chairman. I think undoubtedly
there have been trends in the right direction, a great many of
them. We might get impatient and hope they grow faster
and yet when you see a large group such as this, many minds
to be informed on as involved and difficult questions as the
policies discussed this morning, it is very easy to see why these
trends don’t proceed more rapidly. Only a few years ago we
1547
had trouble with some questions that are not so controversial
now'.
I think you have had very good light on most of the ques¬
tions, so far as my own knowledge is concerned, this morning.
There is one I hope is still to come and that is on sales policy.
And, since I am on my feet at the moment, I will say what
I hoped somebody would say or would say myself before the
closing of the session if I got an opportunity. That is on selling
spot radio and there is one thing which can be expressed in not
more than three words, which is more important than the other
important things which have been mentioned and I don’t mini¬
mize those — they are important and needed — but there is one
thing I would like to have you carry back to your stations as
an expression of the agencies, just three words — maintain pub¬
lished rates. (Applause).
CHAIRMAN CARPENTER: Mr. Midgley?
C. E. MIDGLEY, JR. (Batten, Barton, Durstine & Osborn,
New York, New York) : I have a lot to say but I’m afraid I won’t
have time to say it all. One thing struck me forcibly. Mr. Bond
answered it by saying for Joseph Katz that the smallest station
receives the same consideration of their data as the 5,000 watt
station. I’d like to go along on the same bandwagon with him
on that. After all, the strength of the industry is in the large
group of small stations rather than in a small group of large
stations.
There is just one thought on sales promotion, hinted at, which
I’d like to emphasize. A lot of stations in the country don’t do
sales promotion. They say, “We can’t afford expensive bindings
and four-color jobs.” But, you can send a mimeographed sheet
in a cent and a half envelope once or twice a month and it is
good business to do it because agencies are not so much interested
in spiral bindings and beautiful cloth bound presentations as they
are in the fundamental data. And, I think with the smaller
station, especially one that doesn’t have a representative in New
York, Chicago or San Francisco, a semi-annual visit to the agency
is a very valuable thing. In lieu of that and in between in the
six months, I think a weekly bulletin or semi-monthly bulletin,
keeping your station always before the agency, is a good piece
of sales promotion, even if it is in long hand on a piece of yellow
paper !
CHAIRMAN CARPENTER: Is Wright Gedge here? Or
Gene Dyer?
Well, the next is Fred Palmer — -“Selling the Local Market.”
I have been impressed with the statements of two of our previous
speakers, first Mr. Sandage and then Dr. Hettinger, talking about
the local market, stating that we are falling down on local market
sales. All right, here is your chance.
Here is the first question: How should you organize your sales
force to sell the local market?
FRED PALMER (WMMN, Fairmont, West Virginia) : Well,
Mr. Carpenter, I think every local sales organization bears the
personality and the drive of the personality who organizes that
group of salesmen. Every station would probably be different.
I think the first thing is to train them properly. If you don’t
train them, if they don’t know the rate card, if they don’t know
the territory, if they don’t know how to write a contract, then they
are merely solicitors, not salesmen selling business ideas.
I do not believe much in territories. I do believe somewhat
in having modest classification of accounts. Every salesman
should have his list of accounts and have them protected to him.
I do think certain salesmen can give an emphasis to food ac¬
counts, department store accounts or automotive accounts. In
that way, they know the factual information to give to the ad¬
vertising manager of a business. After they get their cards,
they may receive protection on that for the amount of time
that the sales manager feels is good for that territory. They
should not be allowed just to have a long list, sit on them, mug
them and wait till they come in over the transom. They should
work for them or else each quarter re-arrange that list.
CHAIRMAN CARPENTER: May I say we want to get hold
of Gene Dyer or Wright Gedge so we can get at this from the
angle of a large city. Fred is speaking from the angle of a city
the size of Fairmont and Zanesville.
All right, here is the next question: What are the problems
which you meet most frequently in selling broadcast advertising
in the local market?
MR. PALMER: Broadly, the first is the newspaper problem.
I don’t believe that is particularly a major problem any more.
I believe if you have a good factual survey (and I am particularly
fond of the coincidental telephone survey), from that you can
figure a trend in audience and on that you can base the relative
cost of doing business.
I think one of the greatest problems hindering the sale of time
is their lack of knowledge. That may depend on our lack of
knowledge. I have a pamphlet written by Mr. Davis of General
Mills based on his experience in that direction. I wrote him for
quite a number of copies and passed them on to our clients. They
are interested in that. The information we get from the networks,
from the magazines, oftentimes I run off on the mimeograph and
send out to the department stores or automobile people or the
agency. They want to know about. They ask about it. I wonder
if we are educating them. I believe their shyness depends on then-
lack of information and, after all, that is our job. Then I think
they must be sold right. Oftentimes they are just exposed, not
educated, and it shows up later in cancellations.
CHAIRMAN CARPENTER: Does the strictly retail store pre¬
sent any different problems from the other local radio advertising?
MR. PALMER: Yes, they do. There are the retail stores that
sell one, two or three items. The retail department store will sell
hundreds or even thousands of items. We used that as an ad¬
vantage in one case. A department store in a town of 30,000
carried a lot of items but had comparatively small space in its
show windows. We found the department heads were all pretty
peeved because they couldn’t get their particular department in
the show window often enough. We convinced them a one-hour
morning program would furnish a show window for every de¬
partment and it was the department heads who enthusiastically-
pushed that deal across.
CHAIRMAN CARPENTER: Have you been successful in sell¬
ing transcriptions to local advertisers?
MR. PALMER: Modestly so, whenever the station itself first
understood those transcriptions to where they could talk about
them vividly and enthusiastically; secondly, where that can be
passed on to the salesmen and I don’t believe that very many
salesmen in general really understand the transcription story to
where they can tell it vividly, enthusiastically and get the client
up to the station for an audition. I am not particularly sold
on the idea of the portable machine to take to the office. The
man is usually not sold unless you get him into the studio, into
the radio atmosphere.
I believe the move currently on foot to send out a man who
knows the story of those transcriptions, what they have done in
other places, knows their success, if that man will come in and
help a bit, I believe the impetus to sales will be greatly accelerated.
CHAIRMAN CARPENTER: I think Dr. Hettinger has some¬
thing he is constrained to say.
DR. HETTINGER: I am not straining to say it but I made a
promise last week and have to keep it.
I was talking one to of the large department store groups of the
country and proceeded to tell them as politely as I knew how and
as sympathetically as I knew how, how little they knew about
radio, and I made the remark that I wasn’t sure who knew less
about radio advertising, the department store man or the
advertiser.
I mentioned it because the retail store problem of advertising
is such a complicated one. You are selling two things, merchan¬
dise and a store. You are selling regular store patronage and
women’s bags at $1.98 reduced from $2.10. You are selling regular
customers who wouldn’t think of dealing anywhere else, as well
as merchandise at standard price. You are selling the chronic
bargain hunter to whom price means everything. You are selling
some departments where the whole family comes in two or three
months before they finally make the purchase. You are selling
other goods where they go by an aisle display, see the price and
say, “I like the gadget. I’ll buy it now.”
I think one of the biggest reasons for the present retail adver¬
tising picture in radio, especially for the larger stores, has been
our lack of willingness or time or whatever it may be to study the
retail sales promotion problem both for stores as a whole and the
particular stores we are trying to sell, and if we can do that and
then get the retail people to do the same thing from our end in
studying radio, there is going to be at least one figure in NAB
trade statistics that is going to go up and that is retail advertising.
CHAIRMAN CARPENTER: Thank you, Dr. Hettinger. Now,
unless there is someone who insists on speaking, we must get on
to the next.
REGGIE MARTIN (KFAB-KFOR, Lincoln, Nebraska): Mr.
Chairman, a while ago you mentioned result data. It seems to
me that what we need in radio is a good hot success story. I
appreciate this is not the time nor the place to go into detail but
I would like to call your attention to one of our sister stations,
KMBC of Kansas City, that has one of the best success stories
there is. The program is called “Joanne Taylor.” I’d like to
1548
recommend it to everybody. It is a program by the department
store and I believe it is the best success story I have ever heard.
If anybody is interested, they can get the information from Mr.
Fox.
I would like to say by way of proof of that success story that
we have been able to sell a year’s contract by way of that.
CHAIRMAN CARPENTER: Thank you, and the commission
you get from Arthur Church and Leslie Fox, I’ll split with you.
(Laughter.)
That was discussed and presented in transcription form at the
Radio Section of the A.F.A. last year.
MR. TRENNER: I just want to mention a couple of things. I
am in the fortunate position of having been in the advertising
department of a department store, having been with a newspaper
and am now with a radio station.
The average comeback that a radio station gets from the depart¬
ment store is, “We believe you can do a good institutional job but
you can’t sell merchandise.” The result of that is after he beats
you around a bit, you take a long or short series of institutional
advertising selling this store to the city of Cleveland or Buffalo or
wherever it is, it goes through and is a nice program for thirteen
weeks. During those thirteen weeks the newspaper is ringing the
cash register and all you are getting is the gong.
I worked in a department store where we prepared an elaborate
piece of advertising, where William Penn came to Philadelphia
and after William Penn came Lit Brothers, and we were doing as
much for Philadelphia as William Penn. It was a long series with
expensive art work. The bosses looked at it and thought it was
great. That was for the first week and the second week, but the
third week the cash register had to be rung and the institutional
series went out of the window.
When a store puts an ad in a paper, they go around to every¬
body in the store and say, “We have an ad in the Daily Bugle and
are going to advertise this. There is going to be a sign on the
counter ‘as advertised in the Daily Bugle’ and a sign in the
window.” That newspaper gets the benefit of all that sales pro¬
motion and traffic.
When you go to sell radio, what do they do? Stick the mer¬
chandise under the counter! We, a hundred watter, had guts
enough to turn down two stores four years ago but today when
they advertise anything on the radio, it goes on a prominent
square on the ground floor called “Radio Square” with a Neon
sign and anything they sell on the air gets as much assistance as
anything they advertise in the newspaper.
There is one last thing I’d like to tell you about department
stores. There is no more political organization than a department
store. Everybody is afraid of one another. Every department
manager and buyer is afraid of his job. Now, if you are having
a tough time with the boys upstairs, work through the store.
That is what we did. We went to Minnie in the hat department
and said, “Did you hear what the Bon Ton advertised over the
radio ?” and Minnie went up to tell the boss before I got up there.
Then we went to Joe in the haberdashery and before we knew it,
the boss was getting so much hammering from within his own
organization that he called us up. (Applause.)
CHAIRMAN CARPENTER: Thank you, very much. I wanted
to get something about retail advertising and the approach from
the department store angle and you have heard from two very
good sources within the last few minutes.
The next subject is “Preparing Programs for Sales” and the
commentator is Jack Van Volkenberg. When he was put on the
program he was with KMOX but he is now assistant to Mr.
Atlass here in Chicago. The first question is: Should the prepara¬
tion of programs for sale be a sales or a program department
responsibility ?
JACK VAN VOLKENBERG (WIND, Chicago, Illinois) : Actual
preparation of program, it would seem, is a program department
job. However, to secure a successful sale of time, the sales depart¬
ment can function to excellent advantage. For example, in nearly
every case, a good radio salesman has at least an instinct as to
what constitutes a radio program embodying all the essentials of
good showmanship as well as being a show designed to sell a
specific type of product for a specific type of advertiser.
The salesman is, quite naturally, the closest man to the account
in question; he is the one who should have the most intimate
knowledge of his particular advertising and sales problems. What
is more natural, then, than to arrange a consultation between your
salesmen, sales manager and program director — with such addi¬
tional people as writers, producers, and so forth, as he may deem
necessary to turn out a workmanlike presentation and audition.
Because of the program director’s extremely confined work in
his own department, it may be further advisable to hold a private
preview, or preliminary audition of the program in question so
that before it is presented to the potential advertiser, everyone
concerned with a successful run for the show, which means, of
course, satisfactory sales results for the advertiser, has an oppor¬
tunity to catch errors in the presentation and to offer constructive
criticism.
CHAIRMAN CARPENTER: Here is the second question:
What are the essential elements in a program presentation to a
client ?
MR. VAN VOLKENBERG: I would line up the essential ele¬
ments in a program presentation in the following way:
A — demonstrate as thorough a knowledge as possible of the
potential client’s business as to (1) market condition; (2) type of
buyer — man, woman, child; (3) income group that offers the
greatest market for the advertiser. In other words, show an intel¬
ligent understanding of what it is necessary for the program to
do in order to make a long-time, successful radio user of the
particular account being sold.
B — assure yourself of a business-like attitude on the part of all
studio employees while the presentation is being made. Too fre¬
quently our business is referred to as a “game” or a “racket,” and
if an attitude exists in connection with this, it is more than likely
brought on by the fact that ours is a young business, operated by
young men and women, and because we have some fun at our
work, it may be that the advertiser will think twice before invest¬
ing his hard-earned money in what he may consider to be a game.
C — have all available market data, including available coverage
figures, at hand so that all questions may be answered. In this
connection, approximate cost per thousand listener figures are fre¬
quently surprising to salesman and client alike. It has seemed for
a long time, too, that we as station operators might develop our
market and institutional stories in somewhat more elaborate form ;
in a form which is already familiar to advertisers and agencies
through its use in the publication field. Specifically, to develop a
printed story on large cards, which can be augmented by a run¬
ning conversation from the presenter, the combination of which
will give briefly to a small assembled group a concise picture of
the station.
CHAIRMAN CARPENTER: Third and last: Do you believe
the theory of the saleability of successful sustaining programs is
sound?
MR. VAN VOLKENBERG: This is a subject in which the
answer varies all over the country. We have found in our experi¬
ence that it is decidedly unsound for a number of reasons.
In the first place, local advertisers in the particular market
with which I have had most experience don’t like anything old.
They regard as old our sustaining programs. They want some¬
thing brand new.
Second, lack of time for sustaining programs in the past year
has made it uneconomical to start a sustainer and find it necessary
to cut it out before a fair opportunity has been given for a
build-up.
Third, we have found it more satisfactory in the long run to
design a show for a particular type of advertiser rather than at¬
tempt to sell the same show to a number of different types of ad¬
vertisers.
Answering the question, what good sustaining programs are
available for sponsorship, more frequently than not, find it
necessary to answer in the negative. So'me stations have made
a definite practice of putting on sustaining programs and success¬
fully selling them. However, with the increasingly crowded pro¬
grams, I think it is unsound economically. It all goes back to the
point I made about designing programs for specific advertisers.
CHAIRMAN CARPENTER: Thank you. Any questions of
Mr. Van Volkenberg?
The last group of questions on “Sales Policies” — Edgar Bill.
Now we are getting to what Gamble talked about. Here is the
first: What is a rate card?
MR. BILL: That sounds like a brain teaser. A rate card is a
standard of rates, and to follow it and stick to it is more impor¬
tant than the standard that is set. And, if I may lecture a
minute I would say this: that broadcasters are rate-cutters. We
break down very easily. One national representative to whom I
talked said some of his stations actually quoted rates to accounts
lower than the rate card he quotes himself. I am very sure
agencies don’t want to break rates but I know one agency is
traveling the western states asking for a cut in rates for their
particular program. We must learn how to keep our rates up.
Now, if you please, you hurt yourself when you take the lower
rate. How can a buyer have any confidence in you when you cut
1549
your rates? You can’t hope to have any preference. So, we
really need a lecture about that. We say that in extreme cases
we will let down a little bit; we try to do something to get the
account. I find it pays to hold the rates.
CHAIRMAN CARPENTER: Just to vary from these ques¬
tions, I would like to ask this question: Do you think the matter
of cutting rates is limited to large, medium or small stations?
MR. BILL: Being a small station, I’d say “no.”
CHAIRMAN CARPENTER: I have been told — just between
you and me — that it is not alone the small station.
The next question: To what extent does the existence of the
dual rate system help or hinder the sale of station advertising?
MR. BILL: If you have two rates, there must be a reason for
two rates. Some stations have a reason and some stations do not
have a reason. If there is a real reason for two rates, I see no harm
in having two rates. But, if you do have two rates, you are sure to
get into trouble and hot water because if you have a national ad¬
vertiser, he is going to try to crawl under the local rate. However,
there is a real excuse for two rates in some cases, but not all.
CHAIRMAN CARPENTER: Should agency and selling com¬
missions be paid on talent ?
MR. BILL: I think there are very definitely two sides. Some
stations spend a lot of money to build programs to sell. Some
agencies have a big department to build programs for their clients.
I think the real answer is: Pay a commission if that commission
is earned. If the agency really does something to earn the com¬
mission, they should be paid. Of course, there are some further
reasons — the question of policy, for instance. In many cases, half
or third of the cost of radio is talent, and will the agencies sell
our talent without commission when they can sell other mediums
with commission?
CHAIRMAN CARPENTER: The last question: Do you believe
stations should allow cash discounts?
MR. BILL: I’m sorry I can’t answer that question. I would
rather somebody else would discuss that. I think so. I don’t
know. If we compete with other media, it would seem we should
do it.
CHAIRMAN CARPENTER: I know certain individuals I
could call on who feel quite strongly on that question. I don’t
want to embarrass you but suppose you speak up.
MR. PRITCHARD: What is a cash discount when they don’t
pay for it until thirty days after they have had the service?
CHAIRMAN CARPENTER: With some it is two per cent, if
paid by the tenth of the month. With others, it is two per cent,
if paid by the first or second. And, with others, it is two per
cent, if paid by the twentieth or twenty-fifth.
MR. PRITCHARD: That isn’t cash, in my opinion. Cash is
C.O.D.
CHAIRMAN CARPENTER: The usual way in which the term
has been used in broadcasting is the way I give it. I agree with
you in your definition of the term, however.
But, for the purpose of discussion, the question is aimed at the
policy of allowing what we generally call a cash discount, a dis¬
count of so much if the bill is paid by a certain time.
W. F. CRAIG (WLBC, Muncie, Indiana) : We are rather con¬
fused on this cash discount proposition. Locally it has helped
to have them pay their bills much more rapidly. I think that
is due to the fact that the saving of five per cent, is quite an
item to the local account.
CHAIRMAN CARPENTER: Yours is two per cent?
MR. CRAIG: Five per cent. We have had instance after
instance where it is twenty or thirty days late. Sometimes they
date the check the tenth of the month. Then you write back and
there is a series of letters that this department head slipped up
or they didn’t understand. Yet they did understand in the first
place that they were entitled to have five per cent, when they
signed the contract. I’d like to have some of the agency men
answer that on this five per cent, basis.
CHAIRMAN CARPENTER: Anybody else?
MR. LOTTRIDGE: We have never had a cash discount and
we conservatively estimate that it would cost us $150 a month
in the clerical work entailed, as this gentleman explained, in
writing back and forth and arguing with people that don’t get
their checks in on time. We have discussed it and if the industry
as a whole decide it is a good move, we will do it, though.
CHAIRMAN CARPENTER: The question is, should stations
allow cash discounts? Wright Gedge, have you anything you
would care to say in public?
WRIGHT GEDGE (WMBC, Detroit, Michigan): We do not
allow it because instead of ten days, it would be thirty or ninety
days and there was always a squabble.
HOWARD E. PILL (WSFA, Montgomery, Alabama) : I don’t
believe that the two per cent, has any place in the broadcasting
business. I think that practice came about from firms that had a
turnover in their goods. In other words, if they get their money
in, they can get a discount. But, we have nothing at our station
that we can get two per cent, on by paying by the tenth. If we
did, it would be to our advantage to get our money in and, conse¬
quently, get our own discount.
CRAIG LAWRENCE (KSO-KRNT, Des Moines, Iowa): We
follow our newspaper’s plan on local business and I think some of
you might be interested in it. They add to the cost of the adver¬
tising in the bill and then deduct that if the bill is paid by the
tenth. And, we do the same by adding ten per cent, of the net cost
to our bills on local accounts and then deducting that ten per cent,
if they pay it on time, and it has worked out very successfully.
(Laughter.)
In the case of national business, the newspapers don’t give any
cash discount, that is, our newspaper doesn’t, and we don’t,
either. But, that additional ten per cent, certainly keeps the local
boys paid up.
CHAIRMAN CARPENTER: I think it is almost time we
adjourned but please don’t get up. There are a few things.
MR. GILLIN: Mr. Carpenter, I have been delegated by your
stooges to place the shoe on the other foot, so to speak, and ask
you three questions. (Laughter.)
What do you think of this meeting compared with the commer¬
cial discussion four or five years ago?
CHAIRMAN CARPENTER: Now, believe it or not, I haven’t
seen these questions. I gave them a break — they saw theirs.
I would say there are several distinct differences. First, there
are a great many more people attending. The second is that
we are sticking to the particular subject under discussion. The
third thing is I hope we all know a lot more about it than we
did several years ago — not meaning to say we haven’t a lot more
to learn; we are just beginning.
MR. GILLIN: Second: Are you pleased with the crowd you
had at the discussion?
CHAIRMAN CARPENTER: Well, I wouldn’t dare say any¬
thing but “yes.” It has been very gratifying. To tell the truth,
I was hoping there would be more argument but possibly you got
in late last night, or something ; you are not in a very argumenta¬
tive mood this morning. I hope everyone has been able to talk
all they cared to talk.
MR. GILLIN: The third question: Are you satisfied with the
manner in which your stooges performed?
CHAIRMAN CARPENTER: Well, the stooges were pretty good
to come up in the first place because it is sort of asking them to
be the goat, and this will lead into my final remarks. I want to
thank each and every one of you, not only on my own behalf
but those who attended the meeting, for doing what you have
done. It has been informal and impromptu and was intended to
be. We appreciate your attendance and your attention. We hope
you got something to think about but, as we said in the beginning,
we did not intend to establish definite ideas or conclusions.
Thank you very much and I will turn the meeeting back to our
Vice President, Chuck Myers. (Applause.)
(Mr. Myers took the chair.)
CHAIRMAN MYERS: If there is any better man in the room
to conduct a panel discussion than Mr. Carpenter, let him stand
up. (Applause.) I think that is about the best panel discussion
I ever heard.
( Announcements. )
CHAIRMAN MYERS: A resolution by the Texas broadcasters
has been handed in as follows:
“Resolution of Texas Broadcasters Association.
“Whereas, James W. Baldwin has faithfully and capably served
as Managing Director of the National Association of Broad¬
casters for the past year, and
“Whereas, his services were performed with honor and distinc¬
tion to the Association and to himself, and
“Whereas, his duties have been most arduous and trying, and
“Whereas, he has suffered both officially and privately for his
efforts in behalf of the Association ; now therefore be it
“Resolved, by the Texas Broadcasters Association, at its special
meeting in Chicago, that we express our appreciation of the efforts
which James W. Baldwin has put forth in behalf of the National
Association of Broadcasters and express our confidence in him
for the manner in which he has performed all of the duties imposed
upon him by the Association and hope that he will continue to
serve the Association in the future. Be it further
1550
" Resolved , That a copy of these Resolutions be read at the
Fourteenth Annual Convention of the National Association of
Broadcasters and a copy be furnished to the press.”
This resolution is signed by T. Frank Smith, President, and
James R. Curtis, Secretary.
I also have a note here from Fred J. Hart:
“Will you please have the chairman present this invitation on
behalf of the people of Hawaii?”
And here is the invitation:
“Hawaii calls!”
Is there a steel guitar in the audience? (Laughter.)
“Greetings:
“More than ten years of experience in actual operation and man¬
agement of broadcasting stations and attendance at the last two
national conventions has convinced me beyond a shadow of a
doubt that those holding a responsible position in the broadcast¬
ing industry are under a continuous nervous strain throughout the
year.
“It is a regrettable matter that after being subjected to such a
continual nervous strain, broadcasters, realizing the seriousness of
their business, must meet in annual convention such as this and
devote all their day and night time to serious consideration of
their problems when they should be enjoying a period of relaxa¬
tion. Realizing what a serious thing it would be to the country
to have our broadcasting executives suffer nervous breakdowns
(and become more erratic than they are), I feel it my duty as well
as pleasure to invite the National Association of Broadcasters to
cast dull cares to the winds and hold their 1937 national conven¬
tion in Honolulu, Hawaii, on the beach of Waikiki. I believe in
doing this we of the Hawaiian Islands will be rendering a great
service to radio listeners of the mainland. . . .
“Come one, come all and we will DO YOU GOOD l
“The People of Hawaii
and
KGMB— Honolulu
KHBC— Hilo.”
(Applause.)
CHAIRMAN MYERS: We are late, as usual. I hope that we
will all get here as promptly as possible for the afternoon session.
The hour is set far 2:00 o’clock.
If there is no further business, the meeting stands adjourned.
(The meeting adjourned at 1:20 o’clock.)
JULY 7, 1936
Tuesday Afternoon
The meeting convened at 3:20 o’clock, Vice President Myers
presiding.
CHAIRMAN MYERS : The meeting will come to order. I want
to say this before Mr. Church produces his report, that I had the
pleasure of introducing Mr. Church for the reading of this report
last year aiid when we asked for comments and questions, there
were none. Now, I am sure that every person in this room is
interested in the work of the Commercial Committee. I am not
sure that all of you know how much that work has meant to
the committee, how much time they have put on it. But you
are interested in it and I cannot believe that any report such as
Mr. Church is about to read could be absorbed by all of you
without one question. And I just want to say while Mr. Church
is preparing to read this report that I hope when he sits down
a lot of you will be bursting with questions and keep Arthur on
his feet explaining that report and answering your questions until
that report has been thrashed out.
Ladies and gentlemen, it now gives me very great pleasure to
turn the meeting over to Arthur B. Church, chairman of the
Commercial Committee.
MR. CHURCH: Mr. Chairman and gentleman, at the 1935 con¬
vention the report of the Commercial Committee comprised, in
large measure, the report of the Committee of Five on Radio
Research. This morning you heard a special report from the
Committee on Radio Research. The work of that committee
has required so much time that the other commercial problems
have failed to receive the amount of attention due them. It
seemed physically impossible for me to devote more time than I
gave to the Committee on Joint Research, and I take the full
responsibility for what must necessarily appear to members of the
Association as notable lack of progress in our commercial prob¬
lems, of which there are so many.
For several years it has been the custom of the Commercial
Committee to hold its principal annual meeting in conjunction
with the annual convention of the Advertising Federation of
America. This year, unfortunately, the dates of the Advertising
Federation of America and the National Association of Broad¬
casters conventions were so close together, and the distance be¬
tween Boston and Chicago so great, it was practically impossible
to expect a quorum of the Commercial Committee to make the
Boston trip and then immediately to attend the National Associa¬
tion of Broadcasters convention.
Your commercial chairman explained to the AFA officials these
difficulties, expressed regrets that the NAB could not take a con¬
siderable part in the 1936 meeting as in previous years, and
offered to arrange for a representative for your Association to
address one of the general meetings of the AFA convention. This
was not accepted.
It is the opinion of your chairman that the present procedure
of the AFA of emphasizing a multiplicity of meetings devoted to
specialized groups, seriously impairs, if not invalidates the oppor¬
tunity for a more general approach to advertising problems which
an organization such as the AFA potentially affords. It is the
recommendation of your commercial chairman that if the NAB
continue as a contributing member of the Advertising Federation
of America, hereafter the NAB shall have a place on the AFA
general program. Only in this manner can the members of this
Association fully benefit from affiliation with the AFA, and I am
confident that the AFA officials, if properly approached, will agree
on this point and that the cordial relations which have existed
between the two organizations can be maintained to the interests
of both.
At times your commercial chairman has been quite discouraged
because of what seemed to be lack of interest in the important
commercial problems which have been brought before the conven¬
tion. A year ago the matters contained in the Commercial Com¬
mittee report were of sufficient importance to justify considerable
discussion. The report was perfunctorily received and while the
recommendations were approved by this body, the lack of inter¬
est manifest was a matter of keen disappointment to the members
of your committee who have spent many, many hours, days and,
in the case of some individuals, weeks, on the commercial pro¬
grams of this Association. Yesterday afternoon only three mem¬
bers of the Commercial Committee convened at the place appointed
in the convention program.
I feel that your Commercial Committee needs new blood. This
is the last report I expect to make to this body as chairman of
the Commercial Committee. I earnestly plead that you make sug¬
gestions to your new President not only on the personnel of the
committee for the ensuing year, which should be representative of
all parts of the country and of all types of stations, as we have
tried to make it in the past, but also on the problems and projects
you think should receive the committee’s primary attention.
I ask you to support the proposed new Sales Managers Division
which should work closely with the Commercial Committee and
which, in my opinion, should attend not to matters of policy or
to problems and projects of the Commercial Committee but rather
to the definite educational aspects of selling radio advertising. The
enthusiasm of the group of sales managers that met yesterday
afternoon and which, I understand, will meet again today, is most
encouraging. These men can be of great assistance to each other,
to the stations they represent and to 'the industry. They are
straining at the leash to do something. This is a splendid sign.
It should receive the hearty endorsement of each of us as station
owners and operators.
This convention has heard a lot about promoting peace and
harmony, and about doing the things on which all of us can put
our shoulders to the wheel. In this connection, the possibilities
of your Commercial Committee projects offer you a real chal¬
lenge. We have already embarked on one major project. The
Cooperative Bureau on Radio Research, even in its exploratory
work, has given you, for the first time in the history of broad¬
casting, factual material on radio set ownership, broken down by
counties for the whole country, which bears the stamp not only
of your Association as sellers of radio advertising but also of
your potential buyers and their advertising agents. Can you not
conceive the many new selling advantages with this authenticated
information? I actually feel a thrill every time I think of this
initial accomplishment in placing in your hands as sellers of broad¬
cast advertising and in the hands of the buyers, reliable figures on
the number of radio sets in every county in the United States.
Think what it will mean to you and to the advertisers you wish
to sell, when you can also have fundamental data on coverage
1551
and on listener habits, data which you do not have to try to sell
your prospective customer, because his trade organization has been
responsible with us in carefully preparing this dependable factual
information.
There are lots of recommendations I would like to make to this
Association as I step down from the responsibilities of commercial
chairman. I would like to see some of our dreams of standardiza¬
tion come true. We have made pitiful progress the past two years.
Indeed, I am not sure we have not retrogressed. I would like
to see the convention recommend to its membership a one-rate
policy. Unless my observations are incorrect, there has been,
since the abolition of the broadcasting code under the NRA, a
return on the part of many stations to a confusing multiplicity of
rate set-ups which is hurting all of us as broadcasters to an extent
that cannot be measured. Some of you are again falling for “per-
inquiry” and contingent schemes which cannot but destroy the
confidence of substantial advertisers whose business should com¬
prise the backbone of your income.
There is need of another campaign to shorten the commercial
announcement portion of your programs. I am afraid that nearly
all of us have, through transcription programs, let some of the
advertisers “get by” not only with an excessive amount of adver¬
tising copy but also in some cases with copy of an objectionable
nature that you would not under any circumstances permit to be
included in your studio-built programs. If you aren’t hard-boiled
with your advertisers or with the agents who place such programs
with us, you certainly can’t expect our governmental regulating
bodies to be other than hard-boiled with us. Certainly there is
no question as to which is the better way.
I would like to see the period of our summer slump shortened
by the abolition of daylight savings for radio program schedules.
I feel that we should not let the defeat we experienced in at¬
tempting to form a bureau on agency recognition and credits
completely discourage us but that we should again explore the
problem involved and find some way to help member stations
obtain necessary information on agency recognition and credits.
Too many of us are trying to see how much net profit we can
make out of our stations instead of trying to see how good a job
we can do for our listeners, and I am afraid there are still some
in this business who have so little confidence in the future of
broadcasting that they have adopted the philosophy of “getting
while the getting’s good.”
I am through with my sermonizing and am going to make one
more specific recommendation which, if adopted and carried
through, will, in my opinion, be at least as great a potential ac¬
complishment as the Cooperative Bureau on Radio Research. I
recommend that the convention instruct the President to appoint
a committee of not less than five, nor more than seven, members
whose specific responsibility it shall be to explore during the en¬
suing year the possibilities to the broadcasting industry of a bu¬
reau for radio promotion and to report its findings and recom¬
mendations at the 1937 convention. Today we are the owners
of the only major advertising medium which does not have an
organization for the dissemination of education on the advantages
of the medium ; certainly we should no longer delay our first ex¬
plorations on such a project. Yes, the formation and maintenance
of such a bureau will cost the broadcasting industry a considerable
amount of money. I doubt that even with our present large
membership our treasury could support such a bureau. As a broad¬
caster who, like many of you, depends solely on his broadcasting
station for his income, I would consider it splendid investment to
pay my share of the expense of maintaining such a bureau through
higher dues than I am now paying into the treasury of the NAB.
I hope to have the opportunity of making good on this statement
within the very near future.
I commend the excellent work your Association has done in the
compiling and publishing of comprehensive statistics on broadcast
advertising volume. These figures were established exactly three
years ago by Dr. Hettinger. Since then they have come to be
recognized as the only authoritative source of information as to
radio advertising for all portions of the industry— network, na¬
tional spot, local; clear channel, regional and local stations. They
have been accepted by advertisers and agencies, and their con¬
servativeness and scientific quality was amply confirmed this
morning in the address of Dr. C. H. Sandage of the United States
Bureau of the Census.
Your trade statistics give much valuable information as to trends
in the use of radio advertising by different kinds of industries
and business. They are of tremendous promotional importance in
addition to giving you valuable information for the running of
your station. The ISO stations which have cooperated in this work
are to be congratulated. When we reorganize and extend our
service this fall, we hope to have the cooperation of the other
members of the Association. I feel this is particularly important.
I would not wish to close my remarks without gratefully ac¬
knowledging the unselfish assistance given to me by members of
the committee ; the smiling, indefatigable help of Dr. Hettinger ;
the splendid advice of NAB officials; and the cheerful willingness
and help of the NAB office staff. I can promise my successor lots
of happy experiences as well as many moments of disappointment.
I do not want the members of this Association to think that I
shall not be available for such help on the commercial projects
of the NAB as I may be asked to give and that I can find time
for. I especially hope to have the opportunity to spend much
time and effort on the Radio Research Bureau, and the joint Com¬
mittee of Fifteen.
I believe 100 per cent, in the future of the NAB. I am not
afraid that the Association will be unable to find plenty of good
men to do the many important jobs. I do not think there will
be any material split in our ranks. Rather, I think the NAB
will continue to show healthy growth as it has done in the past
few years. I do wish, however, that every member of this Asso¬
ciation would examine himself as to his loyalty to the NAB and
ask himself the question, “Am I doing my share?” (Applause.)
CHAIRMAN MYERS: Now, how about asking Arthur some
questions?
MR. CHURCH: I am tired enough so I don’t care whether you
do or not.
MR. PRITCHARD: I have a question and that is whether
the question of merchandising comes under this committee.
MR. CHURCH: I’m sorry but I didn’t get the question.
MR. PRITCHARD: Whether the question of merchandising
comes under this committee.
MR. CHURCH: The question of merchandising should be con¬
sidered by this committee.
MR. PRITCHARD: I would like to see an open discussion
on this because as far as I am concerned, it is getting to be a
pretty serious question.
Before I left New Orleans I had a telegraphic request to put
through a telephone survey. There was no suggestion that they
would pay for it. We found, on inquiry of the telephone com¬
pany, that we would have had to install a battery of twenty or
twenty-five girls.
It seems these requests are becoming more frequent and more
exacting, and there is no end to the things they want us to do,
particularly with the drug and food accounts. They request us
to get a lot of information which it seems, logically, should come
from their own staff. Why should the radio stations call the
wholesalers and maybe fifty or sixty drug stores to find whether
their particular product is selling better than last year and how
it compares with other products!
Is there going to be any end to what they expect radio stations
to do for one fee? Are we going to keep giving more and more
service for the same money. I’d like to find out what the attitude
is of the other stations.
MR. CHURCH: I am not going to attempt to answer that
question at this time. It is a big one. The question has received
considerable attention on the part of the Commercial Committee
in the past year.
A resolution on merchandising practices was adopted by the
convention, I believe, two years ago and should be part of your
files. I suggest that you study the NAB report of that convention
on that subject and it may be helpful. In other words, the NAB
is on record in the matter.
But, unquestionably there are so many developments as to mer¬
chandising practices that there should be a sub-committee on this
particular part of the subject. I do not know whether the chair¬
man feels there is time for discussion on the floor of this subject
or not. That is not within my powers.
CHAIRMAN MYERS: It would seem that that question would
come under Mr. Church’s statement to the effect that standards
of practice should be adopted which would, no doubt, cover mer¬
chandising practices as well as other practices in the industry.
I think that question is very well put and it is a question for
the Commercial Committee to answer this coming year and meas¬
ures put on that service, if possible. In that, the Commercial
Committee will encounter the differences in fields and size of sta¬
tions, in newspaper stations and non-newspaper stations, in net¬
work stations and non-network stations, who do wish to run their
own business and do what they think should be done in then-
particular locality and sometimes those standards are more or less
regulated by competitive conditions in those respective localities.
1552
Now, are there any other questions?
MR. PRITCHARD: On that subject, it seems to me it shouldn’t
be passed over quite so lightly and briefly as that.
For example, I got a letter from an agency which, to my mind,
was sort of a club held over our heads because they said, “Our
future placements will depend on what the radio stations have
done for us in the matter of merchandising.” I mean if it is
going to be on that basis, it is time we took some action and
adopted some uniform way of handling the subject. I don’t care
what was done two years ago. It evidently hasn’t been acted on.
CHAIRMAN MYERS: I would say “no.”
MR. PRITCHARD: But you don’t want to be the only one
to say “no” and lose the account.
CHAIRMAN MYERS: It is a hard question and I don’t think
Mr. Church or anyone else can give you the universal wave of
magic that will answer the question.
I think Mr. Holliway is just bursting with something to say
on merchandising.
HARRISON HOLLIWAY (KFI-KECA, Los Angeles, Cali¬
fornia) : I think you rather have me on the spot because I was
listening interestedly rather than bursting with a question.
I don’t know whether this meeting is open for such questions
as this and that is the matter of dual rates, which you spoke of
a moment ago, but for all stations that have dual rates, there is
one evil that continually rears its ugly head, which was passed
over lightly this morning.
I was interested in noticing the reports of the ANPA conven¬
tion. One of the major questions discussed was the matter of de¬
termining which was local and which was national. I thought,
if the newspapers after all these years are still discussing which
is local and which is national, how could radio, which is so young,
figure it out. But, so far I haven’t heard anybody offer a yard¬
stick. And, if that comes within the realm of the committee’s
discussion, I would like to hear a discussion of the subject.
Thank you, Mr. Myers.
MR. PRITCHARD: Mr. Chairman, I am a persistent sort of a
cuss. I am satisfied I haven’t got any satisfaction out of the
question I asked. I’d like you to ask the people here if somebody
else hasn’t had a similar experience. We aren’t scared to ask
these questions because it is a general meeting.
CHAIRMAN MYERS: I should be very happy to ask that
question. Does anybody else want to discuss merchandising prac¬
tices right now? We would be very pleased to hear from you.
I assure the gentleman I am not trying to shelve this.
MR. PRITCHARD: Ask them if anybody else has been asked
to do merchandising which they shouldn’t have been asked to do.
CHAIRMAN MYERS: Frankly, we have been asked to do
many things and the answer is “no” and if it goes to competition,
we just say, “Good luck to you. We hope you get what you are
asking.”
I don’t know whether that is a suitable thing to discuss before
this meeting or not.
E. P. H. JAMES (National Broadcasting Company, New York,
New York) : Did any of you hear Mr. Harlow speak at the AFA
convention at Boston on this subject? He gave a talk on mer¬
chandising and I recommend it t anybody who is interested. He
represents not only one of the most powerful stations in Boston
but having network affiliation.
CHAIRMAN MYERS: They cannot hear you.
MR. JAMES: Mr. Harlow of the Yankee network said very
flatly that in his viewpoint any station that found it necessary
to offer free merchandising service was either charging too much
for its time or else had something seriously wrong with the station.
Now, that is going a pretty long way and those of us here
won’t agree with him fully. I believe this gentleman asking this
question would do well to read Harlow’s talk. There are a
number of newspaper-owned stations who do find it practical and
economical to render merchandising service.
And, in answer to the gentleman raising the question, in NBC
we have not fully solved this problem of rendering merchandising
service but our method has been to state clearly in writing that
we will not render any merchandising service to any local or net¬
work advertiser which we are not able to render to all our clients
without cost but if any special services are asked for, we will make
a quotation of expenses. We even go so far as to charge clients
for letterheads and envelopes and postage to send letters to the
trade.
We believe so long as radio station rates are supposed to repre¬
sent a fair rate for time, any service of a free nature should not
be given but we try not to be dogmatic so we don’t force the
matter down anybody’s throat.
CHAIRMAN MYERS: I think Mr. Church has something he
wishes to say:
MR. CHURCH: I am speaking as an individual. As Mr.
Myers stated a little while ago, the problem of merchandising is
one which varies in every community. The problems in Kansas
City may be entirely different from the problems in New York or
Cincinnati or Boston.
I happen to have a newspaper situation to meet where one of
our big competitors have a combination rate which is, in effect,
a merchandise discount or anything you want to call it and some¬
times that situation has to be met.
Each of us has a problem of our own. However, we publish
our merchandising aids — part of the things we do without extra
charge to the users of our facilities and part of the things we
charge for — but it is all in black and white. We try to treat every
advertiser exactly the same.
I am glad this problem of merchandising has been brought up
because it is one of the big problems we have brought before us
every day.
Specifically answering the question raised on the floor a minute
ago, my answer as a station owner is “no.”
CHAIRMAN MYERS: I’d like to augment that just to this
extent: we do have standard forms of merchandising which are
a part of the regular cooperation given every advertiser on our
station and this is given whether they ask for it or not. Some¬
times we even forget to tell them about it. But, beyond those
standard forms of merchandising, we do not do anything we do
not charge for.
I want to say again I think the problem could be solved in the
community if the stations could get together and agree on general
operation policies. That does not mean a rate agreement but an
agreement to print the rates and stick to them and to confine
merchandising service to certain forms.
Now, we have not been bothered with threats from agencies.
As a usual thing, they have been very reasonable in requests of us.
I do not believe a request in the form of a club would come
from a recognized agency because, as a usual thing, I don’t believe
those things are done that way by recognized agencies.
MR. PRITCHARD: While I am not going to mention the
name of the agency, I would say it is a very big one and a
recognized agency.
CHAIRMAN MYERS: It would seem a departure from the
usual practice.
In our station we haven’t seen so very much of it. I certainly
think if it can be done by adoption of standards of practice, the
next committee should work on such forms.
HAROLD MEYER (WSUN, St. Petersburg, Florida): Mr.
Chairman, it is only natural when you make a dollar, to try to
earn another dollar along the same line, and my thought on this
is it is up to us to draw the line where we are going to stop.
In other words, if you give them a map and say, “We have 100
radio sets,” the next time they will say, “How many sets and how
many cows have you,” and that will go on and on and on. It
is the same with the merchandising problem and it is up to each
station to draw a line on service. I think there is a limit to
everything but I think the station is best qualified to find out
how far they can go.
CHAIRMAN MYERS: Thank you, Mr. Meyer. If there is no
further discussion on the subject of merchandising, I would like to
re-open Harrison Holliway’s question in regard to rates, which
was, I believe, in regard to what constitutes national and local
rates, retail and wholesale rates, or whatever you want to term
them.
In other words, do you believe that national advertisers may
send programs to local representatives to place at local rates or
do you believe that practice should be eliminated, or do you believe
the local rate should be applied to retail stores only and all whole¬
salers should pay the general or national rates, or what ideas
have you? Can some one given us his ideas in that respect?
J. LESLIE FOX (KMBC, Kansas City, Missouri) : Mr. Chair¬
man, may I say something along that line?
I was very much interested this morning when Edgar Bill was
making his talk in a statement that he made which was, as I re¬
member it, that undoubtedly a two-rate structure was justified,
that is, national and local rate.
I am very sorry at that time I didn’t ask Edgar Bill for the
answer because after having been in radio eleven years, I never
have been able to find it myself. I can’t conceive of any justifica¬
tion for two rates at any time.
I think the only reason anybody has two rates is because it is
a newspaper practice of long standing and I think today in the
1553
newspaper field the newspapers themselves are just starting to
adopt one rate.
I think in radio we have more of justification for one rate than
other media. We have at the most, I would say, eighteen hours
a day on the air. Those eighteen hours are all salable and you
can’t add more hours. And, I can’t help but feel that fifteen
minutes on any good radio station is worth as much to a retail
advertiser as it is to the national advertiser. I think we are
jeopardizing the national advertiser when we offer a lower rate to
a retail account. I think every one of us has a trading area
which we are covering and in which we are influencing buying
and that area is just as valuable to the average retail account from
the standpoint of sale of merchandise in that particular area as
it is to a national advertiser, and for that reason I can’t and don’t
believe I ever could be sold on a two-rate structure.
I very definitely am for one rate for all accounts under all cir¬
cumstances.
CHAIRMAN MYERS: Somebody else want to discuss rate
structure?
GEORGE E. HALLEY (KMBC, Chicago, Illinois) : I have spent
nearly nine years on a station with only one rate. It is my under¬
standing that newspapers adopted the local rate because with the
retailer there was so much waste circulation which they couldn’t
use because they sold only in the city. I think you will find recent
market surveys in Pittsburgh and other cities have proven that
the flow of trade to the big department stores in the market
centers have come, in some instances, from as far as ninety miles.
Now, radio’s story has always been that it covers more than
just the city in which the transmitter is located. Obviously, you
are doing just as much for the retailer as the national advertiser,
you are covering the same area and bringing trade from these
distant points into the city to buy in that retail store.
There is a survey in existence of the largest department store
in Pittsburgh, Kaufman, I believe it is, in which the managing
director of that store shows that in order to cover the cities that
are outside of Pittsburgh, whose people trade in Pittsburgh, he
buys full page newspaper advertising in twenty-one cities outside
of Pittsburgh to bring the people from the smaller cities into
Pittsburgh. He could buy KDKA or WCAE or WJAS and cover
all with one advertisement.
His story is absolute proof, in my mind, as to why there
shouldn’t be two rates. Why do you need two rates?
CHAIRMAN MYERS: Thank you. Of course, all of us know
of the argument for two rates that is offered — that the retail
store sells over one counter while the nationally distributed mer¬
chandise is sold wherever the advertisement is heard.
Mr. Midgely of Batten, Barton, Durstine and Osborn, can you
come up and give us the agency angle on rate structure? (Ap¬
plause.)
MR. MIDGELY : I don’t know just how far B. B. D. & O. would
stand back of me so please consider this as a personal viewpoint.
A great many of you fellows have two rates. That is O.K. with
me. We have accounts that come under the national rate and
others that we have I frankly believe are justified in asking the
local rate, and I don’t believe I have argued strenuously on that.
Frankly, I believe there should be one rate. As has been pointed
out, a station covers just as much for a retail store on Main Street
as it does for merchandise made in Detroit and shipped a thou¬
sand miles.
Who am I or any agency to say what the solution to your
problem is. I have been fully aware of one fact, that this whole
business of broadcasting is so absolutely custom made and abso¬
lutely defies standardization so that if you fellows tell the truth
and have two rates, I am for you.
CHAIRMAN MYERS: Thanks a lot. That was fine. Any
other agency representative who would like to speak on rate
structure?
I think Mr. Holliway has brought up a question that has caused
a great many sleepless nights and bad dreams, as to what to do
between a national and local account. Of course, if we had a
one-rate structure, that couldn’t happen.
I don’t believe it is the duty of The Chair to tell the convention
what to do. I think it is up to the convention. Personally, I
do not believe any advertiser of generally distributed merchandise
should receive a lower rate than his agency could receive if they
asked a quotation on a similar line of merchandise. For instance,
a coffee roasted in Kansas City and distributed over that area
should not receive a lower rate than coffee roasted in New Orleans
and distributed over the same area. That is one theory.
JOSEPH HENKIN (KSOO, Sioux Falls, South Dakota) : What
should be the difference between a local and national rate?
CHAIRMAN MYERS: The gentleman from Sioux Falls wants
to know what should be the difference between the local and the
national rate.
MR. HENKIN: How much difference?
MR. CHURCH: None.
CHAIRMAN MYERS: That is one answer. Are there any
others?
MR. TRENNER: As I see this discussion up to the present
time, whether we should have two rates or not, we don’t ourselves
try to justify whether we should or shouldn’t; we only say we
can’t because we don’t know how to differentiate. Now, that,
in my estimation, doesn’t justify one position or another. You
just heard Mr. Midgely; he represents a very fine agency.
It is the knowledge that is behind it that has to be paid for by
somebody and if you feel frankly that your station and station
personnel can render to a local account what B.B. D. &0. can
render to a national account, then I think you are justified in
charging both the same rate. But, just as long as one fellow gets
the benefit of a lot of additional service — well, go back for example,
to the department store situation. They maintain an advertising
department. It costs them money to run that advertising depart¬
ment. On top of that, you are going to charge them the IS per
cent, which you ordinarily do in the case of national rates; that
IS per cent, goes to the advertising department of the national
advertiser. I suppose that it isn’t difficult for you to see by this
time that I favor the dual rate structure.
CHAIRMAN MYERS: That seems to favor a differential of
IS per cent, between the national and local, or wholesale and
retail.
DR. HALLEY: And, what about the big national advertisers?
WILTON E. COBB (WMAZ, Macon, Georgia): Most of the
stations, right from the beginning, have had different rates on day
and night time. While we are discussing rates, I wonder whether
that has been found advisable.
We are more or less of a local station doing mostly local business
and our attitude has been, as far as the local situation, first come,
first served, and we have only one rate for day and night time.
The national rate specifies a differential, and I would like to know
whether through the years that has been found advisable. Wouldn’t
it be better to have one rate, local and national? Is it advisable
to have one rate for day and night?
CHAIRMAN MYERS: Mr. Church, should you not conduct this
discussion as chairman of the Commercial Committee?
MR. CHURCH: To begin the discussion, I might give you my
own reaction to the question.
The law of supply and demand has a great effect on our rate
structure, as should also the circulation of our medium, in day
time and at night. The studies we have obtained over a period
of years have given us knowledge of the percentages of radio sets
turned on through the various hours of the day and night. We
find that there is relatively little ground for the few hours during
which we have less audience as shown by our surveys. I imagine
some of you have the same problems and reach the same con¬
clusions.
From the standpoint of simplicity, it would be very much bet¬
ter for all of us to have a single rate structure, the same for day
and the same for night, but, after all, to be fair to the user of
our facilities, he should pay on the basis of potential circulation.
Now, are there any other remarks?
MR. LOTTRIDGE: Mr. Church, I thought the gentleman
might be interested in our experience, which is not given as a
criterion but merely the knowledge we have gained in our market.
I believe we have done more coincidental telephone survey work
than the average station. This has covered a period of eighteen
months. Our general manager originated it as a survey to outline
our own production policies and, physically, it comprises from five
to ten experienced telephone operators calling numbers at random
from the telephone book at prescribed hours both day and night.
We have completed well over 100,000 of those calls at all sea¬
sons and at all hours. The first question the girl asks is, “Is
your radio turned on?” and from that one question we have dis¬
covered, if you take the number of radios available for any station
during what we call class A time, or 6:00 to 10:00 p. m. as a
basis on which to base your percentages and call it 100 per cent.,
that the radios available during other hours of day and night run
something like this: 12:00 to 1:00 noon, and 5:00 to 6:00 p. m. are
about 75 per cent, of the top figure for your night time; that the
bulk of day time is about 50 per cent, and that the time in the
morning before 8:30 is approximately 35 per cent.
As I say, we do this primarily for our own satisfaction. We
don’t brag about it a whole lot but do it to try to effect our own
1554
production schedules. But, after studying 100,000 of those calls
over 18 months, we have tried as closely as possible to base our
rates on approximately the same percentages so we can now take
a C.P.A. report from telephone calls and show the actual basis on
which we have computed our class A, B and C time.
I say this coming strictly from our market. The same situation
may not be true from any other market in the country.
CHAIRMAN MYERS: Before Arthur proceeds with this part
of the meeting, I would like to ask if Mr. DeWitt is here.
. . . Mr. DeWitt was in the audience. . . .
CHAIRMAN MYERS: Will you please come to the platform;
your report is next.
MR. CHURCH: I think we could go on indefinitely talking
about these commercial problems that are mighty interesting to us
and I am not shutting off discussion. But, I think we should
make the rest of our discussion brief on this subject. Does any¬
body else wish to speak from the floor?
I am glad to see the increased amount of interest over last
year, particularly this morning in connection with the panel dis¬
cussion which sort of naturally gets us on our feet. It is a very
fine thing. I hope to see that panel type of discussion continued
in the Association work.
CHAIRMAN MYERS: Thank you, Arthur. It is certainly en¬
couraging to see so many of the boys get up and speak their
minds on the subjects. You will get something out of these meet¬
ings if you fellows will talk.
At this time it gives me very great pleasure to introduce the
chairman of the Engineering Committee who will give the report
of his committee. I am sure the Engineering Committee report
is of very great interest and I am sure there will be some very
interesting questions when Mr. DeWitt is finished. Mr. DeWitt.
J. H. DeWITT (WSM, Nashville, Tennessee; Chairman, Engi¬
neering Committee): Your Engineering Committee has prepared
the usual report this year and in it are some rather interesting
facts, that is, facts interesting to engineers. Instead of delving
into these almost purely technical matters, we shall set this report
aside to be published and will now present some observations in¬
teresting to a group of station owners and managers.
For years you have heard talks at the conventions dealing with
selling of station time and you have heard many theories ex¬
pounded on the subject of increasing the station income.
Now we know that you usually think of a station engineer as a
necessary evil and one who is so wrapped up in theories that he
can never appreciate the commercial angle. Well, we are going
to show you that instead of dealing in theories, we deal in facts
and that these facts pertaining to engineering will actually ring
the cash register.
We shall try to take modern engineering out of the mental red
ink class to which many have in the past relegated it and show
it to be the application of sound business principles to an exact
science. In the past (and, we hope, in the future), the broadcast
engineer has concerned himself not so much with the cost of a
new venture but what will be the net return in dollars.
Your committee has for years pointed out defects in technical
operation and has attempted through its reports to help you in
correcting these matters because we knew this meant better cover¬
age but these were drab scientific facts and as such are not very
appealing.
Judge Sykes mentioned yesterday that fifty per cent, of the
stations in the country could improve their coverage without in¬
creasing their power. To some of you this may have sounded
like an impossible proposition, provided you think coverage de¬
pends entirely on the power of your station.
Well, we know of a station that, according to its rate card, is
a 1,000 watt station but because of certain engineering deficiencies,
it radiates a signal equivalent to less than 200 watts. Now, some
commercial men believe that the power listed on the rate card is
what counts in selling but more thoughtful station owners know
that clients are held by coverage results. It can be proved be¬
yond any doubt that this station just mentioned could hold custo¬
mers much easier and could do an easier selling job if it actually
delivered a good healthy 1,000 watt signal.
Another angle to this thing is that the Federal Communications
Commission, through its engineers, has indicated many times that
stations will not be considered for power increases until it is
demonstrated that the facilities available are being used to their
maximum extent. Is the Commission simply being arbitrary in
these matters? Well, some of you may think so but if you do,
we cannot agree. The Commission is only requiring what leading
engineers have advocated for years.
In attempting to show you how to make more money from your
station through good engineering practice, we will assume that
some of you know nothing about such things as radiation efficiency,
frequency characteristic, distortion, percentage modulation and so
on. Possibly we can give some new definitions of these terms
which will convey a new meaning.
First, radiation efficiency. This tells you how many of the
watts sent out of your transmitter bring in mail response and
how many are used in heating the ground and growing grass
around the antenna. The number of aerials having an efficiency
over 50 per cent, is very small.
Next is distortion, which is the harsh, disagreeable effect that
usually causes a comment, “Worn out tubes.” It sometimes re¬
sults from poor design of the equipment but is more often the
result of the way it is operated.
The frequency characteristic determines the degree with which
different pitch sounds are sent out, determines whether your station
sounds drummy, tinny or beautifully balanced in tone quality.
Noise level tells you about hums, throbs and other disagreeable
sounds that have nothing to do with the program. Such noises
come from bad generators, from poor telephone lines and from
many other sources.
Now, these are just a few of the technical ills which may ad¬
versely affect your station’s saleability by creating listener pref¬
erence for your competitors’ well-engineered station. Another
extremely important point is the modulation capability of your
transmitter. This simply means how much program volume can
be put on the transmitter without serious distortion. We will
show you that this is a very important matter in the coverage
of your station. A 50,000 watt station with a modulation per¬
centage of 10 would deliver no stronger signal to the listener than
a 500 watt station with full modulation. Similarly, a 1,000 watt
station is the equivalent of a 10 watt station. This is no juggling
of figures ; it means exactly that the effective power of your station
is determined by how well you make use of your facilities.
The Federal Communications Commission required you to in¬
stall a frequency monitor. Some progressive stations had held
their frequency very close to the assigned value before such check¬
ing apparatus was made compulsory. Many followed this rule
grudgingly but today no one can deny that this improvement in
engineering practice has increased the coverage of many local and
regional stations simply because of the elimination of the whistles
resulting from wide frequency differences.
During the past year the Commission has made it necessary to
purchase a modulation monitor which must be in operation by
November 12. Again some stations will comply with this require¬
ment grudgingly. That which you should have done as a matter
of good business is forced upon you by Commission regimenta¬
tion. What station would not be willing to spend $5,000 to double
its power? Yet many will object to spending less than $500 to
accomplish the same result.
We of your Engineering Committee sincerely hope that it will
not be necessary for the Commission to set forth any new require¬
ments in these matters. We wish to point out, however, that the
only way to realize this is for the stations to make improvements
now and to demonstrate by doing so that they wish to provide the
best possible service to the listener. (Applause.)
CHAIRMAN MYERS: Let’s not let Mr. DeWitt get away
without asking him some questions. I wish you would stick with
us a few minutes. If anybody wants to know anything about this
matter of governing power by antenna improvement and so on,
I am sure Mr. DeWitt will be glad to answer those questions.
Now is your chance to get some engineering advice free. It is cer¬
tainly complimentary to the industry if none of us need it.
MR. CHURCH: I’d like to ask the Engineering Committee a
question. What, in the case of a minimum frequency station of
1,000 watts is the highest actual tower that can be employed to
advantage? I understand that when you go up, you obtain
advantages. Do these advantages offset the economic consid¬
eration?
MR. DeWITT: That is a hard question to answer right off but
it may be looked at this way. First of all, we will assume that
you speak of a vertical radiator, or single antenna, and you are
speaking of a regional station, an average station. If you are
worried about fading, it may be economical to go to an antenna
of about fifty-five hundredths of a wave length in height.
However, there is one thing to remember. Studies so far have
shown that simple vertical antennas that lie in height between a
quarter and a half wave are probably not very economical from
the standpoint of a local or regional. Probably a quarter wave
antenna is all that can be justified in most cases. You can get
1555
30 or 40 per cent increase in field strength by going to the maxi¬
mum height and that is equivalent to doubling your power.
MR. CHURCH: That means how much perceptible increase near
the edge of primary area?
MR. DeWITT: It might just make the difference between a
listenable signal and one too noisy to use. I think that is some¬
thing that requires a lot of study before a final answer can be
made.
F. W. BORTON (WQAM, Miami, Florida) : I’d like to ask
whether we are to receive for our technical data book the inter¬
pretations of what is considered good engineering practice, the
allowable hum level and so forth, referred to in Rule 131.
MR. DeWITT: Your Engineering Committee published in last
year’s report and in the report of 1934 its idea of permissible hum
level and distortion level. I don’t believe that that has been incor¬
porated in the NAB handbook.
However, in regard to good engineering practice, your committee
this year has considered the matter of aiding members in every way
possible to meet these requirements and to interpret good engineer¬
ing practice. Your chairman has conferred with the engineers of
the Federal Communications Commission and has obtained per¬
mission to publish in NAB REPORTS recommendations regarding
Rule No. 131, which has been questioned in many cases, and we
hope that it will help the stations.
CHAIRMAN MYERS: Are there some other questions for Mr.
DeWitt to answer while he is with us?
I assume that the technical report of the Engineering Committee
will be included in the convention proceedings. I am sure we all
appreciated Mr. DeWitt’s report and would like to see him get the
hand he deserves. (Applause.)
Before we proceed with the meeting, there are several announce¬
ments.
( Announcements.)
MR. FOX: Mr. Chairman, before you adjourn, would it be out
of line if you called on Buryi Lottridge to make a short announce¬
ment concerning the purpose and idea in the organization of the
sales managers meeting?
CHAIRMAN MYERS: We would be very pleased to have that
announcement now. Would Mr. Lottridge like to make that
announcement?
MR. LOTTRIDGE: I can merely repeat a part of the work that
was done, the outline prepared yesterday when there were some
forty sales managers in this room following the afternoon session.
I can merely state that those people who were present were
extremely enthusiastic about the proposal. And, concisely, the
organization means simply this: we would like to perfect a group
of NAB, comprised exclusively of individuals from each station
who are primarily responsible for the sale of time. We feel that
we have innumerable objectives and problems that can very
easily be discussed to everyone’s advantage if we can provide an
organization, first, composed of people who have those problems
every day and, second, an organization that can meet with enough
privacy and seclusion actually to take their hair down and talk
about them.
For that reason we have tried to perfect a sales managers division
of NAB and the purpose of this meeting this afternoon at the
close of this session will be, first, to perfect the organization indi¬
vidually and collectively and to make a few simple plans for the
objectives for future meetings and, if possible, outline a method
of communication which we can use in lieu of another meeting.
It will be practically impossible to meet again during the conven¬
tion; hence the urge that every sales manager remain if at all
possible and we will go into it more thoroughly.
Thank you.
CHAIRMAN MYERS: Paul Loyet of WHO is present and will
make a further statement on one of the questions.
PAUL A. LOYET (WHO, Des Moines, Iowa): Mr. Church
asked a minute ago whether it was justifiable to put up a half wave
radiator on a regional station. I asked Jack when he returned
why he shouldn’t ask Arthur if he felt justified in going into day
time only from 2,500 watts to 5,000. The comparison is exactly
the same.
MR. CHURCH: I asked the question, knowing there were a
lot of members that have asked that question.
MR. LOYET: There is almost the exact expenditure involved
in changing from 2,500 watts, say, to 5,000 — compared to putting
up a vertical radiator.
CHAIRMAN MYERS: May I ask before you leave the platform
whether that is the difference between a quarter wave and half
wave?
MR. LOYET: Approximately.
CHAIRMAN MYERS: Double the field strength throughout the
area or vary on its borders?
MR. LOYET: Of course, the field strength is practically doubled
at all points. The area increased would be practically the same as
if you changed to 5,000 watts.
CHAIRMAN MYERS: In other words, you answered the ques¬
tion in the beginning with the statement that change from quar¬
ter to half wave antenna is equal to doubling your power.
MR. LOYET: What I wanted to bring out was, most every¬
body in the room with a regional would not hesitate to spend
money to double his power even for day time service whereas very
few would figure the half wave radiator a justified expenditure.
HOWARD A. SHUMAN (KFDM, Beaumont, Texas): What
would you say in case of a local station, a 50 or 100 or 200 watt?
MR. LOYET: Now I am in about the same boat Jack was.
(Laughter.) Personally, I don’t believe a local station can justify
anything above a quarter wave length. I think the first cost is
so high that it wouldn’t be worth while over possibly a very long
period of time.
VICTOR J. ANDREW (Doolittle and Falkner, Inc., Chicago,
Illinois) : May I have a word on the matter of economics of
antennas?
The engineer is entirely capable of telling what the improvement
will be with a given change in antenna or other equipment. We
have developed for our own use a method of determining what is
and what is not worth while in antennas and other equipment.
The questions are economic and not engineering, that is, the eco¬
nomics is the difficult part.
The procedure we find useful is to draw a curve of a station’s
value versus the power of the station. Now, if you take a station
of a certain power worth $100,000 and a station of another power
worth $200,000 — the additional power is worth $100,000. We then
assume that each watt of power is worth a figure which we derive
from this curve. We then evaluate the change in the equipment in
terms of change in power. The change may be a change in power
or a change in antenna efficiency. Then we try to answer the ques¬
tion whether the change is or is not worth the difference in cost.
MR. CHURCH: I’d like to ask the engineers another question.
I did not pay as close attention perhaps to the engineering report
as I should but I do not recall having heard anything about the
engineering characteristics of studio design and I am wondering
whether our Engineering Committee has given recent considera¬
tion to studio characteristics. And, if so, what standards are
recommended to the membership?
MR. LOYET: I can’t very well tell you. Jack has left the room.
I don’t feel that I am quite qualified to say whether the Engineer¬
ing Committee has set up any recent standards on studio design.
If I am not mistaken, I believe that the major networks thus far
have done more experimentation with studio acoustics and design
than probably anybody else in the country. And, if there is any
acoustical representative of one of the major networks here, he could
probably give you some information.
The study of acoustics in itself is pretty complicated and I believe
in each new studio installation, the engineer in charge will try to
gain the advice of a good acoustical man rather than do his own
figuring.
CHAIRMAN MYERS: Does anybody care to make any com¬
ments on studio engineering?
MR. ANDREW: We are not doing studio engineering.
CHAIRMAN MYERS: Are there any other engineering ques¬
tions?
MR. BORTON: He spoke a little while ago about a half wave
radiator. Id like to ask if the attenuation down around 1,500
kilocycles makes such a radiator uneconomical.
MR. LOYET: Instead of following the representative from Doo¬
little and Falkner, I made the original comment that if the station
owner felt justified in doubling his power by means of increasing
the power of his transmitter, he should feel justified in putting up
the radiator, so I think that leaves out the subject of attenuation or
at least it puts it in the lap of the station owner.
MR. SHUMAN: I’d like to ask the engineers whether an increase
from a quarter to a half wave would be justified on 560 kilocycles.
CHAIRMAN MYERS: The question is, would the expenditure
be justified on 560 kilocycles, from a quarter to a half wave.
MR. LOYET: I can see eventually I am going to get tied up
into some kind of a knot here. (Laughter.)
Personally, if we had our present facilities on 560 kilocycles, I
would make every effort to put up a half wave vertical radiator.
That is a personal opinion arrived at in only a very few minutes.
CHAIRMAN MYERS: Are there any other questions? I have
been advised that the Resolutions Committee have postponed
their report until tomorrow morning. The order of business to-
1556
morrow morning, as you know, is also the report of the Nominat¬
ing Committee and the election of officers. All slates must be an¬
nounced and posted in advance. My memory of the proceedings
is that last minute nominations cannot be made from the floor,
that all nominations must be made and posted in advance in
accordance with the By-Laws.
If there is no further business, a motion to adjourn is in order.
STANLEY E. HUBBARD (KTSP, St. Paul, Minnesota): I
move we adjourn.
JAMES R. CURTIS (KFRO, Longview, Texas) : Seconded.
(The motion was put to vote and was carried.)
(The meeting adjourned at 5:00 o’clock.)
JULY 8, 1936
Wednesday Morning
The meeting convened at 10:50 o’clock, Vice President Myers
presiding.
CHAIRMAN MYERS: The convention will please come to
order.
Ladies and gentlemen, I take pleasure at this time in turning the
gavel over to Mr. William Hedges who will conduct the meeting.
Thank you very much for your attention.
(William S. Hedges (WEAF, New York, New York): Past
President, NAB, took the chair.)
CHAIRMAN FIEDGES: I am going to appoint Mr. Carpenter
and Mr. McDermott and Ed Bill as a committee of three to go out
and usher everybody in, and please come forward. There are
plenty of seats up here and you will find that discussion will be
facilitated if you come forward.
There are a good many delegates in the room who have train
reservations early this afternoon and there is a good deal of busi¬
ness to be transacted, so let’s get going as rapidly as possible.
The first order of business this morning will be the report of the
Nominating Committee. Mr. Chamberlin, come forward.
Before Mr. Chamberlin reads his report, I wish to read you
Article VII of the Constitution, on elections:
“Article VII
“Elections
“The President of the Association shall appoint a Committee on
Nominations consisting of five active members who, in his judg¬
ment, are representative of the active membership, which Com¬
mittee shall meet and report to the annual meeting the names of
individuals whom they nominate for election as Officers and
members of the Board of Directors. Any ten active members of
the Association may, in writing, present at the annual meeting
the name of a member of the Association to be included on the
ballot. Election shall be by majority vote and if no candidate
secures a majority on the first ballot then the two highest candi¬
dates shall be voted for on the next ballot.”
Mr. Chamberlin, will you make your report?
MALLORY CHAMBERLIN (WNBR, Memphis, Tennessee):
Mr. Chairman and members of the convention, your President very
courteously appointed me — and I count it an honor to have been
appointed — chairman of the Nominating Committee. Likewise on
that committee were Glenn Snyder, Tom Lyons, Burt Squire and
Donald Withycomb.
We present to you the slate as proposed by the Committee on
Nominations of the NAB:
For President — Edwin W. Craig, WSM, Nashville, Tennessee.
For First Vice President — John Elmer, WCBM, Baltimore.
Maryland.
For Second Vice President— Gardner Cowles, Jr., KSO, Des
Moines Iowa.
For Treasurer — Harold Hough, WBAP, Ft. Worth, Texas.
For positions on the directorate for the three-year term (five men
to be elected) :
Edward A. Allen, WLVA, Lynchburg, Virginia
Arthur B. Church, KMBC, Kansas City, Missouri
Eugene P. O’Fallon, KFEL, Denver, Colorado
John F. Patt, WGAR, Cleveland, Ohio
L. B. Wilson, WCKY, Covington, Kentucky
For positions on the directorate for the two-year term — made
necessary because of the fact that last year Gardner Cowles was
appointed by the Board to fill a vacancy and such appointment
being able to endure only to this current convention, it becomes
necessary to vote for one man for the two-year term — Frank M.
Russell of WRC, Washington, D. C. In view of the nomination
of Edwin W. Craig for the presidency and in case of his election,
it would leave a vacancy in the directorate because of the fact at
the present time Mr. Craig is a Director and, therefore, in case of
his election as President, it will be necessary to vote for another
man for the two-year term on the Board and we propose to you
Paul Morency of WTIC, Hartford, Connecticut, for that position.
Thank you very much.
CHAIRMAN HEDGES: You have heard the report of the
Nominating Committee. Are there any other nominations to come
from the floor?
It is my understanding that there is another ticket to be sub¬
mitted, that that ticket is now being mimeographed and will be
ready for presentation in a short time.
In that event, we will pass from the report of the Nominating
Committee and will hear from the Resolutions Committee. Mr.
Gillin.
MR. GILLIN: Mr. Hedges, Ladies and Gentlemen of the Four¬
teenth Annual Convention of the National Association of Broad¬
casters:
The Resolutions Committee as appointed by the Executive Com¬
mittee is pleased to present this report. This committee had as its
members the following gentlemen:
E. B. Craney, KGIR, Butte, Montana
Ralph R. Brunton, KJBS, San Francisco, California
Harrison Holliway, KFI-KECA, Los Angeles
Gardner Cowles, Jr., KSO, Des Moines, Iowa
John J. Gillin, Jr., WOW, Omaha, Nebraska
The first resolution to be presented to this convention in session
this morning is a resolution turned in by Tom Symons of KFPY,
Spokane, Washington.
“Whereas, it is the understanding of this organization that certain
applications are now pending before the Federal Communications
Commission and others are contemplated, wherein licenses or
permits are being sought authorizing the establishment of radio
broadcasting stations with transmission power of 500 kilowatts;
and
“Whereas, such stations on account of their excessive power cover
the entire United States; and
“Whereas, on account of the excessive cost to establish such sta¬
tions they can only be established by large accumulations of
capital and in small numbers compared with the present number
of stations of lesser power now being successfully operated; and
“Whereas, such powerful stations tend to monopolize the radio
broadcasting industry to the detriment and injury of the approxi¬
mate 630 independent broadcasting stations now established and
representing to the owners and operators thereof valuable invest¬
ments; and
“Whereas, there is no necessity for stations of such excessive
power, as the country could be properly and efficiently fur¬
nished with broadcasting service without the issuance of any
further license for such super-power stations;
“Therefore, Be It Resolved, by the NAB, in general meeting
assembled at Chicago, that in view of the facts related above and
the certainty of the economic injury and ultimate economic destruc¬
tion of the numerous presently established independent broadcast¬
ing stations which will result in the establishment of over a limited
number of stations of such tremendous power, that NAB earnestly
objects to and protests the granting by the Federal Communications
Commission of any other or further licenses or permits for stations
of power in excess of fifty kilowats ; and
“Be It Further Resolved, That the Managing Director of this
organization be instructed to furnish a certified copy of this reso¬
lution to each of the members of the Federal Communications
Commission with request that they and each of them refuse to
grant any other or further such permits or licenses.”
The majority opinion of the Resolutions Committee voted to
make no recommendation on this resolution.
CHAIRMAN HEDGES: The Chair will receive a motion for
the adoption of this resolution.
T. W. SYMONS, JR. (KFPY, Spokane, Washington): Mr.
Chairman, I move the adoption of this resolution.
E. B. CRANEY (KGIR, Butte, Montana) : Seconded.
MR. HUBBARD: I think I know how most of the members feel
about fifty kilowatts. We have had many issues in this convention
that threatened to split us in past years, and I think the question
of extreme high power is one that should not be brought before
this convention. We are represented by clear channel, regional
and local stations. As a matter of fairness to all, I move that this
resolution be tabled.
1557
CHAIRMAN HEDGES: Is there a second to Mr. Hubbard’s
motion?
MR. MYERS: I second that motion.
CHAIRMAN HEDGES: A motion has been made to table the
resolution. Is there any further discussion?
This reminds me somewhat of the 1924 conference held in Wash¬
ington by the then Secretary of Commerce, Mr. Hoover, when
broadcasters spent a lot of time condemning high power — and the
high power they were discussing at that time was 5,000 watts.
They decided at that time that broadcasters would be very injurious
to the art if 5,000 watts was established as super power.
I merely recite that as a historical reference, not in any way
attempting to persuade you one way or the other. It is improper
for The Chair to participate in the discussion.
MR. MYERS: I want to explain why I seconded that motion.
The NAB has never taken any part in allocation or any way of
telling the Federal Communications Commission how to conduct
their business at Washington. I am a regional channel and never
expect to be anything more than a regional channel but I do not
believe this convention should go on record in favor of regional
channel or 100 watter or 500 watter or any other class of broad¬
caster, and that is why I seconded the motion to table Mr. Symon’s
resolution.
I don’t want to be misunderstood. I don’t want anybody to
believe I seconded that motion because I am not in favor of fifty
kilowatt broadcasting stations — I am just not in favor of this con¬
vention going on record in accordance with Mr. Symon’s resolution.
Thank you.
CHAIRMAN HEDGES: I might also take the liberty of point¬
ing out to you that the hearing held by the Commission in October
will give every broadcaster an opportunity to express his views
there.
Are you ready for the motion to table the resolution?
THE CONVENTION: Question!
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: The motion is carried and the resolu¬
tion is tabled.
MR. GILLIN: “Resolved, That the National Association of
Broadcasters sincerely thanks the Hon. Judge Eugene Octave Sykes,
Chairman of the Broadcast Division, Federal Communications
Commission, for the information, practicability and usefulness of
his message delivered at its Fourteenth Annual Convention, and that
the membership believes that his message will serve as a potent
aid in assisting the licensees of American broadcasting stations to
cooperate with the Federal Communications Commission.”
Your committee moves the adoption of this resolution.
MR. CHURCH: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the National Association of
Broadcasters hereby expresses its sincere thanks to Dr. C. H.
Sandage for his contribution to the interest and value of the
Fourteenth Annual Convention of this Association.”
Your Resolutions Committee moves its adoption.
CHAIRMAN HEDGES: Is there a second?
MR. SYMONS: Seconded.
CHAIRMAN HEDGES: I don’t believe this calls for discussion.
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the National Association of
Broadcasters hereby extends its hearty thanks to Mr. Glenn
Snyder, Mr. Ralph L. Atlass, Mr. H. Leslie Atlass, Mr. H. C.
Crowell, Mr. Gene T. Dyer, Mr. W. E. Hutchinson, Mr. Quin A.
Ryan Mr. F. A. Sanford, Mr. Niles Trammel and Mr. Clinton R.
White of the Local Convention Committee for their admirable serv¬
ices in making the Fourteenth Annual Convention of the National
Association of Broadcasters an outstanding success.”
The committee moves its adoption.
EARL J. GLADE (KSL, St. Lake City, Utah): Seconded.
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the National Association of
Broadcasters hereby extends its hearty thanks to the management
of the Stevens Hotel and to Mr. William P. Hennessy, Director
of Conventions, Chicago Association of Commerce, for their
splendid service in making the Fourteenth Annual Convention of
this Association an outstanding success; also to the management
of the Stevens Hotel and other hotels for their courtesies in
accommodating so many of our guests.”
Your committee recommends its adoption.
MR. GEDGE: Seconded.
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the official acts of the Manag¬
ing Director since the Thirteenth Annual Convention be and the
same are hereby approved.”
Your committee moves the adoption of this resolution.
E. P. SHUTZ (WIL, St. Louis, Missouri) : Seconded.
CHAIRMAN HEDGES: Is there any discussion?
THE CONVENTION: Question!
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the Managing Director be and
he hereby is authorized to take such steps as may be necessary
adequately to represent the best interests of the broadcasting indus¬
try in the forthcoming conferences preparatory to the fourth meet¬
ing of the CCIR, scheduled for the spring of 1937, and in the
meeting of the CCIR.”
The committee moves the adoption of this resolution.
CHAIRMAN HEDGES: Is there a second?
MR. SYMONS: I’ll second it.
CHAIRMAN HEDGES: Any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the President be and he hereby
is authorized and directed to appoint a committee of three, one of
whom shall be the Managing Director, to determine the procedure
for most effective presentation of the United States position and
proposals to the next administrative international conference sched¬
uled to be held in Cairo early in 1938.”
Your committee moves the adoption.
MR. CURTIS: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the Managing Director be in¬
structed to proceed immediately with the creation of a bureau of
agency recognition in accordance with the plan approved and
recommended by the Commercial Committee, with the understand¬
ing that the said bureau will be finally established only if the cost
of its first year of operation is underwritten by the stations pro¬
posing to avail themselves of its service.”
Your committee moves the adoption of this resolution.
CHAIRMAN HEDGES: Is there a second?
MR. SHUTZ: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
MR. CHURCH: I did not know this resolution was to be
brought before the body at this time. I would like to have the
mover, the first mover of this resolution, support it to the con¬
vention before we vote on it, if possible.
CHAIRMAN HEDGES: Do you mean by that that you wish
to have the arguments in behalf of this resolution presented at this
time?
MR. CHURCH: Yes.
CHAIRMAN HEDGES: Who proposed this?
MR. GILLIN: This is proposed by your Resolutions Com¬
mittee.
The reason for your committee placing this resolution before you
this morning is simply because of the fact that an agency recog¬
nition bureau is something this industry needs; especially for the
smaller stations that are being milked each year by certain people
who are not recognized agencies. That is the main reason for this
resolution.
MR. CHURCH: Mr. Chairman, I, too, am for this resolution.
However, I didn’t know that it was to be brought before the body
this morning and I am not sure that it is in proper form for us
to act upon at this time.
You will recall that a year ago this body passed a similar resolu¬
tion. I voted for the resolution but I was not in favor of the
wording of the resolution which represented the approval of the
majority of the members of the Commercial Committee at that
time. The strings tied to the resolution caused the failure of the
formation of a recognition bureau during the past year. It was my
feeling that I expressed to the Commercial Committee that this
bureau should be financed not by individual subscriptions but by
the Association and that the benefits of the bureau should accrue
to all the members of this Association.
I might just as well make the little speech now that I hadn’t
intended to make until later. This Association has undertaken
various projects which have failed largely because we didn’t have
finances to carry them through. Your Managing Director lives
within his budget. The dues from this Association are for the
benefit of every member. The dues of this Association today are
not large enough to give the benefits to you and to me that we
would like to have from the Association.
Later a resolution will be offered you whereby you will vote on
an amendment which would increase your dues fifty per cent.
1558
That increase sounds like a lot of money. Actually, in dollars and
cents for each of us, it is a small amount of money compared to
the amount we lose by not having an agency recognition bureau
and some of the other things that we should be supporting at the
present time. We are foolish if we don’t pass the amendment.
Your Bureau of Radio Research almost automatically requires
the increasing of your dues. An agency recognition bureau requires
the increasing of your dues. We can’t do these things without the
money. All of my income is in the broadcasting business and I
happen to have been close enough to the various projects we have
worked on to believe in them 100 per cent and I am glad to pay
my part of the increase in dues.
Now, getting back to this resolution, I propose to amend this
resolution. Pardon me, may I see the resolution? I move to
amend this resolution by striking out the words “with the under¬
standing that the said bureau will be finally established only if the
cost of its first year of operation is underwritten by the stations
proposing to avail themselves of its service” and substituting “with
the understanding that the said bureau will be established when,
in the opinion of the Board of Directors, the financial condition of
the Association will permit.”
Now, if that motion has a second and it passes, it means you
will have a recognition bureau if you increase your dues and won’t
have one if you don’t increase your dues.
CHAIRMAN HEDGES: Is there a second to Mr. Church’s
amendment ?
MR. CARPENTER: I’ll second it.
CHAIRMAN HEDGES: Is there any discussion?
MR. BORTON: I object to the amendment on the ground that
it imposes the cost of that service on the entire membership while
the benefits will result only for a few.
CHAIRMAN HEDGES: Are there any further remarks? Are
you ready to vote on the amendment?
(The amendment was put to vote, and was lost.)
CHAIRMAN HEDGES: The amendment is lost. Now we will
vote on the resolution as originally presented. Is there any dis¬
cussion on that?
THE CONVENTION : Question !
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the Board of Directors of the
NAB consider the continuance of the establishment of one or more
annual NAB awards for conspicuous examples of public service
rendered by American broadcasting stations.”
Your committee recommends the adoption of this resolution.
CHAIRMAN HEDGES: Is there a second?
MR. SYMONS: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
MR. PRITCHARD: Where is the money coming from?
MR. CHAMBERLIN: I would like to ask a couple of auestions
on that. What will the awards be? What will they cost? And,
how will the awards be made?
And, why wouldn’t the awards probably go to those that happen
to have the best station promotion departments or that happen to
be closer to the seat of activities than those out in the far reaches
of the country !
MR. GILLIN: Mallory, I’d like to call your attention to the
resolution, which states specifically that “the Board consider the
continuance of the establishment.” It doesn’t say it specifically
acts, according to what the recommendation was last year of this
Association. It just says “consider the continuance of the estab¬
lishment of one or more annual NAB awards.”
MR. PRITCHARD: Is it necessary to have a resolution to go
on considering something they are already considering?
MR. GILLIN: Captain, the only reason for the resolution is
because we want to continue the spirit which started this particular
resolution in the first place, and I would like to have Lambdin
Kay, who is chairman of that committee for the NAB, tell just
why we are anxious that this be continued and a more healthy
attitude be taken by NAB, RMA and other parties who are really
helpful in considering this matter. Is Lambdin Kay here ?
LAMBDIN KAY (WSB, Atlanta, Georgia) : Yes.
MR. GILLIN: Lambdin, will you come down here to the
speakers’ table?
MR. KAY : I consider that the matter of a national award is
extremely important. We investigated it to some extent last
year and there is a possibility it can be put into effect but this past
year was a bad year to concentrate the attention of NAB on mat¬
ters of that type. I believe it can be followed through. The RMA
are interested and want a report from the NAB as to their interest,
and I suggest that the matter be left standing or at the discretion
of the Board, to consult with RMA to see if anything can be worked
out.
CHAIRMAN HEDGES: Is there any further discussion on that
resolution ?
THE CONVENTION: Question!
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the NAB continue to cooperate
with the Federal Communications Commission and educational
groups in all practical efforts to study the application of educa¬
tion to radio.”
Your committee moves the adoption of this resolution.
MR. SHUTZ: Seconded.
CHAIRMAN HEDGES: It has been moved and seconded that
this resolution be adopted. Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the NAB go on record as favor¬
ing the issuance of radio station licenses for a term of at least
three years.”
The committee moves the adoption.
MR. GLADE: Seconded.
(The motion was put to vote, and was carried unanimously.)
CHAIRMAN HEDGES: It’s unanimous! (Laughter.)
MR. GILLIN: Thank you for your cooperation. (Laughter.)
This next resolution was presented to the Committee on Reso¬
lutions by Meff Runyon, Treasurer of the Columbia Broadcasting
System.
“Whereas, experience has demonstrated that trade associations
function most effectively in the interest of members where the
primary purpose is to promote the economic stability of the
industry among those who contribute to its welfare and where
other association activities are confined to fields where there
exists substantial unanimity of opinion, and
“Whereas, the National Association of Broadcasters has during
the years of its existence performed many services of great
benefit to its members in fields where broadcasters as a whole
have common problems and common viewpoints, and
“Whereas, the National Association of Broadcasters is not so
constituted as to be able to bind any of its members to any
prescribed course of action either in contracting for the materials
used or in fixing fees for which services will be sold,
“Be It Resolved, That it is the consensus of this convention that
this Association shall confine its activities in the development of the
industry and the protection of members to fields as to which sub¬
stantial unanimity of opinion exists and that the officers and direc¬
tors are hereby so advised and instructed.”
The majority of the Resolutions Committee disapproves the
adoption of this resolution.
CHAIRMAN HEDGES: A motion is in order.
MR. GILLIN: The majority of the committee disapproves the
adoption of this resolution.
CHAIRMAN HEDGES: Just a minute, Mr. Gillin offers the
disapproval of the Resolutions Committee as a motion.
FRED J. HART (KGMB, Honolulu, Hawaii): Seconded.
CHAIRMAN HEDGES: It has been moved and seconded that
this resolution be disapproved. Is there any discussion?
HARRY C. BUTCHER (WJSV, Washington, D. C.) : I’d like
to say a few words about that.
I would like to explain the motives behind the resolution offered
and read, and whether or not the NAB convention approves the
resolution, I think that we in Columbia will be just as content,
even if voted down, if each and every one of you will carry away
from here a recognition of the extent to which a trade association
should or should not engage in controversial issues which affect
favorably or unfavorably certain elements of the industry.
A trade association, I think, attempts to commit suicide when
it engages in activities favorable to the majority, unfavorable to
the minority, no matter how small that minority might be. There
are so many things that this industry needs to do and that the NAB
can do and in the past has done very successfully where there has
been almost unanimous support behind the NAB and its efforts were
for the entire industry.
Now, coming particularly to what is in your minds, under this
resolution, what would happen on copyright? As I see it, under
copyright, legislation which has been supported unanimously by the
industry, at least our attempts to get that legislation as expressed
in the Duffy Copyright Bill, our efforts on copyright legislation are
general industry matters in which we have had substantial backing
in the industry and so the NAB can work successfully on that type
of thing. I would say copyright legislation should be a NAB func¬
tion as a trade association activity.
Now, as to the Bureau of Copyright’s function, I think that is in
general agreement and support by the industry and, therefore,
should be handled by the NAB.
1559
As to copyright negotiation wherein the NAB attempts to nego¬
tiate contracts for groups, for stations aligned with groups within
the industry, it is in that field where I think we have made our
great mistake in the NAB. I think I am a party to making that
mistake. I think it first happened back in 1930 or ’31 when we
had the Plenary Committee and Negotiating Committee.
I think negotiation has to be handled with ASCAP by some one
or some group outside of the NAB because whoever does it has to
have your power of attorney with proxy so that he can go down to
ASCAP and deal as Jim Baldwin dealt in his late negotiations but
I don’t believe it should be NAB itself handling those negotiations.
You have several groups on copyright- — network affiliates, non¬
network stations, hundred watters, newspaper-owned stations that
have a special type of contract — all those group interests are diffi¬
cult to harmonize within the NAB.
So, I say, keep the NAB functioning on things on which there is
virtually unanimous agreement. I mean by that copyright legis¬
lation. The Bureau of Copyright — I want to say so far as Colum¬
bia is concerned, we are going along on that. There are a few
things we think are futile but the principle is right and we will
assist as far as we are wanted and will put our shoulder to the
wheel to assist because the principle is sound. But, negotiation —
if you will consult with trade association history— has to be re¬
moved from association activity.
I can point out a case in my own experience. In fact, I got my
fundamental training in radio working for the fertilizer associa¬
tion. (Laughter.)
In the fertilizer association, we had a problem somewhat parallel
to the one you have here. Nitrate of soda, which is used in all
fertilizers, comes from a Chilean government monopoly; potash
from a German government monopoly. All the members were
interested in acquiring the materials as cheaply as possible but
there were group interests because of location of factories — some
inland, some on rivers, some on the coasts — so it was not feasible
for the association to engage in negotiation for those materials.
The negotiation was handled by an individual company proposi¬
tion or where several companies could get together and pool their
orders. And, that association is one of the most successful service
institutions in the United States. They recognize very clearly
where you have a conflict of economic interest that trade associa¬
tions cannot become involved in that, and leave that to the mem¬
bers themselves.
Why should we in the broadcasting industry with the tremendous
future ahead — just stop and think; you have facsimile coming;
you have television coming; you have a variety of news services
that are going to tax the ability of every person here and we will
need unitedly the strongest trade association we can have and
there are many, many industry things in which the NAB can be of
tremendous service — why should we tear ourselves apart and be
utterly silly in working on matters which cause great conflict in the
industry !
That is the way we feel about it. We want you to know our
position and policy and we hope that some of you at least will
agree with us on it.
As far as contracts, there will be no more contracts in the sense
of new contracts for another four years. Most of us have five
years. If this principle is recognized and the Managing Director
of the Board will follow the principle, I think whether you act
favorably or not, if you recognize this principle as fundamental to
the future welfare of the industry and NAB, a great accomplish¬
ment will be achieved in this convention. (Applause.)
MR. CRANEY: I am very sorry I didn’t belong to the ferti¬
lizer organization along with Harry— I might have known some¬
thing about this.
In an industry such as ours where copyright is so fundamental
with all of us and affects all of us as it does today, I don’t see how
we are going to sidetrack it. We could very easily sidetrack it if
the networks wanted to hold all the stations on the networks
free of liability in all the numbers that the networks originate. I
think that would probably do it because it would put the liability
of each copyrighted number at the source playing the number. We
all recognize the fact that we should pay for copyrighted music
and we would be paying for it then as we use it.
I can’t see that we should take copyright out of this Association’s
business when you can have, as you have today and have had two
times in the past, deals made by the networks which affected all
of us.
You can’t get along without the music that is popular on your
station and I think that you will find that Warner music is not
popular today as it was when we were all playing it. I know in
my town the music stores report to me that they are shipping it
back to them every month because the people won’t buy it.
But, inasmuch as one group in this industry can practically
dictate what the rest of us must do, I, for one, think that we have
to keep copyright before NAB until we get some plan worked out
that is equitable to all of us and that plan certainly hasn’t been
worked out yet and I am very much in favor of turning this reso¬
lution down.
Thank you. (Applause.)
CHAIRMAN HEDGES: Is there any further discussion?
MR. BUTCHER: I just want to clarify the word “copyright” a
little bit. Ed says, “Keep copyright in NAB.” I divided it up. I
say copyright legislation, the Bureau of Copyright, is of general
interest. I only separated the matter of negotiation of contract,
which I think has been the one thing that has split this business.
MR. CRANEY : I don’t believe that we should take this business
of negotiation out for the simple reason which I just got through
stating — that if one group which makes a deal, makes one very
much in its favor, it acts very much against the rest of us, as it
already has — and I, for one, want to see this resolution killed. I
think it would be a very big mistake to adopt it.
MR. HART: As the one who seconded the motion, I don’t agree
with my friend Butcher, even though he started in the fertilizer
business.
The reason I am opposed to the resolution is because it doesn’t
accomplish anything. Who is going to explain what “unanimity”
is. I am not going to agree with you a lot of times and a lot of
times you won’t agree with me and we’ll just come back with the
same old issue every time it comes before us.
I think we are more and more of the opinion we should deal
more and more with things of the industry we are agreed on.
But, here is the copyright question. Certainly it is the function of
this organization to organize a separate department, if necessary, to
carry on these negotiations. Maybe that is the mistake we made in
not organizing such a department.
But, I don’t believe the motion will do a thing except confuse
us every time we do something. I do think the presentation of the
motion will accomplish one thing in getting us to be serious and
consider the action of the convention on things we are agreed on
but I don’t believe we should bind ourselves so that somebody can
say, “You can’t act because we don’t have unanimity of opinion.”
CHAIRMAN HEDGES: I wish to call attention that it says
“substantial unanimity of opinion.” We don’t expect this Asso¬
ciation to ever become a group of yes-men. We expect you to
express your views openly and liberally.
As I interpret this, the effect of the resolution would be to have
the hundred watters, who have a common problem, get together and
carry on negotiations. The regionals who do have a common prob¬
lem, the network affiliates who have a common problem, the
newspaper-owned stations who do have a common problem would
probably get together on negotiations.
I also want to point out the fact that regardless of whether we
talk negotiation and keep negotiation as an Association function,
this Association cannot make anybody in the organization accept
anything that any negotiating committee does unless you give that
committee a power of attorney. Some of you have done that in
the past. There is no reason why you can’t do that in the future.
I merely want to bring those points up for the purpose of clarify¬
ing the resolution and discussion. Is there any further discussion?
I believe you are ready for the question.
THE CONVENTION: Read it!
CHAIRMAN HEDGES: The motion, I am reminded, is dis¬
approval and if you vote “aye,” that means that this resolution
will fail of passage. I will read the resolution.
(Chairman Hedges re-read the resolution.)
CHAIRMAN HEDGES: The Resolutions Committee by a vote
of three to two urges the disapproval of this resolution.
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: The motion is carried and the resolu¬
tion is lost.
MR. GILLIN: “Resolved, That the Committee on Radio Re¬
search for the year 1936-37 consist of seven members appointed by
the President so as to represent the following groups in addition
to the Managing Director: (1) each major network contributing
to the project (2) local stations; (3) regional stations and (4)
clear channel or high powered stations.
“Be It Further Resolved, That the committee be empowered to
select five of its membership to represent the broadcasting industry
on the Joint Committee on Radio Research.
“Resolved, That this convention approve the activities of the
NAB Radio Research Committee during the past year and that it
1560
commend the excellent progress made by the Joint Committee on
Radio Research sponsored by the National Association of Broad¬
casters, Association of National Advertisers and American Asso¬
ciation of Advertising Agencies.
“Resolved, That the Board of Directors of the National Asso¬
ciation of Broadcasters be empowered to devote for exploratory
purposes upon recommendation of the NAB Radio Research Com¬
mittee the sum of $10,000.00, and that additional funds be devoted
to the project if necessary, and if, in the opinion of the Board,
this can be done without impairing the financial position of the
Association.”
Your Resolutions Committee moves the adoption of the resolu¬
tion as read.
MR. CRANEY: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the President of the NAB shall
appoint a committee of not less than five nor more than seven
members whose specific responsibility it shall be to explore, during
the convention year 1936-37, the possibilities to the broadcasting
industry of a bureau for radio promotion, and to report its find¬
ings and recommendations at the 1937 convention.”
Your Resolutions Committee thought that this resolution has for
its object a laudable objective but the committee doubted that
funds would be available to carry out this resolution and, there¬
fore, recommends its disapproval.
CHAIRMAN HEDGES: Is there a second to the motion to
disapprove ?
MR. SHUTZ: I second it.
CHAIRMAN HEDGES: Is there any discussion?
MR. CHURCH: I am extremely sorry that all of this group could
not have attended the meeting yesterday afternoon so that the
majority of you who will vote on the resolution could be fully
informed concerning the resolution. We have a lot of things to
do. Rather than make a speech against the findings of the Reso¬
lutions Committee and its motion, I move a substitute that this
matter be referred to the Board of Directors with power to act.
MR. HUBBARD: Seconded.
CHAIRMAN HEDGES: Does the Resolutions Committee accept
the substitute ?
MR. GILLIN: Yes.
CHAIRMAN HEDGES: The maker of the motion will accept
the substitute.
Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the Board of Directors of the
NAB be directed and are instructed to carry on negotiations with
copyright owners to the end that a per piece or measured service
plan may be obtained.”
Your committee moves the adoption of this resolution.
MR. CRANEY : Seconded.
CHAIRMAN HEDGES: You have heard the resolution. It
has been seconded. Is there any discussion? In view of the
discussion on the previous resolution which presented the opposite
side, perhaps it is unnecessary to call for discussion. Or, if
anyone wants to speak, let’s hear from you now.
(The motion was put to viva voce vote. The Chair was in
doubt as to the result of the vote and called for the vote by
show of hands. The motion was carried.)
CHAIRMAN HEDGES: The resolution is carried.
MR. GILLIN: “Resolved, That the Board of Directors of the
NAB be directed to solicit the cooperative assistance of the Radio
Manufacturers Association and all others interested in the advance¬
ment of the radio art to foster a national educational campaign
furthering a public appreciation of radio. We recommend that
if. the necessary cooperation and funds can be obtained that the
Directors consider the employment of a competent person to
direct this program.”
Your Resolutions Committee moves the adoption of this reso¬
lution.
HERBERT E. STUDEBAKER (KUJ-KRLC, Walla Walla,
Washington) : Seconded.
CHAIRMAN HEDGES: You have heard the resolution and
the second. Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Resolved, That the NAB approves of the action
taken by the Board of Directors in respect to the Bureau of
Copyright and urges the wholehearted support by all members
of the program which has been described in the reports made to
the membership.”
Your committee moves its adoption.
MR. SHUTZ: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
GERALD KING (KFWB, Hollywood, California): I would
like to have the Managing Director explain what it is proposed
to do with the Bureau of Copyright for the next year. I think
that the scope of the work, which is broad, should be narrowed.
THE CONVENTION: Out of order!
MR. CHURCH: I call for a re-reading of the resolution, please.
(Chairman Hedges re-read the resolution.)
CHAIRMAN HEDGES: The committee moved its adoption and
it was seconded.
MR. HUBBARD: Can we hear from Mr. Baldwin? I move
the unanimous consent of the convention to hear Mr. Baldwin.
CHAIRMAN HEDGES: It is not necessary for a motion to
have Mr. Baldwin speak.
MANAGING DIRECTOR BALDWIN: I endeavored in my
report to cover the activities of the Bureau of Copyright. More¬
over, all activities of the Bureau of Copyright were specifically
set forth in a report which was approved by the Board of
Directors at a meeting held here April 27. I do not believe you
would have me go through that entire report here. It is entirely
too lengthy but I believe I can very briefly describe it to you
so that you may be refreshed in your memory as to what we
propose to do, subject to constant study and consideration by
your Board of Directors.
You will recall that the activities were divided into three
parts. The first part has to do with the compilation of an index
of those musical selections that are actively used — an index that
will show to you as broadcasters the title of the composition, the
name of the publisher, the name of the owner of the copyright,
and so forth.
The second part of the program has to do with the compilation
of music that is in the public domain, arrangements of such
music and the proposition of making that music available to all
stations that want it in order that they might have on their
shelves a sufficient amount of raw material of their own to tide
them over in periods of emergency and to give them some power
to bargain with the owners of copyrighted music.
The third phase has to do with continuing the efforts of the
Association to obtain a per piece plan of compensating the
owners of copyright.
The Bureau of Copyright, as it is functioning today, has
restricted its efforts to the first two phases, namely, the prepara¬
tion of an index of music that is copyrighted, and, second, the
compilation of public domain music to the end that you may
have the raw material that I have referred to. Part three neces¬
sarily being deferred until progress can be made on projects one
and two.
I believe that will describe the thing sufficiently.
MR. KING: Mr. Chairman, I am heartily in favor of the work
outlined by Mr. Baldwin.
My understanding, however, has been that the NAB is going
to continue or wish to continue the work of the old Radio Pro¬
gram Foundation.
CHAIRMAN HEDGES: No, the Radio Program Foundation is
no longer in existence.
MR. KING: But another set-up. I wish to go on record and
state that I know about the futility of that arrangement from
my experience not only as a radio station operator but from
being a part of Warner Brothers I have been drawn into some
copyright discussion and also from the fact I am in the transcrip¬
tion business and know more about copyright than 99 per cent
of the men here.
However, I want to say I am heartily in favor of research work
under items one and two. I think it is the most valuable work
the NAB can do.
THE CONVENTION: Question!
(The motion was put to vote, and was carried.)
MR. GILLIN:
“Whereas, it is the sense of the convention that the interests of
those attending are becoming more and more varied; and
“Whereas, there has been an ever increasing tendency toward the
formation of smaller groups within the Association; and
“Whereas, experience has proven this to be a healthy develop¬
ment, tending to interest a greater number of individuals in
the work of the Association; and
“Whereas, the sales promotion problems of the industry and
individual stations both are becoming increasingly important;
now therefore be it
1561
“Resolved, That
1. This Association favors that formation of a Sales Man¬
agers Section of the NAB to be affiliated with the Com¬
mercial Committee.
2. This Association recommends to the Board of Directors
their approval of this project and recommends that the
Board authorize the Managing Director to pay such
incidental expenses as are necessary for postage, printing
and similar items out of funds of the Association.”
The Resolutions Committee has no comment to offer.
CHAIRMAN HEDGES: The Chair will entertain a motion for
adoption.
MR. BORTON: Mr. Chairman, I would like to ask whether
there is any limitation on funds to be expended for that purpose.
CHAIRMAN HEDGES: The limitations would be within the
judgment of the Board of Directors. It refers to “incidental”
expenses.
MR. CHURCH: I move its adoption.
MR. MYERS: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
(The motion was put to vote, and was carried.)
MR. GILLIN: “Be It Resolved, by the National Association of
Broadcasters that an effort be made to entertain all ladies who
attend the conventions of the National Association of Broadcasters
and that during their attendance thereof an effort be made to
entertain these ladies who cannot be with us in the meetings held
in the interests of our problems.”
The Resolutions Committee has no comment to offer.
CHAIRMAN HEDGES: The Chair will entertain a motion to
adopt — and keep the ladies happy. Is there a motion?
EARL H. GAMMONS (WCCO, Minneapolis, Minnesota) : I so
move. (Laughter.)
MR. CHAMBERLIN: Seconded.
Chairman Hedges: Any discussion?
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: There was one man who had the
nerve to say “no” but it is carried. (Laughter.)
MR. GILLIN: “Be It Resolved herewith that the National
Association of Broadcasters appreciates the interest in their prob¬
lems; and
“Whereas, one who is known to us as ‘Jim’ Hughes of Rock
Island, Illinois, and who has attended many of our meetings in
the past and who would be in Chicago today were it not for the
fact that health has presented a problem for him, and that as
he is now in a Rock Island Sanitarium endeavoring to regain his
health, we trust that before another NAB convention is held,
Jim will be able to be with us.
Your committee moves the adoption of this resolution.
EDWARD A. ALLEN (WLVA, Lynchburg, Virginia) : I
second that motion.
(The motion was put to vote, and was carried.)
MR. CHURCH: I know there is no motion before us but in
connection with the resolution just passed, I find that the Reso¬
lutions Committee does not have a similar resolution for Ed
Spence. All of us know him and love him but I don’t believe
very many of us know he is in the hospital in Baltimore. Some
of us have already wired him but I am sure he would greatly
appreciate it if a similar resolution were sent to him.
MR. CRANEY: I second that.
CHAIRMAN HEDGES: I’ll ask the unanimous consent of
the membership to depart from the rules of order so that Mr.
Church’s resolution may be presented. Are there any dissenters?
Hearing none, are you ready for the motion?
(The motion was put to vote, and was carried.)
(The Resolutions Committee drew up the following resolution
for Mr. Spence:
“Whereas, it has come to the attention of this convention that
Edwin Spence of Baltimore, who has served the NAB for a
number of years in a very splendid manner as Chairman of the
Convention Committee, is ill
“Therefore Be It Resolved, That this convention in session sends
greetings and wishes for a very speedy recovery.”
MR. GILLIN: The next resolution deals with regional and
state units of NAB.
“Whereas, as the radio broadcasting industry continues to grow
in size it becomes more and more apparent that if broadcasters
are to handle their state, regional and national programs
intelligently, they must be organized in state, regional and
national units. Such organizations will also serve to keep the
rank and file better informed and give the numerous broad¬
casters more of a voice in the affairs of the industry.
“Now Therefore Be It Resolved, the Board of Directors of the
NAB be and are hereby instructed to bend every effort during the
year 1936-37 to foster such organizations as chapters of the NAB.”
The Resolutions Committee recommends the adoption of this
resolution.
MR. CRANEY: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
THE CONVENTION: Question!
(The motion was put to vote, and was carried.)
MR. GILLIN: If you will bear with me, I have two very long
resolutions and then we are all through.
“Whereas, as the radio industry is now recognized as a billion
dollar industry; and
“Whereas, radio broadcasting as it 'is generally known is the
heart and soul of the radio industry; and
“Whereas, political regulation of the radio industry has grown
even more rapidly than the industry itself with practically no
attention being given to such growth from the standpoint of
its effect on the radio industry as a whole; and
“Whereas, many regulatory practices have grown up that are not
only injurious to the industry but deprive the public of proper
consideration in the granting of and use of radio facilities; and
“Whereas, many times regulations of merit have been carried out
in an ill-advised manner, consequently resulting in retarding
radio broadcasting and causing great unnecessary expense to
legitimate broadcasters; and
“Whereas, present regulations and procedures of the Federal
Communications Commission subject the radio industry to a
growing legal danger, the extent of which at the present means
that in many cases the expense of securing a new license,
changing the old license, in any manner installing modern equip¬
ment, or transferring or issuing stock, costs more than the new
equipment or the expense of making the changes desired.
“Now Therefore Be It Resolved, That the Board of Directors
of the NAB be and are hereby instructed to set up within the
organization a legal and legislative department, the duties of which
shall be to cooperate with the Federal Communications Commission
to the end that regulations and practices by and before that body
shall be simplified and clear and to the further end that matters
before the Commission may be given speedy consideration with¬
out unnecessary delay or the incurring of unnecessary legal expense.
“Be It Further Resolved, That the legal and legislative depart¬
ment shall be composed of one member of the Board from each
zone and shall be appointed by the Board of Directors of the NAB,
the term of office to be three years and the members to be so
appointed that the term of office of no more than two shall expire
in any given year. Failure of a member to be reelected shall
automatically remove such member from the administrative board
of the legal and legislative department unless the convention in
annual meeting shall otherwise rule.
“Be It Further Resolved, That the legal and legislative depart¬
ment shall study the needs of the industry and introduce changes
of legislation or amendments to existing legislation as shall be
for the good of the radio industry and shall oppose harmful legis¬
lation.
“Be It Further Resolved, That the legal and legislative depart¬
ment shall endeavor to secure such legislation as will remove the
Federal Communications Commission as far as possible from politi¬
cal pressure to the end that the future granting of radio facilities
shall be based on the rule of public service, convenience and neces¬
sity, rather than political expediency.
“Be It Further Resolved, That the legal and legislative depart¬
ment shall endeavor to have the commission act so amended as to
define the duties to the Federal Communications Commission as
it relates to radio broadcasting in such a manner as to establish
the Commission not only as a court of equity but as a body
whose duty is to ascertain by its own investigations the facts
regarding the needs of a given community for new or better radio
service.
“Be It Further Resolved, That the legal and legislative depart¬
ment work for new regulations or legislation that will protect
existing stations from the unnecessary expenses caused by un¬
qualified and unjustified application for present or new frequencies.
“Be It Further Resolved, That the Federal Communications
Commission and the former Radio Commission be, and are, hereby
commended for the excellent work they have done in assisting
the radio industry to date and that this resolution is not to be
1562
interpreted as an attack on the Commission, its actions, or upon
Congress, but merely as a matter of business of the NAB, through
which this convention expresses its wishes to its Board of Directors.”
Your Resolutions Committee has no comments to make.
CHAIRMAN HEDGES: The Chair will entertain a motion from
the floor.
MR. HART: As the introducer of the resolution, now that it
has been read before the house, I move that it be referred to the
Board of Directors for their consideration the coming year.
MR. BORTON: Seconded.
CHAIRMAN HEDGES: Is there any further discussion?
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: It will be referred to the Board.
MR. GILLIN: “Whereas, those organizations controlling copy¬
right music have come to realize that while their music is a vital
part and necessary to a first class radio program and that the
radio advertisers should pay for the use thereof, but that if the
charge therefor be too excessive the net returns to the copyright
owners will diminish rather than increase ; and
“Whereas, these organizations now realize that only by full and
frank cooperation with the broadcasting industry can a solution
to this problem be attained; and
“Whereas, these organizations realize that their music is used by
the advertiser for his gain and, therefore, any charge for such
use should be a charge against the advertiser rather than the
station; and
“Whereas, radio stations are the only ones in a position to collect
such charges; and
“Whereas, radio broadcasters now realize that owners of copy¬
right music are entitled to a fair return for the use of their
music; and
“Whereas, for various reasons no satisfactory solution to the copy¬
right problem has yet been agreed upon; and
“Whereas, present contracts and conditions are unfair and un¬
workable and involve a large expense on the part of the broad¬
caster to comply with them, in addition to the copyright fee ; and
“Whereas, broadcasters recognize copyright charges as a charge
that should be borne by the advertiser in the same manner as
if he purchased a subscribed program of talent through the
broadcaster; and
“Whereas, the copyright contract should carry a provision that
the copyright charge must be collected by the radio station from
the advertiser in addition to all other charges in the same
manner as a sales tax;
“Now Therefore Be It Resolved, That the radio industry called
upon ASCAP, SESAC, AMP and Warner Brothers to appoint a
committee of five to represent them in copyright negotiations; and
“Be It Further Resolved, That the Board of Directors of NAB
be, and are, hereby instructed immediately to create a copyright
department, this department to be directed by a board made up
as follows: one representative from the chain systems, two repre¬
sentatives from the stations affiliated with the chains but not con¬
trolled by the chains, three representatives from independent
stations, two of which shall be regional and one local 100 watter,
it being understood that no members of this copyright department
shall be a member of the Board of Directors of NAB.
“Be It Further Resolved, That this copyright department shall
be guided by the following:
First — Make as simple as possible whatever procedure is
adopted, making a flat percentage charge on all revenue
received by every station for the sale of station time.
Second — Abolish such clauses in copyright contracts that re¬
quire the keeping of expensive records; as an example,
Clause Six Warner Brothers contract.
Third — Abolish unfair discriminations as between newspaper-
and non-newspaper-owned stations.
Fourth — Insert a clause in every copyright contract that charges
must be collected by the advertiser in addition to all
other charges, in the same manner as sales taxes are
now being collected. That failure on the part of a
broadcaster to so collect copyright charges from ad¬
vertisers shall be a breach of contract.
Fifth — That nothing expressed or implied shall be included in
the contract which shall in any manner restrain the
individual broadcasters or the NAB from endeavoring
to secure by legislation or in any other manner, the
elimination of any of the present unfair provisions in
existing copyright legislation.
Sixth — It is understood that this department shall be able to
speak with authority on the terms and conditions of
the copyright contract to be submitted to the sta¬
tions but that the entering into and carrying out of
the provisions of such contracts shall, and do rest,
solely with the individual stations.
“Be It Further Resolved, That this copyright department shall
be maintained as a separate department and financed by a special
copyright fee, such fee shall be set by the Board of Directors of
the NAB and based on a percentage of NAB dues. A member
of NAB may or may not subscribe to this department and the
failure of a member of NAB to pay his dues to this department
shall in no manner affect his NAB standing.
“Be It Further Resolved, That this department shall be respon¬
sible only to those stations subscribing to its copyright fund.”
Your Resolutions Committee has no comments to offer on this
resolution.
CHAIRMAN HEDGES: The Chair will entertain a motion for
the adoption of this resolution, or other motions that may be
presented.
MR. MYERS: I move that the resolution be tabled.
MR. SHUTZ: Seconded.
CHAIRMAN HEDGES: Is there any discussion?
(One of the delegates, without rising to be recognized by the
Chair, called out, “Whose resolution is it?”)
MR. HART: I presented the resolution and you have already
acted on the contents because you have already approved the
action of the Board. It is proper to table the resolution. I pre¬
sented it because I wanted to present my sentiments to this
convention on this matter.
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: The motion is carried and the resolu¬
tion is tabled.
MR. GILLIN: That is the end of the Resolutions Committee
report, and I want to thank you.
CHAIRMAN HEDGES: We have here a ticket called the Inde¬
pendent Ticket which departs in a few particulars from the
Nominating Committee’s report on nominations.
This ticket is presented in proper form, being signed by more
than ten members of the Association.
I will read the ticket.
For President — C. W. Myers, KOIN, Portland, Oregon.
For First Vice President — John Elmer, which is the same.
For Second Vice President — Gardner Cowles, Jr., which is the
same.
For Treasurer — Harold Hough, which is the same as the Nomi¬
nating Committee’s report.
For Directors for the three-year term — Edward A. Allen, Arthur
B. Church, Eugene P. O’Fallon and L. B. Wilson, which are the
same as those in the Nominating Committee’s report, and H. K.
Carpenter of Cleveland.
For Director for the two-year term, one name — Frank M.
Russell, WRC, Washington, D. C.
I might state that the mimeographed copies which will be dis¬
tributed list “Herbert Hollister, KANS, Wichita, Kansas (Vice
Craig).” The gentlemen who presented this independent ticket
ask that that be stricken out in view of the fact they have sub¬
stituted the name of Myers for Craig and, therefore, Craig’s term
of office as a member of the Board of Directors, in event of
the election of Myers, would continue for the two-year term.
Therefore; we have no division of opinion in respect to First
Vice President, Second Vice President, Treasurer and the Director
for the two-year term. In order to facilitate matters, I would
like to propose the following method: first, that where we have
no differences of opinion between the report of the Nominating
Committee and the Independent Ticket, namely for the office of
First Vice President, Second Vice President, Treasurer and Direc¬
tor for the two-year term, that those people be declared elected
by acclamation.
Now, I want to explain this: it will be impossible for us at this
time to have the four men nominated on both tickets for the
three-year term elected by acclamation in view of the fact it is
conceivable that any one of those four men on either one of the
tickets might lose and Carpenter and Patt could both be elected.
Now, with that explanation, I will entertain a motion that
John Elmer for First Vice President, Gardner Cowles for Second
Vice President, Harold Hough for Treasurer, and Frank M. Russell
for Director for the two-year term be declared elected by accla¬
mation.
MR. CHAMBERLIN: I so move.
MR. SHUTZ: Seconded.
1563
MR. SYMONS: Mr. Chairman, I rise to a point of order. There
are two constitutional amendments. According to our order of
business, they come before the election of officers.
CHAIRMAN HEDGES: It is my understanding that Mr.
Craney, who proposed those amendments, has consented to post¬
pone them until after the election with the idea that in the
event they are adopted, they will become in full force and effect
at next year’s convention. In the interest of speeding up the
termination of this convention and enabling people to make their
trains, Mr. Craney has consented to the postponement of the
amendments.
MR. CRANEY : That’s the first time I heard that one !
(Laughter)
CHAIRMAN HEDGES: Well, speak for yourself.
MR. CRANEY: That wasn’t my understanding. I think the
one amendment to be voted on about zones should be voted on
while the members are here from the various places. I think also
your dues proposition should be settled.
Of course, if we can do it all at this meeting, it is all right
with me. If we are going to eat and finish the meeting after¬
wards, that is a different thing. It is all right to postpone it until
after the election provided we are not going to come back for
another session this afternoon.
CHAIRMAN HEDGES: We are going to run right through the
business this morning.
MR. CRANEY: All right, then.
CHAIRMAN HEDGES: Do you withdraw your point of order?
MR. SYMONS: Yes, I only arose for information.
MR. CHURCH: One of those amendments was moved by me
and I am quite in favor of the order of business suggested.
CHAIRMAN HEDGES: All right, thank you.
MR. MYERS: I am terribly sorry to have to do over again
what I had tried hard so sincerely and seriously to do last year. I
hardly know how to say this because I certainly appreciate the
support of such good friends as have insisted on placing me on
the ticket for the presidency of the organization. It is an honor
which I shall never forget.
Last year I made a speech and I hope this is the speech to end
all speeches by me requesting that my name be withdrawn from
the nomination for the presidency. I thank you for the honor
but I am way out there in the Northwest, about the farthest away
from the seat of activities that anyone can get. There are men
who are nearer the scene of action and who are much more capable,
I am sure. With my utmost sincere appreciation of the honor you
have done me, I request that my name be withdrawn from the
presidential ballot, and I thank you. (Applause)
MR. CHURCH: Mr. Chairman . . .
CHAIRMAN HEDGES: Mr. Church.
MR. CHURCH: Mr. Chairman, I believe that both Mr. Myers
and I are out of order.
CHAIRMAN HEDGES: I was just going to point out that you
were not addressing your remarks to the motion presented.
I believe we can proceed with the motion relative to the election
of John Elmer for First Vice President, Gardner Cowles for Second
Vice President, Harold Hough for Treasurer, and Frank Russell
for Director for the two-year term by acclamation. Is there any
discussion on that?
(The motion was put to vote, and was carried unanimously.)
CHAIRMAN HEDGES: Now we come to the question of elec¬
tion of President. It will be necessary, unless Mr. Myers is per¬
mitted to be sustained in his position, to have a ballot on the
President before you can ballot on the Directors for the three-year
term, and for that reason, I am going to permit Mr. Church
to speak although there is no motion to which he is addressing
himself at this time but is now addressing himself to the remarks
of Mr. Myers who has expressed the desire of withdrawing as a
candidate for President.
MR. CHURCH: I understand, however, Mr. Chairman, that
the next regular order of business is the election of the President
and I am entirely agreeable to waiting until the question is put
provided it is understood we have two names before us.
CHAIRMAN HEDGES: It will be necessary that we have a
motion from the floor prescribing the method by which the candi¬
dates for President will be voted on.
There are two ways in which it can be done. It can be done
by secret ballot and in that event, you will vote by roll call. Let
me warn you, gentlemen, that that will take considerable time
with all these stations represented. There is one other way that
it can be done and that is by a viva voce vote. Am I correct
in that?
JOSEPH O. MALAND (WHO, Des Moines, Iowa): I move
that the election be held by ballot.
MR. ALLEN: Seconded.
CHAIRMAN HEDGES: Before we proceed to take the vote
on the question of conducting the election by ballot, Mr. Church
will endeavor to state his position and to keep his candidate
before the convention. I recognize Mr. Church.
MR. CHURCH: I know how difficult is the work of a Nominat¬
ing Committee. I am sure that the Nominating Committee did
the best job they knew how with all the problems that confronted
them. In general, I think the slate is excellent. I think the slate,
in general, shows that they have considered practically all the
problems involved in an attempt to give us good representation.
I feel, however, that possibly the Nominating Committee has
overlooked one or two important points, which I bring to your
attention in connection with this election.
First, you have four officers on the Nominating Committee’s
slate, two of which would represent high power stations, one would
represent a regional and one would represent a local station. But,
the Executive Committee of this Association consists of the Presi¬
dent, the Treasurer and the Managing Director. If this slate goes
through, you will have excellent men on your Executive Committee
but I do not believe it is as representative of the membership of
this Association as to classification of stations as it should be.
I really feel that the Nominating Committee has overlooked this
one important point. Certainly, if the NAB is to go forward
with the greatest possible degree of unanimity, the various classes
of stations must feel that they are properly represented not only
on the Board but also on the Executive Committee. That is one
of the reasons I subscribe to the independent slate.
The other reason is that I have been campaigning for a man
as President of your Association for the next year who, in my
opinion, is the logical man for this post. I consider it an honor
to have sponsored Charles Myers to his first appointment on the
Board of Directors. Since that time, I have seen him go up the
ladder and in addition to that, he has become a very dear friend.
The latter point is not important to this convention but it is im¬
portant that you recall the fact that his work to date represents
a soundness of mind, a consistency that makes him a logical candi¬
date for the office of President.
He is in line for the office. He has gone up the ladder, as I
say. During the last year he has been First Vice President, and
as such he has been closely associated with the work of the
Board and with the officers. He is thoroughly familiar with the
duties he would assume when he is elected as President; he is com¬
petent from every standpoint.
Charles Myers to me represents the average broadcaster of this
country. He is not a high-power station man; he is not a low-
power station man ; he is an average station man. He represents
ownership of his station. He has no other interest than broad¬
casting. He has made a success of it. He has made that success
due to sound policies resulting from his long experience in the
advertising field.
To me, Charles Myers epitomizes the type of man we want as
President of this Association. I feel that if necessary, we should
draft him. I am for Charles Myers. I hope every one of you
will support him. (Applause)
MR. CAMPBELL: I simply want to correct a statement made
by Arthur with reference to the membership of the Executive Com¬
mittee.
He says there will be two high-powered men. They will be
high-powered, it is true (Laughter) but Harold Hough owns a
ICO watt station — he simply runs a couple of others.
MR. GEDGE: I am mindful of the time when I come to this
microphone. I know we are all getting impatient and I am going
to make my remarks as quickly as I can.
Arthur has appealed to your logic and appealed to you for
Charles Myers. I am going to speak to you about your own
self interest and own selfishness. It has been my great privilege
to have been associated with Mr. Myers for several years in the
conduct of this Association and there is no man with whom I
have ever come in contact who is more mindful of and more
interested in the welfare of this Association as a whole than Charles
Myers. There is no man who has made any greater personal sacri¬
fices to attend to your business. He has flown from the Coast
in the face of blinding blizzards to attend a meeting. All through
those hectic days in New York, those grueling sessions, Charles
Myers looked out for vour interests. He did not receive long
distance telephone calls that made it necessary for him to go back
and attend to his personal affairs or, at least, if he did receive
those long distance telephone calls, he sacrificed and subordinated
1564
his personal affairs to yours ! And, I want to add my voice and
urge you to support — and as Arthur Church said, if necessary
draft — Charles Myers for this office that he so justly has earned.
(Applause)
CHAIRMAN HEDGES: Is there any further discussion on the
motion to ballot?
MR. MALAND: Mr. Chairman, I withdraw my motion.
CHAIRMAN HEDGES: We have no motion before the house.
MR. HUBBARD: I move we proceed with the election.
CHAIRMAN HEDGES: By what method? By the strict inter¬
pretation of Roberts’ Rules of Order, any nominee has the right
to decline. The speeches you have heard relative to Mr. Myers
should have been delivered to him in his room yesterday to make
him consent. I believe if we are going to cast the vote here by
ballot, it will be necessary for Mr. Myers to withdraw his previous
withdrawal.
In other words, I am going to put Mr. Myers on the spot. I
hate to do this but the interpretation has been given that Mr.
Myers has not said that he would refuse to serve if elected.
MR. MYERS: Under these circumstances, I could not refuse to
serve. I thank you. (Applause)
CHAIRMAN HEDGES: Mr. Myers is still on the ticket. We
will proceed with the election for President. You have two can¬
didates — Edwin W. Craig and Charles W. Myers.
MR. HUBBARD: I take it that Mr. Myers has been drafted.
Is that correct ?
CHAIRMAN HEDGES: That will be determined by the ballot.
I will ask the Elections Committee to come forward: Warren
Williamson, Herb Hollister, Jack Storey, Lee Coulson, and Hugh
Halff.
Will the Credentials Committee please come forward: Dean
Fitzer, Lambdin Kay, Martin Campbell, Walter Damm and Dale
Robertson.
Walter Damm has been required to go to his home and in his
place I will appoint John Fetzer on the Credentials Committee.
I am informed that two members of the Elections Committee
are absent so I am going to ask Truman Ward to serve in the
place of Hugh Halff and Stanley Hubbard in the place of Jack
Storey.
The convention will come to order and as the names are read
by Mr. Baldwin, will you please come forward and cast your
ballot in this box and then proceed out of this door, through the
hall and back in again. We will want you immediately on the vote
for Directors.
(Roll call casting of ballots.)
CHAIRMAN HEDGES: Your attention, please. There may be
some station delegates or alternates whose call letters have not
been announced here by Mr. Baldwin. In that event, will you
come forward now and identify yourselves to the Credentials
Committee.
The ballot on the election for President is now declared closed.
The Elections Committee will proceed to count the ballot and
will return to the floor as soon as they have completed their
tabulations.
(Announcements.)
CHAIRMAN HEDGES: Now, on the election of Directors, there
are six candidates for the three-year term. Are there any other
nominations for the three-year term?
(Announcements.)
CHAIRMAN HEDGES: I am going to call Arthur Church to
the platform to present an amendment to the Constitution and By-
Laws which has been offered with respect to the dues.
MR. CHURCH: The amendment which the chairman has placed
before you has to do with the increasing of dues and is an
amendment of By-Law number one. This amendment which is
proposed to the By-Laws, technically speaking, would strike out
all of the first paragraph and would insert the following in lieu
thereof :
“Effective September 1, 1936, bi-monthly dues of active mem¬
bers shall be payable January 1, March 1, May 1, July 1, Septem¬
ber 1 and November 1, on the following basis:” and actually what
this means is that if passed, this amendment will cause you to
send in the same sized checks you have been sending in to the
NAB office but you are going to send them in oftener; instead
of sending them in four times a year, you will send them in six
times a year. In other words, your dues will be increased SO
per cent.
None of us likes to dig down into our pockets and increase our
expenses. I don’t like to do it any more than you do. If this
Association is successful in accomplishing the projects already laid
out and approved by you and if we do a decent job of it, it will
cost more than we can get from our present dues unless we con¬
tinue to have special assessments as we have been doing. For
one, I don’t like special assessments. They throw my budget out.
Special assessments are not very happy with the majority of
people and we don’t have complete representative payments. In
other words, a relatively small number of men carry the special
assessments. All of us ought to pay the bill. I am sure all of
us want to.
A year ago we entered our fiscal year with just a few dollars
balance in the treasury. Do you remember that? We just had
a few dollars. That was no reflection on the management of
the Association. It simply meant that our dues were not great
enough even with our large membership, to take care of our ex¬
penses and leave a reasonable reserve.
This year we have a larger balance but remember that we have
had a special assessment. Were it not for that special assessment,
we wouldn’t have a substantial balance.
If this Association is to go forward and do what we as mem¬
bers want it to do, it has to do a job for us and that job is going
to cost money.
I figure that the increase in dues is an investment which will
pay great returns to me. I am heartily in favor of the amendment
to increase our dues SO per cent and I hope that all of you will
vote for it.
CHAIRMAN HEDGES: I would like advice from the floor
as to how you wish to vote on the proposed amendment. Do you
wish to handle this by ballot, which will require the same process
as for President, or do you wish a viva voce vote?
MR. CARPENTER: Mr. Chairman, it seems to me that this
amendment is sufficiently important and affects all of our pocket-
books to such an extent that we shouldn’t run the danger of some¬
body saying it was not voted on properly. There seem to be two
objections to a rising vote or a show of hands. First, there are a
number of men here from the same stations which might make
that vote not truly representative and, second, on account of the
confusion which we seem to be unable to overcome, some of them
may not be able to know what they are voting on.
However, in order to bring the point to focus, I move that
we vote on this amendment in the same way that we are voting
on officers.
CHAIRMAN HEDGES: And may I also suggest that it be
done at the same time as you vote for Directors.
MR. CARPENTER: I’ll accept that amendment.
CHAIRMAN HEDGES: Is there a second?
MR. GEDGE: Seconded.
CHAIRMAN HEDGES: Is there any further discussion?
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: The motion has carried and the voting
will be by ballot and will be done at the same time you vote
for Directors.
I will now call for the report of the Elections Committee.
WARREN WILLIAMSON, JR. (Chairman, Elections Commit¬
tee; WKBN, Youngstown, Ohio): There were 183 votes cast, of
which four were void:
Myers 107
Craig 72 (Applause)
CHAIRMAN HEDGES: Mr. Myers is drafted.
MR. HUBBARD: I make a motion that it be unanimous.
MR. BUTCHER: Seconded.
CHAIRMAN HEDGES: There will be no discussion. I will
call for a rising vote.
(The motion was put to a rising vote, and was carried.) (Ap¬
plause)
CHAIRMAN HEDGES: The election of Mr. Myers is now de¬
clared unanimous.
Mr. MYERS: Ladies and gentlemen, I want to say I had fully
expected to step to this microphone and congratulate Ed Craig
whom I admire and respect and who, I assure you, would have
made you a better President, no matter how hard I try, but I
will try.
I thank you.
CHAIRMAN HEDGES: We will proceed immediately with the
election of Directors.
You have six candidates for the offices of Directors for the
three-year term. Are there any further nominations? In the
absence of any further nominations, I declare the nominations
closed.
The six nominees are:
Edward A. Allen Arthur B. Church John F. Patt
H. K. Carpenter Eugene P. O’Fallon L. B. Wilson.
1565
Five of the six will be elected for the three-year term. There
will be no election for the two-year term inasmuch as Mr. Craig
will remain on the Board and there is no additional vacancy on
the Board for the two-year term.
You can vote for any number of directors you desire up to
five and the five receiving the highest votes will be elected. If it
has the consent of this body, I would like to receive a motion to
that effect.
MR. SHUTZ: I make a motion to that effect.
MR. WILLIAMSON: Seconded.
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: We will proceed with the roll call.
You will put on your ballot the names of those Directors whom
you desire to elect and you will write “yes” or “no,” referring
to the amendment which has been offered to increase the dues
SO per cent.
My attention has been called to the fact that it is possible
that some candidate for Director, although being higher than the
lowest candidate, may not have a majority and in that case it will
be necessary to re-ballot for the candidates who have not received
a majority. Those who have received a majority will be elected.
(Roll call casting of ballots.)
CHAIRMAN HEDGES: In order to expedite the counting of
the ballots, we are expanding the Elections Committee to include
Lambdin Kay and Mr. Bliss. Arthur, will you serve? And
Holliway, will you serve?
Are there any other stations that have not cast their ballot?
We are going to close the ballot box in two shakes of a lamb’s
tail. The ballot box is now closed. The Elections Committee
will count the ballots.
Now, while the Elections Committee is counting the ballots —
incidentally, I have substituted Mr. Thompson for Mr. Bliss as
an assistant to the committee — we will take up the amendments
which have been submitted.
(Announcements.)
CHAIRMAN HEDGES: I will recognize Mr. Butcher.
MR. BUTCHER: Mr. Chairman, we have two additional amend¬
ments to consider but owing to the lateness of time and the fact
that most of the delegates have gone, I think it would be well to
postpone the action on these two amendments until the next
convention.
One amendment relates to the selection of Directors according
to zones as prescribed by the Davis Amendment. The Davis
Amendment has now been abolished by Congress so I think the
whole question of voting on that should be left open to further
study.
The other amendment is relative to the S per cent allocation of
time for non-profit groups. I think that should also be left for
further study.
Therefore, I move that the action on both these resolutions be
postponed until the next convention, and that the resolution relat¬
ing to the election of Directors be considered at the next conven¬
tion but not be effective until the convention after the next, in
other words, two years hence.
MR. LOUNSBERRY: Seconded.
(The motion was put to vote, and was carried.)
CHAIRMAN HEDGES: Now, there are a few announcements.
I have here a document that would take about an hour and a
half to read but I am not going to read it. I am simply going
to say that it is a very cordial invitation from Kansas City to
hold the next convention in that city. I don’t know what months
they suggest. ^Laughter)
I have also here a document that would take about two and a
half hours to read but I am not going to read it. It is a cordial
invitation from the city of Baltimore to hold our 1937 convention
in that city. The month is not mentioned.
All of these invitations from the various cities will accordingly
be referred to the Board of Directors who make the decision as
to the city and likewise as to the month and the days when the
convention will be held.
We have likewise an invitation from the city of Cleveland,
submitted by the Cleveland broadcasters.
San Antonio has likewise submitted an invitation.
St. Paul likewise submitted an invitation.
The Governor of Texas would like to have us hold the next
convention any place in Texas.
The Mayor of Los Angeles would welcome the Association for
a convention there.
The city of St. Petersburg would like to have the 1937 con¬
vention there.
(Announcements.)
CHAIRMAN HEDGES: At our next convention, Mr. Church
will probably offer an amendment to the Constitution which
would require the election of the outgoing President to the direc¬
torate. I think I can say without being accused of prejudice that
that is a very good thing to do. I believe we have wasted a
lot of valuable experience and education by having our Ex-Presi¬
dents go off the Board of Directors. In every case I know of
when that has happened, we have lost a very valuable man who
has devoted a great deal of time to the welfare of the industry,
who has worked hard and conscientiously, and then he is dropped
and relegated to the role of a has-been. I don’t believe the Asso¬
ciation is profiting at all by failing to take advantage of the experi¬
ence which has been accumulated in one year of intensive effort as
President of this Association.
I think such an amendment would be adopted unanimously and
I believe it should be an amendment so it would be mandatory
upon the body to continue the outgoing President as a member
of the Board of Directors.
This year I am going off the Board of Directors and it is high
time. I think I have been a member of the Board of Directors
longer than any other broadcaster. I think I have served three
terms as Director and two terms as President and that is a long
time.
(Announcements.)
CHAIRMAN HEDGES: The convention will now come to order
and hear the report of the Elections Committee.
MR. WILLIAMSON: In the tabulation of ballots, there were
111 ballots cast:
O’Fallon 92
Wilson 90
Allen 89
Church 87
Patt 60
Carpenter 59
That means, of course, that the first five names were elected as
Directors for the three-year term: O’Fallon, Wilson, Allen, Church
and Patt.
With respect to the increase in dues, the vote was: 55 in favor
and 46 against.
CHAIRMAN HEDGES: The increase must be approved, as any
amendment must be approved, by a two-thirds vote of the quali¬
fied members present at any meeting. Did I understand you to say
that 111 ballots were cast?
MR. WILLIAMSON: Yes.
CHAIRMAN HEDGES: That would mean that an affirmative
vote of 74 would be required so that amendment is lost.
MR. HUBBARD: I move that the Secretary send out a mail
ballot on the dues.
(The motion was not seconded.)
CHAIRMAN HEDGES: Our increase in income this year will
have to come in the nature of special assessments, because our
By-Laws provide: “These By-Laws may be amended by a vote of
two-thirds of the active members in good standing present or duly
represented, at any duly called meeting, provided that notice of
such proposed amendment or amendments shall have been mailed
to each member in good standing at least fifteen days prior to the
date of the meeting at which such proposed amendment or amend¬
ments are to be considered.”
Those requirements were complied with in this particular case
and the members who favored it should have made certain that
they had mustered enough votes to put it across.
It is obvious that some of the work that has been outlined by
the Association will necessitate special assessments.
Now that we have the final report of the Elections Committee,
I would like to ask the following gentlemen to come up here
to be installed as Officers and Directors of the Association:
President — C. W. Myers
First Vice President — John Elmer
Second Vice President — Gardner Cowles, Jr.
Treasurer — Harold Hough
Directors for three-year term — Edward A. Allen, Arthur B.
Church, Eugene P. O’Fallon, John F. Patt, L. B. Wilson.
Director for two-year term — Frank M. Russell
The ceremony of installation of officers of NAB is an extremely
simple one. Each of you know the men who are here on the plat¬
form. You have expressed your confidence in them by your vote,
particularly your confidence in the man who heads the adminis-
1566
tration of the NAB, and without further ado, I turn the chair over
to my good friend Chuck Myers. (Applause)
(President Myers took the chair.) (Applause)
CHAIRMAN MYERS: Ladies and gentlemen, the speech of
acceptance will be very brief. You will probably hear altogether
too much in the next year. (Laughter)
All I can say is that I am willing to do my best to carry on the
good work which is already under way under the previous admin¬
istration. The most serious problems have been solved. There
isn’t anything particularly vital at this time. We are going ahead
in every way that we can and try to complete some of the projects
which the previous administration has worked out, especially by
the Board of Directors, not only this past year but previous years —
I could name over some of them but you all know them better
than I do.
I just want to take the time right now to introduce my team.
First Vice President John Elmer. (Applause)
(Mr. Elmer arose and acknowledged the applause.)
CHAIRMAN MYERS: Is Gardner Cowles here? You all know
Gardner Cowles of Des Moines, our Second Vice President, who
is not here.
Is Harold Hough, our Treasurer, here? He’s gone, too.
And now, the Directors. Edward A. Allen — he put me on his
ticket. (Applause)
(Mr. Allen arose and acknowledged the applause.)
CHAIRMAN MYERS: Arthur Church, my campaign manager.
(Applause)
(Mr. Church arose and acknowledged the applause.)
CHAIRMAN MYERS: How did I skip over to Arthur? You
all know Mr. Wilson. (Applause)
L. B. WILSON (WCKY, Covington, Kentucky): I don’t have
to stand up; I’m the same size. (Laughter and applause)
CHAIRMAN MYERS: Gene O’Fallon — who had the most votes
— the wild Irishman from Denver. (Applause)
(Mr. O’Fallon arose and acknowledged the applause.)
CHAIRMAN MYERS: And Mr. Patt of Mr. Fitzpatrick’s or¬
ganization, our previous President, and I am sure you will be able
to help us a lot with Leo’s ideas. (Applause)
(Mr. Patt arose and acknowledged the applause.)
CHAIRMAN MYERS: Mr. Russell. (Applause)
(Mr. Russell arose and acknowledged the applause.)
CHAIRMAN MYERS: Is there anything further to come before
this meeting before we adjourn?
(Announcements.)
MR. CRANEY: I move we adjourn.
MR. HOLLIWAY : Seconded.
(The meeting adjourned at 3:30 o’clock.)
Adjournment sine die
1567
t.' 3
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright, 1936. Th« National Association ot Broadcasters
Vol. 4 - - No. 48
SEPT. 24, 1936
IN THIS ISSUE
Page
NAB Board Meets October 2 . 1569
Appearances and Suggestions Filed with FCC for October 5
Hearing . 1569
FCC Authorizes Eight New Stations . 1570
Committees Named . 1571
Securities Act Registrations . 1571
Recommends New Michigan Station . 1571
Line Charge Reductions Reduce Broadcast Bill by $250,000 1571
Federal Trade Commission Action . 1573
FTC Closes Case . 1576
Federal Communications Commission Action . 1576
NAB BOARD MEETS OCTOBER 2
President Myers has called a meeting of the Board of Directors
of the NAB for October 2 at the Mav flower Hotel, Washington,
D. C.
APPEARANCES AND SUGGESTIONS FILED
WITH FCC FOR OCTOBER 5 HEARING
More than thirty persons have filed appearances with the Fed¬
eral Communications Commission representing many of the broad¬
casting stations of the country in connection with the October 5
allocation hearing. In many instances recommendations and sug¬
gestions were filed with the appearances. They are as follows:
Ben S. Fisher has filed an appearance for KEX, The Oregonian
Publishing Company; KJR, Fisher’s Blend Station, Inc.; KSL,
Radio Service Corporation of Utah; KWKH, International Broad¬
casting Corporation; and KFVD, Standard Broadcasting Com¬
pany. In connection with these appearances, Mr. Fisher says: “A
witness will appear on behalf of each of these licensees who will
testify to matters pertaining to the use of clear channels, their
service areas and matters pertaining to Rules and Regulations
governing clear channels.”
John C. Kendall and Ben S. Fisher have filed appearances on
behalf of KGW, Oregonian Publishing Company; KHQ and KGA,
Louis Wasmer; KVI, Puget Sound Broadcasting Company. In
connection with these appearances it is stated that: “A witness
will appear on behalf of each of these licensees who will testify to
matters pertaining to the use of regional facilities and matters
pertaining to Rules and Regulations for the governing of regional
frequencies.”
Mr. Fisher has also entered appearances for the following:
KFXM, Lee Brothers Broadcasting Co.; KGFG, Oklahoma Broad¬
casting Co.; KGFJ, Ben S. McGlashan; KIT, Carl E. Haymond;
KGFW, Central Nebraska Broadcasting Corporation ; KSLM, Ore¬
gon Radio, Inc.; KXL, KXL Broadcasters; WSGN, Birmingham
News Company; KRNR, Roseburg News-Review; KELD. T. H.
Barton; KORE, Frank L. Hill & C. G. Phillips, d/b as Eugene
Broadcasting Station; WLBC, Donald A. Burton; WJBC, Kaskas-
kia Broadcasting Company; WCBS, WCBS, Incorporated; WCMI,
The Ashland Broadcasting Company; and WSOC, WSOC, Incor¬
porated. In connection with these stations Mr. Fisher states that:
“A witness will appear on behalf of each of these licensees who will
testify to matters pertaining to the use of local frequencies and
facilities and matters pertaining to the Rules and Regulations for
the governing of local frequencies and stations.”
Mr. Fisher will also represent the following: KFOX, Nichols &
Warinner, Inc.; KFWB, Warner Brothers Broadcasting Corpora¬
tion; KIEM, Redwood Broadcasting Company, Inc.; KMED,
Mrs. W. J. Virgin; KOMO, Fisher’s Blend Station, Inc.; KPRC,
Houston Printing Company; KRKD, Radio Broadcasters, Inc.;
KTBS, Tri-State Broadcasting System, Inc.; KTRH, KTRH
KXYZ, Harris County Broadcast Company; KGMB, Honolulu
Broadcasting Company; KVOD. Colorado Radio Corporation;
Broadcasting Company, Ltd.; WCOP, Massachusetts Broadcasting
Corp. ; WELI, City Broadcasting Corp.; WNBC, State Broadcast¬
ing Corp.; WPHR, WLBG, Inc.; KARK, Arkansas Radio & Equip¬
ment Co.; KLS, Warner Brothers; KOOS, H. H. Hanseth, Inc.;
WORC, Alfred Frank Kleindienst, and WTFI, Liberty Broadcast¬
ing Co.
In regard to these stations Mr. Fisher says that: “A witness will
appear on behalf of each of these licensees who will testify to
matters pertaining to the use of regional facilities and stations and
all matters pertaining to Rules and Regulations for the governing
of regional frequencies.”
George O. Sutton has filed appearances on behalf of the follow¬
ing stations: KWTO, Springfield, Mo; KGBX, Springfield, Mo.;
KFRU, Columbia, Mo.; KCMO, Kansas City, Mo.; WEEU,
Reading, Pa.; WRAW, Reading, Pa.; WCHS, Charleston, W. Va.;
WSAZ, Huntington, W. Va.; WLVA, Lynchburg, Va. ; WMBG,
Richmond, Va.; WJAS, Pittsburg, Pa.; KQV, Pittsburgh, Pa.;
WTMV, East St. Louis, Ill.; WlXBS, Waterbury, Conn.; WDGY,
Minneapolis, Minn.; WDNC, Durham, N. C.; WHJB, Greensburg,
Pa.; WTOC, Savannah, Ga.; Mason Dixon Radio Group, Inc.,
operators of Stations WDEL, Wilmington, Del.; WILM, Wilming¬
ton, Del.; WEST, Easton, Pa.; WAZL, Hazelton, Pa.; WORK,
York, Pa.; and WGAL, Lancaster, Pa.
In a communication to the Commission Mr. Sutton states on
behalf of these stations that it is not contemplated that more than
two witnesses will appear.
Paul D. P. Spearman has filed appearance on behalf of the
National Association of Regional Broadcast Stations. He states
that the Association will have between two and four witnesses.
In filing the appearance Mr. Spearman submitted to the Com¬
mission on behalf of the Association a proposed draft of two sets
of amendments to the Commissions Rules and Regulations, one of
which would permit regional broadcast stations to ODerate with
5 KW power at night and the other would permit the simultaneous
operation of more than one broadcast station on the frequencies
commonly referred to as clear channels. The Association, Mr.
Spearman says, favors a retention of the present limit of 50 KW
power for broadcast stations operating on clear channels and
therefore offers no draft of an amendment in this respect.
Following is the proposed draft of amendments to Rules and
Regulations submitted by Mr. Spearman:
I.
Amendments with Respect to Clear Channel Frequencies
A. Amend paragraph 116 of the Rules and Regulations of the
Commission so as to read as follows:
“116. The following frequencies are designated as high-power
channels.”
and follow with a list of the frequencies now set out in Rule 116
leaving out reference to zones.
B. Amend paragraph 117 of said Rules and Regulations so that
said paragraph when amended will read as follows:
“117. The authorized power of a high-power channel station
shall not be less than 5 kilowatts nor more than 50 kilowatts.”
C. Delete paragraph 118 of said Rules and Regulations.
D. Delete paragraph (a) of classification A as set out in Rule
109 of said Rules and Regulations.
E. Amend paragraph 72 of said Rules and Regulations so as to
read as follows:
“72. The term ‘high-power channel station’ means a station
licensed to operate on a frequency designated as a high-power
channel.”
II.
Amendments Proposed Affecting Regional Stations
A. Amend the last paragraph of Section 120 of the Commission’s
Rules and Regulations (referring to that portion of said rule imme-
1569
diately following the list of frequencies therein set out), so that
as amended the last paragraph of said Rule 120 will read as follows:
“That operating power of such a station shall not be less
than 250 watts, nor during nighttime or daytime greater than
5,000 watts.”
B. Amend paragraph 123 of the Rules and Regulations so as to
delete therefrom all that portion thereof which follows the listing
of frequencies in said paragraph.
Note: The purposes of the amendment proposed to Paragraph
120 of the Rules and Regulations are (1) to authorize the operation
of regional stations with not more than 5,000 watts power both
day and night, and (2) to delete the reference in Paragraph 120
oi the present rules to Canadian shared frequencies.
The purpose in proposing the amendment to Rule 123 is to delete
the present provision in Paragraph 123 which precludes the opera¬
tion of regional stations located less than 500 miles from the Cana¬
dian border with more than 250 watts power at night and precludes
their operating with more than 500 watts during daytime. The
proposed amendment would not prevent the operation of regional
stations operating on Canadian shared frequencies with the mini¬
mum powers which they are now held to.
Paul M. Segal states that WOW “Woodmen of the World Life
Insurance Association desires to be heard upon the subject of
methods of computing the power of radio broadcasting stations.”
Mr. Segal also says that “a joint presentation will be made at
the hearing on behalf of KOIN, Inc., WAVE, Inc., The Congress
Square Hotel Company (WCSH) and WDAY, Inc. This presenta¬
tion will relate to the question of so-called horizontal power in¬
creases on certain of the frequencies assigned for the use of regional
stations.”
Horace L. Lohnes has filed an appearance on behalf of Westing-
house Electric & Manufacturing Company stating that three wit¬
nesses will appear.
Louis G. Caldwell has notified the Commission that Earle C.
Anthony, Inc., owner and licensee of broadcast station KECA will
have one witness.
Reed T. Rollo has notified the Commission that Dr. Herbert L.
Wilson, consulting engineer for WBNX, requests an opportunity
to appear and testify at the hearing. He desires to present testi¬
mony regarding broadcast conditions in and about New York City.
Bond Geddes, Secretary of the Radio Manufacturers Association,
has filed intention to appear stating that the Association will be
represented by James M. Skinner of Philadelphia, Chairman of the
Special Allocation Committee, and L. C. F. Horle of New York,
representing the Engineering Committee. The representatives
desire to present data in connection with the general problems
schedules for the hearing and in particular in Section 2 of the
agenda, paragraph (e) “Practicable standards of receiver selec¬
tivity,” and paragraph (f) “Practicable standards of receiver
fidelity.”
Louis G. Caldwell has also notified the Commission that the
Clear Channel Group wishes to present testimony. This group is
composed of the owners and licensees of the following independ¬
ently owned and operated clear channel broadcast stations: KFI,
WBAP, WFAA, WGN, WHAM, WHAS, WHO, WLS, WLW,
WOAI, WSB, WSM, and WWL.
Edgar H. Felix has also asked to be heard to present matter
dealing with paragraphs 5 and 7 of Section I and paragraphs 6 and
7 of Section II of the agenda. In connection with his application,
Mr. Felix says: “The data to be submitted is a summary of ap¬
proximately 100,000 field intensity measurements in approximately
20 states which show the type of service rendered under the present
allocation system to cities and communities of every class. These
measurements have been collected as the foundation for Radio
Coverage Reports used by leading advertising agencies in the
selection of radio stations.”
Melvin D. Hildreth, counsel for WORL, Boston, has filed ap¬
pearance for that station. He states that he probably will not
make any statement but will participate as an observer.
Littlepage and Littlepage has filed an apperance on behalf of
Hearst Radio, Inc., who desires “To introduce testimony on the
engineering matters to be considered as well as certain testimony
with respect to social and economic questions involved.”
Duke M. Patrick filed appearance on behalf of the Columbia
Broadcasting System, Inc. He slates that the testimony will be
offered by five witnesses.
Horace L. Lohnes, Ben S. Fisher and John Kendall have notified
the Commission “on behalf of a number of stations occupying
part-time assignments on clear channels of their desire to appear
and testify.” The notice states that not more than two witnesses
will speak for this group of interested stations.
James W. Baldwin, Managing Director of the National Asso¬
ciation of Broadcasters, notified the Commission of its intention
to appear. He states that the Association will be represented “by
C. W. Myers, President, and James W. Baldwin, Managing Di¬
rector.
Frank D. Scott has filed appearance on behalf of the following:
Buffalo Broadcasting Corporation, Midland Broadcasting Com¬
pany, First National Television, Inc., McClatchy Broadcasting
Company and WNAX Broadcasting Company.
Duke M. Patrick also filed appearance for the Crosley Radio
Corporation stating that four witnesses will appear.
P. J. Hennessey, Jr., filed appearance on behalf of the National
Broadcasting Company, Inc., stating that it will be represented
by four witnesses.
Mr. Patrick also filed an appearance for WTIC, Travelers
Broadcasting Service Corporation stating that two witnesses will
appear.
Edward A. Allen, President of the National Independent Broad¬
casters “a group of more than 100 low powered stations with
principal offices in Lynchburg, Virginia, wishes to appear.” He
states that the Association will be represented either by counsel or
some officer of the Association with not more than two witnesses.
John V. L. Hogan, President, Interstate Broadcasting Com¬
pany, has also asked to be heard.
William B. Way, General Manager, Lawrence W. Stinson, in
charge of technical operation, and David R Milsten, counsel for
station KVOO, filed appearances.
R. C. Higgy, Director of WOSU, Ohio State University broad¬
casting station, has filed appearance, stating that the University
desires to present information to the Commission “which it be¬
lieves will be of value in making assignments to state owned and
operated radio stations.”
Glen Litten, Manager of KFSD, San Diego, California, filed
an appearance.
R. Morris Pierce, Chief Engineer of WGAR, Cleveland, filed
an appearance on behalf of himself and Prof. John F. Byrne of
Ohio State University, both of whom will appear for WGAR.
S. Howard Evans filed an application for appearance on be¬
half of the National Committee on Education by Radio.
Frank B. Falknor, Chief Engineer of WBBM, Chicago, asked
for appearance of four witnesses.
Harold A. LaFount has asked for an opportunity to address
the Commission without stating whom he represents.
Harold P Westman, Secretary of the Institute of Radio Engi¬
neers, asked for time for one witness.
Garland Powell, Director of WRUF, Gainesville, Florida, states
that he wants to set forth “the broadcasting conditions of Florida
and why this state should be more or less an exception to the
rule of the allotment of facilities. It is likewise our intention to
show the great public service rendered by this station to the
people of Florida and to the various Governmental agencies with
whom we are cooperating at all times to give better and more
efficient service to the people of the Nation.”
E. N. Nockels, General Manager of WCFL-W9XAA and Sec¬
retary of Chicago Federation of Labor, filed an appearance.
FCC AUTHORIZES EIGHT NEW STATIONS
The Broadcast Division of the Federal Communications Com¬
mission at its meeting this week authorized the construction of
six new broadcast stations as follows:
Authorized A. Staneart Graham, E. V. Baxter and Norman
Baxter, d/b Pittsburgh Broadcasting Company, Pittsburgh, Kans.,
to construct a new station to operate on 790 kilocycles, 1,000
watts daytime.
Authorized the Star-Chronicle Publishing Company, St. Louis,
Mo., to construct a new station to operate on 1250 kilocycles,
1,000 watts power unlimited time.
Authorized the Sioux Falls Broadcast Association, Inc., Sioux
Falls, S. D., to construct a new station to operate on 1200 kilo¬
cycles, 100 watts power, unlimited time.
Authorized the Black River Valley Broadcasts, Inc., Water-
town, N. Y., to construct a new station to operate on 1420 kilo¬
cycles, 100 watts night and 250 watts LS unlimited time.
Authorized Harold Johnson and Leland M. Perry, d/b as John¬
son and Perry, Cedar City, Utah, to construct a new station to
use 1310 kilocycles, 100 watts and unlimited time.
Authorized Hammond-Calumet Broadcasting Corporation,
Hammond, Ind., to construct new station using 1480 kilocycles,
5,000 watts and daytime operation.
Authorized R. J. Laubengayer, Salina, Kans., to construct new
station using 1500 kilocycles, 100 watts power, unlimited time.
1570
Authorized Tribune Printing Company, Jefferson City, Mo., to
construct new station using 1310 kilocycles, 100 watts power day¬
time operation.
The Commission also authorized the Portland, Me., Broad¬
casting System, Inc., to proceed with the construction of a new
station to operate on 640 kilocycles, 500 watts limited to KFI sub¬
ject to whatever action the U. S. Court of Appeals for D. C. may
take upon pending appeals of Congress Square Hotel Company
and the Eastland Company. This action follows the dismissal
of the appeal of the Palmer Broadcasting Syndicate and dissolu¬
tion of its stay order.
COMMITTEES NAMED
President Myers has authorized announcement of the personnel
of the Commercial Committee and the Committee of Five as fol¬
lows:
Commercial Section
H. K. Carpenter, WHK, Cleveland, Ohio, Chairman.
Committee on Radio Research
Arthur B. Church, KMBC, Kansas City, Missouri; Chairman;
Roy Witmer, NBC, New York, N. Y.; H. K. Boice, CBS, New
York, N. Y. ; Theodore C. Streibert, WOR, New York, N. Y.;
J. O. Maland, WHO, Des Moines, Iowa; John Elmer, WCBM,
Baltimore, Maryland; William J. Scripps, WWJ, Detroit,
Michigan.
Committee on Radio Promotion
John J. Gillin, Jr., WOW, Omaha, Nebraska, Chairman; Gard¬
ner Cowles, Jr., KSO-WMT-KRNT, Des Moines, Iowa; John E.
Fetzer, WKZO, Kalamazoo, Michigan; Harrison Holliway, KFI-
KECA, Los Angeles, California ; Donald Withycomb, WFIL,
Philadelphia, Pennsylvania; Don Searle, WIBW, Topeka, Kan¬
sas; Edgar T. Bell, WKY, Oklahoma City, Oklahoma.
Committee on National Sales Methods and Costs
John F. Patt, WGAR, Cleveland, Ohio, Chairman; C. M. Ever¬
son, WHKC, Columbus, Ohio; J. H. Ryan, WSPD, Toledo, Ohio;
Edwin M. Spence, WBAL, Baltimore, Maryland; E. B. Craney,
KGIR, Butte, Montana; Dale Robertson, WIBX, Utica, New
York; Rev. James A. Wagner, WHBY, Green Bay, Wisconsin.
Committee on Standardization of Sales Forms
Martin B. Campbell, WFAA, Dallas, Texas, Chairman; Barry
Bingham, WHAS, Louisville, Kentucky; I. R. Lounsberry, WGR-
WKBW, Buffalo, N. Y.; William S. Hedges, NBC, New York,
N. Y. ; John J. Karol, CBS, New York, N. Y. ; Harry Stone, WSM,
Nashville, Tennessee; Earle J. Glade, KSL, Salt Lake City, Utah.
Division of Sales Managers
Buryi Lottridge, KFAB-KOIN, Lincoln, Nebraska, Chairman;
L. H. Avery, WGR, Buffalo, N. Y. ; Hale Bondurant, WHO, Des
Moines, Iowa; J. Leslie Fox, KMBC, Kansas City, Missouri;
H. M. Feltis, KOMO-KJR, Seattle, Washington; John W. New,
WTAR, Norfolk, Virginia; Edward A. Allen, WLVA, Lynchburg,
Virginia.
Committee of Five
Arthur B. Church, KMBC, Kansas City, Missouri, Chairman;
H. K. Boice, CBS, New York, N. Y.; Roy Witmer, NBC, New
York, N. Y. ; J. O. Maland, WHO, Des Moines, Iowa; James W.
Baldwin, Managing Director, National Association of Broadcast¬
ers, Washington, D. C.
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
K. Taylor Distilling Company, Inc., Frankfort, Ky. (2-2451,
Form A-l)
Barium Stainless Steel Corporation, Canton, Ohio (2-2452,
Form A-l)
Van Norman Machine Tool Company, Springfield, Mass. (2-
2453, Form A-2)
Williams Stores Company, New York City (2-2455, Form
A-l)
United Stockyards Corp., Chicago, Ill. (2-2456, Form A-l)
Doehler Die Casting Company, Toledo, Ohio (2-2457, Form
A-2)
Rochester Gas & Electric Corp., Rochester, N. Y. (2-2458,
Form A-2)
Hollywood Famous Pictures, Inc., Los Angeles, Cal. (2-2459,
Form A-l)
Mergraf Oil Products Corporation, Detroit, Mich. (2-2384,
Form A-l — refiling)
Maclou Corporation, Long Beach, Cal. (2-2460, Form A-l)
Willson Products, Inc., Reading, Pa. (2-2461, Form A-2)
Waverly Oil Works Company, Pittsburgh, Pa. (2-2462, Form
A-2)
Warren Refining & Chemical Company, Cleveland, Ohio (2-
2463, Form A-2)
Nu-Enamel Corporation, Chicago, Ill. (2-2465, Form A-l)
World Digest Association, Inc., New York City (2-2466, Form
A-l)
East Side Associates, Inc., New York City (2-2467, Form A-l)
Penn Electric Switch Company, Des Moines, Iowa (2-2468,
Form A-2)
Committee for John R. Adams bonds, New Orleans, La. (2-
2469, Form D-l)
Yumuri Jute Mills Company, Havana, Cuba (2-2470, Form
A-l)
Missouri Telephone Company, Columbia, Mo. (2-2471, Form
A-l)
Troxel Manufacturing Co., Elyria, Ohio (2-2472, Form A-2)
Detroit Harvester Company, Detroit, Mich. (2-2473, Form
A-2)
Motor Finance Corporation, Newark, N. J. (2-2474, Form A-2)
All Metal Products Company, Wyandotte, Mich. (2-2475, Form
A-2)
Western Auto Supply Company, Kansas City, Mo. (2-2476,
Form A-2)
RECOMMENDS NEW MICHIGAN STATION
The Saginaw Broadcasting Company applied to the Federal
Communications Commission for a construction permit for the
erection of a new station at Saginaw, Mich., to use 1200 kilo¬
cycles, 100 watts and 250 watts LS and specified hours of opera¬
tion. Also, Harold F. Gross and Edmund C. Shields applied to
the Commission to erect a station at the same place to use 950
kilocycles, 500 watts power and daytime operation.
Examiner Melvin H. Dalberg, in Report No. 1-289, recommends
that the application of Harold F. Gross and Edmund C. Shields
be denied but that the application of the Saginaw Broadcasting
Company be granted.
The Examiner found that there is need for additional radio
service at Saginaw. He states that the difficulty with the granting
of the application of Messrs. Gross and Shields “would be the
objectionable interference which it would cause to Station WWJ
at Detroit, as the actual separation in this case would be about
44 miles less than that recommended for the assignment requested,
which, according to the opinion of the Commission Engineer,
would cause objectionable interference to within the .5 millivolt
per meter contour of WWJ in the vicinity of Saginaw, and there¬
fore it is thought that the granting of this application would be
highly impractical.”
LINE CHARGE REDUCTIONS REDUCE BROAD¬
CAST BILL BY $250,000
The Telephone Division of the Federal Communications Com¬
mission announced the receipt by the Commission of a new sched¬
ule of the American Telephone and Telegraph Company, Long
Lines Department, governing the furnishing of program trans¬
mission channels used in connection with radio broadcasting.
Filed to become effective November 1, 1936, the new schedule
contains revisions and adjustments which, according to the state¬
ment of the telephone Company, will result in a saving of some
$250,000.00 per year to radio broadcast channel service customers.
The adjustments, although voluntarily filed by the telephone
company, follow closely, and in a large measure remedy the com¬
plaints concerning rate practices voiced by radio broadcast station
licensees in their responses to a questionnaire recently circulated
among them by the Commission in connection with its special
investigation and study of the American Telephone and Telegraph
Company. It should be understood, however, that the new sched¬
ule does not purport to effect a general reduction in rates.
The following are the principal changes proposed to be made
in rates and rate practices:
1. Computation of interexchange channel charges will be on the
basis of airline instead of the present circuit or route dis¬
tances.
1571
2. The connection charge for receiving programs at stations con¬
nected to Schedule A channels will be reduced from $4,000.00
per year to $175.00 per month.
3. The highest grade continuous service may be contracted for
on a monthly instead of an annual basis.
4. Amplifying equipment provided by the customer at his studio
may be used to interconnect channels.
5. All classes of channel facilities furnished by the company may
be interconnected. Previously, music programs could not be
fed from an inferior to a high grade channel.
6. Charges for reversal in direction of channels will be slightly
increased.
In addition to the foregoing, a number of other adjustments
in rates and practices of advantage to the customer have been in¬
cluded in the new schedule.
In connection with this proposed reduction in charges the tele¬
phone company filed the following letter and tariff memorandum
with the Commission:
“The Long Lines Department of this Company is filing a new
tariff with the Commission today, covering channels for program
transmission furnished chiefly in connection with radio broad¬
casting. The new tariff is numbered F.C.C. 198, effective No¬
vember 1, 1936, and cancels tariff F.C.C. 139.
“This Company has been furnishing channels for program trans¬
mission for a number of years. As the Commission knows, the
service had a small beginning and its growth has continued as
the number of broadcasting stations and the use of networks have
increased. During this period there have been many technical
developments and improvements in the plant and equipment used
in furnishing this service to meet the frequent changes in operating
requirements of the broadcasting industry. From time to time we
have also made a number of changes in our rates and practices
to meet changing conditions.
“For some time we have had in mind the desirability of a
complete review of our rates and practices for program trans¬
mission channels and since around the first of this year, have been
actively engaged in such a review. The principal purpose of
this review has been to liberalize our practices and modify our
rates so as better to meet the requirements of our customers.
Wherever possible we also wished to meet, through such modifica¬
tions, criticisms made from time to time either by our customers
(the chains) or proprietors of individual stations who in turn
received service from the principal chains and networks via our
facilities. We also desired to improve the administrative features
of the tariff covering these services.
“We believe the new tariff filed today accomplishes the purposes
above recited. For convenience I am attaching an explanatory
statement and table showing the principal changes in rates and
practices and I am listing below a few of the more outstanding
changes being made.
“1. Interexchange channels will be charged for on an air-line
basis of measurement instead of generally route line as at
present. The new rate for our high quality continuous
channels (Schedule A) will be $8.00 per air-line mile per
month which equates to slightly less than the present charge
($84.00 per route mile per year or the equivalent of $7.00
per mile per month), taking into account the fact that the
route line miles charged are, on the average, 20 per cent
more than air-line miles.
“2. The connection charge for receiving programs at stations
connected to Schedule A channels is reduced from $4,000
per year to $175 per month.
“3. The contractual arrangement with the customer for our
highest grade continuous service is changed from an annual
to a monthly basis.
“4. Amplifying equipment provided by the customer at his
studio may now be used to interconnect channels.
“5. Existing rules which do not permit interconnection of cer¬
tain classes of interexchange channels offered in the present
tariff have been eliminated ; all classes of line facilities offered
in the new tariff may now be interconnected.
“6. Charges for reversals of channels requested by the customer
have been increased based on our experience as to the labor
involved in such work.
“A substantial additional number of improvements in rates and
practices of advantage to the customer have been included.
“This revision of program transmission rates and practices is not
intended as a reduction in rates but the adjustments made result
in savings of some $250,000 per year to Long Lines’ customers.
In no instance is the bill now being paid by any existing customer
increased.
“We expect to recommend to the various Associated Bell Tele¬
phone Companies similar revisions in their tariffs covering these
services.”
Principal Changes Proposed for Program Transmission
Services by the American Telephone and
Telegraph Company
1. Proposed: All interexchange schedules are measured on an air¬
line mile basis.
Present: All interexchange schedules are measured on a route
mile basis except Schedule E (speech only channels) which
is now on an air-line mile basis.
Effect: Improvement in administration; reduction in charges
as to this item in average case; increase in certain cases as
to this item.
2. Proposed: Schedule A (high quality, continuous use) facili¬
ties are furnished on a monthly basis.
Present: Schedule A facilities are furnished on an annual basis.
Effect: Liberalization of practice.
3. Proposed: Schedule A Minus facilities are discontinued.
Present: Schedule A Minus facilities are furnished as an ex¬
tension of a Schedule A network to one additional station
through the use of the same grade of facilities as Schedule
A but with limited special operation and supervision.
Effect: Schedule no longer necessary under new tariff.
4. Proposed: The maximum charge for Schedule B facilities
(high quality, occasional use) for any month will not ex¬
ceed the Schedule A charges for similar items of service.
Present: Similar maximum charges are not in effect.
Effect: Reduction in charges in certain cases, liberalization of
practice.
5. Proposed: The maximum charge for Schedule D facilities
(medium quality, occasional use) shall not exceed the
Schedule C (medium quality, continuous use) charges for
similar items.
Present: Similar maximum charges are not in effect.
Effect: Reduction in charges in certain cases, liberalization of
practices.
6. Proposed: Charges for reversals of line facilities requested by
the customer are increased based on experience as to the
amount of labor required.
Present: Unit charge per route mile including restoral to nor¬
mal.
Effect: Increase in charges to customers requiring this service.
7. Proposed: All local channels are provided at Associated Com¬
pany local channel rates.
Present: Local channels are included in Schedules A and B.
Local channels in connection with Schedules C, D, and E
are furnished at Associated Company local channel rates.
Effect: Reduction in charges generally when Associated Com¬
panies file revised tariffs.
8. Proposed: Line facilities furnished under any schedule in the
tariff may be interconnected for transmission in both direc¬
tions.
Present: Schedule C and D line facilities when interconnected
with Schedule A or B facilities cannot be used to transmit
music inward to the Schedule A or B networks.
Effect: Liberalization of practice.
9. Proposed: First period of Schedule E is one hour at a rate
of $0.10 per air-line mile and each additional consecutive
15-minute period at $0,025 per air-line mile.
Present: First period of Schedule E is 15 minutes at a rate
of $0.10 per airline mile and each additional consecutive
15-minute period at $0.03 per air-line mile.
Effect: Reduction in charges and liberalization of practice.
10. Proposed: Customers may use their own amplifiers in their
studios between sections of interexchange channels.
Present: Tariff does not cover the use of the customer’s ampli¬
fiers.
Effect: Reduction in charges and liberalization of practice.
11. Proposed: In cases (generally short distances) where receiv¬
ing and transmitting connections are not required to effect
high quality transmission over Schedule A or B facilities
between stations, the channels may be furnished without
such connections.
Present: Transmitting and receiving connections (at a substan¬
tial charge) are furnished in all cases with Schedule A and
B facilities.
Effect: Reduction in charges and liberalization of practice.
1572
Principal Rate Changes Proposed for Program Trans
mission Services by the American Telephone
and Telegraph Company
I. Schedule A
Channel
Receiving Connection
Transmitting Connection
Channel Reversals
Switches
Proposed
Tariff F.C.C. No. 198
$8 per air-line miles per month (ratio of route
billing mileage to air-line mileage is 1.2 to 1).
$175 per month.
$80 per month.
$.04 per air-line mile including restoral to normal
(which experience shows more closely ap¬
proximates the labor involved).
$1.25 per switch (restoral to normal considered
another switch).
Present
Tariff F.C.C. No. 139
$84 per route mile per year.
$4000 per year.
$1000 per year.
$.023 per route mile, including restoral
to normal.
$2.50 per switch, including restoral to
normal.
II. Schedule A Minus Schedule discontinued.
Channel (Extensions from
Schedule A networks)
Connections
$72 per route mile per year.
$2000 per year.
III. Schedule B
Channel
Receiving Connection
Transmitting Connection
$.20 per air-line mile per hour. The Schedule A
charge will be the maximum charge. $.03
extra per air-line mile per hour for Morse
channel, if desired.
$80 per month plus $2.50 per hour of use. The
Schedule A charge will be the maximum
charge.
$80 per month.
$.40 to $.15 (latter rate effective after
155 hours' use) per route mile per hour
including Morse channel.
$100 for first two weeks and $100 for
each additional month plus $2.50
for each hour of use.
Same as receiving connection.
IV. Schedule C
Channel
$5.20 per air-line mile per month. $4.25 per
air-line mile for two weeks.
$5 per route mile per month. $4 per
route mile for two weeks.
Connections
Channel Reversals
Switches
Setting up Charge
V. Schedule D
Channel
Connections
Setting up Charge
VI. Schedule E
Channel
Connections
$60 per month or $50 for two weeks, when fur¬
nished. (Not required when customer fur¬
nishes own amplifiers.)
$75 per month, or $60 for two weeks
for connections in excess of two per
network.
$.025 per air-line mile, including restoral to
normal.
$.015 per route mile, including restoral
to normal.
$.60 per switch (restoral to normal considered
as another switch).
None.
$1.25 per switch including restoral to
normal.
$12.50 per exchange connected.
$.15 per air-line mile per hour. The Schedule C
charge will be the maximum charge.
$1.25 per hour with a minimum charge of $40
per month when furnished. The Schedule C
charge will be the maximum charge.
$.125 per route mile per hour.
$50 per month plus $1.25 per hour of
use for connections in excess of two
per network.
None.
$12.50 per exchange for first occasion.
$5 per exchange for each additional
occasion.
$.10 per air-line mile for the first hour.
$.025 per air-line mile for each additional con¬
secutive 15 minutes.
$.10 for first 15 minutes per air-line
mile.
$.03 per air-line mile for each addi¬
tional consecutive 15 minutes.
$1 per hour with a minimum charge of $25 per $50 per month and $1 per hour of oper-
month, when furnished. ation, or $25 per occasion, for con¬
nections in excess of two per network.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will be
given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2655. Allegedly engaged in a scheme that deceives the pur¬
chasing public and injures competitors, an eastern group of manu¬
facturers of and dealers in radio sets, tubes and appliances are
charged with unfair methods of competition in an amended and
supplemental complaint. Also included as respondents are six
corporations manufacturing and selling name plates and escutcheons
for use on radio sets.
Without authority or consent of the legal owners, the respond¬
ents, the amended and supplemental complaint charges, have
adopted for use on their radio sets the names, brands and symbols
of corporations and individuals well known and long established
in the radio and kindred industries. The complaint lists the fol¬
lowing names, brands and symbols as among those used by the
respondents on their radio sets and appliances:
Marconi, Marconi International, Marconi Radio Corpora¬
tion; Edison, Edison International, Edison-Bell, Edison with
1573
a representation of a bell; Edison Radio Stores, Inc.; Bell,
Beil with a representation of a bell; Victor, Victor Interna¬
tional; Majestic, Majestic International, Majestic Radio Cor¬
poration; Brunswick (Bronswick, a colorable imitation of the
name Brunswick); RCA and (RCI, RSA, colorable imitations of
the letters RCA) ; EB (a colorable imitation of the letters GE)
standing alone or stamped upon the representation of a bell.
According to the amended and supplemental complaint, the
practices of the respondents give to their products a salability they
would not otherwise have, give the respondents an advantage
over competitors who do not similarly misrepresent the origin of
their goods, and result in the appropriation of the reputation and
good will built up by competitors.
In December, 1935, the original complaint was issued in this
case against King Trading Corporation, 51 Vesey St., New York
City. In the amended and supplemental complaint, besides King
Trading Corporation, the other respondent manufacturers and
assemblers of radio products, and their officers, are: Royal Radio
Company, Inc., 168 Washington St.; Metro Manufacturing Com¬
pany, Inc., 142 Liberty St.; Metro Radio Corporation, 217 West
125th St.; Metro Sales Company, Inc., 122 Cypress St., and Pyra¬
mid Distributors, Inc., 125 Prince St., all of New York City, and
their officers, Murray Auerbach, Regina Gadol, George Levine,
A. M. Frank, Max Scafford, and David Morrison.
Dealers in radio products, and their officers, listed as respondents,
are: Harvard Radio Tube Testing Stations of Pennsylvania, Inc.,
208 North Broad St., Philadelphia, and Julius M. Schoenberg,
president; Ross Distributing Company, 2020 Chancellor St., Phila¬
delphia, and Larry B. Ross, president; Sun Radio and Service
Supply Corporation, 938 F St., and Emanuel Rosensweig, president,
(this respondent has entered into a stipulation with the Commis¬
sion to discontinue use of the word “Majestic,” either alone or with
the word “International,” on the radio sets it sells, in advertising
matter or in any manner to imply that its radio sets so marked
are manufactured by Grigsby-Grunow Company, when such is
not the fact) ; Schiller Brothers, Inc., 922 F St., and Louis S. Schil¬
ler, president; Peter Robbins, 940 F St., trading as Robbins Radio
Company and Ambassador Radio Company, and F. C. Scruggs,
636 H St., N. E., trading as Call Radio Company, all of Wash¬
ington, D. C.
The respondent corporations, and their officers, who are engaged
in the manufacture and sale of name plates and escutcheons for
use on the radio products sold by the other respondents, are: Metal
Etching Corporation, 1001 Essex St., Brooklyn, N. Y., and M.
Hermann, president; Etched Products Corporation, 3901 Queens
Blvd., Long Island City, N. Y., and Albert Nierenberg and Walter
H. Miller, officers; Electro Chemical and Engraving Company,
1100 Brook Ave., Bronx, New York City, and F. E. Switzer, N. L.
Jacobus, Robert Schlesinger, Julius Erdoes and L. S. South wick,
officers; Premier Metal Etching Company, 2103 44th Ave., Long
Island City, N. Y., and Herbert Pape, Carl J. Johnson, Ernest A.
Rottach and Hugo Lehrfeld, officers; Crowe Nameplate and
Manufacturing Company, 1749 Grace St., Chicago, and E. C.
Coolidge and I. Robinson Smith, officers; American Emblem Com¬
pany, 22 East 40th St., New York City, and Paul B. Williams,
Clarence S. C. Williams, James Eels, Fred B. King, and Edgar
Denton, Jr., all of Utica, N. Y., officers.
No. 2920. Unfair competition through use of a lottery scheme
to promote the sale of candy is alleged in a complaint issued against
Jerome C. C'laeys, trading as J. C. Claeys, 510 Leland Ave.,
South Bend, Ind.
According to the complaints, sales of the respondent’s candy to
the public are made by means of a push card, and whether a pur¬
chaser receives one or more bars of candy or a box of candy for
the price of 5 cents is determined wholly by lot or chance.
No. 2921. Selling ribbons and narrow fabrics in interstate
commerce, Samuel Steckenberg and Abraham M. Fynke,
trading as Colonial Ribbon Mills, 95 Madison Ave., New York
City, are named respondents in a complaint charging them with
unfair methods of competition through use of the word “Mills”
in their firm name.
The respondents are said to display their firm name conspicuously
on invoices, letterheads, and other business literature, and, the
complaint alleges, the word “Mills,” when so used, serves as a
representation to the buying public that the respondents own or
operate mills where their products are manufactured.
According to the complaint, the respondents do not own or
operate mills for the manufacture of ribbons and narrow fabrics,
nor are they manufacturers as the term is understood generally
by the trade and the purchasing public, but are engaged solely in
distributing and selling products made from raw materials by
others.
No. 2922. Charging unfair competition in the sale of silk and
rayon piece goods, a complaint has been issued against the Group
Sales Corporation, 215 W. 39th St., New York City.
This company is alleged to have sold products as “name goods,”
meaning materials of generally recognized merit and quality, made
and nationally advertised by manufacturing concerns of well estab¬
lished reputation, when in fact a substantial part of this mer¬
chandise consisted of material other than “name goods.” The
complaint also charges that a substantial portion of the respondent
company’s merchandise was not obtained direct from manufac¬
turers but from other jobbers and garment makers.
According to the complaint, material was advertised by the re¬
spondent company as new, up-to-the-minute, stylish, and season¬
able, when in fact a substantial part of it was composed of “sec¬
onds” or “left-overs” from garment manufacturers’ goods.
No. 2923. Unfair competition in the sale of felt caps is alleged
in complaint against M. & J. Becker, Inc., 2961 Atlantic Ave.,
Brooklyn, N. Y.
According to the complaint, baseball caps made from second-hand
or discarded felts were renovated by the respondent company or
others and refitted with new sweat bands and trimmings, then sold
to wholesalers for ultimate distribution to the public. These caps
are said to have had the appearance of caps which had never been
worn, and were not labeled so as to indicate that they were, in
fact, second-hand caps made over.
This practice is alleged to have had a tendency of deceiving
buyers into believing that in purchasing such caps they were ob¬
taining new and unused caps made from new felt.
No. 2924. Misrepresentation of the nature, merit and value of
cleaning fluids is alleged in a complaint issued against Joseph
Lewin, trading as Leev-No-Ring Chemical Co., 207 W. 1 7th,
New York City.
On labels and in advertising circulars and folders, the respondent
allegedly features the words “Leev-No-Ring” and makes repre¬
sentations having the tendency to cause purchasers to believe that
his products can be used safely and will remove all grease spots
instantly without injury to the most delicate fabrics, and that they
will not leave a ring in any instance.
The complaint charges that the respondent’s cleaning fluids, when
used on fabrics dyed with non-fast or fugitive dyes, do affect the
colors, causing them to run, and do leave rings.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 01447. A. T. Allen, 1318 W. Nora Ave., Spokane,
Wash., trading as A-l Remedies Company, stipulates that he will
cease advertising that his “A-l Remedy” is a competent treatment
for rheumatism, neuritis, sciatica, or arthritis, unless such repre¬
sentations are limited to the relief of pain resulting from the con¬
ditions referred to, and that permanent results may be expected
from the use of his preparation.
No. 01448. Health Products Corporation, 113 N. 13th St.,
Newark, N. J., engaged in the sale of a poultry medicine desig¬
nated “Clo-Trate,” will cease making claims that poultry needs
more vitamin A than is supplied by certain vegetables or that
the average poultry ration needs an addition of vitamin A, unless
such representations are limited to poultry raised in strict con¬
finement, semi-confinement or under seasonal, climatic or other
conditions that would prevent poultry from obtaining food con¬
taining a sufficient amount of vitamin A.
Other claims the respondent corporation will discontinue are
that its product is beneficial in treating colds, roup, bronchitis
and other poultry ailments, unless it is clearly represented that
the benefits claimed will obtain only when there is a sub-optimal
supply of vitamin A, and that the product will remain stable in
vitamin A in all types of feed for long periods of time. The re¬
spondent corporation also will stop representating, by use of photo¬
graphs, charts, or graphs, that the benefits indicated by the results
of experimental tests may be expected from use of the product,
unless in the tests the experimental groups and the control groups
are each fed a normal or average poultry ration.
No. 01451. Sharp and Dohme, Philadelphia, agrees that in
the sale of “Digitol” it will discontinue representing that the
product is an instrument of precision for the digitalization of pa¬
tients, that it is more free of inert matter than tincture of digitalis
U.S.P. X, and that with “Digitol” “you can standardize your digi¬
talis expectation.”
No. 01452. Whitney’s, Inc., 12th and G Sts., N. W., Wash¬
ington, D. C., agrees to discontinue describing the furs from
which its women’s coats and collars are made in any way other
1574
than by using the correct name of the fur as the last word of the
descriptive phrase in the advertising matter. The stipulation pro¬
vides that when any dye or blend is used in simulating another
fur, the true name of the fur appearing as the last word of the
description shall be preceded immediately by the word “dyed” or
“blended,” compounded with the name of the simulated fur. The
respondent also will stop use of any geographic term to describe a
fur, unless such fur comes from the region indicated.
No. 01453. George E. Hartley, P. 0. Box 152, Centralia,
Ill., engaged in the sale of a recipe alleged to constitute a cure
for appendicitis, will stop representing in advertising matter or
otherwise that his recipe constitutes an effective remedy for ap¬
pendicitis, that it will cure any case, that it is guaranteed to give
satisfaction, and that the regular price is $1, or that an offer to
sell it for 23 cents is a “special offer.”
No. 01454. Foley & Company, 945 W. George St., Chicago,
agrees to cease and desist from representing that “Foley’s Rectal
Salve” is a “new prescription that “almost instantly” stops pain
and soreness; that it prevents infection and restores vigor and
health, and that relief is guaranteed. As to “Foley’s Honey and
Tar Cough Syrup,” the company will stop advertising that the
product can be safely relied upon for “quickest results”; that it
stops coughs and helps correct the cause of coughs, insures sleep
free from coughing, and “works double quick.”
No. 01455. W. M. and J. H. Roth, W. University Ave.,
lies Moines, Iowa, trading as the Norma-Lite Company, entered
into a stipulation to cease representations that their medicinal pre¬
paration designated “Norma-Lite” is a natural method of reducing
weight or that it improves or restores nature’s method of reducing
weight ; that it is safe and contains no harmful drugs ; that it is
the most reliable remedy in America for obesity, that physicians
prescribe it generally for use in reducing weight or that it acts
as a doctor would prescribe in every case, and that it contains 7
valuable elements or any ingredients in addition to boric acid
and thyroid extract desiccated.
No. 01457. Herman White, trading as White Company,
Northampton, Mass., selling a folio of instructions for obtaining
employment in the mailing and addressing of circulars for mail
order houses, stipulates that he will stop representing, by placing
advertisements in the “Help Wanted” columns of newspapers or
magazines that he has employment to offer; that details of his plan
will be furnished for a price less rhan that actually charged; that
prospective purchasers can earn amounts in excess of the average
amounts earned by former purchasers of his folio ; that any mail
order heuses are paying people each week for mailing circulars,
or that a mail order house wants persons to do addressing and
mailing of literature, unless this is a fact.
No. 01458. Santo Ceribelli, 121 Varick St., New York City,
trading as G. Ceribelli & Co. and selling a preparation designated
“Brioschi,” will discontinue claims that the product corrects any
condition of the stomach, restores a normal alkaline condition, is
a remedy for stomach acid or indigestion, and prevents colds.
Among the other representations that will be stopped are that the
preparation is manufactured in Italy and that by its use foods can
be eaten with the user suffering any stomach ailment. Ceribelli
admitted that the therapeutic value of his product is limited to
its anti-acid effect in relieving temporary conditions of the stomach
due to hvperaciditv.
No. 01459. R. M. McLain, D. C., 151 3 14 Park St., Alameda,
Calif., in the sale of “Dr. McLain’s Vitamin Food,” agrees to stop
representing that his product can be depended upon to prevent,
or is an effective remedy for, any of the 260 diseases and physical,
nervous and mental conditions specified in his advertising matter.
Other representations he will discontinue are that one cannot get
the necessary vitamins from the ordinary diet and that users of
his product are giving the body that which it needs; that his
product strengthens the digestive system and raises the blood pres¬
sure; that it is a nerve builder, and that its addition to the diet
constitutes a competent treatment for improperly functioning
glands.
No. 1747. International Cellucotton Products Company,
919 North Michigan Ave., Chicago, agrees to cease making the
claim in advertising matter that its “Kleenex” disposable tissue
handkerchief imprisons 99 per cent of the germs that touch it, or
any other exaggerated representation in reference to the germ¬
collecting or germ-retaining properties of the product. Other
practices that will be discontinued are disparagement of cotton or
linen handkerchiefs, and representations concerning such hand¬
kerchiefs which may be misleading to the purchasing public;
claims that use of “Kleenex” prevents self-infection during colds,
without proper qualification, and other claims respecting the bene¬
fits derived from the use of “Kleenex” which are exaggerated and
impossible of accomplishment.
No. 1751. Roscoe D. Hogue, P. O. Box 163, Atlanta, Ga.,
trading as Pioneer Medicine Company and as Pioneer Drug
Company, stipulates that in the sale of “Old Pioneer Indian Tonic,”
offered as a liver and kidney remedy, he will discontinue the use
in advertising matter of representations respecting the therapeutic
properties of his product which are exaggerated and impossible
of accomplishment, and cease using the word “Indian” as a part
of the name of his product or in any manner to imply that it
either was originated or used by the Indians.
No. 1752. Benjamin and Rose Eidinger, 651 East 164th
St., Bronx, New York City, trading as Lion Cross Products
Company and as Lio-Phannary, signed an agreement to cease
and desist from use in advertisements of representations implying
that “Lion Cross Herb Tea” is a cure or remedy for high blood
pressure, rheumatism, bladder disorders, stomach troubles, kidney
disorders, arthritis and other diseases, and that it brings health,
happiness and long life to users. They agree to discontinue repre¬
senting that the product is always “safe for children” or “harm¬
less in every respect,” and will stop use of the phrases “Made by
Nature” or “Natural Remedy,” or other similar statements which
do not properly describe the product.
They also will cease use of the word “laboratory” to imply that
they operate a place devoted to experimental study and to the
application of scientific principles in testing and analysis, or in the
preparation of their product, when such is not the fact.
No. 1753. The De Free Company, 130 Central Ave., Hol¬
land, Mich., stipulates that in selling its “Nurse Brand” aspirin
tablets it win cease use of the words “No After Effects” in ad¬
vertisements, and particularly on the containers in which the
product is sold.
No. 1767. Benjamin and Solomon Cohen, trading as S.
Cohen & Sons, Porter and Swansea Sts., Philadelphia, signed
an agreement to stop selling baseball caps manufactured from
materials obtained from second-hand, old, worn or discarded felt
hats, unless there are stamped upon or affixed to the caps in a
conspicuous place words clearly indicating that they are not manu¬
factured from new and unused felt or other materials, but from
felt or other materials obtained from second-hand, old, worn or
discarded hats.
No. 1770. Sun Radio Service & Supply Corporation, 839
F St., N. YV., Washington, O. C., stipulates that in the sale of
radio receiving sets it will cease use of the word “Majestic,” alone
or with the word “International,” or in any manner in advertising
matter, or as a trade name or brand so as to imply that its radio
sets are manufactured by Grigsby-Grunow Company, when such
is not the fact. According to the stipulation, Grigsby-Grunow
Company is an Illinois corporation which has spent large sums
of money in advertising and promoting the sale of radio receiving
sets under the trade name “Majestic,” with the result that the
corporation has built up and acquired valuable good will in the
word “Majestic” as applied to its product.
No. 1774. Roddis Plywood Company, 630 West 28th St.,
New York City, wholesalers of plywood and veneers, agree to
discontinue use of the word “walnut,” independently or with the
words “Oriental” or “Canadian,” or with any other words which
may have the tendency to mislead purchasers into the belief that
its products are made of wood from trees of the walnut or jug-
landaceae family, when such is not the fact. The company also
will stop using the words “white pine,” either alone or with any
other words which may have a capacity to deceive purchasers
into the belief that the products are made from wood derived
from trees of the species pinus strobus, pinus lambertiana, or
pinus monticola, when such is not the fact.
No. 1775. James Good, Inc., Susquehanna Ave. and Martha
St., Philadelphia, in the sale of “Keystone Saddle Soap,” will
cease and desist from representations on labels affixed to its saddle
soap containers that such product conforms to Government specifi¬
cations.
No. 2149. Radumac Mineral Co., 9425 W. Pico St., Los
Angeles, and A. Yoder, trading as Radumac Mineral Co., have
been ordered to stop representing that the preparation “Radumac”
is capable of preventing or curing a long list of diseases, including
anemia, arthritis, hemorrhage, malnutrition, kidney trouble, and
others.
The respondents are also directed to cease asserting that the
preparation does wonders or is a health tonic that will prevent
diseases, and that it contains the essential mineral elements for
building new body tissues.
No. 2499. Abom Hat Manufacturing Co., 117 North Wells
1575
St., Chicago, has been ordered to discontinue selling men’s old,
worn, used, and discarded felt hats which have been cleaned
and fitted with new ribbons, sweatbands and linings, unless there
is stamped upon or attached to such hats in a conspicuous place
words clearly indicating that the hats are not new but are used
and worn and have been cleaned and made over.
The findings are that the respondent company purchased old
and discarded hats at prices ranging from $1 to $1.75 a dozen
and sold them, when cleaned and made over, for from $6 to $13
a dozen, depending upon their quality and condition.
No. 2544. Repair Parts and Replacement Company, Inc.,
812 North Wells St., Chicago, has been ordered to discontinue
improper use of the word “Hoover” on dust bags it manufactures
for use on vacuum cleaners made by the Hoover Company of
North Canton, O.
The respondent corporation is engaged in the sale of vacuum
cleaners and parts and in the repairing and rebuilding of such
cleaners. The Commission found that the respondent repaired
certain Hoover cleaners to which it attached its dust bags, simi¬
lar in size, shape and color to those of the Hoover Company, and
conspicuously marked with the name “Hoover,” together with
the words “Mfr’d by R. P. & R. Co.” in much smaller type, with
the result that the attention of prospective purchasers was at¬
tracted only to the word “Hoover.”
Specifically, the order to cease and desist prohibits the respond¬
ent corporation from representing in advertising matter, circulars
or otherwise that the dust bags it manufactures and sells are the
products of the Hoover Company, and from using the name
“Hoover,” alone or with other words, on such bags when they are
not manufactured by the Hoover Company.
No. 2668. Prohibiting unfair competition in the sale of filters
for use in tobacco pipes, an order to cease and desist has been
ordered against S. M. Frank & Co., 133 5th Ave., New York
City.
The order directs the respondent to cease representing or ad¬
vertising that the Frank absorbent filter sold for use in its
“Medico” pipe, is the only filter in the world that really filters.
Representation that there are no pipe filters other than Frank
absorbent filters which will efficiently accomplish the ends and
serve the purposes for which the respondent company’s article
is designed, is also barred by the order.
No. 2891. Angelo Cataldo, trading as Liberty Chocolate
Company and as Arcadia Chocolate Company, 114 Commercial
St., Boston, has been ordered to discontinue selling and distributing
to dealers candy so packed and assembled that sales to the general
public are to be made, or are designed to be made, by means of
a lottery, gaming device, or gift enterprise. The respondent ad¬
mitted the material allegations of the Commission’s complaint
to be true and waived further proceedings.
No. 2805. Charles A. Saretsky, 246 West 38th St., New York
City, engaged in the sale of interlinings and filling materials for
use in the manufacture of clothing, has been ordered to cease mis¬
representing in any manner the character and quality of his
products.
The order directs Saretsky . to discontinue attaching to inter¬
linings and filling material tags or labels which misrepresent the
amount, the kind or the quality of wool content of such products,
and prohibits him from furnishing his customers, who are manu¬
facturers of finished garments, with tags or labels bearing such
misrepresentations.
Findings are that Saretsky made such representations as “this
garment is interlined with lamb’s wool filling,” and “this garment
is interlined with 100 per cent wool filling,” when, in fact, his
products were composed in part of wool or reworked wool,
adulterated with a large percentage of cotton, and the cloth to
which the filling material was attached was composed entirely of
cotton.
FTC CLOSES CASE
No. 2494. The Federal Trade Commission has closed its case
against Distillers’ Products Corporation, Harborside Terminal,
Unit No. 1, Exchange Place, Jersey City, N. J. The complaint
alleged unfair competition in the sale of alcoholic beverages
through improper use of the word “Distillers” in the company’s
corporate name.
Closing of the case was ordered after the Commission ascer¬
tained that the respondent’s corporate existence appeared to have
been terminated by dissolution, and that the company ceased to
operate as of June 30, 1935. The physical assets were disposed
of, and it is deemed unlikely that the company will resume its
corporate existence.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, September 28
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — John C. Loonef, d/b as High Fidelity Broadcasting Service,
Milton, Mass. — C. P., 1570 ke., 1 KW, unlimited and
variable.
NEW — Dr. F. P. Corniglia, Monroe, La.— C. P., 1500 kc., 100
watts, unlimited time.
Wednesday, September 30
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — The Pottsville Broadcasting Co., Pottsville, Pa. — C. P.,
580 ltc., 250 watts, daytime.
Thursday, October 1
HEARING BEFORE AN EXAMINER
(Broadcast)
KXL — KXL Broadcasters, Portland, Ore. — Renewal of license,
1420 kc., 100 watts, 250 watts LS, shares with KEPS.
KXL — KXL Broadcasters, Portland, Ore. — Consent to transfer
control of Corporation; 1420 kc., 100 watts, 250 watts LS,
shares with KEPS.
NEW — The News Press Publishing Co., Santa Barbara, Calif. —
C. P., 1220 kc., 500 watts, unlimited time.
Thursday, October 1
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-213:
NEW — Edwin A. Kraft, Fairbanks, Alaska. — C. P., 950 kc., 250
watts, unlimited time.
NEW — John A. Stump, Fairbanks, Alaska. — C. P., 1210 kc., 100
watts, 250 watts LS, unlimited time.
Examiner’s Report No. 1-219:
NEW — J. Laurance Martin, Tucumcari, N. Mex. — C. P., 1200 kc.,
100 watts, unlimited time.
Examiner’s Report No. 1-221:
KLO — Interstate Broadcasting Corp., Ogden, Utah. — C. P., 1400
kc., 1 KW, 5 KW LS, unlimited time. Present assignment:
1400 kc., 500 watts, unlimited time.
Examiner’s Report No. 1-227:
KGDM — E. F. Feffer, Stockton, Calif. — Modification of license,
1100 kc., 1 KW, limited time; 1100 kc., 1 KW, daytime.
Friday, October 2
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW— Earle Yates, Las Cruces, N. Mex. — C. P., 930 kc., 1 KW,
daytime.
KIT — Carl E. Haymond, Yakima, Wash. — C. P., 1250 kc., 250
watts, 500 watts LS, unlimited time. Present assignment:
1310 kc., 100 watts, 250 watts LS, unlimited time.
WGAR — The WGAR Broadcasting Co., Cleveland, Ohio. — Au¬
thority to transfer control of Corporation to WJR, The
Goodwill Station; 1450 kc., 500 watts, 1 KW LS, unlimited
time.
The Broadcast Division has taken the following action:
APPLICATIONS GRANTED
KRGV — KRGV, Inc., Weslaco, Tex. — Granted C. P. to make
changes in equipment, install vertical radiator, and increase
power from 500 watts to 1 KW; 1260 kc., unlimited time.
1576
WMFG — Head of the Lakes Broadcasting Co., Hibbing, Minn. —
Granted C. P. to make changes in equipment and increase
daytime power from 100 watts to 2S0 watts.
WMIN — Edward Hoffman, St. Paul, Minn. — Granted C. P. to
make changes in equipment and increase day power from
100 to 250 watts.
WLBL — State of Wisconsin, Department of Agriculture and Mar¬
kets, Stevens Point, Wis. — Granted C. P. to make changes
in equipment, increase power from 2J4 KW to 5 KW, in¬
crease hours of operation from specified hours to daytime
to daytime, and move station from approximately 8J2 miles
northeast of Stevens Point to approximately 25 miles west
northwest of Stevens Point.
KVOA — Arizona Broadcasting Co., Inc., Tucson, Ariz. — Granted
modification of C. P. approving transmitter site at West
Lee at 10th Street, change in equipment, installation of
vertical radiator, and increase in power from 500 watts to
1 KW.
KDNC — Democrat-News Co., Inc., Lewistown, Mont. — Granted
modification of C. P. to move transmitter to site to be
determined subject to Commission approval, install new
equipment, and increase day power from 100 to 250 watts.
KCMO — Lester E. Cox, Thomas L. Evans, and C. C. Payne,
Kansas City, Mo. — Granted license to cover C. P., 1370 kc.,
100 watts, specified hours.
NEW — Scranton Broadcasters, Inc., Portable-Mobile (Scranton,
Pa.). — Granted C. P. for new relay broadcast station on an
experimental basis under the provisions of Rules 1000,
1001(b) and 1003(d); frequencies 31100, 34600, 37600 and
40600 kc., 5 watts. Also granted license covering same.
NEW — Peoria Broadcasting Co., Portable-Mobile, Peoria, Ill. —
Granted C. P. for new relay broadcast station on an ex¬
perimental basis under the provisions of Rules 1000,
1001(b) and 1003(d); frequencies 31100, 34600, 37600 and
40800 kc., 25 watts. Also granted license covering same.
KERN — McClatchy Broadcasting Co., Bakersfield, Calif. — Granted
license to cover C. P., 1370 kc., 100 watts, unlimited time.
KERN — Bee Bakersfield Broadcasting Co., Bakersfield, Calif. —
Granted assignment of C. P. from the Bee Bakersfield
Broadcasting Co. to McClatchy Broadcasting Co.
WOWO — The Main Auto Supply Co., Fort Wayne, Ind. — Granted
modification of license to change name from The Main
Auto Supply Co. to Westinghouse Radio Station, Inc.
KOIL — Central States Broadcasting Co., Council Bluffs, Iowa. —
Granted modification of license to change studio location
from Council Bluffs, Iowa, to Omaha, Nebr. ; 1280 kc.,
1 KW night, 2y2 KW day, unlimited.
W8XIQ — The WGAR Broadcasting Co., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 35 watts.
W8XIR — The WGAR Broadcasting Co., Portable-Mobile. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 100 watts, unlimited.
W8XIP — The WGAR Broadcasting Co., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34800, 37600 and
40600 kc., 3 watts power.
WXYZ — Kunsky-Trendle Broadcasting Corp., Detroit, Mich. —
Granted modification of license to change name from
Kunsky-Trendle Broadcasting Corp. to King-Trendle Broad¬
casting Corp.
WOOD — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich. — Granted modification of license to change name
from Kunsky-Trendle Broadcasting Corp. to King-Trendle
Broadcasting Corp.
WASH — Kunsky-Trendle Broadcasting Corp., Grand Rapids,
Mich.- — Granted modification of license to change name
from Kunsky-Trendle Broadcasting Corp. to King-Trendle
Broadcasting Corp.
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — Granted modifica¬
tion of license to change name from A. M. Rowe, Inc., to
Monongahela Valley Broadcasting Co.
WJSV — Old Dominion Broadcasting Co., Alexandria, Va. — Granted
modification of license to change location of main studio
from Alexandria to the Earle Bldg., Washington, D. C.
WHBI — May Radio Broadcast Corp., Newark, N. J. — Granted
modification of license to use auxiliary transmitter as main
transmitter, so as to comply with Rules 131, 132 and 139.
W8XAL — The Crosley Radio Corp., Mason, Ohio. — Granted
modification of license to add frequency 9590 kc.
NEW — KFNF, Inc., Portable-Mobile (Pack) (Shenandoah, Iowa).
- — Granted C. P. for a new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600 and
40600 kc., 5 watts.
NEW — KFNF, Inc., Portable-Mobile (Pack) (Shenandoah, Iowa).
— Granted license to cover C. P. above.
NEW — KFNF, Inc., Portable-Mobile (Pack) (Shenandoah, Iowa).
— Granted C. P. and license same as above except for a
normal period.
KYOS — Merced Star Publishing Co., Inc., Merced, Calif. — Granted
modification of C. P. to install new equipment.
WEEI — The Edison Electric Illuminating Co. of Boston, Mass. —
Granted voluntary assignment of C. P. to WEEI Broad¬
casting Co.; 590 kc., 1 KW night, 1 KW (C. P„ 5 KW day,
unlimited time).
W3XAU — WCAU Broadcasting Co., Philadelphia, Pa. — Granted
modification of C. P. extending completion date for period
of 60 days.
KPDN— Pampa Daily News, Inc., Pampa, Tex. — Granted volun¬
tary assignment of license from the Pampa Daily News, Inc.,
to R. C. Hoiles.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — Granted au¬
thority to determine operating power by direct measurement
of antenna input.
KXA — American Radio Tel. Co., Seattle, Wash. — Granted authority
to make changes in automatic frequency control equipment.
WTAD — Illinois Broadcasting Corp., Quincy, Ill. — Granted C. P.
(amended) approving transmitter site, installing new equip¬
ment, and vertical radiator.
W9XJI — The Reynolds Radio Co., Portable-Mobile (Denver,
Colo.). — Granted modification of license to change corporate
name from The Reynolds Radio Co. to KLZ Broadcasting
Co.
KECA — Earle C. Anthony, Inc., Los Angeles, Calif. — Granted
license to cover C. P., frequency 1430 kc., 1 KW night, 5
KW day, unlimited.
W9XJL — Head of the Lakes Broadcasting Co., Superior, Wis. —
Granted license to cover C. P. for new high frequency
broadcast station on an experimental basis; frequencies
31600, 35600, 38800 and 41000 kc., 80 watts.
WAML — New Laurel Radio Station, Inc., Laurel, Miss. — Granted
C. P. approving transmitter site and new transmitter.
WMAL — National Broadcasting Co., Inc., Washington, D. C. —
Granted modification of license to change operating power
of auxiliary transmitter from 250 watts night, 500 watts
day, to 250 watts night and day.
WEQA — Evansville on the Air, Inc., Evansville, Ind. — Granted
C. P. to make changes in equipment and increase day power
from 100 to 250 watts.
WOCL — A. E. Newton, Jamestown, N. Y. — Granted C. P. to in¬
stall new equipment.
W8XHV — The Evening News Assn., Inc., Mobile (Detroit, Mich.).
— Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 5 watts.
W8XIG — The Evening News Assn., Inc., Mobile (Detroit, Mich.).
— Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 3 watts.
W8XIL — The Crosley Radio Corp., Mobile (Cincinnati, Ohio).—
Granted license to cover C. P. for general experimental
broadcast pickup station, 31100, 34600, 37600, 40600 kc.,
30 watts, unlimited.
WlXEQ — E. Anthony & Sons, Inc., New Bedford, Mass. — Granted
license to cover C. P. for new high frequency broadcast
station on an experimental basis; frequencies 31600, 35600,
38600 and 41000 kc., 100 watts.
W9XJI — The Reynolds Radio Co., Inc., Denver, Colo., Mobile. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37800 and 40600 kc., 1 watt.
W8XBU — Pittsburgh Radio Supply House, Pittsburgh, Pa., Mobile.
— Granted license to cover C. P. for general experimental
broadcast pickup station; frequencies 31100, 34600, 37600,
40600 kc., on an experimental basis, 5 watts.
W3XES — Monumental Radio Co., Baltimore, Md. — Granted license
to cover C. P. for new high frequency broadcasting station
on an experimental basis; frequencies 31600, 35600, 38600
and 41000 kc., 300 watts.
W2XMK — Bamberger Broadcasting Service, Inc., Newark, N. J. —
Granted license to cover C. P. for new relay broadcast
1577
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 2 watts.
W2XMJ — Bamberger Broadcasting Service, Inc., Newark, N. J. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 2 watts.
W2XMI — Bamberger Broadcasting Service, Inc., Newark, N. J. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600 and 40600 kc., 2 watts.
W8XIK — The Crosley Radio Corp., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40600
kc., 30 watts.
W4XBS — Memphis Commercial Appeal, Inc., Portable-Mobile. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600, 40800 kc., S watts.
W6XKK — Don Lee Broadcasting System, Portable-Mobile. —
Granted license to cover C. P. for new relay broadcast
station on an experimental basis; frequencies 31100, 34600,
37600, 40800 kc., 100 watts.
W8XIH — WJR, The Goodwill Station, Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40600
kc., 40 watts.
W3XEO — WCAU Broadcasting Co., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40600*
kc., 50 watts.
W8XFQ — Scranton Broadcasters, Inc., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40800
kc., 100 watts.
W6XKL — Nichols & Warinner, Inc., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40600
kc., 30 watts.
W2XIN — Standard-Cahill Co., Inc., Portable-Mobile. — Granted
license to cover C. P. for new relay broadcast station on an
experimental basis; frequencies 31100, 34600, 37600, 40600
kc., 5 watts.
W4XBW — WDOD Broadcasting Corp., Brainerd Community,
Chattanooga, Tenn. — Granted license to cover C. P. for new
high frequency broadcast station on an experimental basis;
frequencies 31600, 35600, 38600, 41000 kc., 100 watts.
W3XEY — The Baltimore Radio Show, Inc., Baltimore, Md. —
Granted license to cover C. P. for new high frequency broad¬
cast station on an experimental basis; frequencies 31600,
35600, 38600, 41000 kc., 100 watts.
W4XCA — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted license to cover C. P. for new high frequency broad¬
cast station on an experimental basis; frequencies 31600,
35800, 38600, 41000 kc., 250 watts.
NEW — WJR, The Goodwill Station, Detroit, Mich., Portable-
Mobile. — Granted C. P. for a new broadcast pickup station
on an experimental basis; frequencies 31100, 34600, 37600
and 40600 kc., 2 watts.
KMLB — Liner’s Broadcasting Station, Inc., Monroe, La. — Granted
authority to amend C. P. already in hearing docket for
change in equipment and increase in day power from 100
to 250 watts.
NEW — Standard Radio, Inc., Hollywood, Calif. — -Granted author¬
ity to transmit programs to a foreign country: CJRC,
Winnipeg, Manitoba, Canada, and other Canadian stations.
WCHV — Community Broadcasting Corp., Charlottesville, Va. —
Granted authority to transfer control of the Community
Broadcasting Corp., licensee of station WCHV, from W. B.
Brown to present stockholders of licensee corporation.
WEBC — Head of the Lakes Broadcasting Co., Superior, Wis. —
Granted modification of license to move studio to Spaulding
Hotel, Duluth, Minn.
WSGN — Birmingham News Co., Birmingham, Ala. — Granted C. P.
to install new equipment.
WNAD — -University of Oklahoma, Norman, Okla. — Granted au¬
thority to make changes in automatic frequency control.
WSOC — WSOC, Inc., Charlotte, N. C. — Granted authority to make
changes in automatic frequency control.
WSBT — South Bend Tribune, South Bend, Ind. — Granted C. P. for
new transmitter.
KCMC — KCMC, Inc., Texarkana, Ark.— Granted C. P. to install
new transmitter and vertical antenna.
WQAM — Miami Broadcasting Co., Miami, Fla. — Granted authority
to make changes in automatic frequency control of auxiliary
transmitter.
KJBS — Julius Brunton & Sons Co., San Francisco, Calif. — Granted
amended C. P. to authorize installation of new vertical
radiator and move transmitter and studio locally.
WMBC — Michigan Broadcasting Co., Detroit, Mich. — Granted
modification of C. P. to make changes in authorized equip¬
ment and extend commencement date from March 14, 1936,
to date of grant, and completion date from September 14
to 90 days thereafter.
WJAR— The Outlet Co., Providence, R. I. — Granted C. P. to move
old W. E. transmitter to site of present transmitter for auxil¬
iary purposes.
KGFI — Eagle Broadcasting Co., Inc., Corpus Christi, Tex. —
Granted amended C. P. approving transmitter site and in¬
stallation of vertical antenna.
KFJM — University of North Dakota, Grand Forks, N. Dak. —
Granted modification of C. P. to make changes in equipment,
move transmitter and approve vertical antenna.
KUOA — KUOA, Inc., Fayetteville, Ark. — Granted modification of
license to change studio location from Fayetteville, Ark., to
campus of John Brown University, Siloam Springs, Ark.
WCLO — Gazette Printing Co., Janesville, Wis. — Granted license
to cover C. P. authorizing move of transmitter and installa¬
tion of new antenna.
WKRC — WKRC, Inc., Cincinnati, Ohio — Granted modification of
C. P. approving new equipment.
KPQ — Westcoast Broadcasting Co., Wenatchee, Wash. — Granted
C. P. to make changes in equipment.
KGVO — Mosby’s, Inc., Missoula, Mont. — Granted C. P. to make
changes in equipment.
KFH — The Radio Station KFH Co., Wichita, Kans. — Granted
authority to determine operating power by direct measure¬
ment of antenna input.
WGR — Buffalo Broadcasting Corp., Buffalo, N. Y. — Granted C. P.
to install a vertical radiator at present site, install new
equipment and increase day power from 1 KW to 5 KW.
WABG — Memphis Commercial Appeal, Inc., Portable-Mobile. —
Granted license to cover C. P. for new relay station; fre¬
quencies 1606, 2022, 2102, 2758 kc., 35 watts.
WDRC — WDRC, Inc., Bloomfield, Conn. — Granted authority to
determine operating power by direct measurement of an¬
tenna input.
KABJ — Central States Broadcasting Co., Lincoln, Nebr., Portable.
— Granted license to cover C. P. for new relay broadcast
station in accordance with Rules 1000 and 1001(b); fre¬
quencies 1606, 2022, 2102 and 2758 kc., 30 watts.
KPLT — The North Texas Broadcasting Co., Paris, Texas — Granted
modification of C. P. approving transmitter and studio sites,
new equipment and vertical radiator.
KHUB— F. W. Atkinson, Watsonville, Calif. — Granted modification
of C. P. approving transmitter and studio sites and vertical
radiator.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
authority to install automatic frequency control.
WGY— General Electric Co., Schenectady, N. Y. — Granted author¬
ity to install automatic frequency control equipment for
main transmitter, and to install automatic frequency con¬
trol euuipment for auxiliary transmitter.
WAVE — WAVE, Inc., Louisville, Ky. — Granted license to cover
C. P., 940 kc., 1 KW, unlimited time, for new transmitter.
WDAE — Tampa Times Co., Tampa, Fla. — Granted license to cover
C. P„ 1220 kc., 1 KW night, 5 KW day, unlimited.
WGST — Georgia School of Technology, Atlanta, Ga. — Granted
C. P. to install new equipment, new antenna, move trans¬
mitter to site to be determined, increase day power from
1 KW to 5 KW ; 890 kc.
WILL — University of Illinois, Urbana, Ill. — Granted C. P. to
move station locally to south of Champaign, Ill.; install
directional antenna system in accordance with provisions
of modified license which authorized change in assignment
from 890 kc., 250 watts, 1 KW day, S-KUSD and KFNF,
to 580 kc., 1 KW, daytime only.
KARK — Arkansas Radio & Equipment Co., Little Rock, Ark. —
Granted modification of C. P. approving transmitter site at
Jackson Blvd., North Little Rock; installation of new equip¬
ment and vertical radiator.
WQAM — Miami Broadcasting Co., Miami, Fla. — Granted change
in automatic frequency control of main transmitter.
NEW — Hammond-Calumet Broadcasting Corp., Hammond, Ind. —
Granted amended C. P. for new station authorizing opera-
1578
tion on 1480 kc., 5 KW, day time only, using directional
antenna.
WJZ — National Broadcasting Co., Inc., New York City — Granted
special temporary authority to use auxiliary antenna for
period September IS to November IS, 1936, pending erec¬
tion of new vertical antenna.
WCAD — St. Lawrence University, Canton, N. Y. — Granted special
temporary authority to operate from 1:30 to 6:15 p. m.,
EST, September 26; from 1:30 to 5: IS p. m., EST, October
3, 1936; and from 1:30 to 5:15 p. m., EST, October 24,
1936, to broadcast football games.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, Va. —
Granted special temporary authority to remain on air until
11 p. m. Saturday night, September 26, 1936, in order to
broadcast football game.
WCNW — Arthur Faske, Brooklyn, N. Y. — Granted special tem¬
porary authority to remain silent September 25 from 8 to 10
p. m., EST, and September 26 from 3 to 9 p. m., EST, in
order to observe Hebrew high holiday.
WTAW — Agr. and Mech. College of Texas, College Station, Texas
— Granted special temporary authority to operate from 2:55
to 6 p. m., CST, September 26, in order to broadcast foot¬
ball game.
WTCN — Minnesota Broadcasting Corp., Minneapolis, Minn. —
Granted extension of special temporary authority to operate
with temporary antenna for the period September 23 to
October 22, 1936.
WWVA — West Virginia Broadcasting Corp., Wheeling, W. Va. —
Granted extension of special temporary authority to operate
with a temporary antenna pending rebuilding of towers, for
the period September 26 to October 25, 1936.
KFRU — KFRU, Inc., Columbia, Mo. — Granted special temporary
authority to operate simultaneously with WGBF from 7 to
9:30 p. m., CST, September 23, in order to broadcast speech
by Senator Barkley.
WGBF — Evansville on the Air, Inc., Evansville, Ind. — Same as
above except to operate simultaneously with KFRU.
KNEL — G. L. Burns, Brady, Texas — Granted special temporary
authority to operate unlimited time on October 2, 9, 16, 23
and 30, 1936, in order to broadcast football games.
KNET — Palestine Broadcasting Assn., Palestine, Texas — Granted
special temporary authority to operate from 8 p. m. to not
later than 10:30 p. m., CST, September 25, 1936, October
2, 9 and 23, in order to broadcast football games.
WEST — Association Broadcasters, Inc., Easton, Pa. — Granted ex¬
tension of special temporary authority to operate simulta¬
neously with WKBO from 10 to 11 a. m. and 5 to 6 p. m.,
EST, for the period September 24 to September 30, 1936,
pending agreement on division of time due to adoption of
daylight saving time in Easton, Pa.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla.- — Granted
extension of special temporary authority to operate with
additional power of 750 watts at night for the period Sep¬
tember 28 to October 27, 1936.
WMBG— Havens & Martin, Inc., Richmond, Va. — Granted exten¬
sion of special temporary authority to operate from 5:30 to
7 p. m., EST, on Sundays, for the period October 1 to Octo¬
ber 31, 1936 (provided WBBL remains silent), in order to
broadcast special programs.
KDLR — KDLR, Inc., Devils Lake, N. Dak. — Granted special tem¬
porary authority to operate without an approved frequency
monitor for a period not to exceed 10 days.
WNBH — E. Anthony & Sons, Inc., New Bedford, Mass. — Granted
special temporary authority to operate without an approved
frequency monitor for a period not to exceed 10 days.
WOW — Woodmen of the World Life Ins. Assn., Omaha, Neb. —
Granted extension of special temporary authority to operate
with power of 5 KW at night for the period September 29
and ending no later than October 28, 1936.
WFBG — The Gable Broadcasting Co. (Lessee), Altoona, Pa. —
Granted special temporary authority to operate simulta¬
neously with WJAC from 9:15 to 10:30 p. m., EST, October
31, 1936, in order to broadest a democratic rally.
WJAC — WJAC, Inc., Johnstown, Pa. — Granted special temporary
authority to operate simultaneously with WFBG from 8:30
to 9:15 p. m., EST, October 31, in order to broadcast a
democratic rally.
KPDN — Pampa Daily News, Inc., Pampa, Texas — Granted special
temporary authority to operate from 8 to 10:30 p. m., CST,
October 2, November 11, 20 and 26, 1936, in order to broad¬
cast night football games.
KWSC — State College of Washington, Pullman, Wash. — Granted
special temporary authority to operate from 1:30 to 10 p. m.,
PST, September 26, 1936, in order to broadcast a football
game.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted ex¬
tension of special temporary authority to operate on 560 kc.,
with 1 KW at night, during month of October, 1936, pend¬
ing filing of and action on license application to cover this
authority.
APPLICATIONS DENIED
WDEV — Mary M. Whitehall, Executrix of the Estate of Harry C.
Whitehall, Waterbury, Vt. — Denied special temporary au¬
thority to operate on frequency 680 kc., using 500 watts,
during period from 1:30 to 4 p. m., EST, daily except
Friday and Saturday, and on Friday from 1:45 to 4 p. m.,
EST, and on Saturday from 3 to 4 p. m., EST, for a period
of 15 days in order to obtain data which will make a possible'
comparison between results obtained from 680 and 550 kc.
KSQO — Sioux Falls Broadcasting Assn., Inc., Sioux Falls, S. Dak. —
Denied special temporary authority to operate station with
500 watts, 2J4 KW, LS, unlimited time sunset for Septem¬
ber, 6:45 p. m., October 5:45 p. m., November 5 p. m., for
period September 1 to November 6, 1936.
WELI — City Broadcasting Corp., New Haven, Conn. — Denied
special temporary authority to operate from LS to 8 p. m.,
EST, from September 23, 1936, to November 4, 1936, using
power of 250 watts, to broadcast political and sponsored
programs.
The following applications, heretofore set for hearing, were
denied as in cases of default for failure to file an appearance and
statement of facts in accordance with Rule 104.6(c):
WDNC — Durham Radio Corp., Durham, N. C. — Applied for
C. P., 590 kc., 1 KW, unlimited.
WHBI — May Radio Broadcast Corp., Newark, N. J.— Applied for
modification of license, 1250 kc., 1 KW, 5 KW LS, shares
WNEW.
NEW- — Orrin P. Kilbourn, Albany, N. Y. — Applied for C. P.,
1240 kc., 250 watts, unlimited.
NEW — C. F. Gaarenstroom, Fairmont, Minn. — Applied for C. P.,
1420 kc., 100 watts, 250 watts LS, unlimited.
APPLICATIONS DISMISSED
The following cases, heretofore set for hearing were dismissed
at the requests of applicants:
WTAG — Worcester Teleg. Pub. Co., Inc., Worcester, Mass. —
Application for special experimental authority, 580 kc.,
1 KW, unlimited.
KPRC — Houston Printing Co., Houston, Tex. — Application for
S. A., 920 kc., 5 KW, unlimited.
WORC — Alfred Frank Kleindienst, Worcester, Mass. — Application
for S. A., 1280 kc., 1 KW, unlimited.
NEW — J. W. Birdwell, Johnson City, Tenn. — Application for
C. P., 1370 kc., 100 watts, unlimited.
NEW — The Press Co., Inc., Schenectady, N. Y. — Application for
C. P., 1210 kc., 100 watts, daytime.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Applica¬
tion for C. P., 1450 kc., 1 KW, unlimited.
KGEK — Elmer G. Beehler, Sterling, Colo. — Application for modi¬
fication of license, 1200 kc., 100 watts, S.H.
NEW — Pemberton Gordon, d/b as Mid-Missouri Broadcasting
Service, Jefferson City, Mo. — Application for C. P., 1210 kc.,
100 watts, daytime.
NEW — I. L. G. W. Radio Corp., New York City. — Application
for C. P., 970 kc., 1 KW, unlimited.
NEW — Maxwell, Sancken & Lorick, Augusta, Ga. — Application
for C. P., 610 kc., 250 watts, 500 watts LS, unlimited.
NEW — Harry J. Grant, Milwaukee, Wis. — Application for C. P.,
1010 kc., 250 watts, 500 watts LS, unlimited.
NEW — Thos. L. Evans and J. L. Milligan, Jefferson City, Mo. —
Application for C. P., 920 kc., 500 watts, daytime.
NEW — The Constitution Pub. Co., Atlanta, Ga. — Application for
C. P., 590 kc., 1 KW, unlimited.
NEW— Ventura Broadcasting Co., Ventura, Calif. — Application
for C. P., 1210 kc., 100 watts, daytime.
NEW — Harry C. Kipke, Ann Arbor, Mich. — Application for C. P.,
630 kc., 500 watts, daytime.
The following application, heretofore set for hearing, was dis¬
missed from the hearing docket and retired to the files inasmuch
1579
as the time requested for transmittal of programs, specified therein,
has expired.
Peoples Pulpit Assn., New York City — Requested authority to
transmit program of Judge Rutherford from 12 noon to 1
p. m. PST, February 23, 1936, from Shrine Temple, Los
Angeles, to station XENT, Nuevo Larado, Mexico, through
the facilities of the A. T. and T.
The following application, heretofore set for hearing, was dis¬
missed for failure of applicant to answer the form letter, adopted
by the Broadcast Division, requiring applicants to signify their
desire to be heard within 10 days after receipt of said letter:
NEW — Dixie Broadcasting System, Stokes Gresham, Jr., Pres.,
Valdosta, Ga. — Applied for C. P., 1500 kc., 100 watts, day¬
time.
SET FOR HEARING
NEW— -Howard A. Miller, Custer Hotel, Galesburg, Ill. — Applica¬
tion for C. P. for new broadcast station at Galesburg, Ill.,
to authorize operation on 1500 kc., 100 watts, specified
hours.
NEW — Pee Dee Broadcasting Co., James A. Bradley, President,
308 W. Evans Street, Florence, S. C. — Application for C. P.
for new broadcast station at Florence, S. C., to authorize
operation on 950 kc., 1 KW, daytime only, site to be
determined.
NEW — Curtis P. Ritchie, Trinidad, Colo. — Application for C. P.
for new broadcast station at Trinidad, Colo., to authorize
operation on 1310 kc., 100 watts, unlimited time.
NEW — Associated Arkansas Newspapers, Inc., 912 Central Avenue,
Hot Springs, Ark. — Application for C. P. for new broadcast
station at Hot Springs, Ark., to authorize operation on
1310 kc., 100 watts, unlimited time.
NEW- — Homer D. Banta. Burlington, Iowa. — Application for C. P..
for new broadcast station at Burlington, Iowa, to authorize
operation on 1310 kc., 100 watts, unlimited time.
NEW — George M. Haskins, Hyannis, Mass. — Application for
C. P. for new broadcast station at Hyannis, Mass., to au¬
thorize operation on 1210 kc., 100 watts night, 250 watts
day, unlimited time, site to be determined.
NEW — Sioux City Broadcasting Co., Sioux City, Iowa. — Appli¬
cation for C. P. for new broadcast station at Sioux City,
Iowa, to authorize operation on 1420 kc., 250 watts day,
100 watts night, unlimited time, site to be determined.
NEW — Clarence C. Dill, Washington, D. C. — Application for C. P.
for new broadcast station at Washington, D. C., to authorize
operation on 1310 kc., 100 watts, unlimited time, site to be
determined. Requests facilities of WOL if and when WOL
is granted 1230 kc. Consideration under Rule 307 (b).
NEW — Ernest Edward Ruehlen, Great Bend, Kans. — Amended
application for C. P. for new broadcast station at Great
Bend, Kans., to authorize operation on 1370 kc., 100 watts,
unlimited time, site to be determined.
NEW — Continental Radio Company, Washington, D. C. — Amended
application for C. P. for new broadcast station at Wash¬
ington, D. C., to authorize operation on 1230 kc., 1 KW,
unlimited time, directional antenna day and night, trans¬
mitter site to be located approximately one mile northwest
of north corner of District of Columbia, Montgomery
County, Maryland.
NEW — Loyal K. King, d/b as Radio & Television Research Co.,
Los Angeles, Calif. — Application for new special broadcast
station on an experimental basis to be located at Los
Angeles, Calif., to authorize operation on 1530 kc., 1 KW,
unlimited time.
NEW — C. W. Corkhill, Sioux City, Iowa. — Amended application
for C. P. for new broadcast station at Sioux City, Iowa, to
authorize operation on 1420 kc., 100 watts, unlimited time,
site to be determined.
NEW — Chauncey W. Hammond, Oakland, Calif. — Amended ap¬
plication for C. P. for new broadcast station at Oakland,
Calif., to authorize operation on 1280 ltc., 1 KW, unlimited
time, site to be determined.
NEW — John E. Fetzer, Benton Harbor, Mich. — Amended appli¬
cation for C. P. for new broadcast station at Benton Harbor,
Mich., to authorize operation on 1500 kc., 100 watts, day¬
time only, site to be approved.
NEW — The Courier-Post Publishing Co., Hannibal, Mo. — Amended
application for C. P. for new broadcast station at Hannibal,
Mo., to authorize operation on 1310 kc., 100 watts night,
250 watts day, unlimited time, site to be approved.
WBNO — The Coliseum Place Baptist Church, New Orleans, La. —
Application for voluntary assignment of license of Station
WBNO, New Orleans, La. (1200 kc., 100 watts day, and
night share WJBW), from the Coliseum Place Baptist
Church to J. E. Richards, John R. Maddox, and Edward
R. Musso, t/a the Pelican State Broadcasting Company.
WHAS — The Courier- Journal Co. and The Louisville Times Co.,
Louisville, Ky. — Amended application for C. P. to increase
power from 50 KW to 500 KW, unlimited time, site to be
approved; type of antenna and type of equipment to be
determined with Commission’s approval; frequency 820 kc.
WCOL — WCOL, Inc., Columbus, Ohio. — Application for C. P. to
authorize changes in equipment and increase day power from
100 watts to 250 watts. Present assignment, 1210 kc., 100
watts, unlimited time.
NEW — United States Broadcasting Co., Toledo, Ohio. — Applica¬
tion for C. P. for new broadcast station at Toledo, Ohio,
to authorize operation on 1200 kc., 100 watts day, daytime
only, site to be approved.
NEW— Radio Enterprises, partnership of R. Lacy and J. R.
Curtis, Lufkin, Tex. — Application for C. P. for new broad¬
cast station at Lufkin, Tex., to authorize operation on 1310
kc., 100 watts, daytime only, exact transmitter and studio
sites to be determined with Commission’s approval.
NEW — Loyal K. King, Pasadena, Calif. — Application for C. P. for
new broadcast station at Pasadena, Calif., to authorize
operation on 1480 kc., 250 watts, daytime only.
WBAX — John H. Senger, Jr., Wilkes-Barre, Pa. — Application
for modification of license which expires December 1,
1936, to authorize change in hours of operation from specific
to unlimited time.
NEW — Columbia Radio Co., Inc., Columbia, S. C. — Application
for C. P. for new broadcast station at Columbia, S. C., to
authorize operation on 1200 kc., 100 watts, unlimited time,
transmitter and studio sites to be approved.
WBIG — North Carolina Broadcasting Co., Inc., Greensboro, N. C.
— Application for special experimental authority to authorize
increase in night time power from 500 watts to 1 KW for
period of three months.
NEW — Bay State Broadcasting Corp., Providence, R. I. — Applica¬
tion for C. P. for new broadcast station at Providence,
R. I., to authorize operation on 720 kc., 1 KW day, limited
time.
WMBR — Florida Broadcasting Co., Jacksonville, Fla. — Applica¬
tion for C. P. to authorize installation of new equipment
and to change the assignment from 1370 kc., 100 watts
night, 250 watts day, unlimited time, to 1120 kc., 1 KW,
unlimited time.
KNX— Western Broadcast Co., Los Angeles, Calif. — Amended ap¬
plication for C. P. to authorize moving studio locally, to
make changes in equipment, and increase power from 50
KW to 500 KW.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Neb. —
Amended application for C. P. to move transmitter and
studio locations to Omaha, Neb., sites to be determined
with Commission’s approval, and to install new equipment.
WLAC — WLAC, Inc.. Nashville, Tenn. — Application for C. P. to
install new equipment and vertical radiator at present site
and to increase power from 5 KW to 50 KW.
WBZA — Westinghouse Electric & Manufacturing Co., Boston,
Mass. — Application for C. P. to move transmitter locally
approximately 8 miles and studio from Boston to Spring-
field ; install new equipment and directional antenna system ;
change frequency from 990 kc. to 550 kc.; and change time
of operation from 1 KW night and day when synchronized
with WBZ to unlimited time.
WOAI — Southland Industries, Inc., San Antonio, Texas — Applica¬
tion for C. P. to move transmitter, install new antenna sys¬
tem and increase power from 50 KW to 500 KW. Site and
type of antenna to be determined.
KFBB — Buttrey Broadcast, Inc., Great Falls, Mont. — Application
for renewal of license which expires 10-1-36; 1280 kc.,
1 KW, 2J4 KW LS, unlimited time.
KRLH — Clarence Scharbauer, Midland, Tex. — Application for
modification of license to change frequency from 1420 kc.
to 1210 kc.
KOI _ Seattle Broadcasting Co., Seattle, Wash— Application for
modification of license to change frequency from 1270 kc.
to 1040 kc., and increase power from 1 KW night, 5 KW
day, unlimited time, to 5 KW, unlimited time. Before
Commission en banc.
1580
WELI— City Broadcasting Corp., New Haven, Conn. — Applica¬
tion for modification of license to change frequency from
900 kc. to 930 kc., to install directional antenna, to change
time of operation from daytime to unlimited with 250
watts night, 500 watts day.
WAWZ — Pillar of Fire, Zarephath, N. J. — Application for modifica¬
tion of license to increase night power from 500 watts to
1 KW.
WHBL — Press Publishing Co., Sheboygan, Wis. — Application for
C. P. to install new transmitter and increase day power
from 250 watts to 1 KW.
NEW — Harold Thomas, Pittsfield, Mass. — Application for C. P,
for new broadcast station at Pittsfield, Mass., to authorize
operation on 1310 kc., 100 watts night, 250 watts day,
unlimited time, site to be approved.
NEW — United States Broadcasting Co., Columbus, Ohio. — Appli¬
cation for C. P. for new broadcast station at Columbus,
Ohio, for authority to operate on 1310 kc., unlimited time,
with 100 watts. Exact transmitter site and antenna ground
to be determined.
KSLM — Oregon Radio, Inc., Salem, Ore. — Application for C. P.
to authorize installation of new equipment, increase height'
of vertical radiator, change frequency from 1370 kc. to
1240 kc., and increase power from 100 watts to 250 watts.
WAPO — W. A. Patterson, Chattanooga, Tenn. — Application for
modification of C. P. to move studio locally, install new
equipment, change frequency from 1420 kc. to 1200 kc.,
and change power and time of operation from 100 watts
daytime to 100 watts night, 250 watts day, unlimited time.
WlXBS— American-Republican, Inc., Waterbury, Conn. — Appli¬
cations for construction permits for special broadcast sta¬
tions to be used as new booster stations, one to be located
at New Haven, Conn., and other at Bridgeport, Conn.,
to operate synchronously with WlXBS at Waterbury.
Booster stations request same facilities, 1530 kc., 100 watts,
unlimited time, sites to be approved.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Amended application for modification of license requesting
authority to change frequency from 1420 kc. to 1210 kc.,
increase power from 100 watts daytime to 100 watts un¬
limited time.
NEW — Auburn Publishing Company, Auburn, N. Y. — Application
for C. P., already in hearing docket, amended so as to request
change in transmitter site to York Street, Auburn, N. Y. ;
1420 kc., 100 watts, unlimited time.
APPLICATION RETIRED TO CLOSED FILES
WJAY — Cleveland Radio Broadcasting Corp., Cleveland, Ohio —
Application for C. P. requesting authority to install new
equipment and move transmitter, granted October 1, 1935,
expired June 1, 1936, and was retired to closed files for want
of prosecution.
RATIFICATIONS
The Broadcast Division ratified the following acts authorized
on the dates shown:
W4XBS-W4XCA — Memphis Commercial Appeal, Inc., Memphis,
Tenn. — Granted authority to extend service tests for a
period of 30 days from September 16, 1936. (Action taken
September 15.)
KNEC-W7XBK — Puget Sound Broadcasting Co., Inc., Tacoma,
Wash. — Granted authority to operate as licensed on Septem¬
ber 20 to 27 inclusive. (Action taken September 17.)
WJJD — WJJD, Inc., Chicago, Ill. — Granted special temporary
authority to operate without antenna ammeter for the period
September 12 to 26, 1936. (Action taken September 15.)
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
special temporary authority to operate without an approved
frequency monitor for the period September 15 to 25, 1936.
(Action taken September 15.)
WSVS — Elmer S. Pierce, Principal, Seneca Vocational H. S., Buf¬
falo, N. Y. — Granted special temporary authority to oper¬
ate from 8:30 to 10 a. m. and 2 to 3 p. m., EDST, instead of
EST as licensed, for the period September 15 to 27, 1936.
(Action taken September 15.)
WHAS — The Courier Journal Co. & the Louisville Times Co.,
Louisville, Ky. — Granted extension of special temporary
authority to operate a 50 watt portable test transmitter
from September 17 to October 16, 1936. (Action taken
September 17.)
WCBD — WCBD, Inc., Waukegan, Ill. — Granted extension of spe¬
cial temporary authority to use studio located at Zion, Ill.,
as main studio, pending action on application to move
studio to Chicago, for period September 21 to October 20,
1936. (Action taken September 10.)
KPAC — Port Arthur College, Port Arthur, Texas — Granted special
temporary authority to operate from 6:15 p. m. to 12 mid¬
night, CST, on September 18 and 25, 1936. (Action taken
September 18.)
WFBL — Onondaga Radio Broadcasting Corp., Syracuse, N. Y. —
Granted special temporary authority to use Weston Model
ammeter No. 5760 instead of Weston Tyle 400, for period
September 16 to October 15, 1936. (Action taken Septem¬
ber 18.)
WEBQ — Harrisburg Broadcasting Co., Harrisburg, Ill. — Granted
extension of special temporary authority to operate station
without antenna ammeter for the period September 17 to
September 26, 1936. (Action taken September 18.)
KOY — Nielson Radio & Sporting Goods Co., Phoenix, Ariz. —
Granted special temporary authority to operate a 50-watt
portable transmitter on 1390 kc., in vicinity of Phoenix,
for the period not to exceed 3 weeks. (Action taken Sep¬
tember 18.)
WBNY — Roy L. Albertson, Buffalo, N. Y. — Granted special tem¬
porary authority to operate from 2 to 3 p. m., EST, on
September 19, 26, and October 3, 10 and 17, 1936; and from
8:30 to 10:30 p. m. and 2 to 3 p. m., EST, on September
20, 27 and October 4, 11, and 18, 1936. (Action taken
September 18.)
WOKO — WOKO, Inc., Albany, N. Y. — Granted special temporary
authority to rebroadcast time signals from Naval Radio
Station NAA, for period ending no later than November
1, 1936. (Action taken September 18.)
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
special temporary authority to operate simultaneously with
WLBC from 7:30 to 10 p. m., CST, on September 18 and
25, 1936. (Action taken September 18.)
WKBV— Knox Radio Corp., Richmond, Ind. — Granted special tem¬
porary authority to operate from 1 to 5:30 p. m., CST, on
September 18 and 26. (Action taken September 18.)
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La.—
Granted special temporary authority to operate from local
sunset to 12 midnight, CST, on September 21, to broadcast
activities of first anniversary; from LS to 10 p. m., CST, on
September 24, 1936, to broadcast open house night of
Montgomery Ward & Co. (Action taken September 18.)
WFRO — Voice of Longview, Longview, Texas — Granted special
temporary authority to operate from LS to 12 midnight,
CST5, September 18, 25, October 2, 9, 16, 1936. (Action
taken September 18.)
KFDY — South Dakota State College, Brookings, S. D.— Granted
special temporary authority to operate from 2 to 5 p. m.,
CST, October 10 and 31, November 7, 1936. (Action taken
September 18.)
WGST — Georgia School of Technology, Atlanta, Ga. — Granted
special temporary authority to operate a 100-watt portable
test transmitter on 890 kc. between 12 midnight and 6 a. m.,
EST, for period not to exceed 10 days. (Action taken Sep¬
tember 19.)
WTRC — The Truth Publishing Co., Elkhart, Ind. — Granted special
temporary authority to operate simultaneously with WLBC
from 7:30 p. m. to 11 p. m., CST, the night of September
21 or September 28, for the purpose of broadcasting pro¬
grams in observance of WTRC’s increased power. (Action
taken September 19.)
W8XIN — Radio Air Service Corp., Cleveland, Ohio — Granted spe¬
cial temporary authority to operate high frequency relay
broadcast transmitting apparatus on September 21 to 24,
inclusive. (Action taken September 19.)
WSMK — WSMK, Inc., Dayton, Ohio — Granted special temporay
authority to operate simultaneously with KQV from 9 to 10
p. m., EST, on September 17 and 24. (Action taken Sep-
ember 17.)
WIOD-WMBF — Isle of Dreams Broadcasting, Corp., Miami, Fla.
— Granted C. P. approving transmitter site and vertical
radiator. (Action taken September 16.)
King-Trendle Broadcasting Corp., Detroit, Mich. — Granted exten¬
sion of authority to transmit sustaining programs from
WXYZ to stations of the Canadian Broadcasting Corp. for
period of 30 days, conditionally. (Action taken September
15.)
1581
The Broadcast Division, upon consideration of the requests of
applicants for dismissal of the following applications, directed that
the applications be dismissed with prejudice, and that an order
be entered accordingly and forwarded to all interested parties.
(Action taken September 14) :
Ex. Rep. No. 1-214 in part, applications of Winona Broadcasting
Co., Winona, Minn.; Mankato Broadcasting Co., Mankato, Minn.;
Fort Dodge Broadcasting Co., Fort Dodge, Iowa; Clinton Broad¬
casting Co., Clinton, Iowa; Hastings Broadcasting Co., Hastings,
Neb.; Grand Isle Broadcasting Co., Grand Island, Neb.; Apple-
ton Broadcasting Co., Appleton, Wis., and Wausau Broadcasting
Co., Wausau, Wis., all for new stations.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for
regular period:
KDYL, Intermountain Broadcasting Corp., Salt Lake City,
Utah; KFIO, Spokane Broadcasaing Corp., Spokane, Wash.;
KFKU, The University of Kansas, Lawrence Kans.; KFOX,
Nichols and Warinner, Inc., Long Beach, Calif.; KFSG, Echo
Park Evangelistic Assn. (Maurice E. Kennedy, Agt.) and auxiliary,
Los Angeles, Calif.; KFWB, Warner Bros. Broadcasting Corp.,
Hollywood, Calif.; KGCA, Charles Walter Greenley, Decorah,
Iowa; KGGF, Hugh J. Powell and Stanley Platz, d/b as Powell
& Platz, Coffeyvilie, Kans.; KGGM, New Mexico Broadcasting
Co., Albuquerque, N. M.; KGVO, Mosby’s Incorporated, Missoula,
Mont.; KHSL, Golden Empire Broadcasting Co., Chico, Calif.;
KLCN, Charles Leo Lintzenich, Blytheville, Ark.; KMBC, Mid¬
land Broadcasting Co., Kansas City, Mo.; KMBC (Auxiliary),
Midland Broadcasting Co., Kansas City, Mo.; KOIN, KOIN, Inc.,
Portland, Ore.; KOL, Seattle Broadcasting Co., Seattle, Wash.;
KPAC, Port Arthur College, Port Arthur, Texas; KQW, Agricul¬
tural Foundation, Ltd., San Jose, Calif.; KRGV, KRGV, Inc.,
Weslaco, Texas; KRKD, Radio Broadcasters, Inc., Los Angeles,
Calif.; KRKD (Auxiliary), Radio Broadcasters, Inc., Los Anegeles,
Calif.; KROW, Educational Broadcasting Corp., Oakland, Calif.;
KRSC, Radio Sales Corporation, Seattle, Wash.; KTRH, KTRH
Broadcasting Co., Houston, Texas; KTW, The First Presbyterian
Church of Seattle, Seattle, Wash.; KUOA, KUOA, Inc., Fayette¬
ville, Ark.; KVOR, S. H. Patterson, Colorado Springs, Colo.;
KWSC, State College of Washington, Pullman, Wash.; KYA,
Hearst Radio, Inc., San Francisco, Calif.; WAAT, Bremer Broad¬
casting Corp., Jersey City, N. J.; WASH, Kunsky-Trendle Broad¬
casting Corp., Grand Rapids, Mich.; WAVE, WAVE, Inc., Louis¬
ville, Ky. ; WMRC, Birmingham Broadcasting Co., Inc., Birming¬
ham, Ala.; WCAD, St. Lawrence University, Canton, N. Y.;
WCAM, City of Camden, Camden, N. J.; WCAP, Radio Indus¬
tries, Broadcast Co., Asbury Park, N. J.; WCOP, Massachusetts
Broadcasting Corp., Boston, Mass.; WDAE, Tampa Times Com¬
pany, Tampa, Fla.; WDAY, WDAY, Inc., Fargo, N. D.; WDBJ,
Times-World Corp., Roanoke, Va.; WDEL, WDEL, Inc., Wilming¬
ton, Del.; WDOD, WDOD Broadcasting Corp., Chattanooga,
Tenn. ; WDSU, WDSU, Inc., New Orleans, La. ; WEBC, Head of
the Lakes Broadcasting Co., Superior, Wis.; WEBC (Auxiliary),
Head of the Lakes Broadcasting Co., Superior, Wis.; WFBR, The
Baltimore Radio Show, Inc., Baltimore, Md. ; WHN and Auxiliary,
Marcus Loew Booking Agency, New York, N. Y. ; WHA, Univer¬
sity, of Wisconsin, Madison, Wis.; WISN and Auxiliary, Hearst
Radio, Inc., Milwaukee, Wis.; WJAS, Pittsburgh Radio Supply
House, Pittsburgh, Pa.; WJDX, Lamar Life Insurance Co., Jack-
son, Miss.; WKAQ, Radio Corporation of Porto Rico, San Juan,
Puerto Rico; WLB, University of Minnesota. Minneapolis, Minn.;
WNAC, Shepard Broadcasting Service, Inc., Boston, Mass.;
WNAD, University of Oklahoma, Norman, Okla.; WNBX, WNBX
Broadcasting Corp., Springfield, Vt. ; WNBZ, Earl J. Smith and
William Mace, d/b as Smith and Mace, Saranac Lake, N. Y.;
WNEL, Juan Piza, San Juan, Puerto Rico; WNEW, Wodaam
Corp., Newark, N. J.; KNOX, Continental Radio Co., Knoxville,
Tenn.; WOOD, Kunsky-Trendle Broadcasting Corp., Grand
Rapids, Mich.; WRC and Auxiliary, National Broadcasting Co.,
Inc., Washington, D. C.; WREN, The WREN Broadcasting Co.,
Lawrence, Kan.; WRR, City of Dallas, Dallas, Texas; WTAW,
Agricultural and Mechanical College of Texas, College Station,
Texas; WTCN, Minnesota Broadcasting Corp., Minneapolis,
Minn.; WTNJ, WOAX, Inc., Trenton, N. J.; WTOC, Savannah
Broadcasting Co., Inc., Savannah, Ga.; WXYZ, Kunsky-Trendle
Broadcasting Corp., Detroit, Mich.
The following stations were granted renewal of licenses for the
period ending 9 a. m., EST, March 1, 1937:
KFRC and Auxiliary, Don Lee Broadcasting System, San Fran¬
cisco, Calif.; KMJ, McClatchy Broadcasting Co., Fresno, Calif.;
WMMN, A. M. Rowe, Inc., Fairmont, W. Va.
The present license of the following special experimental station
in the experimental service was extended for a period of one month
from September 23, 1936, at 3 a m., EST, to 3 a. m., EST, October
23, 1936, on a temporary basis only, pending action on application
for renewal of license:
W8XAR, Westinghouse Electric & Manufacturing Company,
Saxonburg, Pa.
MISCELLANEOUS
WMEX — The Northern Corporation, Boston, Mass. — Recon¬
sidered action of July 22, 1936, granting without hearing
C. P. authorizing moving of transmitter, change of fre¬
quency to 1470 kc., and increasing power to S KW, and
designated application for hearing because of protests of
WNAC, WAAB, WCOP and WLAC.
WMCA — Knickerbocker Broadcasting Co., Inc., New York, N. Y. —
Granted modification of license authorizing operation on
570 kc., 1 KW, unlimited time, affirming grant of July 2,
1936, since stations WKBN, WICC, WFIL and WSYR-
WSYU withdrew protests on September 19, 1936.
NEW — Escanaba Daily Press Co., Escanaba, Mich. — Granted re¬
quest to take depositions in re application for new broad¬
cast station to operate on 1500 kc., 100 watts, daytime.
NEW — R. J. Laubengayer, Salina, Kans. — Granted application for
C. P. for new broadcast station to operate on 1500 kc., 100
watts, unlimited time ; transmitter site to be determined
with Commission approval.
NEW — The Journal Company, Milwaukee, Wis. — Granted petition
to intervene in hearing on application of John C. Looney,
d/b High Fidelity Broadcasting Service, Milton, Massachu¬
setts, for C. P. to establish and operate broadcast station
to operate on 1570 kc., 1 KW, unlimited time.
NEW — Continental Radio Co., Columbus and Toledo. Ohio. —
Applications for C. P. to erect and operate broadcast sta¬
tions at Columbus and Toledo, Ohio, to operate on fre¬
quencies of 1310 kc. and 1200 kc., 100 watts power, re¬
spectively, remanded to docket for additional testimony.
KUMA — Dr. Albert H. Schermann, Flagstaff, Ariz. — Granted re¬
newal of license on regular basis.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Denied
petition asking Commission to reconsider action of January
IS, 1936, in designating for hearing application for modifica¬
tion of license to increase power from 500 watts to 1 KW,
daytime.
KLZ Broadcasting Co., Denver, Colo. — Granted petition to inter¬
vene in hearing of application of Mile High Radio Corp.,
Denver, Colo., for C. P. to authorize establishment and
operation of a new broadcast station at Denver, using 1420
kc., 100 watts, unlimited time.
NEW — Tribune Printing Company, Jefferson City, Mo. — Recon¬
sidered and granted application for new broadcast station
at Jefferson City, Mo., to operate on 1310 kc., 100 watts,
daytime.
NEW — Advertiser Publishing Co., Ltd., Honolulu. T. H. — Granted
petition to intervene at hearing of application of Fred J.
Hart to erect and operate a new broadcast station at Hono¬
lulu to operate on 600 kc., 2 SO watts, unlimited time, to be
heard on November 10, 1936.
WISN — Hearst Radio, Inc., Milwaukee, Wis. — Denied petition
asking Commission to reconsider and grant application to
increase nighttime power from 250 watts to 1 KW on
present frequency of 1120 kc. Also denied petition request¬
ing oral argument before Broadcast Division as petitioner
offers no new or additional evidence.
WGAN (formerly WSPG)— Portland Broadcasting System, Inc.,
Portland, Maine. — Denied motion to dismiss application of
Palmer Broadcasting Syndicate, Inc., Portland, Maine, for
C. P. to establish and operate a new broadcast station at
Portland on 1310 kc., 100 watts.
WGAN (formerly WSPG) — Portland Broadcasting System, Inc.,
Portland, Maine. — Authorized to proceed with construction
of new station to operate on 640 kc., S00 watts, limited to
KFI, subject to whatever action the U. S. Court of Appeals
for D. C. may take upon pending appeals of Congress
Square Hotel Company and the Eastland Company. This
action follows dismissal of appeal of Palmer Broadcasting
Syndicate, Inc., and dissolution of its stay order.
NEW — Paul R. Heitmeyer. Cheyenne, Wyo. — Granted motion ask¬
ing dismissal of application of Wyoming Radio Corporation
1582
for C. P. for new radio broadcast station to operate at
Cheyenne on 1210 kc., 100 watts, unlimited time, as it
develops that the parties named as officers and directors of
Wyoming Radio Corp. are the same individuals that com¬
pose the Wyoming Radio Educational Association, whose
application for a new station, after a hearing, was denied,
effective June 12, 1936.
WCHS — Charleston Broadcasting Corp., Charleston, W. Va. —
Denied petition asking Commission to reconsider and grant
without hearing application for special experimental author¬
ization to increase nighttime power from 500 watts to 1 KW.
National Association of Regional Broadcasting Stations — Denied
petition asking Commission to maintain the present status
on regional stations pending promulgation of new rules and
regulations as result of the hearing scheduled for October
5, 1936.
NEW— Pacific Acceptance Corporation, San Diego, Calif. — Dis¬
missed the application from hearing docket and reaffirmed its
original decision of October 22, 1935, granting the applica¬
tion of the Pacific Acceptance Corp. for a new broadcast
station at San Diego to operate on 1200 kc., 100 watts, day¬
time only.
POSTPONEMENT OF EFFECTIVE DATE OF
RULES 981 AND 1034 (C)
Effective operation of Rule 981 postponed for six months to per¬
fect frequency monitors for independent measurement of the fre¬
quencies of stations other than those in regular broadcast band.
Rule 1034 (c) postponed until further notice. To be made
effective when definite allocations of frequencies to television sta¬
tions are made.
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. No. 1-212: A. W. Hayes, Erie, Pa. — Denied C. P.
for new broadcast station to operate on 1270 kc., 100 watts
night, 1 KW LS, unlimited time, directional antenna, site
to be determined subject to Commission’s approval. Ex¬
aminer Dalberg sustained.
NEW — Watertown Broadcasting Corp., Watertown, N. Y. — Denied
C. P. for new station to operate on 1270 kc., 250 watts,
daytime, site to be determined subject to Commission’s
approval. Examiner Melvin Dalberg reversed. Order effec¬
tive October 13, 1936.
NEW — Ex. Rep. No. 1-220: A. Staneart Graham, E. V. Baxter
and Norman Baxter, d/b as Pittsburg Broadcasting Co.,
Pittsburg, Kans. — Granted C. P. for new station to operate
on 790 kc., 1 KW, daytime, site to be determined subject
to Commission’s approval. Examiner Geo. H. Hill sus¬
tained. Order effective October 6, 1936.
NEW — Ex. Rep. No. 1-231: Union Tribune Pub. Co., San Diego,
Calif. — Denied C. P. for new broadcast station to operate
on 1420 kc., 100 watts night, 250 watts day, unlimited time.
Examiner R. L. Walker sustained. Order effective November
10, 1936.
NEW — Ex. Rep. No. 1-246: Star-Chronicle Pub. Co., St. Louis,
Mo. — Granted C. P. for new broadcast station to operate
on 1250 kc., 1 KW, unlimited time. Examiner R. H. Hyde
reversed.
WIL — Missouri Broadcasting Corp., St. Louis, Mo. — Denied C. P.
to install new equipment (install directional antenna at
night) ; move transmitter from Grand & Lindell Blvds., St.
Louis, Mo., to 2.8 miles due East of McKinley Bridge on
U. S. Highway No. 67, Ill.; change frequency from 1200 kc.
to 1250 kc.; and increase power from 100 watts night, 250
watts day, to 1 KW unlimited time. Examiner Hyde re¬
versed. Order effective October 6, 1936.
KGKO — Ex. Rep. No. 1-255: Wichita Falls Broadcasting Co., Fort
Worth, Tex. — Granted C. P. (Commissioner Case dissent¬
ing), to install new equipment, move studio and transmitter
to site to be determined subject to Commission’s approval;
570 kc., 250 watts night, 1 KW day, unlimited time. Ex¬
aminer D. G. Arnold sustained. Order effective October 13,
1936.
NEW — Ex. Rep. No. 1-262: Sioux Falls Broadcast Assn., Inc.,
Sioux Falls, S. Dak. — Granted C. P. for new broadcast
station (subject to Rules 131, 132 and 139) to operate on
1200 kc., 100 watts, unlimited time. (Site to be determined,
subject to Commission’s approval.) Examiner G. H. Hill
sustained. Order effective October 20, 1936.
NEW — Ex, Rep. No. 1-271: Black River Valley Broadcasts, Inc.,
Watertown, N. Y. — Granted C. P. for new station to operate
on 1420 kc., 100 watts night, 250 watts LS, unlimited time.
Examiner M. H. Dalberg sustained.
NEW — Ex. Rep. No. 1-275: Harold Johnson and Leland M. Perry,
d/b as Johnson & Perry, Cedar City, Utah. — Granted C. P.
for new broadcast station to operate on 1310 kc., 100 watts,
unlimited time. (Site to be determined, subject to Com¬
mission’s approval.) Examiner G. H. Hill sustained. Order
effective October 27, 1936.
WHFC— Ex. Rep. No. 1-276: WHFC, Inc., Cicero, Ill.— Granted
C. P. to install new equipment and increase power from
100 watts to 100 watts night, 250 watts day; 1420 kc.,
specified hours. Examiner M. H. Dalberg sustained,
WKBI — WKBI, Inc,, Cicero, Ill. — Granted modification of license
to increase power from 100 watts to 100 watts night, 250
watts day ; 1420 kc., specified hours. Examiner Dalberg
sustained.
WEHS — WEHS, Inc., Cicero, Ill. — Granted modification of license
to increase power from 100 watts to 100 watts night, 250
watts day ; 1420 kc., specified hours. Examiner Dalberg
sustained. Order effective October 27, 1936.
NEW — Ex. Rep. No. 1-278: Hunt Broadcasting Assn., Fred Horton,
Pres., Greenville, Tex.- — Remanded to docket for further
hearing.
WCBD— Ex. Rep. No. 1-280: WCBD, Inc., Chicago, Ill.— Granted
modification of license to move studio from Waukegan to
128 No. Pulaski Road, Chicago, Ill.; 1080 kc., 5 KW, limited
time. Also granted authority to transfer control of cor¬
poration from Wilbur Glenn Voliva, Ernest E. Harwood
and M. J. Mintern to L. E. Moulds, W. F. Moss and Gene
T. Dyer and E. M. Ringwald. Examiner G. H. Hill sus¬
tained. Order effective November 2, 1936.
KRE — Ex. Rep. No. 1-288: First Congregational Church of Berke¬
ley, Berkeley, Calif. — Granted voluntary assignment of
license from First Congregational Church of Berkeley to
Central California Broadcasters, Inc.; 1370 kc., 100 watts
night, 250 watts day, unlimited time. Examiner R. H.
Hyde sustained. Order effective November 2, 1936.
ORAL ARGUMENTS GRANTED
Oral arguments were granted in the following cases, to be held
October 29, 1936:
Ventura County Star, Inc., and Merced Star Publishing Co., Inc.,
Ventura, Calif. (Ex. Rep. No. 1-239) ; Intermountain Broadcasting
Corp. (KDYL), Salt Lake City, Utah (Ex. Rep. No. 1-242).
In the following cases Oral Arguments were granted for Novem¬
ber 6, 1936:
Southwest Broadcasting Co., Prescott, Ariz., and W. P. Stuart,
Prescott, Ariz. (Ex. Rep. 1-245); Radio Broadcasting Corp.
(KTFI) Twin Falls, Idaho (Ex. Rep. 1-249); Voice of Marshall
Assn., Marshall, Texas (Ex. Rep. 1-251).
In the following cases Oral Arguments will be held November
13, 1936:
WALR Broadcasting Corp., Zanesville, Ohio (Ex. Rep. 1-253) ;
Community Broadcasting Co., Toledo, Ohio (Ex. Rep. 1-254) ; Earl
Weir, St. Petersburg, Fla. (Ex. Rep. 1-261); Nathan N. Bauer,
Miami, Fla. (Ex. Rep. 1-243).
In the following cases Oral Arguments will be held November
19, 1936:
The Sun Publishing Co, Inc. (WTJS), Jackson, Tenn. (Ex. Rep.
1-244); Cherry & Webb Broadcasting Co. (WPRO), Providence,
R. I. (Ex. Rep. 1-248) ; J. R. Maddox and W. B. Hair, d/b as
Chattanooga Broadcasting Co, Chattanooga, Tenn. (Ex. Rep.
1-252); Dorrance D. Roderick, El Paso, Texas (Ex. Rep. 1-256).
In the following cases Oral Arguments will be held December
3, 1936:
K. K. Kidd & L. C. Kidd, Taft, Calif. (Ex. Rep. 1-259) ; Marys-
ville-Yuba City Publishers, Inc., Marysville, Calif. (Ex. Rep.
1-264) ; Fred A. Baxter, Superior, Wis. (Ex. Rep. 1-266) ; Baton
Rouge Broadcasting Co., Inc. (WJBO), Baton Rouge, La. (Ex.
Rep. 1-267).
In the following cases Oral Arguments will be held December
10, 1936:
Tulare-Kings Counties Radio Associates, Visalia, Calif. (Ex. Rep.
1-268) ; J. E. Brandtley, et al., Savannah, Ga., W. T. Knight, Jr.,
1583
Savannah, Ga. (Ex. Rep. 1-269) ; Gulf Coast Broadcasting Co.,
Corpus Christi, Texas (Ex. Rep. 1-272).
In the following cases Oral Arguments will be held November
6, 1936:
Albert Lea Broadcasting Corp., Albert Lea, Minn., Winona
Radio Service, Winona, Minn. (Ex. Rep. 1-273).
In the following cases Oral Arguments will be held December
17, 1936:
Cache Valley Broadcasting Co., Logan, Utah (Ex. Rep. 1-274) ;
J. T. Bilben and N. G. Barnard, Walker, Minn. (Ex. Rep. 1-277).
In the following case Oral Argument will be held October 22,
1936:
The Times-Dispatch Publishing Co., Inc., Richmond, Va. (Ex.
Rep. 1-285).
OTHER ACTION
KFRO — Voice of Longview, Longview, Tex. — Denied petition ask¬
ing Commission to rehear application to change frequency
from 1370 kc. to 1210 kc., and to operate with 100 watts
night, 250 watts day, instead of 100 watts daytime only,
requesting the facilities of KWEA at Shreveport, La. Com¬
missioner Stewart voted in favor of granting the petition
and will submit an opinion outlining his reasons.
National Television Corp., New York City. — Extended to Decem¬
ber 15, 1936, present temporary authorization (Station
W2XNT) for television research on 2000-2100 kc., issued
July 21, 1936, with special provisions for a period ending
September 15, 1936.
Dudley J. Connolly et al., d/b as Dudley J. Connolly & Co.,
Chattanooga, Tenn. — Denied petitions asking for rehearing
and review before Commission en banc of applications of
W. A. Patterson and Dudley J. Connolly & Co. for new
broadcasting station at Chattanooga, and the denial of the
application of Dudley J. Connolly & Co. for C. P. for new
station to operate on 1200 kc., 100 watts, daytime.
APPLICATIONS RECEIVED
First Zone
WCAO — Monumental Radio Co., Baltimore, Md. — License to cover
600 construction permit ( B 1 -P-1087 ) for new auxiliary trans¬
mitter, move, using 250 watts power.
WLBZ — Maine Broadcasting Co., Inc., Bangor, Maine. — Con-
620 struction permit to install new transmitter.
NEW- — Utica Observer Dispatch, Inc., Utica, N. Y. — Construction
950 permit for a new station to be operated on 950 kc., 1 KW,
daytime. Studio and transmitter to be determined, Utica,
N. Y.
WHN — Marcus Loew Booking Agency, New York, N. Y. — Modi-
1010 fication of license to increase operating power from 1 KW
night, 5 KW day, to 5 KW day and night.
WEBR— WEBR, Inc., Buffalo, N. Y. — Construction permit to
1310 install new transmitter and vertical antenna.
WBNY — Roy L. Albertson, Buffalo, N. Y. — Modification of license
1370 for additional hours of from 2 to 3 p. m. on Saturdays
and from 8:30 to 10 a. m. and 2 to 3 p. m. on Sundays
and legal holidays. Facilities of WSVS.
WQDM — E. J. Regan and F, Arthur Bostwick, d/b as Regan &
1370 Bostwick, St. Albans, Vt. — Modification of construction
permit (Bl-P-113) for move of transmitter and studio,
change frequency, install new equipment, increase in power,
and change in specified hours, requesting equipment changes
and move of transmitter.
WNLC — Thames Broadcasting Corp., New London, Conn. —
1500 License to cover construction permit (Bl-P-549) for a new
station.
NEW — The Trenton Times, Trenton, N. J. — Construction permit
1570 for a new special broadcast station to be operated on 1570
kc., 250 watts, unlimited time.
NEW — The Trenton Times, Trenton, N. J. — Construction permit
1570 for booster station for special broadcast station at Trenton,
N. J.. to be operated synchronously with Bl-PSB-5 on
1570 kc., 250 watts, unlimited time.
NEW — The Trenton Times, Trenton, N. J. — Construction permit
1570 for booster station for special broadcast station at Trenton,
N. J., to be- operated synchronously with Bl-PSB-5 on
1570 kc., 250 watts, unlimited time.
NEW — Debs Memorial Radio Fund, Inc., Brooklyn, N. Y. — Con¬
struction permit for a new high frequency station to be
operated on 31600, 35600, 38600, 41000, 86000, 130000,
172000 and 260000 kc., 100 watts.
NEW — General Electric Co., Albany, N. Y. — Construction permit
for a new high frequency broadcast station to be operated
on 31600, 35600, 38600 and 41000 kc., ISO watts.
NEW — The Travelers Broadcasting Service Corp., Portable-Mobile.
— Construction permit for a new high frequency relay broad¬
cast station to be operated on 105000, 200000, 290000 and
450000 kc., 5 watts.
NEW — The Travelers Broadcasting Service Corp., Portable-Mobile.
— License to cover above.
Second Zone
WFIL— WFIL Broadcasting Co., Philadelphia, Pa. — Modification
560 of construction permit (B2-P-1085) for new equipment,
erect vertical antenna, increase power, move transmitter,
further requesting authority to change transmitter site from
1300 feet northeast of Monument and City Line Avenue,
Merion Township, Pa., to 1500 feet north of Monument
and City Line Avenue, Merion Township, Pa., and extend
commencement and completion dates to 30 and 180 days,
respectively.
NEW — The Central Michigan Radio Co., James Bourland, John
570 Tebbel, Gerald J. Cotter, Ray D. Market, Mt. Pleasant,
Mich. — Construction permit for a new station to be operated
on 1350 kc., 250 watts, unlimited time. Amended: Antenna
changes, change frequency from 1350 kc. to 570 kc.
WJAY — Cleveland Radio Broadcasting Corp., Cleveland, Ohio. —
610 Construction permit to move transmitter from 2016 East
Ninth St., Cleveland, Ohio, to Pleasant Valley Road, Village
of Seven Hills, Ohio ; install new transmitter and antenna.
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Modifica-
920 tion of license to increase operating power from 250 watts
night using directional antenna and 500 watts day, to 1 KW
day and night, using directional antenna at night.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa. — Modifi-
920 cation of license to increase operating power from 250 watts
night using directional antenna and 500 watts day, to 1 KW
day and night, using directional antenna at night.
WDBJ — Times-World Corp., Roanoke, Va. — License to cover con-
930 struction permit (B2-P-1006) to install new equipment,
increase in power, and move transmitter and studio.
WDBJ — Times-World Corp., Roanoke, Va. — Authority to deter-
930 mine operating power by direct measurement of antenna
power.
WIBG — Seaboard Radio Broadcasting Corp., Glenside, Pa. — Au-
970 thority to make changes in automatic frequency control
apparatus.
KYW — Westinghouse Electric & Mfg. Co., Philadelphia, Pa. —
1020 Construction permit to make changes in equipment and
increase operating power from 10 KW to 50 KW.
WKOK — Sunbury Broadcasting Corp., Sunbury, Pa. — Construc-
1210 tion permit to install new transmitter.
WHAT — Independence Broadcasting Co., Inc., Philadelphia, Pa. —
1310 Construction permit to make changes in equipment, increase
power from 100 watts to 1 KW, change frequency from
1310 kc. to 1220 kc., time from S-WTEL to unlimited time,
and move transmitter. Amended to give transmitter site
as Whitemarsh Township, Pennsylvania.
WSAJ — Grove City College, Grove City, Pa. — Construction per-
1310 mit to make changes in equipment.
WFBG — -The Gable Broadcasting Co. (Lessee), Altoona, Pa. —
1310 Construction permit to install new equipment, vertical an¬
tenna, and increase power from 100 watts to 100 watts
night, 250 watts day.
WPAD — Paducah Broadcasting Co., Inc., Paducah, Ky. — Author-
1420 ity to make changes in automatic frequency control.
NEW- — Staunton Broadcasting Co., Inc., Staunton, Va. — Construc-
1500 tion permit for a new station to be operated on 1500 kc.,
100 watts night, 250 watts day, unlimited time.
WJBK — James F. Hopkins. Inc., Detroit, Mich.— -Modification of
1500 construction permit (B2-P-637) as modified for equipment
changes, install vertical antenna, move transmitter locally,
to further request authority to make equipment changes
and extend commencement and completion dates 60 and
180 days, respectively.
W3XEW — WTAR Radio Corp., Portable-Mobile. — Reinstatement
of construction permit for high frequency relay broadcast
station to be operated on 31100, 34600, 37600 and 40600
kc., 5 watts, which expired August 10, 1936.
1584
NEW — Radio Air Service Corp., Portable-Mobile.— Construction
permit for a new high frequency relay broadcast station
to be operated on 38900, 39100, 39300 and 39500 kc., 100
watts.
Third Zone
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Modifica-
580 tion of construction permit (B3-P-1048) for move of trans¬
mitter, make antenna changes, and increase in power, re¬
questing installation of new transmitter.
KVOO — Southwestern Sales Corp., Tulsa, Okla.— Construction
1140 permit to make changes in transmitter equipment and in¬
crease power from 25 KW to 50 KW.
NEW — Richard M. Casto, Johnson City, Tenn. — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts night, 250 watts day, unlimited time.
WMFR — Hart and Nelson (J. A. Hart and Wayne M. Nelson),
1200 High Point, N. C.— Voluntary assignment of license from
Hart and Nelson (J. A. Hart and Wayne M. Nelson) to
Radio Station WMFR, Inc.
WBBZ — Howard Johnson, Representative, Estate of C. L. Carrell,
1200 deceased, Ponca City, Okla. — Construction permit to install
new equipment, make antenna changes, and increase day
power from 100 watts to 250 watts.
WJRD — James R. Doss, Jr., Tuscaloosa, Ala. — Modification of
1200 construction permit (B3-P-694) for new station to further
request authority to install new transmitter, move trans¬
mitter and studio, and antenna changes.
WSIX — Jack M. Draughon, Louis R. Draughon, d/b as 638 Tire &
1210 Vulcanizing Co., Nashville, Tenn. — License to cover con¬
struction permit (B3-P-227) as modified for move of trans¬
mitter and studio and install new antenna.
NEW — Southeastern Broadcasting Co., Inc., Macon, Ga. — Con-
1210 struction permit for a new station to be operated on
1210 kc., 100 watts, specified hours (local sunset to mid¬
night). Amended: When WMAZ signs off to midnight.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
1300 Construction permit to install new antenna and move trans¬
mitter from Collins Island, Miami Beach, Fla., to 18 Avenue
and 32 Street, Miami, Fla.
NEW — H. W. Wilson and Ben Farmer, Wilson, N. C. — Construc-
1310 tion permit for a new station to be operated on 1310 kc.,
100 watts, daytime. Amended: Antenna changes and move
transmitter.
WSMB — WSMB, Inc., New Orleans, La. — Modification of license
1320 to operate with power of 1 KW, and request provision
WSMB license limiting radiation in direction of Akron,
Ohio, to 88 mv/m at 1 mile from WSMB transmitter be
deleted and provision be inserted WSMB be authorized to
radiate in direction Akron not to exceed 70.6% of the average
radiation, based on radiation by it in all directions.
NEW — T. E. Kirksey, Waco, Tex. — Construction permit for a
1330 new station to be operated on 1330 kc., 500 watts, unlimited
time.
KTEM — Bell Broadcasting Co., Temple, Tex. — Modification of
1370 construction permit (B3-P-657) to make changes in type of
equipment, for approval of antenna and transmitter site.
NEW — J. Leslie Doss, Sarasota, Fla. — Construction permit for a
1390 new station to be operated on 1390 kc., 250 watts, daytime.
KGNC — Plains Radio Broadcasting Co., Amarillo, Tex. — Author-
1410 ity to transfer control of corporation from Estate of Wilbur
C. Hawk to Gene A. Howe, 250 shares of capital stock.
NEW — WSOC, Inc., Portable-Mobile. — Construction permit for a
new low frequency relay broadcast station to be operated
on 1646, 2090, 2190, 2830 kc., 40 watts.
Fourth Zone
NEW — Daily News Corp., St. Paul, Minn. — Construction permit
580 for a new station to be operated on 630 kc., 250 watts,
unlimited time. Amended to change frequency from 630 kc.
to 580 kc., power from 250 watts to 1 KW, time from
unlimited to daytime, and make changes in equipment and
antenna.
KMMJ — KMMJ, Inc., Clay Center, Nebr. — Construction permit
740 to install a new transmitter.
WBAA — Purdue University, West Lafayette, Ind. — Authority to
890 install automatic frequency control.
KMA — May Seed and Nursery Co., Shenandoah, Iowa. — Modifi-
930 cation of license to increase day power from 2V2 KW to 5
KW.
WJJD — WJJD, Inc., Chicago, Ill. — Construction permit to install
1130 directional antenna to be used nighttime and change hours
of operation from limited time to unlimited time.
KANS — Charles C. Theis, Wichita, Kans. — License to cover con-
1210 struction permit (B4-P-500) as modified for a new station.
KGNO — The Dodge City Broadcasting Co., Inc., Dodge City,
1340 Kans. — License to cover construction permit (B4-P-1170)
for installation of new equipment.
WOC — Tri-City Broadcasting Co., Davenport, Iowa. — Authority
1370 to transfer control of corporation from The Palmer School
of Chiropractic to B. J. Palmer and D. D. Palmer (as
individuals), 100 shares of common stock.
KCMO — Lester E. Cox, Thomas L. Evans and C. C. Payne, Kansas
1370 City, Mo. — Voluntary assignment of license from Lester E.
Cox, Thomas L. Evans and C. C. Payne to KCMO Broad¬
casting Co.
WRJN — Racine Broadcasting Corp., Racine, Wis. — License to
1370 cover construction permit (B4-P-370) as modified for new
equipment, increase in power and move of transmitter.
Amended: Equipment changes.
WGL — Westinghouse Electric & Manufacturing Co., Fort Wayne,
1370 Ind. — Construction permit to install new transmitter.
KWBG — The Nation’s Center Broadcasting Co., Inc., Hutchinson,
1420 Kans. — Construction permit to make equipment changes;
increase power from 100 watts to 250 watts; change fre¬
quency from 1420 kc. to 550 kc.; move transmitter (using
directional antenna night). Amended re transmitter site.
WLBF — The WLBF Broadcasting Co., Kansas City, Kans. — Con-
1420 struction permit to make equipment changes.
KGFK — Red River Broadcasting Co., Inc., Duluth, Minn. — Modi-
1500 fication of construction permit (4-P-B-3085) authorizing
move of station, requesting change in geographical location
of transmitter, change in studio location, and changes in
antenna.
NEW — The Service Life Insurance Co., Omaha, Nebr. — Construc-
1500 tion permit for a new station to be operated on 1500 kc.,
100 watts, unlimited time.
NEW — The Journal Co. (Milwaukee Journal), Milwaukee, Wis. —
1570 Construction permit for a new special broadcast station to
be operated on 1570 kc., 1 KW, unlimited time. Amended:
Antenna and transmitter site to be determined.
NEW — Woodmen of the World Life Insurance Association,
Portable-Mobile. — Construction permit for a high frequency
relay broadcast station to be operated on 31100, 34600,
37600 and 40600 kc., 2 watts.
NEW — Woodmen of the World Life Insurance Association,
Portable-Mobile. — Construction permit for a high frequency
relay broadcast station to be operated on 31100, 34600,
37600 and 40600 kc., 2 watts.
Fifth Zone
KSFO — The Associated Broadcasters, Inc., San Francisco, Calif. —
560 Voluntary assignment of license from The Associated Broad¬
casters, Inc., to Western Broadcast Co. Amended to change
name of assignee to Columbia Broadcasting System of Cali¬
fornia, Inc.
KFKA — The Mid-Western Radio Corp., Greeley, Colo. — Modifica-
880 tion of license to change frequency from 880 kc. to 1450 kc.
and hours of operation from S-KPOF to unlimited time.
KFVD — Standard Broadcasting Co., Los Angeles, Calif. — Con-
1000 struction permit to install new transmitter.
KNX — Western Broadcast Co., Los Angeles, Calif. — Modification
1050 of license to change corporate name from Western Broad¬
cast Co. to Columbia Broadcasting System of California,
Inc.
KVEC — Christina M. Jacobson, d/b as The Valley Electric Co.,
1200 San Luis Obispo, Calif. — Modification of construction per¬
mit (B5-P-718) requesting approval of transmitter site.
NEW — Clarence A. Berger, Couer d’Alene, Idaho — Construction
1200 permit for a new station to be operated on 1200 kc., 100
watts, daytime.
KGGM — New Mexico Broadcasting Co., Albuquerque, N. M. —
1230 Construction permit to install new transmitter and vertical
antenna; increase power from 250 watts night, 500 watts
day, to 1 KW day and night ; move transmitter locally from
5th and Central Ave. to West City Limits, Albuquerque,
N. Mex. Amended re change geographical location.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Extension
1240 of special experimental authorization to operate with power
of 1 KW (night) for period from 10-1-35 to 4-1-36.
Amended: Change period time requested to 10-1-36 to
4-1-37.
1585
KFAC — Los Angeles Broadcasting Co., Inc., Los Angeles, Calif. —
1300 Construction permit to install new transmitter.
KVL — KVL, Inc., Seattle, Wash. — Voluntary assignment of license
1370 KVL, Inc., to Howard J. Ryan.
KORE — Frank L. Hill and C. G. Phillips, d/b as Eugene Broadcast
1430 Station, Eugene, Ore. — Construction permit to move trans¬
mitter and studio from 733 Willamette St., Eugene, Ore., to
R. F. D. No. 3, Eugene, Ore., and make changes in equip¬
ment and antenna.
KLS — S. W. Warner and E. N. Warner, d/b as Warner Bros., Oak-
1440 land, Calif. — Construction permit to install new transmitter.
NEW— Twin City Broadcasting Corp., Longview, Wash. — Con-
1500 struction permit for a new station to be operated on 1500
kc., 100 watts night, 250 watts day, unlimited time.
KRNR — Southern Oregon Publishing Co., Roseburg, Ore. — Con-
1500 struction permit to make changes in equipment; increase
power from 100 watts daytime to 100 watts night, 250 watts
day, and hours of operation from daytime to unlimited.
NEW — Ben S. McGlashan, Portable-Mobile — Construction permit
for a new low frequency relay broadcast station to be
operated on 1632, 2058, 2150 and 2790 kc., 100 watts.
NEW — Honolulu Broadcasting Co., Ltd., Portable-Mobile— Con¬
struction permit for a high frequency relay broadcast station
to be operated on 31100, 34600, 37600 and 40600 kc., 20
watts.
1586
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .
Copyright. 1936. The National Association of Broadcasters
Vol. 4 - - No. 49
OCT. 1, 1936
IN THIS ISSUE
Page
Plan for October 5 Hearing . 1587
Use of Records . 1587
Notes for the Sales Staff . 1587
Recommends Power Increase for WJAC . 1587
Wilkinson Appeal Dismissed . 1587
Niagara Falls Station Recommended . 1587
Denial Recommended for Nevada Station . 1587
Recommends Increased Power for WHAZ . 1587
Broadcast Advertising for July . 1588
Federal Trade Commission Action . 1590
FTC Closes Case . 1592
Federal Communications Commission Action . 1593
PLAN FOR OCTOBER 5 HEARING
The Broadcast Division of the Federal Communications Com¬
mission has outlined a general plan for the conducting of the
allocation hearings to begin October 5.
The hearing will be held in the government auditorium located
at Constitution Avenue between 12th and 13th Streets, between
the Department of Labor building and the Interstate Commerce
Commission building.
Judge Eugene O. Sykes, chairman of the Broadcast Division of
the Commission, will first outline the scope and procedure for the
hearing.
T. A. M. Craven, chief engineer of the Commission, will make
a statement on broadcast allocation and engineering.
He will be followed by A. D. Ring, assistant chief engineer and
Dr. L. P. Wheeler, of the Technical Information Section, both of
whom will make statements concerning the procedure and the fac¬
tual data on the allocation survey.
The General Electric Company has notified the Commission that
it will be represented at the hearing by C. H. Land, director of
broadcasts.
H. B. McCarty, president of the National Association of Educa¬
tional Broadcasters, has also asked for time for his association.
USE OF RECORDS
For the information of members we wish to advise that a number
of radio stations have received letters from their local musical
unions requesting information as to the usage made by the stations
of phonograph records and requesting that the station furnish the
local with information.
We are informed that some stations are taking the position that
the Musicians Union has no right to inquire into the use made of
phonograph records by radio stations and that the stations are
ignoring the communications.
RECOMMENDS POWER INCREASE FOR WJAC
Broadcasting station WJAC, Johnstown, Pa., applied to the
Federal Communications Commission to increase its daytime power
from 100 to 250 watts. The station operates on 1310 kilocycles
with 100 watts power sharing time with WFBG.
Examiner Melvin H. Dalberg in Report No. 1-290 recommended
that the application be granted. He found that the station has
“rendered a generally meritorious service and there appears to be
a need for additional service in the area proposed to be served.”
The Examiner found further that granting of the application
“would not cause objectionable interference to any established
service, nor is there any question of interference involved with any
pending application or applications.”
WILKINSON APPEAL DISMISSED
The Court of Appeals of the District of Columbia has dismissed
the appeal of the Wilkinson Broadcasting Company, Mason City,
Iowa, against the Federal Communications Commission at the re¬
quest of the appellant.
In this case the Wilkinson Company appealed against a decision
NOTES FOR THE SALES STAFF
Further indications that the summer slump has
been definitely beaten is to be found in July ad¬
vertising volume. (See Total Broadcast Advertis¬
ing, page 1588.)
The marked strength in regional network volume
during the month should be of particular interest.
(See Total Broadcast Advertising, page 1588.)
The strength of transcription volume in both the
national and local fields is a continuing develop¬
ment of interest. (See Broadcast Advertising by
Type of Rendition, page 1589.)
of the Commission granting a construction permit for a new broad¬
casting station at Mason City to the Mason City Globe & Gazette
Company. In making the grant the Wilkinson Company claimed
that the Commission had ignored its rights.
NIAGARA FALLS STATION RECOMMENDED
The Power City Broadcasting Corporation and the Niagara
Falls Gazette Publishing Company, both filed applications with
the Federal Communications Commission asking for construction
permits for the erection of a new station at Niagara Falls, N. Y.,
and both asking identical facilities as follows: 630 kilocycles, 250
watts and daytime operation.
Examiner Melvin H. Dalberg in Report No. 1-291 recommended
that the application of the Power City Corporation be granted and
that of the Gazette Publishing Company be denied. The Examiner
states that there is “a distinction between the types of ownership
and control of the facilities proposed.” He then calls attention
to the fact that the Gazette Company publishes a newspaper. He
continues, “It is believed, however, that the applicant Power City
Broadcasting Corporation stockholders * * * enjoy excellent local
reputations and are representative of the population of the area
in practically all of its activities, is better qualified as the licensee
of the proposed station.”
DENIAL RECOMMENDED FOR NEVADA
STATION
Mrs. C. A. S. Heaton filed an application with the Federal Com¬
munications Commission asking for a construction permit for the
erection of a new station at Las Vegas, Nev., to use 1420 kilocycles,
100 watts and unlimited time on the air.
Examiner Robert L. Irwin in Report No. 1-292 recommended
that the application be denied. It was found by the Examiner
that “this applicant is without adequate capital to make such
service available to the area and the quality of the programs
cannot be determined from the record.”
RECOMMENDS INCREASED POWER FOR
WHAZ
Broadcasting station WHAZ, operating on 1300 kilocycles, with
500 watts power and specified hours of operation has applied to
the Federal Communications Commission to increase its power to
1000 watts.
Examiner Robert L. Irwin in Report No. 1-293 recommended
that the increased power be granted subject, “however, to condi¬
tions requiring that the antenna system be so changed or con¬
structed as to comply with the regulations of the Commission, and
requiring the painting and illuminating of the antenna towers for
the protection of air traffic.”
The Examiner states that the operation of the station with the
proposed increased power would not cause increased interference
with any other existing stations.” He found also that “the ap-
1587
plicant has shown a need for additional nighttime service in the
area proposed to be served.”
BROADCAST ADVERTISING DURING JULY
Analysis of Check with Census Data
In keeping with the announced intention to further check the
accuracy of its own figures and to make possible their improve¬
ment where necessary, the NAB has just completed an additional
study to determine the significance and reasons underlying the
differences between its own and the Census apportionments of
national and local non-network business.
The check in question constituted a comparison between the
proportion of national and local volume represented in the non¬
network business reported to the Census by the identical group
of stations comprising the NAB 1935 sample and the proportion
as recorded for these stations by the NAB. The theory under¬
lying the check was that if the proportion of national and local
business showed a marked correspondence in the two cases, then
it would be indicated that the NAB sample was of such a nature
as to underemphasize the local volume, since comparable groups
of stations had yielded generally similar results. If this did not
occur, obviously further checks would be required.
The Bureau of the Census was requested to determine the
proportion of national and local business in the non-network field
reported to it by the NAB 1935 sample stations as a group. The
comparison was then made.
Allowing for the fact that Census figures were collected at net
and the NAB figures at gross, the results of the check showed a
marked correspondence. Thus, the Census net sales for the group
of stations in question in the non-network field were comprised
43.2% of national and regional business and 56.8% of local vol¬
ume. NAB gross sales for the identical group were 46.5% national
and regional and 53.5% local. Since discounts in the national
field, on the whole, are larger than on local business, a given
volume of national net business may be expected to yield a higher
volume of gross than would the same volume of local net busi¬
ness. On this basis the difference of 3.3% between the proportion
of the national business on the two sets of compilations becomes
of no importance.
The result of the check therefore indicates that the NAB statis¬
tics have tended to underemphasize the volume of local business
placed over stations and that consequently local volume has
represented too small a proportion of total non-network volume.
Increases must therefore be made primarily in local volume, since
NAB and Census national volume previously has been shown to
check closely when reduced to a comparable basis. Upward
adjustment of local figures is readily possible and will be carried
out as soon as publication of more detailed Census breakdowns
furnish the base for revised procedure.
Highlights of the Month
Broadcast advertising during July amounted to $7,232,-
225, a decline of 9.4% as compared to the June level.
For the second month in succession the seasonal decline
was less than during the previous year, when the June-
July drop amounted to 11.1%. Regional network volume
rose 7.5% over June.
Gross time sales for the medium were 23.4% greater
than during the corresponding month of last year, all
portions of the broadcasting industry showing approxi¬
mately the same rate of increase.
Local and regional stations continued to show the
greatest relative growth over the corresponding period
of the preceding year as far as non-network volume was
concerned. Non-network gains were most pronounced
in the South and mid-West during the month.
All forms of rendition declined as compared to June,
with the exception of national announcement volume,
which rose 15.3%. The most marked gains in the na¬
tional field occurred in the transcription and announce¬
ment business. Gains were more uniform in the local|
field, with transcriptions and live talent leading.
Seasonal declines were experienced by practically all
sponsoring groups. National network gasoline, food,
confectionery, household equipment and tobacco adver¬
tising, however, rose above the June level. Regional
network food, drug and household equipment volume
rose likewise. National non-network radio and financial
volume increased, as did local radio set advertising.
Numerous gains were experienced as compared to
June of the previous year. All forms of food advertising
increased, as did automotive volume. Regional network
and national non-network drug and gasoline business
gained markedly, as did local clothing volume. National
network business experienced important gains in the
beverage, confectionery, household equipment, soap and
kitchen supply, financial and radio set fields.
Total Broadcast Advertising
Total broadcast advertising for the month of July is set forth
in Table I.
TABLE I
TOTAL BROADCAST ADVERTISING
1936 Gross Time Sales
Cumulative
Class of Business June July Jan.- July
National networks. . . $3,979,763 $3,832,320 $32,014,296
Regional networks. . . 105,860 113,705 758,178
National non-network 1,883,830 1,661,200 13,189,060
Local . 1,948,280 1,625,000 12,072,870
Total . $7,917,733 $7,232,225 $58,034,404
Broadcast advertising during the month declined 9.4% from
the June level. This was less than the July decrease of the pre¬
ceding year, which amounted to 11.1%. National network busi¬
ness decreased the least as compared to June. Gross time sales
for national networks remained at 96.3% of the preceding month’s
level. This makes the national network decline considerably less
than during previous summers.
Regional network advertising ran counter to the usual seasonal
trend and rose 7.5 % as against June. National non-network
advertising decreased 11.7% and local volume 16.5%.
All forms of radio advertising gained as against the correspond¬
ing month of last year. Gains were fairly uniform and were as
follows: national networks, 20.9%; regional networks, 23.4%;
national non-network business, 28.0% ; local broadcast advertising,
26.6%.
Comparison with Other Media
Advertising volume for major media is set forth in Table II.
TABLE II
ADVERTISING BY MAJOR MEDIA
1936 Gross Time and Space Sales
Cumulative
Advertising Medium June July Jan.- July
Radiobroadcasting... $7,917,600 $7,232,225 $58,034,404
National magazines1. . 12,323,954 8,907,011 83,663,895
National farm papers1. 524,308 398,892 4,129,657
Newspapers2 . 48,484,000 44,085,000 319,791,000
Total . $69,249,862 $60,623,128 $465,618,956
1 Publishers’ Information Bureau.
2 Estimated.
National magazine advertising in July decreased 26.7% as com¬
pared to June but remained 10.1% above the level of the corres¬
ponding period of last year. National farm papers decreased 23.4%
from the June level. Farm paper volume, however, was 14.3%
above that of July 1935. Newspaper lineage declined 9.9% over
the month but remained 12.6% above July 1935.
Non-network Advertising
Total non-network advertising decreased 14.4% as compared
to the preceding month, though it registered a gain of 27.3% as
compared with July of last year. Non-network advertising by
power of station is found in Table III.
TABLE III
NON-NETWORK ADVERTISING BY POWER OF
STATION
1936 Gross Time Sales
Cumulative
Power of Station June July Jan.- July
Over 1,000 watts . $1,543,110 $1,281,400 $11,145,740
250-1,000 watts . 1,707,620 1,420,800 10,219,550
100 watts . 581,380 584,000 3,896,640
Total . $3,832,110 $3,286,200 $25,261,930
1588
Clear channel and regional station non-network volume declined
16.8% and 16.9% respectively from the June level. Local station
business gained 5.0%. Local station advertising continued to show
the greatest gains over last year, increasing 44.5%. Regional
station advertising rose 39.6% and clear channel volume 10.4%.
Non-network advertising by major geographical districts is found
in Table IV.
TABLE IV
NON-NETWORK BROADCAST ADVERTISING BY
GEOGRAPHICAL DISTRICTS
1936 Gross Time Sales
Cumulative
Geographical District June July Jan.-July
New England-Middle
Atlantic Area . $839,110 $595,300 $5,397,950
South Atlantic-South
Central Area . 729,060 727,500 5,032,070
North Central Area . . 1,473,420 1,286,800 9,963,730
Pacific and Mountain
Area . 790,520 676,600 4,868,180
Total . $3,832,110 $3,286,200 $25,261,930
Declines from the July level were experienced in all sections
except the South, where non-network volume remained unchanged.
New England-Middle Atlantic business dropped 27.6% while that
in the Mid-West and Far West decreased 14.4%.
Compared to July of last year, all sections except the New Eng¬
land-Middle Atlantic Area registered gains. Non-network revenues
in the aforementioned region declined 7.0%. Gains in other sec¬
tions were as follows: South Atlantic-South Central States, 69.5%;
North Central States, 38.7%; Mountain and Pacific States, 17.5%.
Non-network Advertising by Type of Rendition
With the exception of national announcement volume, which
increased 15.3%, all forms of rendition declined as compared to
June. In the national field, transcription business dropped 18.8%
from the preceding month’s level and live talent volume declined
15.6%. Local decreases were as follows: transcriptions, 17.4%;
live talent, 19.4%; records, 13.4%; announcements, 12.5%.
All forms of rendition gained as compared to July 1935. In¬
creases were as follows in the national field: transcriptions, 27.0%;
live talent, 9.2%; announcements, 18.5%. The marked growth in
transcriptions is a continuation of a trend noticeable in recent
months, though the upswing in announcements is unique to July.
Gains in the local field have been more uniform during the month
in question and were as follows: transcriptions, 37.1%; live talent,
31.3%; records, 23.0%; announcements, 21.3%.
Broadcast advertising by type of rendition is found in Table V.
TABLE V
NON-NETWORK ADVERTISING BY TYPE OF RENDITION
1936 Gross Time Sales
National Non-network Local Total Cumulative
Type of Rendition June July June July June July Jan.-July
Electrical transcriptions . $740,290 $601,100 $242,840 $201,300 $983,130 $802,400 $6,526,350
Live talent programs . 827,160 697,840 971,490 782,160 1,798,650 1,480,000 12,123,770
Records . 9,830 8,800 73,170 63,440 83,000 72,240 495,360
Announcements . 306,550 353,460 660,780 578,100 967,330 931,560 6,116,450
Total . $1,883,830 $1,661,200 $1,948,280 $1,625,000 $3,832,110 $3,286,200 $25,261,930
Sponsor Trends in July
The usual seasonal declines occurred in June in the majority of
product and service groups sponsoring radio advertising. There
were some increases, however. Important gains over the preced¬
ing month in the national network field were as follows: gasoline
and accessories, 5.1%; foodstuffs, 6.5%; confectionery, 30.8%;
household equipment, 22.7%; tobacco, 7.1%.
Regional network drug advertising more than doubled the June
figure, while household equipment volume rose 39.0% and food
advertising gained 27.7%.
National non-network radio set and financial advertising in¬
creased 73.2% and 27.0% respectively. Local radio set volume
gained 21.4%.
Comparison July 1935
Gains were fairly general as compared to July of the preceding
year. Food advertising over all portions of the medium increased.
National network, national non-network and local automotive
advertising also gained. Regional network and national non-net-
work gasoline and accessory advertising rose 42.0% and 111.0%
respectively. Regional network and national non-network drug
volume increased, the former by 38.7% and the latter by 57.2%.
National non-network cosmetic business more than tripled that
of the previous July. National network beverage advertising
gained 76.5% while regional network volume increased materially.
National network confectionery business more than doubled.
Marked gains also occurred in the national network and national
non-network household equipment volume. Local clothing adver¬
tising rose 23.1%, while financial advertising increased 46.6%.
Broadcast advertising by major types of sponsoring business is
found in Table VI.
TABLE VI
RADIO BROADCAST ADVERTISING BY TYPE OF SPONSORING BUSINESS
Type of Sponsoring Business
la. Amusements .
(July 1936)
National
Networks
Gross Time Sales
Regional National
Network Non-network Local Total
- $13,600 $40,300 $53,900
1-2. Automobdes and accessories:
1. Automobiles .
2. Accessories, gas and oils .
3. Clothing and apparel .
4-5. Drugs and toilet goods:
4. Drugs and pharmaceuticals .
5. Toilet goods .
6-8. Food products:
6. Foodstuffs .
7. Beverages .
8. Confections .
9-10. Household goods:
9. Household equipment and furnishings
10. Soaps and kitchen supplies .
11. Insurance and financial .
12. Radios .
13. Retail establishments .
14. Tobacco products .
15. Miscellaneous .
$150,875
—
218,370
122,420
491,665
340,607
$22,155
144,350
56,700
563,812
5,126
28,440
172,750
206,316
320,322
6,990
233,750
37,700
598,762
662,039
4,120
101,900
20,520
788,579
859,802
34,865
323,020
219,330
1,437,017
332,241
15,763
55,300
126,800
530,104
98,266
200
5,840
2,000
106,306
44,536
5,731
51,940
191,950
294,157
308,121
2,776
154,780
10,500
476,177
35,869
514
21,280
62,330
120,533
103,905
- -
16,760
14,700
135,365
- .
—
3,800
119,000
122,800
420,844
5,210
76,940
4,000
506,994
149,767
15,381
211,130
424,000
800,278
Total . $3,832,320 $113,705 $1,661,220 $1,625,000 $7,232,225
1589
Details as to trends in various important sponsoring fields are
as follows:
la. Amusements. National non-network business increased
8.8% over June, while local declined 20.3%. National non-net¬
work business 79.7 % above July 193S, and local down 3.3%.
1. Automotive. Declines from June level as follows: national
networks, 50.0%; national non-network, 5.7%; local 24.7%. Gains
as compared to corresponding month of 1935 as follows: national
networks, 14.5%; national non-network, 31.5%; local 54.0%.
2. Gasoline and accessories. National network business
5.1% above June. Declines in other fields as follows: regional
networks, 8.3%; national non-network, 2.3%; local 36.5%. Na¬
tional network business 13.5% below July last year and local
down 28.7%. Regional network business up 42.0% and national
non-network 111.0%.
3. Clothing. Decreases from June level as follows: national
networks, 80.0%; national non-network, 25.5%; local, 27.7%.
Local volume 23.1% above July 1935. National network business
down 66.6% and national non-network volume 9.0%.
4. Drugs and pharmaceuticals. Regional network business
245.0% above June level. Declines in other fields as follows:
national networks, 0.6%; national non-network, 19.4%; local,
30.0%. National network business 4.4% under July 1935. Other
gains as follows: regional networks, 38.7% ; national non-network,
57.2%; local, 20.8%.
5. Toilet goods. National network business 10.9% below
June. National non-network volume up 31.2% and local un¬
changed. National network volume 13.3% below July of last
year. National non-network business more than tripled. Local
up 5.4%.
6. Foodstuffs. National network business 6.5% above June.
Regional network volume up 27.7%. National non-network ad¬
vertising down 20.2% and local 22.6%. Gains as compared to
July of last year as follows: national networks, 18.4%; regional
networks, 52.2%; national non-network, 23.6%; local 25.0%.
7. Beverages. Declines from previous month as follows:
national networks, 6.5% ; national non-networks, 6.0% ; local,
16.1%. Regional network business unchanged. National network
volume 76.5% above July of last year. Regional network business
up from $1984 to $15,763. Local business up 27.1%. National
non-network down 25.6%.
8. Confectionery. National network business up 30.8% as
compared to June. National non-network business down 10.8%,
and local 64.4%. National network business 219.5% above last
July. National non-network down 80.0% and local 57.9%.
9. Household equipment. National network advertising
22.7% above June and regional network volume up 39.0%. Na¬
tional non-network down 19.1% and local 12.2%. Gains over
July of 1935 as follows: national networks, from $2875 to $44,536
during month under review; national non-network, 79.9%; local,
23.1%. Regional network business down 7.0%.
10. Soaps and kitchen supplies. National network busi¬
ness 7.8% below June and national non-network down 17.8%.
Regional network business up 16.0%, and local 19.5%. Compared
to the corresponding month of 1935 national network business up
71.6%, regional network volume 9.0% and local advertising up
from $3725 to $10,000. National non-network down 3.9%.
11. Insurance and financial. National network business
8.1% below June. Regional network business unchanged. National
non-network volume up 27.0% and local down 25.7%. Gains over
1935 as follows: national networks, 21.2%; national non-network,
14.2%; local, 46.6%.
12. Radios. National network volume unchanged from June.
National non-network business up 73.2% and local 21.4%. National
network business 69.1% above last July. National non-network
business grown from $1205 to $16,760. Local up 8.5%.
13. Department and general stores. National non-network
business 35.7% above June and local down 28.2%. Compared to
last July, national non-network volume up 15.4% and local up 6.2%.
14. Tobacco products. National network business 7.1%
greater than in June. Regional network volume down 51.6%,
national non-network 2.1% and local 62.7%. Compared to July
1935 national networks down 4.8% and regional networks 77.3%.
National non-network up 70.4%. Local down 25.2%.
15. Miscellaneous. National networks 18.8% below June
and national non-network down 7.1%. Regional networks up
7.1% and local 8.0%. Gains compared to July 1935 as follows:
national networks, 181.0%; regional networks, 27.8%; national
non-network, 27.8%; local, 55.3%.
Retail Broadcast Advertising
Broadcast advertising by various kinds of retail establishments
is found in Table VII.
TABLE VII
RETAIL BROADCAST ADVERTISING OVER
INDIVIDUAL STATIONS
1936 Gross Time Sales
Type of Sponsoring Business June July
Automobiles and accessories:
Automobile agencies and used car
dealers.... . $166,960 $128,100
Gasoline stations, garages, etc . 53,560 30,200
Clothing and apparel shops . 246,230 180,350
Drugs and toilet goods:
Drugstores . 12,910 11,210
Beauty parlors . 9,130 8,050
Food products:
Grocery stores, meat markets, etc... 48,210 47,820
Restaurants and eating places . 20,920 17,500
Beverage retailers . 700 700
Confectionery stores . 1,880 890
Household goods:
Household equipment dealers . 78,480 81,680
Furniture stores . 107,780 91,900
Hardware stores . 26,520 13,500
Radio retailers . 10,830 12,200
Department and general stores . 167,824 122,800
Tobacco shops .
Miscellaneous . 97,800 97,400
Total
$1,049,734 $844,300
General advertising by retail establishments declined 19.5%
from the June level but showed a gain of 21.8% over July 1935.
Seasonal declines were experienced in practically all fields.
Important gains were registered in several fields as compared
to the corresponding month of 1935. These are as follows: auto¬
motive dealers, 40.6% ; clothing and apparel stores, 34.1% ; grocery
and delicatessen stores, 62.6%; household equipment retailers
(principally mechanical equipment), 49.3%; furniture stores,
22.3%; department stores, 6.0%.
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2925. Charging unfair representations in the sale of
preparations for treatment and cure of certain skin ailments, a
complaint has been issued against The Tarex Company, Santa
Monica, Calif. Selling its products under three formulas, Tarex
Nos. 1, 2 and 3, the respondent company is alleged to have adver¬
tised them as effective treatments and cures for eczema, psoriasis,
and other skin ailments.
The complaint charges that the formulas of the respondent
company’s products, either singly or combined, do not constitute
competent or adequate remedies for the diseases mentioned, and
that the respondent’s representations tend to deceive purchasers and
cause unfair diversion of trade to the respondent company from
competitors.
No. 2926. The John J. McCann Company, 454 Lawrence
St., Burlington, N. J., is named respondent in a complaint
charging unfair methods of competition in the sale of “Comfort
Stump Socks.” The respondent corporation’s product is used by
persons who have suffered amputation of a limb, to cover the
stump in order to ease the pressure or friction caused by attaching
an artificial appliance.
Representations of the respondent corporation, alleged in the
complaint to be false and deceptive, are that its products are seam¬
less, “should literally never wear out,” are moth-proof, and are
insured against damage by moths for two years.
The complaint charges that the respondent corporation’s products
have a seam in the bottom, do not wear indefinitely, are susceptible
to damage by moths, and that the moth insurance advertised only
covers the socks while they remain in possession of the respondent
corporation.
1590
No. 2927. False and misleading representations in the sale of
pianos is charged in a complaint issued against F. A. North Co.,
a Pennsylvania corporation, and Lester Pianos, Inc., of New
York, a Delaware corporation, both having headquarters at 1306
Chestnut St., Philadelphia. Also named as a respondent in the
complaint is A. D. McClenaghan, credit manager of the North
company.
To promote the sale of their pianos, the respondents are alleged
to have published “come on” advertisements and letters which, ac¬
cording to the complaint, were not issued in good faith but were
part of a plan to obtain contact with prospective purchasers and
induce them to come to the respondents’ places of business, where
they would be induced to buy the instruments, different and higher
priced than those advertised.
One sales plan used, according to the complaint, was the “loan
free” advertisement, under which a prospective purchaser could
select a piano would be “loaned” to him “absolutely free.” How¬
ever, the complaint charges, this advertising was merely part of a
plan to procure placement of pianos in homes for purposes of sale.
No. 2929. Allegedly representing that it is affiliated with the
United States Government, Washington Training Institute,
Inc., 1108 Washington Boulevard Building, Detroit, is named
respondent in a complaint charging unfair methods of competition
in selling correspondence courses of instruction to prepare students
for civil service examinations.
Among the representations the respondent school is said to make
through its salesmen are that the Government has available civil
service positions for which examinations will be held in the near
future, or at definite times stated; that students will be placed in
these positions if they pursue the respondent corporation’s courses ;
that if a job is not obtained money will be refunded, and that stu¬
dents will receive personal coaching, and only a limited number
will be selected for training in a particular locality.
These representations are false and misleading in that they are
exaggerations or distortions of the facts, according to the com¬
plaint, which also charges that the respondent misrepresents the
number of appointments made, salaries, leaves, and opportunities
for promotion in the civil service.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 01446. Acquin Products Co., 318 N. 8th St., St. Louis,
will cease representing that “Acquin” prevents pneumonia, influ¬
enza, catarrah, mastoiditis, meningitis, tuberculosis, or other “dread
diseases” ; that it is a remedy for all sorts of aches and pains, colds
and sore throats; that it soothes the nerves, is “safe”, acts as an
antiseptic and contains a “miracle ingredient.” The company
further agrees not to publish any statements which, by use of the
first person or other terminology, create the impression that such
statements portray the experience of any individual, unless this is
a fact.
No. 91461. Kathryn R. Sabatini, Richmond Hill, N. Y.,
trading under the name of A. B. C, Laboratories and selling
a purported remedy for pyorrhea designated “Triple Formula A9-
B17-C54” agrees to discontinue representations that the prepara¬
tion gives complete relief from pyorrhea and other deadly mouth
diseases and checks the principle cause of pyorrhea ; that it relieves
suffering, restores health and whitens and saves teeth ; that it has
been used with success by famous European dental surgeons in
“thousands and thousands” of cases, and that 40 per cent, or any
other percentage, of constitutional diseases and disabilities can be
traced directly to the constant drainage of poisonous pyorrhea pus
from the gums into the system, unless such a statement is proven
by authentic statistics. Other claims that the respondent will dis¬
continue are that formulas “A9”, “B17” and “C54” are, respectively,
a concentrated liquid, a highly antiseptic wash, and a special medi¬
cated dentifrice based upon an official preparation inserted in the
U. S. National Formulary.
No. 01462. I. Paul, Second and Poplar Sts., Philadelphia,
trading as Russ Pharmaeo Products, stipulates he will stop
advertising that his medicinal preparation designated “Russlac”
is a stomach tonic, builds up body resistance, prevents headaches
and colds, and restores health and strength; that it is an effective
remedy for nervous trouble, stomach disorders, gastritis, rheumatism
or auto-intoxication, unless the assertion is confined to relief of the
distress caused by such conditions, and that it has any effect on
the proper functioning of the stomach, liver or kidneys. Paul ad¬
mitted that “Russlac” is not a famous European discovery as he
advertised and will discontinue such representation.
No. 01463. S. J. Mullica, 40 Journal Square, Jersey City,
N. J., operating under the trade names of The International
Detective System and The International Detective Training School,
agrees to stop representing that his correspondence course consti¬
tutes a complete course of detective instruction or supplies all of the
required training demanded by employers of detectives ; that it
trains one for entrance into the United States Secret Service, and
that graduates may expect to earn from $2500 to $7500 annually,
unless such graduates are actually placed in positions paying salaries
within that range. Among other claims the respondent will discon¬
tinue are that he employs a staff of secret service detectives; that
there is at the time a demand for detectives which will increase as
the months go by, and that anything in connection with the course
is given free to students, when in fact the cost thereof is included
in the price charged for the course. The respondent also will cease
using the trade name International Detective System unless in
direct connection therewith there appears a statement that his is
only a training school for detectives.
No. 01464. William Rosendorf, 1215 G St., N. W., Wash¬
ington, D. C., agrees to stop describing the furs from which
ladies’ coats are made in any manner other than by use of the
correct name of the fur as the last word of the description in his
advertising, and stipulates that when any dye or blend is used,
imitating another fur, the true name of the fur appearing as the
last word of the descriptive phrase shall be preceded immediately
by the word “dyed” or “blended” compounded with the name of
the simulated fur. Rosendorf admitted that the fur coats he adver¬
tised as “Beverette” were not made from the fur of the beaver,
but from coney dyed to resemble beaver.
No. 01465. C. L. W’endt, Canton, S. Dak., selling a weight-
reducing plan consisting of various laxative tablets, a system of
diet and a list of exercises will discontinue claims that use of his
plan enables one to reduce to normal weight or reduce any definite
number of pounds in a given time; that his tablets stimulate the
liver or bile duct, or that they are healing, unless this representa¬
tion is limited to such aid as they may afford in the healing of the
conditions of the stomach or intestines. Wendt also will cease
advertising that any disease or ailment is more prevalent among
overweight persons than among persons of normal weight, unless
substantiated by reliable statistical evidence, and that the proba¬
bility of death of an overweight person, as compared with a person
of normal weight, is greater by any ratio or percentage than can
be substantiated by reliable statistical evidence.
No. 01466. Henrietta K. and George L. Moore, 1616 N.
Vermont Ave., Hollywood, Calif., trading as Breth Kontrol
Tablet Co. and selling “Breth Kontrol Tablets,” agree to stop
representing that the product will remove all forms of breath
odors, regardless of the cause of such odors.
No. 01467. Mantle Lamps Company of America, Inc., 609
West Lake St., Chicago, selling oil lamps designated “Aladdin
Lamps”, signed an agreement to cease and desist from represent¬
ing that its product gives 10 times more light than the old
luminous flame lamp, and uses less oil than the old lamp; that it
is the world’s finest light, does not cost a penny, is nearest to sun¬
light of any light known, and the nearest approach to daylight
of all artificial lighting devices. So long as the respondent corpo¬
ration advertises for sale and keeps in stock fixtures, replace¬
ments and repairs for its lamps, it will stop representing that there
is nothing on such lamps to get out of order. The stipulation
does not prevent the respondent corporation from making, by the
method of comparison, a representation concerning its lamps, when
such comparison is supported by competent evidence of a practical
demonstration or experiment.
No. 01468. D. Crimmins, 3741D 60th St., Woodside, Long
Island, N. Y., engaged in selling canaries and a booklet entitled
“$500 A Year Raising Canaries”, agrees to discontinue representing
that the market price for canaries is any amount in excess of that
for which canaries are sold for regular purposes under normal
conditions; that only the original expense is involved in the breed¬
ing and sale of canaries ; that the formulas contained in the re¬
spondent’s booklet are remedies or cures for diseases of canaries;
that the respondent guarantees earnings and a market to those
who purchase canaries from him, and that his “service” is the
only one of its kind. The respondent further stipulates that he
will not make unmodified representations as to the earnings that
may be made by breeders of canaries, and will not exaggerate the
average number of young birds that may be raised annually under
normal conditions.
No. 01469. Sinclair Manufacturing Co., Woodland Ave.
and New York Central Railroad, Toledo, Ohio, signed an
agreement to cease representing that “Sunrae.” a washing fluid,
kills all germs, including their spores; helps heal scratches, cuts
1591
and abrasions, unless such claim is expressly limited to its effect
as an antiseptic; that it is effective in the treatment of athletes
foot, except where the germ or fungus can be reached by the solu¬
tion, and that it is commonly used in hospitals.
No. 01473. Philip Adler, Jr., 525 Fulton St., Indianapolis,
trading under the name of American Silk Hosiery Mills,
agrees to discontinue the following representations in the sale of
his “Snag-Proofed Hosiery”: That he wants women merely to
demonstrate hosiery, until such time as he actually does employ
them for that purpose and pays them for it regardless of sales
made; that hose are furnished free to his agents for their use,
unless they are in fact furnished without consideration in money
or service; that hose are made of 100 per cent pure silk, so long
as any other thread enters into the construction of any part of the
hose; that they are so manufactured that “there is nothing to catch
on rough edges and sharp points,” and that purchasers save the cost
of selling through retailers so long as the respondent employs
agents to obtain orders and expends substantial amounts for ad¬
vertising.
The respondent further stipulates that he will cease making any
comparison, by use of photographs, samples, or otherwise, between
his products and those of competitors, unless the results of such
comparison are actually and truthfully set forth, and he will dis¬
continue any claims for his hosiery which are not true of both
grades, namely, “chiffon” and “service,” unless such claims are
clearly limited to the appropriate grade.
No. 2265. Prohibiting unfair representations in the sale of a
medicinal product called “Casey’s Compound,” an order to cease
and desist has been issued against J. H. Casey, trading as J. H.
Casey Company, Portand, Ore. The respondent company’s
address is Post Office Box 731.
Under the order, “Casey’s Compound” is not to be represented
as a cure, remedy or competent treatment for rheumatism, arthritis
neuritis and related ailments, nor is it to be advertised as capable
of relieving the blood and system of toxic poisoning and excess
acidity, and of stimulating the glands to normal functioning.
No. 2628. An order to cease and desist has been issued against
Dallas E. Winslow, Inc., Holden Avenue at Lincoln Street,
Detroit, dealer in automobile parts and accessories, directing it
to stop using the name “Durant Motor Car Company” or “Durant
Motor Company” as a trade name for its business.
Trading under the name “Durant Motor Car Company,” the
respondent company, according to findings, succeeded Winslow-
Baker-Meyering Corporation, which had purchased all unassembled
parts on hand in the Durant Motor Company’s plant in Lansing,
Mich., at the time the latter was adjudged to be insolvent and a
receiver appointed. Findings are that Winslow-Baker-Meyering
distributed replacement parts for the “Durant,” “Star,”, and
“Rugby” automobiles, selling at first only Durant parts purchased
through the receiver, but later, as the stock of such parts became
depleted, selling supplies obtained from other manufacturers, but
still advertising them as Durant parts.
The order to cease and desist directs the respondent to discon¬
tinue using the word “Durant” in any way which may tend to
deceive purchasers into believing that the respondent company is
successor to the Durant Motor Company; from advertising that
its automotive parts and equipment are “authorized Durant parts
direct from the factory,” and from using the word “factory” in
its advertising, alone or with pictures to represent that Dallas E.
Winslow, Inc., owns, operates, or controls a factory in which its
products are made, when this is not true.
No. 2668. False and illegible labeling of the watt measurement
on incandescent lamps is prohibited as a violation of Section 5 of
the Federal Trade Commission Act, under an order to cease and
desist issued against Fannie Chanowitz, trading as Atlas Prod¬
ucts Company, 307 Peshine Ave., Newark, N. J.
The respondent is ordered to discontinue representing that the
lamps are of any other watt measurement than that stamped or
marked thereon, except that a variation in the watt measurement
of 4 per cent above or below the rating marked on the lamps is
permissible. The order also directs the respondent to cease placing
the watt measurement on lamps in such a manner that the printing
or marking may be easily eradicated by ordinary handling.
Findings are that the respondent’s lamps, in nearly every in¬
stance, are of greater wattage than indicated by the markings,
which are easily rubbed off and become illegible so that it is im¬
possible to determine, without submitting the lamps to a test, what
their actual watt measurement is.
No. 2766. L. W. Gibson, 4700 North Racine Ave., Chicago,
a dealer in formulas and specifications for the production of cos¬
metics, tooth paste and other toilet articles, has been ordered to
cease and desist from misleading representations in the conduct
of his business.
Findings are that Gibson represented to customers that he was
educated in the science of chemistry, that he had had many years
of experience in its commercial application; had devoted several
years to collecting, studying and perfecting practical working for¬
mulas and processes; had been employed as a consultant chemist
and advisor to the manufacturing trade for several years, and other
similar assertions.
Representations of the respondent were found not to be true,
and he was ordered to cease and desist from making them. The
respondent admitted the material allegations of the Commission’s
complaint, and consented to issuance of the findings of fact and
order to cease and desist.
No. 2863. R. C. Jenner and William DeLapp, 31 Allison
St., Pontiac, Mich., trading as Jenner Manufacturing Com¬
pany and Jenner Sales Company and engaged in the manu¬
facture and sale of a small electric heater, designated “Wonder
Electric Water Heater,” has been ordered to discontinue unfair
methods of competition which allegedly result in injury to com¬
petitors and deception of unemployed persons who answer the
respondents’ advertisements in the “Help Wanted” columns of
newspapers.
The Commission’s findings in the case are that the respondents
represent to persons applying for positions that they have estab¬
lished or will establish dealers in various cities, and that applicants
for work are only required to distribute heaters to replace those
previously sold and to make weekly collections and remittances;
that an initial deposit of from $60 to $100 is required in lieu of a
temporary fidelity bond, which deposit will be refunded ; that
applicants will receive $5 for each new dealer they obtain and
are furnished with automobiles or compensated for the use of their
own cars.
These representations are false and fraudulent, according to the
findings. The Commission ordered the respondents to cease repre¬
senting that services to be performed by applicants consist only
of making deliveries of and collections for heaters, and that no
selling is required; that dealers have been or will be established in
various territories, when such is not a fact; that the initial pay¬
ment is a temporary bond and will be refunded when such is not
true, or that it is anything other than payment for a certain num¬
ber of heaters; that applicants will receive $5 for each new dealer
obtained, when no such sum is paid, and that they are furnished
with automobiles or paid a weekly allowance for use of their own
cars, when this is not done.
No. 2864. Morris Gottsegen and David Jacoby, trading as
Mills Sales Company, 901 Broadway, New York, have been
ordered to discontinue unfair methods of competition in connection
with the sale of general merchandise and peddlers’ supplies, in¬
cluding tooth brushes, shaving cream, rubbing alcohol, razor blade
hones and toilet articles.
The respondents are directed to cease representing through cir¬
culars, catalogs or labels, or by radio broadcasts, that the price
marks stamped on their products are the regular or customary
resale prices, when such price marks are fictitious and greatly in
excess of the regular and customary prices at which the merchan¬
dise is sold at retail, and that these fictitious and excessive prices
are the regular retail prices customarily received for the products.
No. 2928. Simulation of the corporate name of a competitor,
in violation of Section 5 of the Federal Trade Commission Act,
is alleged in a complaint issued against Helmco, Inc., 844 West
Jackson Boulevard, Chicago, formerly the H. E. Lacy Manu¬
facturing Company. The respondent is engaged in the manufac¬
ture and sale of electric “fudge warmers” and “hot cups,” for
heating liquid mixtures of chocolate syrup and other ingredients
used in the manufacture of candy and soda fountain drinks.
Lacy Products Corporation, IS Aberdeen St., Chicago, also
manufactures and sells similar products under the trade name
“Lacy Hot Cups,” as did its predecessor, Lacy Manufacturing
Company. Under this name, such products are said to have be¬
come well and faborably known to the members of the drug trade,
who, through long usage and over a long period of time, have
identified electric “fudge warmers” and “hot cups” which bear
the name “Lacy” as being products of the Lacy Products Cor¬
poration.
FTC CLOSES CASE
No. 2394. The Federal Trade Commission has closed its case
against Royal Distillers, Ltd., Chicago, which is no longer in
business, and is insolvent. The respondent corporation, at the
time it was engaged in the business of rectifying and selling gin,
was charged with misuse of the word “Distillers” in its corporate
1592
name, and with use of a plan to maintain the resale price of its
product.
As of June 30, 1935, according to the order, the corporation
surrendered all its permits, has transferred its physical assets to
the Wexmar Liquor Company, Chicago, and it appears unlikely
that the corporation will resume the sale of spirituous beverages
in interstate commerce.
In entering the order, the Commission reserved the right to re¬
open the case should the facts warrant,
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
No hearings have been scheduled before either the Broadcast
Division or the Examiners of the Commission for the week be¬
ginning Monday, October 5, because of the general allocation
hearing called on that date.
APPLICATIONS GRANTED
KELD — Radio Enterprises, Inc., El Dorado, Ark. — Granted C. P.
to install new transmitter.
NEW — The Travelers Broadcasting Service Corp., Mobile, Hart¬
ford, Conn. — Granted C. P. for new experimental relay
broadcast station on an experimental basis; frequencies
105000, 200000, 290000, 450000 kc., 5 watts day and night,
unlimited. Also granted license covering same.
NEW — Pittsburgh Radio Supply House, Mobile (Pittsburgh, Pa.).
— Granted C. P. for new experimental relay broadcast
station on an experimental basis; frequencies in Group G
of Rule 1003 (c) under provisions of Rules 1000, 1001 (b)
and 1003 (e).
NEW — WJR, The Goodwill Station, Mobile (Detroit, Mich.)
(2 A Is.). — Granted amended C. P. for general experi¬
mental station for broadcast pickup purposes; frequencies
90090, 100000, 200000 and 400000 kc., 40 watts.
The WATR Co., Inc., Mobile, Waterbury, Conn. — Granted C. P.
for general experimental broadcast pickup station; fre¬
quencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Reading Broadcasting Co., Mobile (Reading, Pa.). —
Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Woodmen of the World Life Ins. Assn., Mobile (Omaha,
Nebr.), — Granted C. P. for high frequency relay broad¬
cast station; frequencies 31100, 34600, 37600 and 40600
kc., 10 watts.
NEW — West Virginia Broadcasting Corp., Mobile (Wheeling,
W. Va.). — Granted C. P. for high frequency relay broad¬
cast station; frequencies 31100, 34600, 37600 and 40600
lcc« 10 watts.
NEW — Olean Broadcasting Co., Inc., Mobile (Glean, N. Y.). —
Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Wilton E. Hall, Mobile (Anderson, S. C.). — Granted C. P.
for high frequency relay broadcast station; frequencies
31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Berks Broadcasting Co., Mobile (Reading, Pa.). — Granted
C. P. for high frequency relay broadcast station; frequen¬
cies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Miami Valley Broadcasting Corp., Mobile (Dayton, Ohio).
— Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — The Toledo Broadcasting Co., Mobile (Toledo, Ohio). —
Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — The Atlanta Journal Co., Mobile (Atlanta, Ga.). — Granted
C. P. for high frequency relay broadcast station; frequen¬
cies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — WDZ Broadcasting Co., Mobile (Tuscola, Ill.) (4 Appls.).
— Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
NEW — Earle C. Anthony, Inc., Mobile (Los Angeles, Calif.). —
Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 10 watts.
W3XEW — WTAR Radio Corp., Mobile (Norfolk, Va.). — Granted
C. P. for high frequency relay broadcast station; frequen¬
cies 31100, 34600, 37600 and 40600 kc., 5 watts.
KOL — Seattle Broadcasting Co., Seattle, Wash. — Granted C. P.
to make changes in equipment.
WRDW — Augusta Broadcasting Co., Augusta, Ga. — Granted C. P.
to move transmitter to edge of city, North Augusta, S. C.,
and install new antenna.
WlXT — The Travelers Broadcasting Service Corp., Mobile (Hart¬
ford, Conn.). — Granted C. P. for replacement transmitter
and increase in power from 7.5 watts to 100 watts un¬
limited.
WlOXDD — Evansville on the Air, Inc., Mobile (Evansville, Ind.).
— Granted C. P. to increase power to 35 watts.
WlXD — The Travelers Broadcasting Service Corp., Mobile (Hart¬
ford, Conn.). — Granted C. P. to change equipment and in¬
crease power from 7.5 watts to 50 watts.
NEW — Woodmen of the World Life Ins. Assn., Mobile (Omaha,
Nebr.). — Granted C. P. for high frequency relay broadcast
station; frequencies 31100, 34600, 37600, 40600 kc., 100
watts.
WRJN — Racine Broadcasting Corp., Racine, Wis. — Granted
license to cover C. P.; 1370 kc., 100 watts night, 250 watts
day, unlimited.
KGNO — The Dodge City Broadcasting Co., Inc., Dodge City,
Kans. — Granted license to cover C. P.; 1340 kc., 250 watts,
unlimited time.
WMT — Iowa Broadcasting Co., Cedar Rapids, Iowa. — Granted
license to cover C. P.; 600 kc., 1 KW night, directional
antenna; 5 KW day, unlimited.
WCAP — Radio Industries Broadcast Co., Asbury Park, N. J. —
Granted license to cover C. P.; 1280 kc., 500 watts night,
500 watts day, shares with WTNJ and WCAM.
WPRA — Puerto Rico Advertising Co., Inc., Mayaguez, P. R. —
Granted modification of C. P. approving transmitter and
studio sites.
KVI — Puget Sound Broadcasting Co., Inc., Tacoma, Wash. —
Granted modification of C. P. approving new equipment.
KHQ — Louis Wasmer, Inc., Spokane, Wash. — Granted modifica¬
tion of C. P. approving transmitter site.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
Granted modification of C, P. extending completion date
to 10-31-36.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Granted modifi¬
cation of C. P. to change type of transmitter to be in¬
stalled.
WSAR — Doughty & Welch Electric Co., Inc., Fall River, Mass. —
Granted C. P. approving new equipment.
KPRC — Houston Printing Co., Houston, Tex. — Granted modifica¬
tion of license to change name from Houston Printing Co.
to Houston Printing Corp.
WPTF — WPTF Radio Co., Raleigh, N. C. — Granted special ex¬
perimental authority to operate with 5 KW from sunset
at KPO to 11 p. m., EST, using directional antenna after
sunset, for period ending February 1, 1937.
KWKH — International Broadcasting Corp., Shreveport, La.—
Granted extension of special authority to operate on 1100
kc., unlimited, with directional antenna night, for period
ending February 1, 1937.
WBAA — Purdue University, W. Lafayette, Ind. — Granted au¬
thority to install automatic frequency control.
KGFW — Central Nebraska Broadcasting Corp., Kearney, Nebr. —
Granted authority to install automatic frequency control.
WCAM — City of Camden, Camden, N. J. — Granted authority to
install automatic frequency control.
WRR — City of Dallas, Texas, Dallas, Tex. — Granted authority to
use transmitter of KVPA as auxiliary transmitter; present
assignment: 1280 kc., 500 watts, unlimited. Also granted
authority to determine operating power by direct measure¬
ment of antenna for auxiliary transmitter.
KOOS — Pacific Radio Corp., Marshfield, Ore. — Granted authority
to transfer control of corporation from Harry B. Read to
Walter L. Read.
KSLM— Oregon Radio, Inc., Salem, Ore. — Granted authority to
transfer control of corporation from Walter L. Read to
H. B. Read.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa.— Granted
renewal of license for the period September 1, 1936, to
March 1, 1937.
WPEN — Wm. Penn Broadcasting Co., Philadelphia, Pa. — Same
for auxiliary.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
Granted extension of license for a period of 3 months from
October 1, 1936.
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Granted
renewal of license for the period 9-1-36 to 3-1-37.
WRAX — WRAX Broadcasting Co., Philadelphia, Pa. — Same for
auxiliary.
1593
NEW — Bamberger Broadcasting Service, Inc., Portable, Newark,
N. J. — Granted C. P. for low frequency relay broadcast
station to operate on frequencies 1622, 2058, 2150 and
2790 kc,, 26.4 watts.
NEW — Bamberger Broadcasting Service, Inc., Portable, Newark,
N. J.— Granted C. P. for low frequency relay broadcast
station to operate on frequencies 1622, 2058, 2150 and
2790 kc., 26.4 watts.
NEW— WDZ Broadcasting Co., Portable (Tuscola, Ill.) (2
Appls.). — Granted C. P. for low frequency relay broadcast
station to operate on frequencies 1622, 2058, 2150 and
2790 kc., 26.4 watts.
WDAE — Tampa Times Co., Tampa, Fla. — Granted extension of
special experimental authority to operate with power of
2 J4 KW LS, with equipment changes, for the period end¬
ing 4-1-37.
KQV — KQV Broadcasting Co., Pittsburgh, Pa. — Granted authority
to operate simultaneously with Station WSMK, Dayton,
Ohio, from 10 p. m. to 10: IS p. m., EST, September 30,
October 7, 14, 21, 28, and November 4, 1936.
KDAL — Red River Broadcasting Co., Inc., Duluth, Minn. —
Granted modification of C. P. correcting geographical loca¬
tion of transmitter, change in studio location, and changes
in antenna.
NEW — Julio M. Conesa, Portable, Ponce, P. R.— Granted C. P.
for low frequency relay broadcast station to operate on
frequencies 1622, 2058, 2150, 2790 kc., 26.4 watts.
NEW — West Virginia Broadcasting Corp., Portable, Wheeling,
W. Va. — Granted C. P. for low frequency relay broadcast
station to operate on frequencies 1622, 2058, 2150, 2790
kc., 26.4 watts.
NEW — The Toledo Broadcasting Co., Portable (Toledo, Ohio). —
Granted C. P. for low frequency relay broadcast station to
operate on frequencies 1622, 2058, 2150 and 2790 kc.,
26.4 watts.
NEW — WSOC, Inc., Portable (Charlotte, N. C.). — Granted C. P.
for low frequency relay broadcast station to operate on
frequencies 1622, 2058, 2150 and 2790 kc., 26.4 watts.
NEW — Fort Worth Broadcasters, Inc., Portable (Fort Worth,
Tex.). — Granted C. P. for low frequency relay broadcast
station to operate on frequencies 1622, 2058, 2150 and
2790 kc., 26.4 watts.
NEW — Intermountain Broadcasting Corp., Portable, Salt Lake
City, Utah. — Granted C. P. for temporary broadcast pick¬
up station; frequencies 1622, 2058, 2150 and 2790 kc., 26.4
watts.
NEW — General Electric Co., Schenectady, N. Y. — Granted C. P.
for new experimental broadcast station; frequency 790 kc.,
250 watts, midnight to 6 a. m.
NEW — Honolulu Broadcasting Co., Ltd., Honolulu, T. H., Mobile.
— -Granted C. P. for high frequency relay broadcast station;
frequencies 31100, 34600, 37600 and 40600 kc., 2 watts.
WTIC — Travelers Broadcasting Service Corp., Hartford, Conn. —
Granted authority to rebroadcast over WTIC programs of
station WlXEV (experimental broadcast station).
ACTION ON EXAMINERS’ REPORTS
NEW — Ex. Rep. 1-214 (in part): Northern Broadcasting Co.,
Inc., Wausau, Wis. — Granted C. P. for new broadcast
station to operate on 1370 kc., 100 watts day. Examiner
Seward reversed. Order effective November 15, 1936.
WPAR — Ex. Rep. 1-215: Ohio Valley Broadcasting Corp., Par¬
kersburg, W. Va. — Denied C. P. to make changes in equip¬
ment and increase power from 100 watts to 100 watts
night, 250 watts day. Examiner Bramhall sustained.
Order effective December 1, 1936.
NEW— Ex. Rep. 1-217: C. G. Hill, Geo. D. Walker and Susan H.
Walker, Winston-Salem, N. C. — Granted C. P. for new
broadcast station to operate on 1250 kc., 250 watts, day¬
time (site to be determined subject to Commission’s ap¬
proval). Examiner R. L. Walker reversed. Order effective
November 10, 1936.
NEW — Ex. Rep. 1-258: Jonas Weiland, Kinston, N. C. — Granted
C. P. for new broadcast station to operate on 1200 kc.,
100 watts night, 250 watts day, unlimited time (site to be
determined subject to Commission’s approval). Examiner
R. L. Walker sustained. Order effective October 20, 1936.
NEW — Ex. Rep. 1-260: Navarro Broadcasting Assn., J. C. West,
Pres., Corsicana, Tex. — Granted C. P. for new broadcast
station to operate on 1310 kc., 100 watts, daytime. Ex¬
aminer G. H. Hill sustained. Order effective October 20,
1936.
NEW — Ex. Rep. 1-263: Wilton Harvey Pollard, Huntsville, Ala. —
Granted C. P. for new broadcast station to operate on
1200 kc., 100 watts, unlimited time. Examiner Seward
sustained. Order effective October 27, 1936.
NEW — Jefferson Broadcasting Co., Ormond O. Black, Pres.,
Birmingham, Ala. — Denied C. P. for new broadcast station
to operate on 1200 kc., 100 watts night, 250 watts day,
unlimited time. Examiner Seward sustained.
KRLC — Ex. Rep. 1-265: H. E. Studebaker, Lewiston, Idaho. —
Granted C. P. to install new equipment; move transmitter
to site to be determined locally; change frequency from
1420 kc. to 1390 kc.; increase power from 100 watts to
250 watts, unlimited time. Examiner R. H. Hyde sustained.
Order effective November 3, 1936.
KGFG— Ex. Rep. 1-270: Oklahoma Broadcasting Co., Inc., Okla¬
homa City, Okla. — Granted modification of license to
change hours of operation from sharing with KCRC to
unlimited; 1370 kc., 100 watts; also granted authority to
transfer control of corporation from Hale V. Davis, con¬
trolling corporation, to Harold V. Hough, controlling cor¬
poration. Examiner Bramhall sustained. Order effective
November 3, 1936.
APPLICATIONS DENIED
WHBB — Selma Broadcasting Co., Selma, Ala. — Denied authority
to operate unlimited time beginning October 1, 1936, pend¬
ing action on modification of license, requesting unlimited
time.
WLEU — Leo J. Omelian, Erie, Pa. — Denied special authority to
operate with increased night power of 250 watts for period
of 45 days.
WIBW — Topeka Boradcasting Assn., Inc., Topeka, Kans. — Denied
authority to operate with power of 5 KW from 12 midnight
to 1 a. m., CST, for period beginning October 1 and ending
October 30, 1936.
WSMK— WSMK, Inc., Dayton, Ohio; KQV— KQV Broadcasting
Co., Pittsburgh, Pa. — Denied authority to operate simul¬
taneously from local sunset to midnight for period not
exceeding 30 days.
WSPA — Virgil V. Evans, d/b as The Voice of South Carolina,
Spartanburg, S. C. — Denied special authority to operate
unlimited time with power of 500 watts night, 1 KW day,
on frequency 1129 kc.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Denied spe¬
cial temporary authority to operate simultaneously with
station WKBO for a period not to exceed 30 days, in order
to broadcast political matters.
WKBO — Keystone Broadcasting Corp., Harrisburg, Pa. — Denied
special temporary authority to operate simultaneously with
station WEST for a period not to exceed 30 days, in order
to broadcast political matters.
APPLICATIONS DISMISSED
The following cases, heretofore set for hearing, were dismissed
as in cases of default:
NEW — Joseph G. Morrow, Oakland, Calif. — Applied for C. P.,
1150 kc., 250 watts LS, daytime.
NEW — KLA, Inc., LaGrande, Ore. — Applied for C. P., 1100 kc.,
250 watts LS, daytime.
The following cases, heretofore set for hearing, were dismissed
at the request of applicants:
WJBR — J. B. Roberts, Gastonia, N. C. — Voluntary assignment
of license; 1420 kc., 100 watts, unlimited.
NEW — H. A. Hamilton, Asheville, N. C. — C. P. for new station,
1200 kc., 100 watts, unlimited.
NEW — Frank F. Airey, Twisp, Wash. — C. P., 1220 kc., 250 watts
LS, daytime.
The following application, heretofore set for hearing, dis¬
missed inasmuch as applicant for assignment of license to Virgil
V. Evans requested the application be dismissed:
WJBR — Virgil V. Evans, Gastonia, N. C. — Modification of C. P.,
1420 kc., 100 watts, unlimited.
SET FOR HEARING
NEW — Arthur H. Groghan, Minneapolis, Minn. — Application for
C. P. for new station at Minneapolis, Minn., to operate
on 1310 kc., 100 watts, daytime only. Transmitter and
studio sites to be approved.
1594
WLB— University of Minnesota, Minneapolis, Minn. — Application
for C. P. to install new equipment; change antenna; change
frequency from 1250 kc. to 760 kc. ; increase power from
1 KW to 5 KW, time from S.H. to S-WCAL (2/3 day¬
time). Contingent upon B4-P-1293, WCAL, and B4-ML-
326, WTCN.
WCAL — St. Olaf College, Northfield, Minn. — Application for
C. P. to make changes in equipment and install new an¬
tenna; change frequency from 1250 kc. to 760 kc.; and
change power from 1 KW night, 2.S KW day, specified
hours, to 5 KW day, sharing with WLB (1/3 daytime).
WTCN — Minnesota Broadcasting Corp., Minneapolis, Minn. —
Application for modification of license to change hours of
operation from specified to unlimited.
KWTN — Greater Kempeska Radio Corp., Watertown, S. Dak. —
Application for C. P. to install vertical radiator, move
transmitter site locally, install new equipment, increase
night power to 250 watts and day power to 500 watts,
change frequency to 1340 kc. from 1210 kc.
KGDY — Voice of South Dakota, Huron, S. Dak. — Application
for C. P. to install vertical radiator; move transmitter and
studio sites locally; change in equipment; change frequency
from 1340 kc. to 1210 kc.; and change power from 250
watts daytime to 100 watts night, 250 watts day, unlimited
time.
NEW — F. M. Gleason, d/b as North Georgia Broadcasting Co.,
Rossville, Ga. — Application for C. P. for new station to
operate on 1200 kc., 100 watts, unlimited (amended
8-21-36 to omit name of Neil O. Davis).
KVOE — The Voice of the Orange Empire, Inc., Ltd., Santa Ana,
Calif. — Application for modification of C. P. to make
changes in authorized equipment; 1500 kc., 100 watts,
unlimited.
WLMU — Lincoln Memorial University, Middlesboro, Ky. — Ap¬
plication for modification of C. P. to make changes in
equipment and increase power from 100 watts to 100
watts, 250 watts LS.
NEW — C. S. Gooch, d/b as Amarillo Broadcasting Co., Amarillo,
Tex. — Application for C. P. for new station to operate on
1500 kc., 100 watts, daytime only.
NEW — W. E. Whitmore, Hobbs, N. Mex. — Application for C. P.
for new broadcast station at Hobbs, N. Mex., to authorize
operation on 1500 kc., 100 watts, daytime only; amended
8-16-36 antenna changes, — frequency from 1210 kc. to
1500 kc. — operation from unlimited to 100 watts day.
NEW — Virgil V. Evans, Gastonia, N. C. — Application for C. P.
for new broadcast station at Gastonia, N. C., to operate
on 1420 kc., 100 watts, unlimited (requests call WJBR).
NEW — The Schuylkill Broadcasting Co., Pottsville, Pa. — Appli¬
cation for C. P. for new station at Pottsville, Pa., to operate
on 580 kc., 250 watts, daytime only.
NEW — Northwestern Publishing Co., Danville, Ill. — Application
for C. P. for new broadcast station at Danville, Ill., to
operate on 1500 kc., 250 watts, daytime.
NEW — Waldo Abbot, Ann Arbor, Mich. — Application for C. P.
for new special broadcast station at Ann Arbor, Mich., to
operate on 1550 kc., 1 KW, unlimited.
NEW — Central States Broadcasting Co., Council Bluffs, Iowa. —
Application for C. P. for new broadcast station at Council
Bluffs, Iowa, to operate on 1500 kc., 100 watts, unlimited
time; transmitter site to be determined.
SPECIAL AUTHORIZATIONS
WABI — Community Broadcasting Service, Bangor, Maine-
Granted special temporary authority to operate between
the hours of 2 p. m. and 6 p. m., EST, October 3, 10, 17,
24, and 31, 1936, in order to broadcast football games.
(Conditional Clause)
KPAC — Port Arthur College, Port Arthur, Texas — Granted special
temporary authority to operate from 5:45 p. m. to 12:00
midnight, CST, on October 2 and 9, 1936, in order to broad¬
cast football games.
WTBO — Associated Broadcasting Corp., Cumberland, Md. —
Granted special temporary authority to operate from 9 p. m.
to 9:30 p. m., EST, September 29, 1936, in order to broad¬
cast speech by President Roosevelt.
WTBO — Associated Broadcasting Corp., Cumberland, Md. —
Granted special temporary authority to operate from 8:30
p. m. to 9:30 p. m., EST, October 1, 1936, in order to broad¬
cast speeches by President Roosevelt and Governor Earle.
WFOR— Forrest Broadcasting Co., Inc., Hattiesburg , Miss.-
Granted special temporary authority to operate station
without an approved frequency monitor for period not to
exceed 30 days.
WFBC — Greenville News-Piedmont Co., Greenville, S. C. —
Granted special temporary authority to operate station with¬
out antenna ammeter for a period not to exceed 10 days
from September 20, 1936, pending repair of that apparatus
damaged by storm.
KSUN — Copper Electric Co., Inc., Lowell, Ariz. — Granted special
temporary authority to operate without antenna and trans¬
mission line indicating instruments pending replacement for
a period not to exceed 20 days.
WCPO — Continental Radio Company, Cincinnati, Ohio. — Granted
special temporary authority to operate 100-watt portable
test transmitter on 1200 kc. from midnight to 6 a. m.,
EST, for period not to exceed 10 days in order to deter¬
mine new transmitter site, provided station remains silent
during those hours prescribed for Commission monitoring
schedule.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla.— Granted
special temporary authority to use the equipment as speci¬
fied in license dated June 12, 1936, located at 9th and Bell
Sts., Shawnee, Okla., instead of operation under the terms
of the C. P. as authorized by program tests on August 22,
1936, for period not to exceed 30 days.
KSEI — Radio Service Corp., Pocatello, Idaho — Granted special
temporary authority to operate station without an antenna
ammeter for a period beginning September 16, 1936, and
ending in no event later than October 1, 1936.
WLAK — Lake Region Broadcasting Co., Lakeland, Fla. — Granted
extension of special temporary authority to operate station
without an antenna ammeter for a period beginning Sep¬
tember 20, 1936, and ending in no event later than October
4, 1936, in order to repair damage caused by lightning.
WHDF — The Upper Michigan Broadcasting Co., Calumet, Mich. —
Granted special temporary authority to operate from 12:30
p. m. to 3:30 p. m., CST, for period beginning September
30, 1936, and ending in no event later than the conclusion
of the World Series Baseball Games.
WILL — University of Illinois, Urbana, Ill. — Granted special tem¬
porary authority to operate simultaneously with station
KFNF from 1:45 p. m. to 4 p. m., CST, October 3 and 24,
1936, in order to broadcast football games, provided WBAA
remains silent.
WAML — New Laurel Radio Station, Inc., Laurel, Miss. — Granted
special temporary authority to operate from 2 p. m. to 4
p. m., CST, September 30, 1936, and from October 1 to
October 6, 1936, inclusive, in order to broadcast the World
Series.
KFNF — KFNF, Inc., Shenandoah, Iowa — Granted special tem¬
porary authority to operate simultaneously with WILL from
8 a. m. to 11 a. m., CST, daily except Sundays during the
month of October, 1936.
WFAS — Westchester Broadcasting Corp., White Plains, N. Y. —
Granted special temporary authority to operate simulta¬
neously with WGNY from 2:15 p. m. to 3 p. m., EST, on
October 3, 24, 31, November 7 and 21, 1936, in order to
broadcast football games.
KRNR — Southern Oregon Publishing Co., Roseburg, Oreg. —
Granted special temporary authority to operate 5:30 p. m.
to 6 p. m., EST, on October 3, 10, 17, 24 and 31, 1936, in
order to complete broadcast of football games.
KRNR — Southern Oregon Publishing Co., Roseburg, Oreg. —
Granted special temporary authority to operate from 4:45
p. m., PST, November 3, 1936, to 1 a. m., PST, November
4, 1936, in order to broadcast election returns.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Granted special
temporary authority to operate from 3:30 p. m. to 6 p. m.,
MST, October 1, 1936, in order to broadcast football game
between American League All Stars and Fort Peck team.
KFEQ — KFEQ, Inc., St. Joseph, Mo.— Granted special temporary
authority to operate a portable (high frequency relay
broadcast) transmitter on September 30 and October 1,
1936, for purpose of relaying KFEQ programs from St.
Joseph Livestock Exposition; frequency 37600 kc.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
special temporary authority to operate simultaneously with
Station WLBC from 7:30 p. m. to 10:30 p. m., CST, on
October 2, 9, 16, 23 and 30, 1936, in order to broadcast
football games.
WSAJ — Grove City College, Grove City, Pa. — Granted special
temporary authority to operate from 2 p. m. to 5:30 p. m.,
1595
EST, on October 3, 10 and November 14, 1936, in order to
broadcast football games.
The Farmers & Bankers Life Ins. Co., 715 Beacon Bldg., Wichita,
Kans. — Granted special temporary authority to operate a
portable (high frequency relay broadcast) transceiver on
October 8 and 9, 1936, for the purpose of relaying the Big
Fall Festival street parade in Salina, Kans.; frequency to
be used in the band 86000 to 400000 kc.
MISCELLANEOUS
KDON — Monterey Peninsula Broadcasting Co., Monterey, Calif.
— Denied petition asking Commission to reconsider and
designate for hearing application of F. W. Atkinson for
authority to erect and operate new broadcast station at
Watsonville, Calif., to operate on 1310 kc., 250 watts, day¬
time only. This application was granted July 2, 1936.
WMEX — Northern Corporation, Boston, Mass. — Granted petition
asking leave to intervene in hearing upon application of
WCOP, Boston, for change of frequency from 1120 kc. to
1130 kc., and to increase hours of operation from daytime
to local sunset at KSL, Salt Lake City, Utah.
NEW — Bay County Publishers, Inc., Panama City, Fla. — Denied
petition requesting its application for authority to construct
new broadcast station in Panama City, Fla., to operate on
1420 kc., 100 watts, unlimited time, designated for hearing
April 14, 1936, be reconsidered and granted in part for
daytime operation and leave the request for unlimited time
on the hearing docket.
WHDL — Olean Broadcasting Co., Olean, N. Y. — Reconsidered
and granted without hearing amended application so as to
change frequency from 1420 kc. to 1400 kc., increase power
from 100 watts to 250 watts daytime only, and to move
transmitter locally.
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. —
Granted petition asking reconsideration and grant of ap¬
plication for modification of license so as to authorize
operation between local sunset and 11 p. m., with power
of 50 watts, on 1210 kc., on Tuesday, Thursday, Saturday
and Sunday nights on a permanent basis, subject to Rule
131. This rule requires where new or additional facilities
are requested, licensees shall specify a radiating system the
efficiency of which complies with the requirements of good
engineering practice for the class and power of the station.
KGMB — Honolulu Broadcasting Co., Honolulu, T. H. — Granted
request that hearing on application for authority to transfer
control of corporation from J. L. P. Robinson to Pacific
Theatre & Supply Co., Ltd., scheduled for November 10,
1936, be postponed indefinitely.
NEW — Findlay Radio Broadcasting Co., Findlay, Ohio. — Granted
permission, as respondents, to file answer, to be made part
of record in re application of John C. Looney, d/b as High
Fidelity Broadcasting Service, for new station at Milton,
Mass., to operate on 1570 kc., 1 KW, unlimited and
variable.
KGCU — Mandan Radio Association, Mandan, N. D. — Reconsid¬
ered action of September 17, 1935, and removed application
for renewal of license from hearing docket. Granted regular
renewal of license for the period October 1, 1936, to April
1, 1937.
WCKY — L. B. Wilson, Inc., Covington, Ky. — Denied petition ask¬
ing Commission to reconsider action of May 1, 1936, in
designating for hearing application for C. P. requesting
authority to install new equipment and increase power from
5 KW to 50 KW, employing a non-directional antenna sys¬
tem and to grant the same in part without a hearing, in¬
creasing power to 10 KW night, 25 KW day, and to leave
the request for 50 KW on hearing docket.
NEW — H. Wimpy, Thomasville, Ga. — Granted authority to file
appearance and statement of desire to be heard, as part
of record in re application for authority to erect a new
station at Albany, Ga., on 1420 kc., 100 watts night, 250
watts LS, unlimited. Requests facilities of WGPC.
WMT — Iowa Broadcasting Co., Waterloo, Iowa. — Granted peti¬
tion to intervene in hearing of application of Waterloo
Times-Tribune Publishing Company for C. P. for establish¬
ment of a broadcast station at Waterloo, Iowa, to operate
on 1370 kc., 100 watts, daytime only.
NEW — W. H. Hartman Company, Waterloo, Iowa.— Granted
petition to intervene in the hearing of application of
Waterloo Times-Tribune Publishing Company for C. P. to
operate new station at Waterloo, Iowa, on 1370 kc., 100
watts, daytime only. Petitioner has pending application
for establishment of new broadcast station at Waterloo
to operate on 1420 kc., 100 watts.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KGBX, Springfield, Mo.; KMA, Shenandoah, Iowa; KOIL,
Council Bluffs, Iowa; KTAT, Fort Worth, Texas; KVOA, Tucson,
Ariz.; KWLC, Decorah, Iowa; WCAL, Northfield, Minn.; WCSH,
Portland, Maine; WORC, Worcester, Mass.
WCAU — WCAU Broadcasting Co., Philadelphia, Pa. — Granted re¬
newal of license for auxiliary transmitter for period ending
February 1, 1937.
KUSD — University of South Dakota, Vermillion, S. Dak. — Granted
renewal of license for the period ending March 1, 1937.
The following stations were granted renewals on a temporary
basis subject to whatever action may be taken on their pending
applications for renewals:
KFBB, Great Falls, Mont.; KTFI, Twin Falls, Idaho; WCAE
and auxiliary, Pittsburgh, Pa.
WFAE — Hammond-Calumet Broadcasting Corp., Hammond, Ind.
— Present license further extended on a temporary basis
only to November 1, 1936, pending receipts and/or action
on application for renewal.
KLPM — John E. Cooley, Minot, N. Dak. — Present license fur¬
ther extended on a temporary basis only to November
1, 1936, pending receipt and/or action on application for
renewal.
WHIO — Miami Valley Broadcasting Corp., Dayton, Ohio — Present
license further extended on a temporary basis only to No¬
vember 1, 1936, pending receipt and/or action on applica¬
tion for renewal.
WHBI — May Radio Broadcast Corp., Newark, N. J. — Present li¬
cense further extended on a temporary basis only to Novem¬
ber 1, 1936, pending receipt and/or action on application
for renewal.
WHBI — May Radio Broadcast Corp., Newark, N. J. (auxiliary) —
Present license further extended on a temporary basis only
to November 1, 1936, pending receipt and/or action on ap¬
plication for renewal.
WIBA — Badger Broadcasting Co., Inc., Madison, Wis. — Present
license further extended on a temporary basis only to No¬
vember 1, 1936, pending receipt and/or action on applica¬
tion for renewal.
KFQD — Anchorage Radio Club, Inc., Anchorage, Alaska — Present
license extended on a temporary basis to November 1, 1936,
subject to such action as may be taken upon pending appli¬
cation for renewal.
KGFG — Oklahoma Broadcasting Co., Inc., Oklahoma City, Okla. —
Present license extended on a temporary basis to November
1, 1936, subject to such action as may be taken upon appli¬
cation for renewal and upon application for modification of
license as to hours of operation pending before it.
WATL — Atlanta Broadcasting Co., Atlanta, Ga.— Present license
extended on a temporary basis only for the period October
1 to November 1, 1936, subject to such action as may be
taken upon pending application for renewal.
WRDO — WRDO, Inc., Augusta, Maine — Present license extended
on a temporary basis only for the period ending November
1, 1936, pending receipt and/or action on application
for renewal.
WNYC (auxiliary) — City of New York, Dept, of Plant and Struc¬
tures, New York City — Present license extended on a tem¬
porary basis only for the period ending November 1, 1936,
pending receipt and/or action on application for renewal.
WWL — Loyola University, New Orleans, La. — Special experimental
temporary authority extended on a temporary basis for the
period ending November 1, 1936, subject to the same con¬
ditions as contained in the existing authority, pending con¬
sideration of pending petition of station WLWL and peti¬
tions in opposition thereto.
KTFI — Radio Broadcasting Corp., Twin Falls, Idaho — Granted
extension of special experimental authority from October 1,
1936, to April 1, 1937, on a temporary basis only, subject
to a hearing and decision by the Commission.
ORAL ARGUMENTS
KSEI — Ex. Rep. 1-250: Radio Service Corp., Pocatello, Idaho —
Granted oral argument to be held December 10, 1936.
NEW — Ex. Rep. 1-287: C. A. Rowley, Ashtabula, Ohio— Granted
oral argument to be held December 17, 1937.
1596
MISCELLANEOUS
WATR — The WATR Co., Inc., Waterbury, Conn. — Granted C. P.
to change transmitter site locally to Baldwin Ave. and
studio to 47 Grand T. Waterbury; make equipment
changes; install directional antenna system for day and
night operation; change frequency to 1290 kc.; and in¬
crease power from 100 watts, limited time, to 250 watts,
unlimited time. (Present assignment: 1190 fee., 100 watts,
limited.) (Action taken September 22, 1936.)
RATIFICATIONS
The Broadcast Division ratified the following actions taken on
the dates shown:
WMT — Iowa Broadcasting Co., Des Moines, Iowa — Granted ex¬
tension of program test period 30 days from September
22, 1936. (Action taken 9-23.)
W2XK — National Broadcasting Co., Inc., New York City — Granted
extension test period 30 days from September 29, 1936.
(Action taken 9-25.)
KGFL— KGFL, Inc., Roswell, N. Mex. — Granted authority to
operate simultaneously with WICA from 7:30 to 10:30
p. m., MST, October 2, 9, 16 and 30, 1936, in order to
broadcast night football games. (Action taken 9-25.)
WMBQ — Joseph Husid, Receiver, Metropolitan Broadcasting
Corp., Brooklyn, N. Y. — Granted temporary authority to
Joseph Husid to operate station WMBQ under terms of
present license for period of 60 days. (Action taken 9-24.)
Detroit National League Football Club, Inc., Detroit, Mich. —
Designated for hearing the application to transmit football
game programs to station CKLW on September 27, October
11, 18, 25, November 1, 8, 15, 22, 26, 29 and December
6, 1936. (Action taken 9-26.)
APPLICATIONS RECEIVED
First Zone
WDEL — WDEL, Inc., Wilmington, Del. — Authority to make
1120 changes in automatic frequency control.
WSPR — Quincy A. Brackett, Lewis B. Breed and Edmund A.
1140 Laport, co-partners, d/b as Connecticut Valley Broadcasting
Co., Springfield, Mass. — Modification of license to change
hours of operation from limited local, sunset WAPI, to
limited, local sunset, KVOO.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — License
1200 to cover construction permit (Bl-P-1237) to install new
transmitter.
WGNY — Peter Goelet, Newburgh, N. Y. — Modification of con-
1210 struction permit ( B 1 -P-1 166) move studio and transmitter
and new equipment, requesting approval of antenna, trans¬
mitter and studio sites and install new transmitter.
WNEW — Wodaam Corporation, Newark, N. J. — Modification of
1250 license to change studio location from 116 Market St.,
Newark, N. J., to 501 Madison Ave., New York, N. Y.
WMBO — WMBO, Inc., Auburn, N. Y. — Authority to transfer
1310 control of corporation from George I. Stevens to Roy L.
Albertson, 150 shares of common stock.
WBNX — Standard Cahill Co., Inc., New York, N. Y. — License to
1350 cover construction permit (Bl-P-608) as modified for new
equipment, increase in power, move of transmitter and
approval of directional antenna.
Second Zone
WIBG — Seaboard Radio Broadcasting Corp., Glenside, Pa. — Con-
970 struction permit to move transmitter to site to be deter¬
mined, Montgomery County, Pennsylvania; install new
transmitter, vertical antenna; increase power from 100
watts to 5 KW, and change hours of operation from day¬
time to limited, Chicago sunset.
WEXL — Royal Oak Broadcasting Co., Royal Oak, Mich. — Con-
1310 struction permit to install new transmitter and make an¬
tenna changes. Amended to omit request for antenna
changes.
WORK — York Broadcasting Co., York, Pa. — Authority to make
1320 changes in automatic frequency control.
NEW — John Stewart Bryan and Douglas Freeman, Tennant
1370 Bryan, co-partners, Petersburg, Va. — Construction permit
to erect a new broadcast station to be operated on 1370 kc.,
100 watts, daytime operation.
WHDF — Upper Michigan Broadcasting Co., Calumet, Mich. —
1370 Construction permit to install new transmitter.
NEW — Fayette Broadcasting Corp., Uniontown, Pa. — Construc-
1420 tion permit for a new station to be operated on 1420 kc.,
250 watts, daytime.
WLAP — American Broadcasting Corporation of Kentucky, Lex-
1420 ington, Ky. — Construction permit to move transmitter and
studio from Main and Esplanade Sts., Lexington, Ky., to
Phoenix Hotel, East Main St., Lexington, Ky., and install
new equipment and antenna.
WAZL — Hazleton Broadcasting Service, Inc., Hazleton, Pa. — Au-
1420 thority to make changes in automatic frequency control.
NEW — The Crosley Radio Corp., Portable-Mobile. — Construc¬
tion permit for a new high frequency relay broadcast station
to be operated on 31100, 34600, 37600 and 40600 kc., 2
watts.
NEW — The Crosley Radio Corp., Portable-Mobile. — Construction
permit for a new high frequency relay broadcast station to
be operated on 31100, 34600, 37600 and 40600 kc., 2 watts.
Third Zone
WPTF — WPTF Radio Company, Raleigh, N. C. — Authority to
680 determine operating power by direct measurement of an¬
tenna (of main transmitter when using 1 KW power from
local sunset to 11 p. m., EST.).
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
780 License to cover construction permit (B3-P-621) for changes
in equipment, antenna, increase in power, and change in
transmitter site.
NEW — World Publishing Co., Tulsa, Okla. — Construction permit
940 to erect a new broadcast station to be operated on 940 kc.,
1 KW power, unlimited time, to use directional antenna at
night. Amended: Install new transmitter and change day¬
time power from 1 KW to 5 KW.
KTHS — Hot Springs Chamber of Commerce, Hot Springs Na-
1040 tional Park, Arkansas. — Construction permit to install new
transmitter and directional antenna for day and night use;
change frequency from 1040 kc. to 1060 kc., time from
S-KRLD to unlimited; move transmitter from Malvern
Road, Hot Springs National Park, Arkansas, to U. S.
Highway 67, McAlmont, Ark., and studio to be determined,
Little Rock, Ark.
WMAZ — Southeastern Broadcasting Co., Inc., Macon, Ga.—
1180 License to cover construction permit (B3-P-1041) to in¬
stall auxiliary transmitter to operate on 500 watts power.
WRBL — WRBL Radio Station, Inc., Columbus, Ga. — Construc-
1200 tion permit to install new transmitter and antenna, move
transmitter and studio locally, and increase day power
from 100 watts to 250 watts.
WJBY — Gadsden Broadcasting Company, Inc., Gadsden, Ala. —
1210 Authority to make changes in automatic frequency control.
KTAT — Raymond E. Buck, Fort Worth, Tex. — Voluntary as-
1240! signment of license from Raymond E. Buck to Tarrant
Broadcasting Company.
KUOA — KUOA, Inc., Siloam Springs, Ark.— Modification of con-
1260 struction permit (B3-P-1070) to move transmitter and
studio; make equipment changes; install new antenna; and
increase in power, requesting further increase in power from
2)4 KW to 5 KW ; install new transmitter; and additional
hours of operation from midnight to 6 a. m., using 5 KW ;
and extend commencement date to 30 days after grant and
completion date to 150 days thereafter.
WSJS — Winston-Salem Journal Co., Winston-Salem, N. C. —
1310 Construction permit to install new transmitter, new an¬
tenna (subject to approval) ; move transmitter to site to
be determined, Winston-Salem, N. C.; change frequency
from 1310 kc. to 1250 kc., and increase power from 100
watts to 1 KW.
KTSM — Tri-State Broadcasting Co., Inc., El Paso, Tex. — Con-
1310 struction permit to move transmitter to corner Mills and
Oregon Sts., El Paso, Tex.; make equipment changes; in¬
stall vertical antenna; increase day power from 100 to
250 watts; and request authority to carry WDAH schedule
on KTSM transmitter.
KMAC — W. W. McAllister, San Antonio, Tex. — Construction
1370 permit to install new transmitter and vertical antenna;
increase power from 100 watts to 100 watts night, 250
watts day; move transmitter locally. Amended: Equip¬
ment changes.
WAGF — John T. Hubbard and Julian C. Smith, d/b as Dothan
1370 Broadcasting Co., Dothan, Ala. — Assignment of license
1597
from John T. Hubbard and Julian C. Smith, d/b as
Dothan Broadcasting Co., to John T. Hubbard, Julian C.
Smith and Fred C. Moseley, d/b as Dothan Broadcasting
Co.
KABC — Alamo Broadcasting Co., Inc., San Antonio, Tex. — Con-
1420 struction permit to install a new transmitter .
WJBR — J. B. Roberts, Gastonia, N. C. — Modification of con-
1420 struction permit (B3-P-744) for new station on 1420 kc.,
100 watts, unlimited time, requesting authority to extend
commencement date from 12-15-35 to 10-1-36 and com¬
pletion date from 6-15-36 to 1-1-37.
WGPC — Americus Broadcast Corp., Albany, Ga. — Modification
1420 of construction permit (B3-P-1077) for new equipment,
move studio and transmitter, further requesting authority
to install new transmitter, make antenna changes, increase
day power from 100 watts to 250 watts, and move studio
from 127 N. Jackson St. and transmitter from corner
Pine and Jackson Sts., to 125 N. Jackson St., Albany,
Ga., and extend commencement and completion dates to
30 days after grant and 60 days thereafter.
KPLC — Calcasieu Broadcasting Co. (T. B. Lanford, R. M. Dean,
1500 L. M. Sepaugh), Lake Charles, La. — Construction permit
to make equipment changes, install vertical antenna, in¬
crease in day power from 100 to 250 watts, move trans¬
mitter to site to be determined, Lake Charles, La.
KGKB — East Texas Broadcasting Co., Tyler, Tex. — License to
1500 cover construction permit (B3-P-1028) to make changes
in equipment and move transmitter.
Fourth Zone
KFYR — Meyer Broadcasting Co., Bismarck, N. Dak. — Construc-
550 tion permit to make equipment changes, install vertical
antenna, and move transmitter one-half mile.
NEW— The Journal Company (The Milwaukee Journal), Wau-
620 kesha, Wis. — Application for license for a new facsimile
broadcast station to be operated on 620 kc., 500 watts, 12,
midnight to 6 a. m. (WTMJ broadcast transmitter to be
used).
KFEQ — KFEQ, Inc., St. Joseph, Mo. — Construction permit to in-
680 stall new transmitter and antenna, and move transmitter
from Pauline and Elwood Sts., St. Joseph, Mo., to the
South 15 acres of E. 40 acres of NW of Sec. 33-57-36,
St. Joseph, Mo. Amended to omit request for move of
transmitter.
WEW — The St. Louis University, St. Louis, Mo. — License to cover
760 construction permit (B4-P-967) for equipment changes.
NEW — Charles J. Pettinger, Indianapolis, Ind. — Construction
1050 permit for a new station to be operated on 1050 kc., 5
KW, daytime.
WOWO — Westinghouse Radio Stations, Inc., Fort Wayne, Ind. —
1160 Construction permit to make equipment changes, increase
power from 10 KW to 25 KW night, 10 KW day. Amended
to change name to Westinghouse Radio Stations, Inc.
WJBC — Arthur Malcolm McGregor and Dorothy Charlotte Mc-
1200 Gregor, a partnership, Bloomington, Ill. — Authority to
make changes in automatic frequency control.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — License
1310 to cover construction permit (B4-P-412) for equipment
changes, increase in power, move transmitter, and antenna
changes.
KSCJ — Perkins Bros. Co. (The Sioux City Journal), Sioux City,
1330 Iowa. — Construction permit to install new transmitter and
increase power from 1 KW night, 2J4 KW day, to 1 KW
night, 5 KW day.
NEW- — W. H. Hartman Co., Publisher of Waterloo Daily Courier,
1420 Waterloo, Iowa.— Construction permit for a new station to
be operated on 1420 kc., 100 watts, unlimited time.
KOVC — George B. Bairey, Valley City, N. Dak. — Voluntary as-
1500 signment of construction permit from George B. Bairey
to KOVC, Inc.
Fifth Zone
KGO — National Broadcasting Co., Inc., San Francisco, Calif. —
790 Authority to install automatic frequency control in aux¬
iliary equipment.
NEW— George H. Payne, San Jose, Calif. — Construction permit
1010 to erect a new broadcast station to be operated on 1010 ltc.,
1 KW power, unlimited time, facilities of KQW.
KFXD — Frank E. Hurt, Nampa, Idaho — Construction permit to
1200 install a new transmitter.
KROY — Royal Miller, Sacramento, Calif. — Modification of con-
1210 struction permit (BS-P-713) for a new station on 1210 kc.,
100 watts, daytime, to further request authority to install
new transmitter and vertical antenna, change frequency
from 1210 kc. to 1340 kc., power from 100 watts to 250
watts night, 1 KW day, time from daytime to unlimited,
and studio to site to be determined.
NEW — D. L. Thornton, Centralia and Chehalis, Wash. — Construc-
1500 tion permit for a new station to be operated on 1500 kc.,
100 watts night, 250 watts day, unlimited time.
1598
The National Association of Broadcasters
NATIONAL PRESS BUILDING • * » • « WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS ....
Copyright. 1936. The National Association of Broadcasters
Vol. 4 - - No. 50
OCT. 6, 1936
FCC ALLOCATION HEARING BEGINS
Nearly 300 representatives of all phases of the broadcast industry
were present today at the opening of the allocation hearings called
by the Federal Communications Commission. Judge Eugene O.
Sykes, chairman of the Broadcast Division, acted as chairman.
During part of the sessions today all of the members of the Com¬
mission participated.
Today officials of the Commission, representatives of educational
broadcasters and the clear channel group presented their testi¬
mony. The latter group had not concluded as the hearings
adjourned until Tuesday.
Judge Sykes as chairman opened the hearing with a short state¬
ment in which he outlined the procedure and spoke of the general
subjects which the Commission desired to have discussed.
Judge Sykes said:
“On behalf of the Broadcast Division, permit me to express
to you our appreciation for
your interest in and presence
at this hearing. The notice of
appearances indicates that the
educational interests, radio
engineering associations, station
organizations, individual sta¬
tions, and others interested in
broadcasting are well repre¬
sented. We are, therefore, as¬
sured of the presentation of
thorough and extensive testi¬
mony on the subject of broad¬
casting.
“The notice of this informal
hearing (Docket 4063) was sent
to all broadcast licensees, various manufacturers of radio equip¬
ment, trade organizations and associations, and government de¬
partments. It has also been given wide publicity by the press and
by magazines which are read by persons and organizations inter¬
ested in broadcasting.
“In calling this conference, the Broadcast Division of the Com¬
mission desires to obtain from the industry the most complete
information available with respect to their view of this broad
subject of allocation, not only in its engineering phases but also
the social and economic phases to the end that such regulations
and standards as it may retain or adopt will provide maximum
service (both transmission and reception) in the public interest.
The improvements in, and the increased knowledge of, the engi¬
neering aspects of broadcasting since the inauguration of the
present allocation system in 1928 will be taken into consideration;
also the amendment of June S, 1936, to the Communications Act
of 1934, repealing Section 302 and modifying Section 307 (b).
“There have been no basic changes in the plan of allocation
adopted by the Radio Commission in 1928 but since that time
there have been many important developments in radio engineering
as well as in the social and economic phases of broadcasting. It
was felt that opportunity should be given to the industry to
present to the Commission at an informal hearing of this type
the facts concerning broadcasting as it sees it today.
“The general subjects on which it was desired that the respond¬
ents give testimony are outlined as follows:
“1. Classification of broadcast stations.
“2. Allocation of frequencies to different classes of stations.
“3. Standards to be applied in determining coverage and the
presence or absence of objectionable interference.
“4. Geographic distribution of broadcast facilities.
“5. Standards and methods of measurements with respect to
essential engineering phases of operation of broadcast stations.
“6. Apparatus performance requirements to be imposed on
broadcast stations.
“7. Effect of any proposals regarding the foregoing subjects.
“This outline in general covers the scope of the hearing, how¬
ever, testimony along other lines may be presented by respondents,
but individual applications, individual assignments, and requests
for allocation of broadcast facilities to particular groups or organ¬
izations will not be considered.
“The procedure to be followed at this hearing is that persons
desiring to be heard may either present statements, which may be
read if desired, or they may have their attorneys read such state¬
ments or ask questions to which the person may reply. Since this
is a fact-developing hearing,
rather than one whereby it is
sought to prove or disprove
some preconceived idea, per¬
sons will not be sworn, and no
one will be compelled to answer
questions which he may indi¬
cate he does not desire to
answer.
“Cross-examination of wit¬
nesses appearing in behalf of
respondents will be limited to
questions by the Commissioners
and other members of the Com¬
mission’s staff. If others desire
to ask questions of witnesses,
this should be done by submitting the questions, in writing, to the
Chairman or any other member of the Commission’s staff present.
If deemed desirable, the questions will be asked of the witnesses.
“Upon the completion of cross-examination, the witness, with
or without the aid of counsel, may amplify or explain any of his
statements. At the close of the hearing, counsel representing the
various groups will be permitted a summation or argument of not
more than 30 minutes duration for each group appearing on the
calendar.
“Doctor Wheeler and Mr. Ring of the Commission’s Engineering
Staff will present testimony concerning factual data on the alloca¬
tion survey. These two witnesses may be cross-examined directly
by any respondents on questions of fact only.
“There has been distributed for the convenience of those attend¬
ing this hearing a mimeographed copy of the order in which per¬
sons or organizations will be heard. This list contains only those
who have notified the Commission of their intention to present
evidence at the hearing. However, anyone desiring to be heard
who does not appear on the list of respondents should notify the
Chairman, in writing, stating the subject on which he wishes to
speak and the approximate time required.
“The ushers will pass registration cards to those present. It
is requested that you complete these cards to assist the Commis¬
sion in determining the attendance and to assist in locating persons
when inquiries are received. After completing the cards, they may
be passed to the end of the row on your left where the ushers
will collect them.
“The Chief Engineer will now present his statement on broad¬
cast allocation and engineering.”
T. A. M. CRAVEN
T. A. M. Craven, chief engineer of the Commission, made a
statement in connection with broadcast allocation and engineering
During the course of the allocation
hearings by the Federal Communi¬
cations Commission, NAB Reports
will be published daily.
1599
in which he called attention, among other things, to the fact that
he is of the opinion that the time has arrived for coperation be¬
tween radio manufacturers and the governmental regulating agency
in an effort to render and plan for efficient engineering in the
public’s broadcasting system.
Mr. Craven said:
The Chairman of the Broadcast Division has already indicated
to you that this hearing is for the purpose of securing facts with
respect to the engineering principles of allocation within the broad¬
cast band 550-1600 kc, and facts and opinions concerning the
social and economic consequences of any proposed changes in the
existing regulations of this Commission with reference to the
engineering principles of allocation within the frequency band
550-1600 kc.
I might add that the conception of the hearing was pervaded
with the spirit of reviewing the progress that has been made in
the art of broadcasting since 1928, securing from the industry a
practical interpretation of this progress and cooperating with the
industry in an intelligent planning in the application of this
progress to the betterment of broadcasting service to the public.
Broadly speaking, technical progress should be inevitable and
cannot be stopped by artificial measures engendered by fear of the
results. To attempt to retard progress by artificial measures is
unsound, and leads only to confusion. On the other hand, an
intelligent survey of new developments and a logical evolutionary
application, by practical people, of new principles resulting from
such new developments should be beneficial to all.
This hearing commencing today gives an opportunity to all
concerned, to both government and to private individuals, groups
and organizations, to discuss publicly a phase of the national
broadcasting problem in a cooperative and orderly manner. Such
an opportunity has not existed for several years, and we are
certain that we shall benefit from the hearing, even though it
should result merely in a clarification of thought on controversial
subjects.
Some persons have expressed to me the view that the issues at
this hearing are not sufficiently specific, and that we should have a
definite set of issues upon which several schools of thought could
give expressions of opinion. Perhaps the present would be prema¬
ture for such a procedure, because from the information I can
secure, there is still not a unity of engineering thought with respect
to practicable standards of service and interference. Until we can
secure at this hearing such an expression from the practical engi¬
neers of the country, it would appear to me that the reduction
to a few isolated issues might not be entirely beneficial.
Growing out of the vast experience, both in engineering and in
the economics of broadcasting, which has been gained since 1928,
the year in which the present principles were established, there
have been certain developments which may enable progressive
steps to be taken if the evidence at this hearing should show a
need therefor. And, certainly today we are in a position more
clearly to distinguish between the effects of the depression and the
effects of engineering and other economic factors upon the broad¬
casting industry, and hence we are in a better position to attempt
progressive steps than we have been at any time heretofore since
the establishment of the existing allocation system.
The industry in the past few years has learned much with respect
to broadcasting. For example, much data have been collected
with respect to the performance of radio stations and their ability
to render service under various conditions. From this we are
able more clearly to understand the difference in value between
various frequencies in various parts of the country. Also much
data have been secured with respect to the sky wave propagation
characteristics of stations, and while factual information with
respect to this phase of engineering may not enable us to deal
with the question in a precise manner, we have, however, secured
sufficient information to be very useful as a guide in determining
questions of both service and interference.
Next, by reason of practical studies made by the engineers of
various stations, we should be in a position to understand better
today than heretofore the relation between signal intensity and
useful service under various conditions of interference, both man¬
made and natural.
In addition, much information has been obtained in the design
of receivers, a most essential factor in any engineering plan of
allocation of radio broadcasting frequencies. And in this connec¬
tion, we have an opportunity to accomplish something today which
was not accomplished in 1928 because of the lack of facts at that
time. In my opinion the receiver, its manufacture, its perform¬
ance and its distribution to the public, has a most important
relationship to the problems of broadcasting, both from an eco¬
NAB WILL NOT PARTICIPATE IN
ALLOCATION HEARING
The Board of Directors of the NAB, at a meeting
held in Washington October 2, decided that by rea¬
son of the character of the allocation hearing as
described in the Commission’s notice, the NAB
should not participate in it.
nomic and an engineering standpoint. In a sense, it is the other
end of the circuit, since both transmitters and receivers are re¬
quired to complete the service to the public. Therefore, unless we
thoroughly understand the relationship between the receiver and
transmitter, and in turn, their coordination in a system of alloca¬
tion, we have not provided properly for a sound engineering system
of allocation.
It seems to me that the time has now arrived for an effective
cooperation and coordination between the receiver manufacturers,
the manufacturers of transmitters, and the government regulating
agency, in a cooperative effort to render and plan for efficient
engineering in the public’s broadcasting system. It is hoped that
evidence with reference to this phase of the problem will be pre¬
sented at this hearing.
Naturally, with the experience gained since 1928 in the eco¬
nomics of broadcasting, whether operated by commercial concerns,
social groups, or by any other method, we should be in a position
to know better today the relationship between the engineering of
allocation and the economics of allocation. Having had some
personal experience in the practical end of broadcasting, it appears
to me that possibly there is a definite relationship between eco¬
nomics and engineering of radio broadcasting, and therefore it
appears that if we are to have a sound system of allocation in
the future, the Commission should receive facts with reference to
this phase of the broad problem which confronts us today. The
notice of hearing comprehends this part of the problem and it is
hoped that we shall hear some constructive evidence with refer¬
ence to the subject.
Another factor which should be considered with reference to
the hearing is, first, that persons in the practical operation, par¬
ticularly engineers, are concerned with practical operation from
perhaps a local viewpoint, while others are concerned from a
national viewpoint, but by reason of their very closeness to the
practical business affairs of everyday life, they may sometimes not
appreciate the difficulties of administering the regulation of such
a vast organization in the public interest.
On the other hand, the engineers of the Commission, as a result
of unavoidable limitations, are unable to secure continuous prac¬
tical experience in the field in the actual operation of stations, and
therefore may be somewhat handicapped, through no fault of
their own, in sensing a relationship between engineering and the
economics of a broadcasting station. However, they do have
expert knowledge with respect to the problems of administration
and regulation. This hearing thus affords the engineers of the
Commission an opportunity more thoroughly to understand the
problems confronting the engineer engaged in practical operation.
I have faith in the engineer of the country, and in his desire
to render, broadly speaking, a service. I have faith in his honesty
and sincerity of purpose, and therefore it seems to me that here
today, through the process of this hearing, we can perhaps secure
the unity of engineering opinion with respect to the problems of
broadcasting which may be of the utmost service to the country
as a whole, and particularly to the individual members of this
Commission in their daily problems with respect to regulation.
If this can be accompanied with data from experienced persons
with reference to the economic phases of broadcasting, it seems
to me that the Commission will have a most excellent and thorough
background upon which to base the fundamental regulations deal¬
ing with the engineering problems of allocation in the future.
Before concluding, I believe it desirable to inform the industry
that as a result of the June 15 hearing, the Interdepartment
Radio Advisory Committee is making progress in its study of
the allocation of frequencies above 30,000 kc to government serv¬
ices. It is my opinion that we may expect with confidence the
allocation of sufficient frequencies above 30,000 kc to accommodate
aural, facsimile and television broadcasting in the future on an
initial experimental basis. In my opinion, the date when these new
services will cease to be experimental depends upon many factors,
and in particular, upon the rate of progress in development.
It is our understanding that the industry has given great effort
and incurred much expense in preparation for this hearing. I
know the Commission appreciates this, and feels that constructive
results will be obtained thereby.
A. D. RING
The next two witnesses included A. D. Ring, assistant chief engi¬
neer of the Commission and Dr. L. P. Wheeler, chief of the tech¬
nical information section. • They presented statements concerning
the procedure and the factual data on the allocation survey of the
Commission made public some time ago.
Mr. Ring also summarized the post card allocation survey by
the Commission and its results and he gave some evidence as to
the weight to be given to this particular survey.
In discussing this survey Mr. Ring pointed out that the results
as published were not sufficient to be of value in competitive com¬
mercial broadcasting.
L. P. WHEELER
Dr. Wheeler spoke of the establishment of his section and the
assignment which he was given of analyzing the technical data ac¬
cumulated in the allocation survey.
“There are,” said Dr. Wheeler “now upwards of eighty paths
throughout the continental United States for which reliable ground
conductivities are available. It is believed “that the method of
computation used is a most satisfactory and accurate way of
determining ground conductivity. It is theoretically sound, pro¬
vided care is taken to include no field intensity measurements at
distances where diffraction effects complicate the problem, and the
results are in gratifying agreement with the work of other in¬
vestigators.” In concluding his remarks Dr. Wheeler said that
“it is my personal belief that the material already accumulated,
including that of this survey, affords the basis for a very con¬
siderable extension of the theory of sky-wave propagation in the
desired direction, any such theoretical discussion lies beyond the
scope of this statement, which is merely to place before you the
facts developed by the allocation survey from which we are all
free to draw our own conclusions.”
S. HOWARD EVANS
S. Howard Evans, speaking on behalf of the National Com¬
mittee on Education by Radio, took up both the economic and
social uses of radio.
“In broadcasting,” said Mr. Evans “two rather distinct and mu¬
tually exclusive formulas have developed. One is strictly educa¬
tion. It largely makes its appeal to specialized minority groups.
Its purpose is to supply special kinds of information, to elevate
the cultural and intellectual level of the nation, and to stimulate
individuals in their powers of discrimination and critical analysis.
It gets its support from some public or at least non-commercial
source.”
“The other formula is commercial,” he said. “It is financed by
advertising. It makes its appeal to a mass audience. It tries to
attract people through entertainment and to hold their attention
for advertising announcements which, if successful, repay the spon¬
sors and make them willing to continue financing commercial pro¬
grams. It has to supply variety and interest as the only means
of holding an audience for its purpose.”
Mr. Evans told the committee that “the situation in which edu¬
cation finds itself under the commercial broadcasting formula has
been outlined for the single purpose of showing the inherent
capacity of that formula to make a proper place for education
or to fullfill the responsibility of public service broadcasting which
commercial broadcasters have undertaken in accordance with the
terms of their federal licenses.” In concluding his statement Mr.
Evans said “the only conclusion which can be drawn from this
failure of the present broadcasting structure to supply a service
which is socially sound and economically fair is that the Federal
Communications Commission has a responsibility to see that this
condition is corrected. I believe that the place to make such a
correction is in connection with the reallocation of facilities. If
there is to be a classification of services in the 1936 allocation as
there was in the 1928 allocation the considerations I have out¬
lined should be taken into account in making up that classifica¬
tion.”
A. G. CRAIN
Dr. A. G. Crain of the University of Wyoming, chairman of the
National Committee on Education by Radio and also chairman
of the sub-committee on Conflicts and Cooperation of the Fed¬
eral Radio Education Committee, also made a statement on be¬
half of the National Committee.
Dr. Crain explained that he is not a technician and claimed no
competence as a radio engineer. He called attention to the fact
that radio is a great influence for education in the United States.
The plan for broadcasting educational matters, however, is not
now satisfactory to the educators of the country. A further plan
must be evolved he said for enlightenment of the people by radio
and he urged the Commission to look beyond the technical ques¬
tion to the social consequences of its decisions.
Dr. Crain complained that education is being subordinated to
advertising and he said that this creates inescapable trouble.
The Commission, Dr. Crain said, must be the umpire in connec¬
tion with educational facilities. He called attention to the fact
that many educational stations have been forced off the air and
it is difficult for many of them to remain operating. The few
remaining educational stations he told the Commission should be
protected.
The stations he testified should not be forced to defend them¬
selves against commercial inroads. He referred to the educational
stations as demonstrational laboratories and called the Commis¬
sion’s attention to the fact that they have a regional service to
perform.
Dr. Crain told the Commission also that the educational sta¬
tions have made good and they have thousands of satisfied list¬
eners.
Radio, said Dr. Crain, is a potent influence in education in the
schools as a supplemental teacher. He stated that in his opinion
these stations should have a fair and equitable use of radio. The
school programs and advertisers cannot be synchronized and there
should be no free sponsored educational programs by radio.
Dr. Crain stated that reservation should be made in the high
frequency band of certain frequencies for educational stations and
this has been endorsed by the Commissioner of Education, he
stated. The educators of the country should have a chance to
prove they can operate broadcasting Dr. Crain said. In closing
he urged the protection and expansion of educational stations
and said that the educators have more hope in the high frequency
band than they have in the present broadcast band.
EDWARD BENNETT
Dr. Edward Bennett, engineer of the University of Wisconsin
and instructor in the electrical engineering division of that Uni¬
versity, testified on behalf of the national association of educa¬
tional broadcasters.
He stated that one of the fundamental problems of the Com¬
mission is to establish non-monopolistic rights in radio. He said
that ninety per cent of the radio facilities of the country are in
the hands of commercial broadcasters with only three per cent in
the hands of educational stations. He told the Commission that
radio must be safeguarded against centralized radio ownership.
Dr. Bennett spoke of the factions in control of time and told
the Commission that it should uphold non-centralized and non-
monopolized rights in radio. He testified that in his opinion the
Commission should draw plans to facilitate the handing over of
certain radio facilities to public bodies such as state and federal
authorities. This he said will certainly be in the public interest.
His purpose, Dr. Bennett said, was not to destroy commercial
broadcasters nor to supplant them but merely to give additional
facilities for educational purposes. There should be competition,
he stated, between those haviqg radio stations in public use and
commercial stations. He had no specfiic recommendations to
make relative to a general engineering plan for public agencies
and he stated that he too hoped that new high frequencies may
help in the educational situation.
h. b. McCarthy
H. B. McCarthy, president of the National Association of Edu¬
cational Broadcasters, told the Commission of the shrinkage of
educational stations in the United States and called their atten¬
tion to the fact that that group has now dwindled from 100 sta¬
tions to some 25 or 30.
He told the Commission that it should plan now for the future
of educators. Many of the educational stations of the old days,
he said, were not educational stations in the true sense. Many of
these early stations, he said, really blazed the trail in radio devel¬
opments. Many of them have been crowded off the air by com¬
mercial stations.
Mr. McCarthy told the Commission of the operation of the two
1601
broadcast stations in Wisconsin with which he is familiar; one
being that of the State University and the other of the State
Agricultural Department. In this connection he spoke of the
broadcast made directly from the class rooms of the University
and told in some detail of the experiments of both of these sta¬
tions which, however, he said, are limited to daylight hours.
Many people, Mr. McCarthy said, want some education at night
as well as listening to entertainment. Education by Radio, he
contended, should be done by state and federal authorities and
not by commercial interests. He complained of the restricted
hours, the low power and the poor frequencies now in the hands
of the educational stations.
Mr. McCarthy pointed out in his testimony the success rather
than the failures of the educational stations. He told the Com¬
mission that in his opinion it should plan wisely for the educa¬
tional stations of the future as it has planned for experimental
stations in the past.
Mr. McCarthy also read into the record a statement on behalf
of the Ohio State University which has operated a station for
over 14 years.
“The Commission,” says the Ohio University statement, “we
are sure recognizes the importance of making suitable provision
for educational radio services, as evidenced by the education hear¬
ing in May, 1935, and the subsequent appointment of the Fed¬
eral Radio Education Committee. We in Ohio regard radio
broadcasting channels as a valuable natural resource that can
effectively be used in the state educational system and trust that
the favorable attitude of the Commission in continuing channel
assignments for state services will be continued.”
The University’s statement said further that “it is practically
possible to provide a state radio educational service in the ma¬
jority of the states through the proper application of allocation
principles which it is our intention to point out. While it is true
that in some few states geographical and physical conditions make
such a service impossible at a cost which can be justified, such
cases are few and represent a small proportion of the population
of the United States. We believe that it should be possible for
those states favorably situated, and which are in the majority,
to have such a service through the proper assignment of radio
broadcast channels, economically suited to their use.
EDWIN W. CRAIG
Edwin W. Craig of Nashville, Tennessee, licensee of broadcast¬
ing station WSM, made a statement on behalf of the clear chan¬
nel group to the Commission as follows:
My name is Edwin W. Craig, residing in Nashville, Tenn. I
am vice-president of the National Life and Accident Insurance
Company, licensee of broadcasting station WSM of Nashville,
Tenn. I appear at this hearing in the capacity of chairman of
what has come to be known as the Clear Channel Group.
The Clear Channel Group is an informal organization composed
of the licensees of thirteen independently-owned clear channel
broadcast stations. They are, in the order of their frequencies,
as follows:
Licensee
Location
Call
letters
Frequency Power
Earle C. Anthony,
Inc.
Los Angeles, Cal.
KFI
640 kc.
50 kw.
Nat’l Life & Accident
Ins. Co.
Nashville, Tenn.
WSM
650 kc.
50 kw.
Crosley Radio Corp.
Cincinnati, Ohio
WLW
700 kc.
50 kw.
WGN, Inc.
Chicago, Illinois
WGN
720 kc.
50 kw.
Atlanta Journal Co.
Atlanta, Georgia
WSB
740 kc.
50 kw.
Carter Publications,
Inc.
Ft. Worth, Texas
WBAP
800 kc.
50 kw.
A. H. Belo Corp.
Dallas, Texas
WFAA
800 kc.
50 kw.
The Courier-Journal
Co. & The Louis¬
ville Times Co.
Louisville, Ky.
WHAS
820 kc.
50 kw.
WWL Development
Co.
New Orleans, La.
WWL
850 kc.
10 kw.
Agricultural Broad¬
casting Co.
(Application for
Chicago, Illinois WLS
50 kw. pending)
870 kc. 50 kw.
Central Broadcasting
Co.
Des Moines, Iowa
WHO
1000 kc.
50 kw.
Stromberg-Carlson
Tel. Mfg. Co.
Rochester, N. Y.
WHAM11S0 kc.
50 kw.
Southland Industries,
Inc.
San Antonio, Tex.
WOAI
1190 kc.
50 kw.
In only one instance is a city represented by more than one sta¬
tion in our Group; this is Chicago where two members are lo¬
cated. In only two instances is a state represented by more
than one station, Illinois and Texas. Our member stations are
located at ten widely separated points scattered over the coun¬
try, each station in an important centre of population in the
midst of a large agricultural, rural and small-town area. Let me
name these cities from east to west: Rochester, N. Y.; Atlanta,
Georgia; Cincinnati, Ohio; Louisville, Kentucky; Nashville, Ten¬
nessee; Chicago, Illinois; New Orleans, Louisiana; Des Moines,
Iowa; Dallas, Fort Worth and San Antonio, Texas; and Los
Angeles, California.
Our membership comprises most of the clear channel stations
which are independently owned and whose channels have not
already been subjected to duplication. In terms of frequencies we
represent twelve out of the forty designated as clear channels under
the Commission’s regulations, although one of the twelve is shared
between one of our members and a national network company,
and therefore technically we represent eleven and a half. Of the
remaining clear channels, twenty and one-half are occupied by
stations owned, leased, operated or managed by one or the other
of the two major networks or (in two instances) owned by a
network and leased to others. Six and three-quarters of these
network channels are already subject to duplication. The re¬
maining eight channels are occupied by independently-owned
stations but only four and three-quarters of these are free from
duplication at present. To summarize, there are only thirty chan¬
nels which are now actually clear; of these, thirteen and three-
quarters are occupied by network-owned or-controlled stations;
eleven and one-half by stations owned by members of our Group,
and four and three-quarters by stations owned by others.
My role in the presentation of the case in behalf of the Clear
Channel Group is not, strictly speaking, that of a witness testify¬
ing to technical or economic facts. I am neither engineer, lawyer
nor economist, but merely an executive official of a company
which owns and operates a clear channel station. Our mem¬
bers have felt, however, that it would be helpful to a correct
understanding of the contentions that will be urged in their be¬
half, and that will be supported by the testimony of later wit¬
nesses, if one of us should first provide you with a background
from a layman’s point of view which would tell you of the origin
and purposes of the Group, a history of its allocation problems,
and, in broad outline, its position on the principal issues to be
determined at this hearing. It is unnecessary to tell you that I
have had the assistance of our lawyers and engineers, and of sev¬
eral of the members of our Group, in gathering the information
that has gone into this statement and in actually preparing it.
Origin of the Clear Channel Group
The Group originated somewhat over two years ago, in a meet¬
ing which it was my privilege to call, early in May 1934, at Chi¬
cago, and which was attended by a majority of the present mem¬
bers. Our common interest arose out of the fact that we were all
representatives of clear channel stations and that we, together
with others, were greatly disturbed by the danger of duplica¬
tion and loss of rural service areas which seemed to threaten the
channels to which our stations were assigned.
I think it important that you understand the reasons for our
apprehension; they are as valid today as they were in 1934. To
explain them requires an excursion into the history of broadcast
station allocation, particularly as it affects clear channels. To
find myself talking about “history” in connection with the broad¬
casting industry gives me somewhat of a shock as I realize that
it is less than sixteen years since radio waves were first harnessed
for the broadcasting of a program and that, as an industry, broad¬
casting has hardly lived more than a decade. Nevertheless, short
as has been this history in terms of years, it has been crowded
with events that can be matched by most other industries only in
terms of centuries. I am reminded of that oft-quoted remark
of a well-known broadcaster, made several years ago, that “broad¬
casting is the only industry that wakes up to a new crisis every
morning.”
What I am about to relate is an old story to Commissioner
Sykes who, alone of the present members of the Federal Communi¬
cations Commission, was a member of the original Federal Radio
Commission appointed under the Radio Act of 1927, and who is
a veteran of all the major allocation battles since the first meet¬
ing of that Commission on March 15, 1927. Commissioner Brown
lived through some of these events; also so clid Lieutenant-Com¬
mander Craven, the Commission’s chief engineer, Mr. Ring, the
Commission’s assistant chief engineer, and undoubtedly other
1602
members of the Commission’s staff who are here today. I must
ask the indulgence of all these as I review historical matters.
After all, the allocation in effect today, which you will preserve
or change depending on the evidence and the arguments presented
to you in this hearing, is, in essence, the allocation of November
11, 1928. There are, it is true, improvements here and there and,
I am afraid, also some scar tissue and evidences of corrosion, but
on the whole the principles have remained the same. The allo¬
cation of November 11, 1928, was, in turn, the culmination of
earlier events to which I now invite your attention, because of
the lessons they teach and the evidence they furnish on the issues
raised in this hearing.
Clear Channel Allocation Under the Department of Com¬
merce, Prior to February 23, 1927
For present purposes it is unnecessary to go as far back as the
prehistoric era when people talked about wave-lengths and meters
instead of frequencies and kilocycles, and when 550 broadcast
stations in the United States were nominally all assigned to two
wave-lengths, 360 meters and 400 meters (833 kc., and 750 kc.),
the former for low power stations and the latter for “high power”
stations, having an output from 500 to 1000 watts. In the list
of these early stations you will find all but two of the thirteen
of our Group, and at least nine of them had the same call letters
and were under the same ownership as at present. Most of their
stations began their career with small haywire outfits of 50 watts
or less.
This primitive age came to an end on May 15, 1923, when, as a
result of recommendations by the Second National Radio Con¬
ference, regulations were put into effect which to a remarkable
extent have been the foundation of broadcast allocation ever
since. These regulations made available the band 550-1350 kc.
for broadcasting, a total of 81 channels, and inaugurated the prin¬
ciple of 10 kc. separation between channels; and divided this
band into three parts for use by different classes of broadcast sta¬
tions, one of which was the class we now know as clear channel
stations.
The Second National Radio Conference had presented a plan
under which a band of fifty 10 kc. channels at the lower end of
the band was set aside, and proposed that those channels
“be distributed, over five zones throughout the country, such
that no stations in adjacent zones are closer together in fre¬
quency than 20 kilocycles, and that within each zone there
be 10 stations separated by 50 kilocycles.”
and “that only one wave frequency be assigned to” such a station
“which should transmit exclusively on the wave frequency
designated and reserved exclusively for that station.”
The plan referred to these channels as “territorial wave frequen¬
cies” and expressly recognized that a different quality and purpose
of program was expected of stations assigned to these channels
than of lower powered stations assigned to duplicated channels.
The Department of Commerce adopted the principal features
of this plan, calling the three different classes, Class A, Class B
and Class C. Class B broadcast stations were, in general, the
“high power” stations (500 to 1000 watts) most of which had
previously been operated on the nominal frequency of 750 kc.
They were assigned to the bands 550-800 kc. and 870-1000 kc.
They were required to maintain high standards with regard to
character of program and quality of transmission.
Thus the new regime began with forty Class B channels. It was
not long, however, before it became obvious that forty was not
enough, and by the time the Third National Radio Conference
was convened in October, 1924, there were 44, which had been
obtained by extending the upper limit of the Class B band from
1000 kc. to 1040 kc. In his opening address, Mr. Herbert Hoover,
Secretary of Commerce, said:
“Our chief trouble is with the Class B situation. They
are all assigned within the band 288 to 545 meters (1040 to
550 kc.), within which there are, under the present system
of allocation and excluding the Class C band, only 44 avail¬
able wave bands and only 33 that seem desirable at present.
To assign these among the 57 stations necessarily means
duplication, although it was the theory of the last conference
that individual wave-lengths could be assigned to each.”
The pressure for duplication on clear channels is, therefore, not
a new phenomenon. As a result of that Conference the upper
limit of the broadcast band was extended from 1350 to 1500 kc.,
and the band from 550 to 1070 kc. became the Class B band. This
created a total of 53 Class B channels.
In the meantime, however, just complaint has been voiced by
our neighbor to the north that in 1923 the United States had
allotted to its own licensees practically every channel in the
broadcast band and in so doing had duplicated the channels
already in use by the Canadian stations, causing severe inter¬
ference to the latter. To remedy this state of affairs, at the time
of this Third Conference our Department of Commerce agreed to
regard six of the Class B channels as belonging exclusively to
Canada, and that Canada might also use the channels occupied
by the southern United States stations which were sufficiently
removed from Canada to lessen the possibility of interference.
Here, we have the origin of the so-called Canadian-exclusive and
Canadian-shared channels.
The six Canadian exclusive channels, instead of being treated
on the bloc principle and grouped either into one series of six
adjacent channels or into two series of three adjacent channels,
were scattered throughout the Class B band. As a result of this
historical accident, they now present potential problems for twelve
adjacent channels in the United States when only two need to
have been involved; nine of those adjacent channels are designated
as clear channel under the Commission’s regulations and three as
regional.
What are now called Canadian regional channels grew, in large
measure, out of the even greater historical accident as to the
chance location of certain of our Class B stations in the southern
part of the United States. Of the eleven such channels, six still
have formal recognition in the Commission’s regulations; these
six are likewise scattered without reference to the bloc principle,
and create potential problems for six adjacent channels designated
as clear in this country.
To return to the Third National Radio Conference, its fruits
were a net of 47 Class B channels, some of them not clear because
of joint occupancy with Canada. In fact, there was already
some duplication on Class B channels within the United States.
Because of the ever-increasing pressure on the part of new appli¬
cants, because of the limitations imposed on the authority of the
Secretary of Commerce by decisions of the Court of Appeals of
the District of Columbia construing the Radio Act of 1912, and
because of the congestion of broadcast stations in some sections
of the country, the Department of Commerce was unable to carry
out completely the plan proposed at the Second Conference.
Channel separations set up for stations in the same and con¬
tiguous zones had to be reduced in some cases and a few channels
were, with reluctance, assigned in duplicate to widely separate
zones.
It is interesting and instructive to note the sequel of such
duplication. Remember that until the Third Conference in October,
1924, the maximum power of Class B stations was 1000 watts,
that most of them had only 500 watts, and that, judged by present-
day standards, very few if any of them really had a power output
corresponding to their authorizations. Yet even with coast-to-
coast duplication at this power trouble occurred. For example,
one of our Group, KFI, Los Angeles, operated (as it still does)
on 640 kc.; WRC at Washington was assigned to the same fre¬
quency. The resulting interference in intervening areas, and the
public complaint, necessitated a shift between the two stations so
that WRC remained on 640 kc. and KFI was assigned a frequency
intermediate between 640 kc. and 650 kc. Such were the early
lessons in the need for clear channels.
Power Regulation Under the Department of Commerce
Prior to February 23, 1927
Now let us retrace our steps to follow the history of power
regulation of Class B stations. Here also the past is eloquent
with lessons for the present. The First National Radio Confer¬
ence, held in May, 1922, when most stations were using 50 watts
or less, adopted recommendations that
“broadcasting stations should not be allowed to use unlimited
power.”
and that
“The Secretary of Commerce assign to each radio telephone
broadcasting station a permissible power based on the normal
range of the station.”
Let me digress to note that this First Conference took the optimis¬
tic view that the average value for the normal range of “public
broadcasting stations” was 250 miles. I am told that in some
quarters the leap in power from 50 to 500 watts was viewed with
fully as much alarm as any increase proposed since then.
1603
As I have already told you, the Second Conference of March,
1923, classified stations of 500 and 1000 watts as high power
stations and, in its regulations effective May 15, 1923, prescribed
the maximum power of 1000 watts for such stations. It remained
for the Third Conference, in October, 1924, to provide the dramatic
climax of debate on the issue of high power, a debate which
reached heights that have not been touched before or since and
which I believe (and hope) will not be equalled at this hearing.
Before the Conference opened it became generally known
throughout the country that the owners of certain stations were
seeking and preparing to increase their power to the high peak of
5000 watts. These included, I believe, a gentleman named Earle C.
Anthony of Los Angeles, California .another named Powel Crosley
of Cincinnati, Ohio, and what is now the Central Broadcasting
Company, now of Des Moines and then of Davenport, Iowa. Per¬
haps there were others from our Group; I am not sure. There
were also stations owned by General Electric, Westinghouse, and
American Telephone & Telegraph Company with somewhat the
same plans. There was talk that some of the latter desired to go
beyond 5000 watts and as high as 50,000 watts. It was even said
that some of them had gone so far as actually to order or to build
5-kilowatt transmitters in anticipation of a change in the De¬
partment of Commerce regulations.
During the ten days prior to the Conference, the Secretary of
Commerce, to quote his own words, had
“received thousands of letters from men, women, and children
all over the country protesting against what they honestly
believe would result in depriving them of the chance to listen
to the local stations or to use their will in selecting the ones
they want to hear. They fear a monopoly of the air.”
Mr. Hoover’s approach to the question in his opening address was
not exactly violently on one side of the issue or the other. He
recommended the subject for the conferees’ most careful considera¬
tion and hoped that they might be able to reach a satisfactory
conclusion. The Conference referred the matter to a sub-com¬
mittee which had some points of resemblance to the group in this
room, although much smaller in size. Among those who spoke
in favor of increasing the maximum power limitation were Earle
C. Anthony and Powel Crosley. To show how history repeats
itself, among those opposing the increase was our good friend
John Shepard, 3rd, of Boston.
I should like to read into the record all that Mr. Shepard said
in October, 1924, twelve years ago, for I suspect that his reasons
for opposing higher power now will not differ materially from his
reasons then. The same is true of those who argued in favor of
increasing the power maximum; their reasons will not differ
greatly from those that we shall urge. Time will not permit me
to read at length from this earlier testimony but I cannot resist
the temptation to read some of what Mr. Shepard said, as follows:
“Station WGY, Schenectady, N. Y., has been testing late
at night on a power of five thousand watts or more, and when
they conduct these tests they come into Boston, which is over
150 air miles from Schenectady, with the following result on
the average selective set: They are heard with good volume
fifty kilocycles on either side of their wave length; and when
I say the average selective set, I am not talking about a broad
single circuit receiver, nor am I talking about a super hetero¬
dyne or other loop set.
* * *
“If the power is increased without any limitation of hours
or season, it will result in less enjoyment to millions of people,
and for that reason it should not be done at this time.
“With the wire connections that can be made, I can not see
that the public need be deprived of any programs of a national
character because of an increase in power not being allowed.
It has been stated that those opposed to the increase were
standing in the way of progress. I don’t feel that I am,
because I feel that the experiments should be continued and
proof submitted to the people by actual demonstration as to
just what a super power station can do, and proof that it will
not blanket other stations. (Applause.)”
I also must yield to the temptation to give you one short excerpt
from a statement made by Mr. Crosley, because of its prophetic
character. He said:
“To crystallize my thoughts in a few words, in conclusion,
the higher power station should come. The limit I do not
know, but the limit should be controlled by the distance from
any thickly populated district; and if there is such a station
as two hundred kilowatts some time in the future, — perhaps
it will come, — it should perhaps be located in the wilds of
Maine, or perhaps down on the great American desert,
(Laughter) or some other point where it will cause the mini¬
mum of interference. But it’s bound to come, just as they
are building such stations abroad ...”
The Department of Commerce proceeded immediately to an¬
nounce regulations pursuant to the recommendations of the Con¬
ference. It declared that it would issue licenses for power up to
5000 watts on a gradual and purely experimental basis.
It was not long, however, before the increased power amply
demonstrated its advantages. By the time the Fourth National
Radio Conference convened, in November, 1925, the apprehen¬
sion had disappeared and we find the Secretary of Commerce, Mr.
Hoover, saying the following in his opening address:
“A year ago we were fearful of the effect of greater power.
We were told by some that the use of anything more than
1,000 watts would mean excessive blanketing, the blotting out
of smaller competitors, the creation of large areas into which
no other signals could enter. Some of the most pessimistic
even warned us that our tubes would explode under the impact
of this tremendous force. But our experience so far leads to
the opinion that high power is not only harmless in these
respects but advantageous. Power increase has meant a gen¬
eral rise in broadcasting efficiency; it has meant clearer re¬
ception; it has helped greatly to overcome static and other
difficulties inherent in summer broadcasting, so as to give us
improved all-year service. Whatever the limit may be, I
believe that substantial power increase has come to stay, and
the public is the gainer from it.”
This time the Conference Committee having to do with the subject
reported the following on “high-power broadcasting Stations.”
“The fear which was felt a year ago that high power would
adversely affect the reception of a large number of listeners
has been shown to be without foundation. The increase of
power by transmitting stations has improved general condi¬
tions of reception. It is recommended that the present atti¬
tude of the Department of Commerce of authorizing experi¬
mental development of high-power broadcasting stations be
continued.”
In the meantime, experimentation with the use of fifty kilowatts
was, with the approval of the Department of Commerce, being
carried on. The trend of progress under the administration of
radio regulation of the Department of Commerce was definitely
in the direction of high power on clear channels, so far as thd
limitations imposed by an inadequate law permitted it to give effect
to these objectives.
The Chaos of 1926
We come now to the great disaster in the history of American
Broadcasting, the imprint of which still remains on some portions
of our allocation structure. I refer to what is commonly known
as the breakdown of the law which occurred in the period be¬
ginning July 9, 1926. Within a few months some two hundred
new Broadcast stations crowded into the already over-congested
ether, while existing stations “jumped” their wave-lengths and
increased their power. By the time the Radio Act of 1927 became
law, there was not a clear channel left and, consequently, there
was no radio reception in the rural sections of the country or,
indeed, anywhere except in the immediate vicinity of those cities
that had broadcast stations. If ever the necessity for clear chan¬
nels was demonstrated it was in this lawless period when, for the
rural listener, the broadcast band became a radio desert inhabited
only by shrieks, howls, whistles and a Babel of unintelligible cross¬
talk.
In a radio sense, civilization based on law and regulation had
broken down and the savage tribes had swarmed in. For almost
six years the Department of Commerce had, with fair success,
resisted the repeated assaults on the part of those who would break
down the allocation so as to provide for new stations. How great
this pressure was became all too apparent when the resistance
disappeared. This mediaeval era in the history of broadcasting
came to an end with the enactment of a new radio statute on
February 23, 1927, and the creation of the Federal Radio Com¬
mission, the chief and immediate mission of which was to bring
order out of chaos.
1604
Clear Channel and Power Regulation Under the Federal
Radio Commission
The period between the first meeting of the Federal Radio
Commission on March IS, 1927, and the allocation of November
11, 1928, may be called the revival of learning in the history of
broadcasting. The events of this period are so recent and are so
familiar to all of you that I would be imposing on your good
nature and your patience were I to discuss it at length. There
are, however, mile posts which must be mentioned briefly.
One of the first important actions of the Federal Radio Com¬
mission was to arrange a public hearing, very much of the same
character as that in which we are now engaged, to which all
interested parties were invited to appear and make known their
views. At this public hearing the Commission was strongly urged
to re-establish the system of two classes of stations, the former
to be of low power to serve local areas and the latter to be of
high power to serve large territories, including remote points and
rural areas. This was urged, for example, by the Committee on
Radio Broadcasting of the American Engineering Council. The
Committee recommended that the broadcast band be divided at
any chosen point into two bands for the two classes of stations,
suggesting that from 550 to 1250 kc. be assigned to national sta¬
tions and from 1250 to 1500 kc. to local stations. Excluding the
six Canadian exclusive channels, this would have provided 64
so-called national channels for the United States. Because of the
interference range of this class of stations, the Committee stated
that
“the repetition of assignment of these frequencies is not
feasible, except if the power used is not greater than 5 kilo¬
watts and the stations in question are not less than 2,000
miles apart.”
With respect to power, the Committee stated:
“It is not necessary nor desirable to impose power limits
on the national stations (except as above-noted for frequency
duplication for stations more than 2,000 miles apart). They
will more effectively serve all listeners the greater the power
they use.”
Later on, the report says:
“Any plan which provides for a greater number of stations
will evidently diminish rather than increase the actual radio
service to the several communities of the United States.”
In the main, as most of you will remember, the Commission did
not give effect to these recommendations in its first re-allocation,
which went into effect on June 15, 1927. Stations were not classi¬
fied with respect to power, frequency or area to be served. No
recognition was given to the necessity for clear channels, and no
channel was left clear. The results of this allocation appear in
the Commission’s Second Annual Report, as follows:
“Radio-reception conditions were far from satisfactory as
the result of the Commission’s re-allocation of June 15, 1927.
The re-allocation had succeeded to a marked extent in re¬
ducing interference arising from congestion in the larger
metropolitan centers, where the stations had been crowded
together without adequate frequency separation; it had not,
however, succeeded in remedying the heterodyne interference
(resulting from two or more stations operating simultaneously
on the same channel), which was ruining reception in rural
areas, and indeed in all parts of the country. The complaints
which deluged the commission immediately made it apparent
that changes would have to be effected.
* * *
“With the approach of winter conditions in the fall of
1927 the widespread development of heterodyne interference,
in rural areas particularly, made immediate action imperative.
On November 14, 1927, the commission, in an effort to
ameliorate the situation, issued its General Order No. 19.”
In the light of the Commission’s present rather definite regulations
on the subject, General Order No. 19 must necessarily appear as a
curiosity. It designated the band 600-1000 kc.
“as frequencies to be maintained free from heterodynes or
other interference.”
and then proceeded to order all stations operating on the fre¬
quencies designated “to clear these channels of heterodyning dur¬
ing the present license period.” Obviously, the Commission did
not know broadcasters as well as it now knows them. Simul¬
taneously, however, the Commission ordered a number of changes
in station assignments, and further changes were made during
the early months of 1928. Some improvement resulted but the
situation still was very bad; very few channels were actually
clear, and good rural reception was almost non-existent in a large
part of the country.
The next important event was the enactment of the late lamen¬
ted Davis Amendment by Congress on March 24, 1928. I should
like to skip this unpleasant chapter of allocation history entirely,
when Joshua commanded the sun to stand still and Congress
attempted to prescribe by law how radio waves should perform.
It must be mentioned, however, because it was the prelude to an¬
other very interesting and important series of conferences and a
public hearing of the same general character as this, in which the
Commission sought information as to the principles which should
govern it in applying the Davis Amendment and in effecting a
re-allocation so as to improve reception. Various plans were sub¬
mitted to the Commission. That which was ultimately adopted
was based in large measure on a plan presented by a group of ex¬
perts, consisting of well-known radio engineers, to whom the
Commission had submitted the problem. It “proposed to allo¬
cate 50 channels for rural as well as urban service, each channel
to be exclusive.”
On April 23, 1928, Dr. Dellinger, who was acting chief engineer
of the Commission, published a statement discussing certain pro¬
posals which had been made to the Commission by other groups
that were opposed to this plan. Among the opponents, inciden¬
tally, was the Congressman from Tennessee who insisted that there
should be only 25 clear channels. Dr. Dellinger said:
“Perhaps the chief point of the engineers’ recommendations
which has been overlooked is the outstanding importance of
providing not less than 50 exclusive channels, together with
the fact that very much more power can be used on exclu¬
sive channels than on shared channels. It is only on exclu¬
sive channels that listeners at a distance can receive service.
The rural population of the country will be heavily discrim¬
inated against unless a large number of exclusive channels
are provided. Furthermore, when channels are exclusive there
is no necessity of holding their power down to any particular
limit. While the engineers’ recommendations stated that the
limit for the exclusive channels might be 50 kilowatts at the
present time, the only power limit need be that fixed by the
production of interchannel interference. In other words, it is
contemplated that with improvements in the radio art the
power used on the exclusive channels may be increased with¬
out limit, thus increasing service to the rural population.”
These and other statements of Dr. Dellinger, published at that
time, are valuable because they afford unmistakable evidence of
the original purpose for which clear channels were established and
the need they were intended to fill. In these statements, inciden¬
tally, Dr. Dellinger made several references to the then-chaotic
condition of reception and the fact that the rural listener was re¬
ceiving no service at all. In other words, away from the urban
centres of population, the broadcast band was still a radio desert.
Passing over events not directly related to the history of clear
channels, we come now to that memorable event, the adoption
of General Order No. 40 on August 30, 1928, and the far-reaching
re-allocation effective November 11th of that year. As you all
know, the difference of opinion as to the desirable number of clear
channels was resolved by a compromise, and the total was fixed
at forty. In the light of the almost insuperable difficulties which
faced the Commission at the time, this number seems to have been
a sensible compromise. Instead of beginning at the low frequency
end of the broadcast band as had been regularly advocated by
the engineers since 1923, the forty clear channels were all con¬
tained in the band from 640 kc. to 1190 kc., again a compromise.
Instead of being all in one bloc, they were interspersed with the
six Canadian exclusive channels, a bloc of regional channels, and
isolated regionals which were also Canadian-shared, a third com¬
promise.
In a statement which accompanied and explained General Order
No. 40, the Commission said:
“On these 40 channels only one station will be permitted
to operate at any time during night hours, thus insuring clear
reception of the station’s program, up to the extreme limit of
its service range.”
In describing General Order No. 40 in its Second Annual Report,
the Commission said:
“Forty channels were set apart for stations of sufficient
power on cleared channels to give good service to rural and
remote listeners.”
1605
In a published analysis of the Order and of the proposed re¬
allocation on September 14, 1928, Dr. Dellinger said:
“It is only when a station has exclusive use of its channel
that program service free from interference can be furnished
at great distances.”
With this re-allocation, the Renaissance period was over and
our modern era began. Not all that had been lost during the
dark days of chaos was recovered but enough was, and the ad¬
vances of science and particularly the use of better apparatus and
better operating methods, together with higher power, have
helped to make up for the losses. The rural listener was restored
to his seat at the radio show at least in the evening and when the
static was not too great. In some parts of the country, his feat
was (and is) still pretty much in the back row, particularly in
the daytime but it is better than the worse-than-nothing which
came out of his radio set during the nightmare period of radio
history.
That conditions were still far from the millenium was, of course,
obvious. In its report to the United States Senate on January 1,
1932, the Federal Radio Commission stated that only 46 per cent
of the total area of the continental United States had consistent
radio reception at night and only 56.2 per cent in the daytime.
A large portion of the area and population receiving consistent
service was served only by clear channel stations, and the re¬
maining area and population receiving an intermittent service ob¬
tained that service only from clear channel stations. One attempt
was made, late in 1929, to persuade the Commission to increase the
number of clear channels from 40 to 50 in a bloc, beginning at
550 kc. and extending to 1140 kc. (including the six Canadian ex¬
clusive channels). The attempt took the form of a petition in
behalf of several clear channel stations which were dividing time
on clear channels. This petition was denied. It probably could
not have been granted without undue hardship on the many re¬
gional and local stations affected.
During the spring and summer of 1929, the Commission itself
endeavored to ascertain the nature and extent of the improve¬
ments brought about by the re-allocation. To this end, it sent
out thousands of questionnaires to amateurs and farmers. Some
4,200 replied. Of these, 72 per cent listed a clear channel station
as their first choice, and most of the remaining 28 per cent came
from listeners in the comparatively immediate vicinity of par¬
ticular regional stations. Seventy-one per cent of the replies listed
clear channel stations as the first four stations preferred. These
results were imposed on maps of the United States. These maps
showed that over the greater part of the country, in terms of area,
listeners relied upon clear channel stations for broadcasting serv¬
ice. The percentages I have given are strikingly close to those
which resulted six years later from the clear channel survey. Re¬
member that no 500 kilowatt station was in operation in 1929,
and that only a handful of stations were licensed to use 50 kilo¬
watts. Most of them were using 5 kilowatts.
Shortly afterwards the Commission solicited and received from
the Department of Commerce supervisors in the several districts,
reports on the same subject. These reports left no room for
doubt. For example, the Radio Supervisor at Detroit reported:
“The use of high power on clear channels is the only factor
at this time which makes possible any degree of good radio
reception to the rural broadcast listener. ... It would be
of far greater benefit to the radio industry and to the public
if the number of cleared channels were increased to provide
still more diversified reception. . . . When it is remembered
that most broadcast listeners, especially those in the country,
rely on their radio set entirely for weather reports, time sig¬
nals, news, education, information and entertainment, it will
be appreciated that they should have the best receiving con¬
ditions which it is possible from an engineering point of view
to furnish, and to impair their reception by abandoning the
use of cleared channels is very comparable to placing their
radio service on a 1920 basis when it was a plaything and
not a public necessity.”
If further evidence were desired, I could cite later reports and
decisions of the Commission, but surely it is unnecessary to prove
the obvious.
It remains only to bring the account of the Commission’s regu¬
lation of maximum and minimum power on clear channels up to
date. Until the re-allocation of November 11, 1928, no power
restrictions were composed by any regulation. In General Order
No. 42, promulgated in connection with the re-allocation, the
Commission imposed a limitation of 50 kilowatts, of which 25
kilowatts was experimental. On June 16, 1930, the Commission
amended this order so as to provide that not more than four out
of the eight clear channels assigned to each zone should be au¬
thorized to use 50 kilowatts, and it was because of this amendment
that the extended so-called high-power hearings took place in the
fall of 1930. At that time ten 50-kilowatt stations were in
operation and five were under construction on a total of 13 clear
channels. Later on, the Commission removed this restriction and
opened all clear channels to the use of 50 kilowatts. Nearly all
clear channel stations have availed themselves of this privilege,
with a vast improvement in service to the listening public in both
urban and rural areas, an increase in the rural areas provided
with service, and no substantial complaint based either on inter¬
ference or economic considerations. In 1932, the Commission
granted a construction permit to one of the members of our Group
(WLW) to construct a 500 kilowatt station. This station was
first placed in operation in the closing days of 1933, and begin¬
ning with the spring of 1934 it was licensed continuously there¬
after to use 50 kilowatts regularly and an additional 450 kilo¬
watts experimentally.
This brings my story of the modern civilized era in broadcast
allocation regulation up to the present date. What, now, are the
dangers that threaten this civilization? Are there any signs that
it is crumbling?
The Breakdown of Certain Clear Channels
With knowledge of the historical background which I have re¬
lated at some length, you will readily appreciate the concern with
which most licensees of clear channel stations regard any effort
to subject clear channels to duplication. The members of our
Group, who for the most part have been broadcasters since the
prehistoric days, have seen the tides of pressure for duplication
ebb and flow for thirteen years. They saw the flood break through
the dikes in 1926. They know the havoc which was wrought, not
merely from technical theory but from actual experience, as they
watched their rural audiences cut off from all broadcast service
and submerged with interference, and as complaints poured in
from all directions. They know that the havoc resulted from the
pressure for new stations, and for improved facilities for exist¬
ing stations. It was with growing apprehension, therefore, that
they watched holes appear here and there in the dikes during the
period from November 11, 1928, to the time when they met in
Chicago in May, 1934.
These holes in the dikes consisted in duplication which, in one
form or another, the Commission had authorized on ten clear
channels. The first of these was not of the Commission’s doing;
it resulted from a court decision rendered shortly after the re¬
allocation went into effect. The next duplication to occur was
in 1931, almost three years later. Two more duplications oc¬
curred in 1933 and five more in the early part of 1934. In addi¬
tion, under an agreement dated May 5, 1932, between the United
States and Canada, two clear channels were made available for
use in Canada by proposed 50-kilowatt stations; one of these
channels, however, is included among the five subjected to dupli¬
cation in the United States in 1934. These two channels are now
described as “Canadian-shared” in the Commission’s allocation
lists and as “clear” in its regulations. The net result was that
by July 1, 1934, there were actually 30 and not 40 clear channels
in the United States.
In and of itself, these duplications, while a cause for regret
among the members of our Group because of their effect on rural
broadcasting service, would not necessarily have occasioned ap¬
prehension over the fate of the clear channels on which our mem¬
bers’ stations were operating. Except for the two duplications
brought about by the Canadian Agreement, they were all based
on the consent of the dominant clear channel stations.
Let me digress at this point to say that our Group hopes and
urges that this Commission shall never again give recognition to
the principle that the licensee of a clear channel station has the
right to bargain away the rights of the listening public by a
so-called consent, whether given for a consideration or gratui¬
tously, and whether given for an evening or for a whole license
period. It seems to us that nothing could be more inconsistent
with the fundamental meaning of public interest as applied to
clear channels than this. As I say this, I realize, of course, that
there were peculiar circumstances of hardship which led to several
of the ten duplications referred to, particularly in cases where
two dominant clear channel stations divided time in widely sep¬
arated cities, and where formidable economic factors were present.
Such duplications seem excusable.
The example set by these “consents” has, however, proved con-
1606
tagious. Every one of our members whose station is on a channel
inhabited by one or more daytime or limited time stations is
subjected to constant direct and indirect pressure from the owners
of those stations for “consent” to the destruction of its rural
service, sometimes permanently and sometimes only for a single
evening or a small portion of an evening. Needless to say, those
requests for duplication often involve hours and programs when
it is most important that the channel be kept clear so that the
rural public may listen to events or talks of national interest. In
any event, unnecessary embarrassment and ill-feeling are all too
frequently engendered by a refusal of the requests.
More significant than any of these factors in our minds, perhaps,
was the increasing pressure for new stations, or for better facilities
for existing stations, at the expense of clear channels. This was
evidenced in a mounting number of applications filed with the
Commission in the first few months in 1934, totalling some very
large number of which I have no record. Still others were openly
threatened. One of the most persistent of these applicants was
our friend John Shepard who applied for full time on two clear
channels (640 kc. and 830 kc.) and, with the aid of Dr. Pickard
as his technical counsel, forced the licensees of the dominant
stations on those channels through two long and expensive hear¬
ings in the latter part of 1934 and the early part of 1935. Several
of us were the object of every conceivable sort of pressure to con¬
sent to the granting of such applications, sometimes proceeding
from Senators, Congressmen and other public officials who had
been somehow enlisted in the cause of the applicant for a new
station and who understood neither the purpose of clear channels
nor the technical facts which make them a necessity. That this
should be possible in the face of the Commission’s regulations
can be explained only by the widespread feeling at the time that,
in view of the duplications which had already taken place by
consent, the Commission might authorize duplication without con¬
sent, and in spite of its regulations to the contrary. The un¬
certainty persisted until the spring of 1936, when Shepard’s appli¬
cations were denied, only to be renewed a few weeks later when
he began to rally an incredibly large number of regional station
licensees to his cause of breaking down clear channels, of destroy¬
ing rural reception, and of thus increasing the number of regional
stations in the United States.
It is one thing to prepare for a hearing in which some question
is raised as to the coverage of your station in its immediate
vicinity ; it is quite another to prepare for a hearing in which you
must defend your secondary or clear channel coverage extending
perhaps over several hundred thousand square miles and produce
field intensity measurements over this wide area. Yet all of this
effort and expense had to be borne by the licensee of each clear
channel station that was subjected to such an attack, — and to
prove what? Merely what was common knowledge and obvious
but had not been proved by actual measurements taken in ap¬
proved legal and technical fashion — something that was known at
the time of the Second National Radio Conference in 1923 and
recognized at each succeeding Conference, something that was
given effect in the re-allocation of November 11, 1928, something
about which there could be no reasonable doubt, namely, that the
listening public in rural and remote areas is dependent on clear
channel stations for broadcasting service !
Such were the thoughts that were in our minds when we met
in Chicago in May, 1934.
The Clear Channel Petition and the Secondary Coverage
Survey
Prior to our meeting I had discussed the matter with our coun¬
sel, Mr. Louis G. Caldwell, and had asked him to prepare for us a
plan of defense for the remaining clear channels. The plan he
suggested was unanimously approved by those present. It was
incorporated in the petition which he prepared and filed with
the newly created Federal Communications Commission on
August 7, 1934.
The licensees of thirteen clear channel stations joined in that
petition. Eleven of the thirteen are still members of the Group,
one of the others having since then sold its station to a network
company and the other having dropped out for other reasons.
Two new members have been added. Before the petition was
filed, the few remaining independently owned clear channel stations
were invited to join. You will be interested to know the reasons
which some of them (or their attorneys) gave for not joining; it
was that the proposed survey might furnish an excuse to the
Commission for a drastic reallocation !
We did not invite the network companies to join. One reason
was that both of them had been parties to several of the duplica¬
tions by “consent” which had already been authorized. Another
reason was that to our minds it was, and is, important to pre¬
serve as much independent ownership of clear channel stations as
possible. I shall return to this point later. In fairness, let me
say, however, that both of the networks, and I think, two regional
broadcasters (one of which was Mr. Shepard) cooperated in the
survey, both financially and with the generous use of their tech¬
nical staffs.
The contents of our petition is familiar to all of you and need
not be stated. It recited the importance of and purpose served
by clear channels, the apprehensions felt by our members and
others as to their preservation, and the need for a technical study
and investigation of clear channels to determine, among other
things,
“the extent to which the people of the United States, and
particularly those located in rural areas, are dependent upon
clear channel stations for broadcast reception. * * *”
and
“the extent to which such service should be protected from
interference.”
The Group proposed that the Commission authorize and direct
the undertaking of such a survey
“under the supervision of a radio engineer of recognized
ability, integrity and independence and preferably a member
of the Commission’s technical staff, and with the cooperation
of all broadcasters and radio laboratories willing to give
such cooperation.”
In reply to those who, I understand, are complaining that the
survey does not cover a sufficient period of time, let me point out
that the petition stated that the survey
“should be carried on for a period of not less than a year so
as to permit a proper study of the varying conditions due to
the seasons as well as the care and completeness which should
attend such a report.”
The petition asked that upon the conclusion of the survey
“the Commission adopt and promulgate such new regulations,
or such clarifications and amendments of existing regulations,
regarding clear channels, as will accurately reflect and give
effect to the scientific facts and principles thereby developed,
and thereafter rigidly and uniformly apply and enforce such
regulations unless and until formally amended.”
The principal request in oui; petition, for a survey, was granted
by the Commission in October, 1934, although the survey author¬
ized was not for as long a period as requested. The story of this
survey and of its results has been related by the Commission’s
witnesses. Some $30,000 was expended on apparatus alone, and
the contributions in the form of continuous services by technical
experts over a period of several months cannot be even approxi¬
mately stated.
It may be that this survey is incomplete because it did not cover
all hours of the day, all the seasons of the year, and all the
eleven years of the sunspot cycle. It may be that it has other
defects and imperfections. We know, and even if we did not, we
have learned in the course of this study, that information is still
lacking or inadequate on many questions that may have a bearing
on broadcast allocation problems. Our technical witnesses will
undoubtedly refer to some of these questions. Whatever may be
the degree of perfection or imperfection ascribed to the survey,
the fact remains that it furnishes us with coordinated facts col¬
lected on a systematic basis under trustworthy auspices where we
had nothing before but scattered measurements and technical
theory. Furthermore, it checks so closely with what was already
known from other sources that it cannot be much in error.
The survey is a splendid demonstration of the ability of repre¬
sentatives of Government and of private industry to cooperate in
the quest for information on which to build regulation. The
Clear Channel Group takes a pardonable pride in having origi¬
nated the project and in having participated in its carrying out,
and it feels that both the industry and the public are deeply
indebted to the Commission for having authorized it, and to the
Commission’s technical staff for the capable and efficient manner
in which they conducted it.
Let me say in passing that to me as a layman it is little short
of remarkable how closely the various sources of information agree
with each other. The questionnaires sent out to farmers and
amateurs in the summer of 1929, when there was no 500 kilowatt
1607
station and there were only a few SO kilowatt stations, showed,
as I have already told you, that 72 per cent of the replies listed
clear channel stations as first choice and 71 per cent listed them as
the first four choices. The recent questionnaire survey showed a
76.3 per cent preference for clear channel stations, and the data
obtained by the inspectors showed a 75.1 per cent first choice of
such stations, together with an overall 73.3 per cent selection of
clear channel stations for the first three choices, win, place and
show. An examination of the questionnaires shows, I am told,
that where regional stations were chosen it was almost invariably
within their expected normal service areas, and in any event
within a comparatively short distance of the transmitters. When
such evidence is combined with what the engineers tell us as to
scientific facts and principles, which have enabled them to forecast
substantially what the surveys have proved, it seems to us that
little remains to be said.
In this connection let me say one thing more. I am authorized
by our Group to say that should it appear from this hearing that
there is need for further study and investigation, whether along
the lines of the survey of 1935 or along different lines, our mem¬
bers tender to the Commission their full and complete cooperation,
and offer to place their technical staffs and apparatus at the dis¬
posal of such person as the Commission may select to supervise
and direct the undertaking. We believe that other groups would
gladly make the same tender. It would be little short of a tragedy
if, simply for lack of information that can be secured, unsound
regulations leading to an impairment of rural service should be
adopted. For making such studies the United States enjoys an
advantage over all other countries in the world, because of its
large area under a single flag and its many stations equipped to
assist. Whatever may be the result of this hearing, let us con¬
tinue this cooperation between Government and industry.
Contentions or the Clear Channel Group at This Hearing
The Commission’s notice of this hearing sent out last July is a
formidable and somewhat disconcerting document. The issues
indicated by the long list of headings and subheadings reveal how
varied and complicated are the factors that enter into the Com¬
mission’s allocation problems. Obviously, most of these subjects
are of a technical character and detailed discussion of them must
be left to technical experts. I am told that really to furnish
answers to all the issues raised, we should have to employ a
university full of experts and set them to work for eleven years or
so, and that even then there would be more to do. I am confident
the Commission will forgive me, therefore, if I refrain from
stating my views on such matters as sunspots and the Heaviside
layer.
The fundamental issues, however, at least so far as they concern
clear channels, may, I think, be understood and discussed even
by a layman broadcaster. These issues, as I see them, are two
in number; first, to what extent shall the Commission preserve
and protect clear channels, and second, what shall be the minimum
and maximum power permitted on those channels. Mind you, I
do not say that there are not other important issues. In fact,
there are a number of them, as you will hear presently, from our
technical experts, although most of them are subordinate aspects
of the two major problems.
With the indulgence of the Commission, therefore, I propose to
depart from the order of subjects set forth in the Commission’s
notice and to proceed straightway to give you as clear a picture
as I can, in a preliminary way, of the position of our Group on
these fundamental issues.
In approaching these, and all other issues raised by the notice, I
hope that we shall be able to distinguish carefully between three
entirely different sets of questions. They have not always been
treated separately, and not a few of our allocation difficulties, past
and present, are traceable to the confusion. The first set of ques¬
tions is the one in which, I take it, you are primarily interested
at this hearing; they are primarily of a technical engineering
character, and are concerned with how best to divide up and
regulate the use of the broadcast band so as to provide a maximum
of tracks of good reception over the area and for the people of
the United States. The second set has to do with regulation of
what programs shall be transported to the people over those
tracks. The third set has to do with a determination of what
persons shall be licensed to use those tracks.
If I were limited to contributing but one thought to this dis¬
cussion it would be to urge that you treat the first set of questions
separately and on their merits, on the basis of sound technical
facts and principles, and that you do not allow the cause of good
radio reception to suffer because of considerations arising out of
the second and third sets. The latter can be treated and regulated
separately on their own merits. In the words of one of the original
members of the Federal Radio Commission:
“Having laid the tracks for good reception, one can then
decide what is going to be supplied on those tracks. But
the first thing is to get the tracks laid.”
I need not tell you why I am giving emphasis to this thought.
There are two bogey-men that have their perennial abode in the
second and third sets of questions, and that invariably sally forth
at the mention of either clear channels or high power. One of
these bogey-men is the so-called duplication of network programs.
The other is the closely related cry of monopoly dating back to
the early national radio conferences.
Neither I, nor, I venture to say, anyone in this room is in a
position to say that there is too much duplication of network
programs or that there is not too much. The necessary study
and investigation simply have not been made. The answer lies
not in loose assertions but in technical data, showing the actual
coverage of stations in terms of field strength and showing the
signal intensities necessary to give service in city, residential and
rural areas throughout the country. I do not envy the task of
anyone who attempts to find out how much duplication is going
on, what with the multitude of variations in programs that obtain
as between affiliate stations and even over a given affiliate station
from time to time. Chain connections come and go, particularly
if a station is kept under independent ownership; some of our
members have had affiliations first with one network and then
another, and, subject to contracts for specified periods of time,
they are all free to change these affiliations in the future.
No expert is needed to see that some duplication is unavoidable,
once you grant that the rural population of this country is en¬
titled to reception and at the same time that the dwellers in cities
and towns are entitled to a sufficient signal intensity to overcome
local electrical noise levels. To say that all net work programs
should be broadcast by regional stations is simply to say that
our farmers and the inhabitants of our sparsely settled areas have
no right to listen to the programs of music, entertainment, edu¬
cation, religious services and news that, on the whole, are avail¬
able in far better quality and much greater quantity in a few
large populous and cultural centres than in the smaller centres.
I know of no more effective way in which to destroy one of
the greatest advantages which radio has brought to our civiliza¬
tion.
To say that not more than three clear channel stations, or five,
or some other small number, whatever their power, may broadcast
the same program differs only in degree from the contention that
I have just answered. It means that extensive areas and much
of our population must be satisfied with a very low signal strength
which will frequently or regularly not be sufficient to overcome
static and electrical noise.
We have progressed far since the days of the Third National
Radio Conference in 1924 when we find Mr. Hoover and the
Conference bending effort to encourage and bring about what
is now so lightly condemned. He declared that a station
“must be able to bring to its listeners the greatest music and
entertainment of the Nation, but far beyond this it must be
able to deliver important pronouncements of public men;
it must bring instantly to our people a hundred and one mat¬
ters of national interest. To this it must add its matters of
local interest. This can only be accomplished by regularly
organized interconnection on a national basis with nationally
organized and directed programs for some part of the day
in supplement to local material.”
The Conference adopted a report expressing belief that network
broadcasting “deserves every encouragement and stimulation.”
By 1925, Mr. Hoover was able to report to the Fourth Conference
that network broadcasting now “is commonplace,” and said:
“The number of people who throbbed with joys and sorrows
at the dramatic presentation of minute-to-minute events of
the world’s series is one of the most astonishing landmarks
in radio broadcasting.”
Now, such programs have become so much of a commonplace that
we sometimes forget what they really mean to broadcasting and
to the listening public.
Please note that I do not say that program duplication is not
a matter deserving the careful attention of the Commission.
Somewhere, undoubtedly, there is a limit. Somewhere a deci¬
sion must be made between the comparative advantages of giv-
1608
mg a certain percentage of our area and population a choice of,
say, three programs delivered with satisfactory signal strength,
and of giving a smaller percentage of our area and population a
choice of four programs with the same signal strength; or per¬
haps the decision must be made between four and five, or five
and six. I do not pretend to know the answer. There are some
programs with regard to which I suspect you will not prohibit
duplication but welcome it, such as an address by the President
during a national crisis.
Most of us who are in the business of broadcasting feel sure
that, so far as commercial programs are concerned, the man who
will effectively prevent excessive duplication is the advertiser.
In fact, we think we have detected signs of his unwillingness to
pay for double coverage for a long time. If we are wrong in
this belief, the Commission has ample power to settle the matter
under the Communications Act of 1934 which specifically au¬
thorizes it
“to make special regulations applicable to radio stations en¬
gaged in chain broadcasting.”
This power holds good whether there are fifty clear channels or
five, and the fact that it has not been exercised should not, in
our opinion, affect the Commission’s decision as to whether the
number of clear channels should be fifty or five.
From what quarters does this charge of excessive duplication
of programs emanate? It seems to us that this question should
be answered before the complaint is taken too seriously. If the
complaint comes in substantial volume from the listening public,
uninspired by any broadcaster or interested party, it must give
us concern. If it comes from persons who have a direct interest
in breaking down clear channels, it should be scrutinized care¬
fully before it is made the basis for any drastic action.
The third set of questions has to do with what persons should
be licensed to operate on clear channel stations. The cry of
“monopoly” is occasionally raised, usually based on an indis¬
criminate confusion of network-owned stations and independently-
owned stations that take a certain amount of network programs,
and some vaguely conceived relationship between that factor and
the alleged excessive duplication of programs. Frankly, I have
no idea whether too many broadcasting stations, on clear chan¬
nels or otherwise, have been allowed to fall into the hands of
either network company. I believe that there is a point beyond
which the acquisition of further stations would be unhealthy. I
know that the Commission has ample power under the statute to
prevent such a state of affairs by refusing to approve assignments,
transfers of control and the like. Surely we all agree it would be
unfortunate if the control of broadcasting should come under the
arbitrary power of any person or group of persons.
It is important, we believe, tremendously important, to give
due recognition to the principle of independent ownership in the
licensing of broadcast stations. By “independent” I mean not
merely absence of network ownership but the presence of owner¬
ship by people who are in and of the community or region in
which the station is located and which it primarily serves, as con¬
trasted with absentee ownership or control. Stations that are
independently owned in this sense can best render the service
needed or desired by their listeners; they can also best meet the
needs of the community or region for an outlet on the air. They
can best make the choice, which they should always be free to
make, between programs of national, regional and local interest,
and the proportion to observe between these classes of programs,
just as publishers choose the contents of newspapers from mate¬
rial furnished by a national press association, a city news bureau
and their own reporters. Underlying this principle of independent
ownership there is something very fundamental. In one aspect
it is the time-honored principle of competition; under another
aspect it is closely akin to freedom of speech and liberty of ex¬
pression. There is no more effective method of protecting this
country against any danger of monopoly, actual or threatened,
than by preserving and strengthening the position of the inde¬
pendently-owned clear channel station.
The first of the two fundamental issues I have mentioned is
raised by the very first item of your notice dealing with the de¬
sirability of establishing new classes of broadcast stations, or of
abolishing any existing class. The Clear Channel Group has no
new class of station to suggest or to add to the four existing
classes, clear channel, high power, regional and local. Needless
to say, it vigorously opposes abolishing the clear channel class,
as is proposed by at least one group appearing at this hearing.
The question as to what should be a proper definition for this
class, I shall return to later.
What has happened since the spring of 1923 or the fall of 1928
to make the exclusive use of a channel after sunset less necessary
to provide broadcast reception to rural and remote areas? Some¬
times I hear, in answer to my inquiry, that certain technical im¬
provements have changed the picture. Our technical experts will
show you, I think, that these improvements, valuable though they
may be for some purposes, have not made clear channels any the
less vitally necessary. The problem of rendering rural service
remains the same. Furthermore, whatever be the entering wedge
by which duplication comes, the result is the same for the future,
whatever may be the case for the transient present. A barrier
which may prove insuperable has been thrown up on the dupli¬
cated frequency against progress toward better rural service
through higher power. We cannot afford this gamble.
You have asked for views as to the number of channels in the
broadcast band to be assigned to each class of station. In an¬
swering we shall confine ourselves to the clear channel class. Our
answer to this question cannot, in the very nature of things, be
categorical. So much depends on what you want to accomplish.
Our country has an area over 3,000,000 square miles, a population
of 130,000,000 very unevenly distributed over this area, with a
large concentration in the northeast. To add to the complication,
the locations of our centres of population, our metropolitan areas,
cities and larger towns follow no pattern whatsoever. Their con¬
tours and boundaries defy analysis or classification. Some are
so large or so irregular in size that no regional station under pres¬
ent conditions, power limitations, and regulations on regional
channels can deliver a sufficient, interference-free signal, day and
night, to all their population, and many are of such size that no
local station under present conditions and regulations on local
channels can deliver such service.
It is interesting, of course, but not particularly profitable, to
speculate on what could be done if our cities and towns were
symmetrically dotted on the map, and all the ninety broadcast
channels were clear channels on the one hand, or regional and
local channels on the other. Out of curiosity, on the first theory,
I have checked to see which is the ninety-first city in population,
the largest that would not get a clear channel station. I find
that if you count all the separate municipalities, the empty honor
would fall to Tampa, Florida, with a population of 101,161 under
the 1930 census; if you count the metropolitan areas, then the
honor falls to Manchester, New Hampshire, with a population of
76,834. Then I have checked on the other theory to see how
many cities and towns there are that would probably want at
least one station, not to mention a choice of three, four or a
dozen programs. I find that there are 467 cities and towns with
population in excess of 20,000 and 1849 with population in ex¬
cess of 5000.
Manifestly, such speculations only lead up blind alleys. Neither
extreme fits in with any reasonable conception of public interest
or with the needs and desires of the listening public. Neither fits
in with the law which requires the Commission to make such a
distribution of broadcast facilities among the several States and
communities “as to provide a fair, efficient and equitable distribu¬
tion of radio service to each of the same.” This means fair, effi¬
cient and equitable to rural communities just as much as to urban
communities. We do not want to be unfair to either the city-
dweller or the farmer. Nor do we want to limit either of them
to one program if we can help it; we would like to give him a
choice of several. Some balance between many different consider¬
ations must be found. The matter is, of course, complicated by
a multitude of bewildering technical factors. One is strongly
tempted to say: Let us not make any rule or regulations at all;
let us leave the matter to the process of evolution, to the old
method of trial-and-error, fit in a station here and another there.
This temptation is, I think, a great danger to good broadcast
reception. The human animal is so constituted that he needs
rules, in other words, laws, to guide him. This is true both of
the citizen and the government official. It is always possible for
an individual to drive on the left hand side of the road without
danger to anyone, if no one else is on the road or likely to come
on the road. There is the space and it is not being used. So,
also, it is possible, with an ingenious array of directional antennas
and an elaborate showing of statistics on field strength and con¬
ductivity, and under peculiar circumstances, to show that there
are a tiny number of instances where clear channels can be dupli¬
cated in this country — if you assume that the future hold forth
no hope of progress and that, unlike every other agency of com¬
munication, the clear channel broadcast station is condemned to
remain at a standstill with respect to power and coverage. Once
you have yielded to this assumption, the result is somewhat like
1609
what happens when an unexpected pedestrian steps in front of the
automobile speeding on the wrong side of the road. The damage
is done and cannot usually be remedied. What happens without
rules, strictly and uniformly applied and enforced, is all too
clearly shown by the radio anarchy of 1926.
I am stressing this thought because there is at least one group
that will appear before you, the National Association of Regional
Broadcast Stations, that will urge you to abandon any semblance
of a rule protecting clear channels and keeping them clear. That
group’s proposal, on file with the Commission, is that you delete
the word “clear” wherever it appears in your regulations and
substitute the word “high-power”; that you delete every other
expression in your regulations that indicates that these channels
are to be used by only one station after sunset; and that you
close the door to any increase of power on these channels so that
this aim of duplication may be easier to accomplish. Thus, the
last line of defense of the rights of the rural listening public in the
Commission’s regulations would be torn down; a bait is dangled
before the eyes of every applicant who wants a new station or
better facilities for an existing station while every clear channel
station must defend its rural coverage and even its nearby cover¬
age, over and over again, against any and all comers without
help from the regulations. Oh, I know that it is easy to take a
map of the United States and to impose lines on it showing that
two five-kilowatt stations or even two fifty-kilowatt stations
can be placed on opposite coasts, with directional antennas wast¬
ing electrical energy out over the two oceans, and that it is easy
to take the census book and to show that the two areas covered
contain more people than one of these stations can cover with a
given signal. But to do this you have to say to yourself that the
copperminer in Arizona or the rancher in Idaho is not entitled
to service, or that he is getting too much and that some coastal
city which may already have a choice of six, eight or ten pro¬
grams is entitled to still another. This matter of clear channel
protection cannot be decided from case to case and from channel
to channel, depending on the evidence introduced in each case
by interested parties and on the ingenuity of lawyers and engi¬
neers employed by those parties. It should be decided by regula¬
tion, scrupulously adhered to until repealed or amended. We
urge, therefore, that whatever may be the number of clear chan¬
nels that you decide upon, you at least continue to provide in
your regulations that they shall be clear, and that you class the
channels on which you permit duplication for what they are,
high power regional.
How many frequencies should be allotted to the clear channel
classification? Our Group believes that the original number of
forty established in 1928 represented a sensible compromise be¬
tween the conflicting objectives and the complicated factors that
had to be considered. It regrets, for the sake of the future as well
as the present interests of rural and remote listeners, that ten of
them have been deteriorated into high-power regionals. It does
not, however, advocate that these duplicated channels be restored
to their virgin condition. We recognize that there may be prac¬
tical obstacles to such a step. Representatives of a number of
those stations will appear before you at this hearing and we have
no desire to prejudge or prejudice their cases. In any event, that
is a question for the Commission to decide and it would be pre¬
sumptuous for us to intervene in it.
We do earnestly urge that the present actual number, thirty, be
maintained inviolate and that they be kept clear not only within
the confines of the United States but also, so far as possible under
existing and future international treaties and agreements, they
be kept clear throughout the continent of North America and the
West Indies.
We would be burying our heads in the sand, however, if we
did not recognize the formidable character of the pressure which
is being exercised on this Commission to permit duplication and
the impressive character of the considerations that are being
urged in support of such duplication in a few particular cases.
This pressure, it seems to me, falls into three classes.
Some of it may come, as it has in the past, from the licensees
of clear channel stations themselves who are in peculiar and diffi¬
cult situations. Such, for example, is the case where two clear
channel stations are dividing time and are located at substantial
distances from each other. We can readily appreciate and sym¬
pathize with the economic hardship imposed on them. Some of
them, I understand, will appear before you at this hearing; what
they will propose I do not know. Again, we do not want to be
so presumptuous as to attempt to tell them or the Commission
what public interest and justice require in such cases.
The second kind of pressure for duplication seems to arise
because of instances, of which unfortunately there are a few,
where the clear channel licensee is not making the best use of his
channel for the purposes for which it was intended. The deficiency
may be with respect to power, or antenna efficiency, or some
other aspect of the technical side of station operation. Let us
consider the matter of power. With one exception, all of our
members’ stations are using SO kilowatts, the maximum permitted
under the Commission’s regulations, and one member’s station is
using an additional 4S0 kilowatts experimentally. The one ex¬
ception involves a station now operating with 10 kilowatts; it has
an application for SO kilowatts pending.
There are, however, several other stations using only five or ten
kilowatts on clear channels that are still clear. I have heard it
argued that the licensees of these stations have failed to make
proper use of their channels, that there is no serious obstacle to
duplication at their present power, and that they should, so to
speak, be punished for their neglect of duty, by introducing one
or more other stations on the channel. Who, I may ask, is being
punished? The rural public, of course, which is receiving at least
some service on such channels and may look forward to a future
when it will receive a much better service. The way to discipline
such licensees, it seems to me, is to require them to make proper
use of their channels, to install 50-kilowatt transmitters with
efficient antennas, and to take any other steps that will remedy
the defect and not to make the defect permanent. The rural
public wherever such stations are located has the right to look
forward to the same quality of broadcast reception as is made
possible in the rest of the country under the Commission’s regu¬
lations.
The third kind of pressure comes, needless to say, from appli¬
cants who want new stations or better facilities for their existing
stations. In this respect the problem is not very different from
what it was in 1923 and in every succeeding year. It is not only
interesting, but very important, to note in what localities this
pressure arises. If it comes from cities that have no service either
of their own or from contiguous cities, that is one thing. If it
comes from cities like Boston, New York, and Los Angeles that
already have several stations, it is quite another. Perhaps a
listener who already has a choice of anywhere from six to twelve
programs and who also has access to the original sources of enter¬
tainment and instruction, such as theatres, movies, the lecture
hall and the concert auditorium needs another program ; for myself,
I do not believe his need is great enough to compensate for any
impairment, no matter how slight, to the meagre measure of
reception that the rural listener now has and that is his only
contact with the talent of this nation.
In the notice of this hearing, the Commission has asked for
discussion of the social and economic effects upon the public and
the industry of any proposals that are made at this hearing. If
it is true, however, as I believe it is, that the breaking down of
clear channels simply means a lot of new regional stations in
communities that already have stations, the economic effects of
the proposals on existing regionals in those communities seems
more or less obvious. I can understand the point of view of the
man who hopes to pluck a better assignment out of the wreckage.
I cannot understand how other regional broadcasters expect to
gain any advantage from having such a proposal adopted. What,
incidentally, is the significance of the tendency, which has been
so manifest during recent years, to move regional stations from
the medium-sized and smaller cities and towns into the larger
cities? Is it not more and more to concentrate regional stations
in the larger cities and to leave the others to be served by clear
channel stations?
Our Group hopes, therefore, that you will not effect any reduc¬
tion in the present actual number of clear channels and that in
no event will you effect any reduction beyond what may be neces¬
sary to meet the isolated cases of extreme hardship that I have
referred to. If we are to be disappointed in this hope and you
are persuaded to make even a further reduction, then I want to
leave one more thought with you. We implore that you do not
make such a reduction at the expense of any independently owned
clear channel station. This thought is not uttered in any spirit of
antagonism to either network or with any desire to see their clear
channels destroyed. I think I have made it clear that our position
is the very opposite of such a desire. The thought is based on
the same fundamental principle which I have already dwelt on
at length — the importance of keeping the independently owned
station strong and healthy and in a position of bargaining equality
with the most powerful broadcasting organization that may arise.
We all agree — and I am sure the networks agree with this as
heartily as anyone else in this room — that monopoly is not to be
1610
tolerated in broadcasting. If all the high-power clear channel
stations, or too many of them, should fall into the hands of two
organizations with headquarters in New York we shall have gone
a long way toward what we all agree is bad. There will be at
least a partial monopoly of that very important part of the radio
audience that lives in rural areas.
Our Group’s fundamental position on the preservation of clear
channels does not require or call for any amendment to the Com¬
mission’s regulations, unless and to the extent that you change or
reduce the number of clear channels. In the latter event, the
amendment would consist of simply making appropriate changes
in the lists of frequencies appearing under your Rules 116 and 119,
transferring to the list of high-power regional channels those fre¬
quencies on which you permit duplication. You may even want
to subdivide these high-power regionals, and provide a special
subclassification for frequencies on which real synchronization is
being carried on in good faith. But do not call such frequencies
clear channels.
You have also asked for definitions. Frankly it has puzzled
us to know how to meet this request. In certain respects it may
be said that your present regulations are ambiguous and that they
really do not define clear channels. Rule 72 says that:
“The term ‘dear channel’ station means a station licensed to
operate on a frequency designated as a clear channel. (See
par. 116)”
Rule 116 simply designates and lists the clear channels. Taken by
themselves these rules seem incomplete in that they do not say,
in so many words, that the channel is to be used exclusively by
one station after sunset. On the other hand, this essential feature
is manifestly implied in the word “clear” and no doubt on the
subject is left when the definitions of limited time and daytime
stations are examined. Furthermore, the term “clear channel”
has been frequently given its correct meaning in decisions and
other pronouncements of the Commission, and this meaning is
generally accepted and understood. We do not, therefore, believe
any amendment is necessary to denote that a clear channel is ex¬
clusively used by one station after sunset and that its purpose is
to provide broadcast service over large areas to the rural and
remote public.
This matter of sunset, limited time stations and daytime stations
is a more difficult matter. Really the only difference between
these two classes under the Commission’s regulations is that a
limited time station is authorized to operate “during night hours,
if any, not used by the dominant clear channel station”. Thus
the limited time station is of a class which, by its very definition,
will be found only on clear channels. I do not know whether
there are still any instances of limited time stations using this
additional privilege. If there are, they must be only a handful
in number, in view of the constant tendency of all stations, in¬
cluding clear channel stations, to use the early morning hours,
and to extend broadcast service throughout the night. It seems to
us that there is no longer any occasion for this classification and
that its continuance simply means eventual hardship for the
licensee of the limited time station who may have built up an
audience and a business in part on the unused hours when the
time comes for the clear channel station to reclaim those hours.
It also means embarrassment to the clear channel licensee, and
probably litigation. We, therefore, propose that either the classifi¬
cation of limited time stations be abolished by repeal of Rule 77,
or that the rule be amended by adding a sentence somewhat as
follows:
“On and after October . . . ., 1936, no application for the con¬
struction or operation of a new limited time station will be
granted.”
We have no desire to work any hardship on any existing limited
time station licensee. Limited time stations that are not using
any nighttime hours should be changed over to the daytime station
classification.
Daytime stations present a number of serious problems for clear
channel service. There are, of course, positions on clear channels
that can be occupied by daytime stations without interference to
anyone, not, however, as many as sometimes thought or claimed.
There are certain problems of interference which will be discussed
by our technical expert, particularly due to the advancing curtain
of sunset in different time zones. In addition, there is a very
practical problem that is constantly raised for the dominant clear
channel station by requests for consent to evening operation on
the part of the daytime station and by pressure for duplication
on the plea that daytime operation is uneconomic. To express
our thoughts frankly, we could wish that there were no daytime
stations but we realize that a proposal to this end would be im¬
practicable and would work injustice to established stations. We
are, therefore, contenting ourselves with asking no amendment
to the regulations and instead we are, through our technical expert,
suggesting standards of protection that should be applied to insure
protection from interference.
The second of the two fundamental issues in which the Clear
Channel Group is interested at this hearing is the matter of the
minimum and maximum power to be required on clear channels.
I can best introduce my statement of our position on this question
by reading the exact amendment which we propose to your regu¬
lations. Your Rule 117 now reads as follows:
“The authorized power of a dominant clear channel station
shall be not less than S kilowatts nor more than SO kilowatts.”
We request that you amend it to read:
“The authorized power of a dominant clear channel station
shall be not less than SO kilowatts.”
This proposal has, of course, two aspects, the increase of mini¬
mum power from S to 50 kilowatts and the removal of any limita¬
tion on maximum power.
With respect to the increase of minimum power there is little
to be added to what I have already said. The charge that the
use of S kilowatts on a clear channel is not an efficient use of
that power for the purpose for which it is intended, can hardly
be denied. It gives some rural service, and at times a great deal,
but not what it should. Of the few clear channel stations that
still use less than SO kilowatts, several have applications pending
to go to that amount and, so far as I know, all would be willing
to take the step.
The minimum should not, however, be increased above SO kilo¬
watts for the present. I mention this because it was rumored
last fall that the Commission might require a minimum of S00
kilowatts of every clear channel station. I think practically every
clear channel licensee, and certainly everyone in our Group, would
be willing to meet such a requirement if in no other way could
he keep the channel clear of duplication. But the economic side
of the question must be frankly faced. The cities in which clear
channel stations are located, and the surrounding rural areas which
rely on those stations for service, differ vastly in their ability to
support the necessary outlay. These differences are reflected in
statistics as to population, receiving-sets per capita, and purchasing
power, not to mention other factors. It is not alone the city which
must be considered but the large territory which may be tributary
to it in a trade sense.
Some cities and regions are able to support SOO-kilowatt stations
immediately. With the present trend toward prosperity, others
may be expected to acquire this ability in the very near future,
in one, two or three years. A few others may take a little longer.
Some owners of these stations are dismayed at the original cost
without realizing that, once the outlay is made, the increased cost
of operation does not account for a very large proportion of the
total expense of operating a station. Some have peculiar prob¬
lems of their own, such as those whose stations divide time with
others and who may need more time in which to resolve their
problems.
It would, therefore, be unfair and unjust to such clear channel
licensees to impose a minimum requirement of S00 kilowatts, at'
least at this time. That can be left for the future. It would be
even more unfair and unjust to the rural audiences of such stations,
however, if the way were blocked to the future use of this power
by any restriction in the Commission’s regulations which would
leave the door open to some and closed to others. We urge that
all clear channel stations be treated on equal terms in this regard.
What, now, are our reasons for urging that you remove the
maximum limitation? We have little that is not an old story, a
story that was told by Mr. Crosley, Mr. Anthony and others in
support of increases in the maximum from one kilowatt to five
kilowatts in October, 1924, and that was told again throughout
those memorable five weeks of SO-kilowatt hearings in the fall
of 1930. It is the story of improved rural coverage, both in quality
and extent, and of improved urban coverage as well, made pos¬
sible by the advance of applied science to the point where 500-
kilowatt transmitters are available, have been tried, and have
demonstrated their merits. Demonstration of these merits is a
matter of proof in terms of field intensity contour maps and the
like, which will be presented to you by our technical expert. I
am told, and I believe it is true, that from an enigneering point
of view there is no valid reason against, and there is every reason
for, the installation of such transmitters on clear channels.
1611
Thirteen years ago one kilowatt was the highest power permitted
on a clear channel; now a clear channel station operating with
such power is a museum-piece. Generally speaking, in 1928 five
kilowatts was the highest power used by any broadcast station;
a clear channel station using such power now has all but become
an extinct species. Now, when we are ready to advance forward
another step, which after all is of exactly the same order and the
same proportionate effect as the leap from five to fifty kilowatts,
why should there be opposition?
Part of the opposition is, I suppose, psychological. Five hun¬
dred thousand watts sounds like a lot of electricity. It is, how¬
ever, the equivalent of only 67S horse-power, or less than one-third
of the power it takes to drive a new Douglas airplane.
Some of the opposition, I gather, comes from those who are
apprehensive of interference, whether through blanketing or
adjacent channel interference. Our technical experts will show
that these apprehensions are unfounded. Let me digress at this
point, however, to point out the perfectly obvious fact that an
increase in the power of a regional station from five hundred
watts to five thousand watts is exactly the same relative increase,
with exactly the same relative effect as an increase in the power
of a clear channel station from fifty to five hundred kilowatts.
The relative difference in signal strengths resulting from the in¬
creases contemplated by one-kilowatt regional stations to five
kilowatts and by 50-kilowatt clear channel stations to 500 kilo¬
watts is one that is imperceptible to the human ear when trans¬
lated into sound in the loudspeaker of a receiving set.
A third type of opposition is, I am told, based on so-called
economic considerations. I confess that I am more puzzled by
the various meanings that are attributed to this word “economic”
in this era of modern thought. It seems to cover all thoughts that
cannot be classified under some other heading, and to bob up,
like a woman’s last word, when all other arguments have been
demolished. I find no help in the classic treatises of Adam Smith
or John Stuart Mill and must take comfort in the thought that
all is not economics that is called economics. This much I say
without fear of challenge from any reasonable man; no theory,
whether tagged as economics or with any other imposing label,
can possibly be sound that blocks progress or that says that be¬
cause a scattered few may be apprehensive of some imaginary
injury the people of the country must be denied the benefits of
advancing civilization.
Apparently, those who use the word in opposition to increased
power on clear channels are pursuing one or both of two lines
of thought. One of these has to do with the ability of the higher
power station to support itself. The other has to do with the
commercial welfare of other stations that may lie within the orbit
of its service. There is much I should like to say on both subjects
but, since they are in charge of another of our witnesses, I shall
confine myself to a few words of a general character.
Whether a man is wise or foolish in making an investment which
he believes will improve his ability to serve is often a very diffi¬
cult question to answer. The advance of civilization would have
been at an immeasurably slower pace if men had not been free
to hazard their fortunes on the uncertain and the unforeseeable.
I do not think, however, that a hearing of this character can pos¬
sibly be the proper forum for deciding such a question. In a way,
this hearing is legislative in character. You are deciding what
regulations to adopt, not what applications to grant. The re¬
moval of the maximum power limitation does not mean that you
will permit any and all clear channel licensees to increase the power
of their stations to 500 kilowatts. You are free to do so; on the
other hand, you are free to deny any application or to grant it
only in part, depending upon the evidence heard in each case. It
is at such a hearing that consideration of a particular applicant’s
ability or the community’s ability to bear and support the in¬
creased financial burden is a legitimate issue, not here. Never¬
theless, we have assembled some information of a general charac¬
ter that may have a bearing on the issue which a later witness
will summarize.
On the other line of thought, namely, the effect of a 500-kilowatt
station on the economic welfare of other stations, the same later
witness will, I think, demonstrate that any apprehensions on this
subject are perfectly groundless, and I shall not try to anticipate
his testimony, which is the fruit of a very earnest and intensive
study of the question. The apprehension seems to be, not so
much that regional and local stations serving the same community
will suffer; almost the exact contrary seems more likely. It is
rather that such stations in other cities and towns may lose their
audiences or their advertising. The answer to this is found partly
in technical facts, that is, the actual increase in signal strengths
involved. It is also found in the psychology of listeners who turn
to the station located where they live in preference to the station
of another city, if the program service is of equal interest. If
the program service is not of equal interest, is it a sound principle
of economics that the listener should be deprived of the better
program so as not to cause any loss of listening public or revenue
to the broadcaster of the inferior program? Does public interest
mean the interest of the broadcaster of or the public? Should
an air transport company be forbidden to place a new and im¬
proved model of plane in use because it may attract passengers
from a competing line? Where would civilization be if we had
followed such a philosophy? Finally, the conclusive answer is
found in the actual financial record, present and past, of regional
and local stations located within areas served by clear channel
stations.
While we have temporarily been halted on the 50-kilowatt line,
our neighbors to the south have already advanced the ball to the
100 and 150 kilowatt lines. In Europe, some 23 broadcast sta¬
tions have power in excess of 50 kilowatts and 19 use 100 kilo¬
watts or more. There are two 500-kilowatt stations.
So far I have spoken as if the proposed change in the regula¬
tions contemplated an increase in the maximum to 500 kilowatts.
As you know, our proposal is that the maximum be not fixed at
any limit. There are convincing reasons for this, of an engineer¬
ing character, to be discussed by our technical expert. In lay
language, there are no valid reasons that can be urged against
unlimited increases in the power used on a clear channel, sub¬
ject, of course, to such questions as adjacent-channel interfer¬
ence and economic obstacles, if any, which may arise and can
best be disposed of in hearings on individual applications. Each
increase means an improvement in rural coverage, advantageous
at nighttime and vitally necessary in the daytime, if the entire
country is to have some measure of broadcasting service. It is
perfectly possible, that the future may bring forth as the next
step forward in power an increase to 5 megawatts. At least we
should take such a possibility into consideration in building the
present frame-work of regulations. Consequently, we have asked
our technical experts to prepare a showing of the rural broad¬
casting service that may be expected when the five-megawatt
era arrives. Without attempting to play the role either of a Jules
Verne or a Buck Rogers, we cannot avoid the responsibility of
taking the future into account and of trying to forecast the shape
of things to come.
Whatever may be your decision as to the proper maximum
power, we urge you to make the privilege available to all clear
channel stations. I do not mean that on a particular application,
heard and decided at a later date, you may not find adequate
reasons for refusing to withhold the privilege, but rather that the
regulation leave the way open to all. The claims of particu¬
lar applicants cannot be heard at this hearing and an advance
decision should not be made against them by limiting the num¬
ber of clear channels eligible for the higher power. If you are
not anxious to encourage such applications, it seems to me that
the experience of the Federal Radio Commission with the 50-
kilowatt hearings in 1930 demonstrates that the most effective way
to encourage them is to give the impression through your regu¬
lations that the privileges will be limited in number and conse¬
quently to the first-comers, and that some dire consequence such
as duplication may descend upon those who do not come imme¬
diately to the box-office for seats on the 500 yard line.
We have no quarrel with the claims that will be made in be¬
half of the regional stations for an amendment in the regulations
so as to permit a horizontal nighttime power increase to five kilo¬
watts. We believe it is reasonable, based on sound engineering
facts and principles, and should be granted. So far as we have
any knowledge, we have no quarrel with the claims to be made
by any other group at this hearing for improvement in the regu¬
lations governing their channels. Our interest is solely in the
two major issues which I have discussed.
Underlying these two issues, as well as some of the issues that
will arise from the claims of other groups, there are international
problems which we all must recognize. There are steps that might
well be taken in the field of international and diplomatic nego¬
tiations which would simplify solution of the allocation problems
in this country. There are contentions that might well be made
by the delegations from the United States to the next C. C. I. R.
meeting at Bucharest and the next International Telecommunica¬
tions Conference at Cairo in 1938 to the same end. I have in
mind, of course, difficulties such as were faced by one of our
members because of the fact that the channel used by his station
is adjacent to a Canadian exclusive channel and such as are
1612
faced, I understand, by several stations, particularly in the re¬
gional group, in the United States because of interference from
high power Mexican stations. This does not seem the proper time
or place to discuss such problems or to offer any proposals for
their solution. This much can be said, however. If, by reason of
any change in the regulations, provision is made for additional
facilities that can be used in Mexico, then those facilities should
not be consumed in establishing additional stations in the United
States until the needs of Mexico, so far as they prove well-founded,
are met. Any other course of action would be a deep injustice
to the broadcasting industry in this country, which stands to suffer
as a whole from interference borne in from the south.
You have asked for discussion of the matter of geographical
distribution of broadcast facilities, and of the desirability of
establishing a quota system. We see no need or occasion for
establishing a quota system or any other yardstick method, so
far as clear channels are concerned. The Commission’s re-alloca-
tion of November 11, 1928 accomplished a remarkably fair dis¬
tribution of clear channel stations, with due regard to such fac¬
tors as area, population and economic support. The first four
zones, which are of very unequal size, were approximately equal
in population. The fifth zone, with about two-fifths the area of
the United States, had only about half the population of each of
the other zones. Within the zones, the distribution was also fair.
The principal centers of population, which were also in most cases
the principal sources of talent for broadcast programs, received
more than one clear channel station, thus automatically assuring
the rural public of a choice of programs. The lesser centers,
strategically located over the country, received one each. You
have only to consider the scattered locations of the stations be¬
longing to our Group to realize that a very sensible pattern was
laid down. If there is to be another quota system, we suggest
that you avoid one injustice that was inherent in the one recently
abandoned. The state in which a clear channel station is located
should not be exclusively charged with the units represented by
that station, since reception from such a station may be shared
by several states. Otherwise, the state is disenabled from having
its fair share of regional and local facilities that it might otherwise
easily accommodate.
We feel confident that the Commission does not, as a result
of this hearing, contemplate any drastic or radical changes in the
existing allocation. We believe that its statement made public
on July 25th last was intended as an assurance to this effect.
Certainly it would be unfortunate if the industry had to undergo
a major operation such as was performed on it in 1928, or if the
great industry which has been built upon the present state of
affairs and the immense public which has attuned its listening
habits to it should awake tomorrow to find many stations changed
in frequency or curtailed in hours of operation or cut off from
the listener by interference. Opening the door to higher power,
such as is proposed by our Group, the Regional Group and per¬
haps by other groups, is necessary to keep abreast of the technical
art in the public interest. It comes within the description of evo¬
lution and voluntary action. As to other proposals that may be
urged upon you in the name of “evolution,” we know that you
will scrutinize them carefully to see if they are not really throw¬
backs, attempts to have you surrender ground gained in the past,
reversions to the dark ages in the history of broadcasting.
In conclusion, I take pleasure in expressing to the Commission
the feeling shared by all members of the Clear Channel Group
that a hearing such as this is of great benefit to the cause of good
radio broadcasting. There is no better route to the adoption
of sound regulations than the hearing of evidence and arguments
from those who may be affected. We are all deeply indebted to
the Commission and its Chief Engineer and his staff for having
conceived and carried out this method approach to the important
problems with which both the Commission and the industry are
faced.
1613
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB
REPORTS
♦
*
*
*
*
Vol. 4 - - No. 51
OCT. 6, 1936
CODyright. 1936.
The National Association of Broadcasters
FCC Allocation Hearing Continues
On the second day of the allocation hearings before the Federal
Communications Commission the Radio Manufacturers Associa¬
tion, the Institute of Radio Engineers and the Columbia Broadcast¬
ing System were given an opportunity to present their case. Also
the clear channel group which made an extended statement yester¬
day as reported in NAB Reports made a full statement from the
engineering standpoint.
Most of the members of the Commission whether they belonged
to the Broadcast Division or not were in attendance at today’s
hearing as well as apparently the 300 persons who registered with
the Commission.
William S. Paley, President of the Columbia Broadcasting System,
made a statement to the Commission on “The Direction of Progress
in Radio Broadcasting.”
Mr. Paley ’s complete statement follows:
Mr. Chairman, Members of the Federal Communications Com¬
mission: Less than four months ago I stood in this same place,
before this same official body, and, I would say, before very much
this same audience. And reviewing the program of speakers who
have appeared and those still to appear in this hearing, it strikes
me forcibly that I am one of much the same group of spokesmen for
radio broadcasting who presented their views and offered their
counsel to you at that time.
Then we dealt with an adventurous future. Now we are dealing
with the practical present. Then we were scanning the newest
miracles of the laboratory — weighing the imponderables of tele¬
vision — of aural broadcasting in frequencies so high they are barely
within the ken of engineers — of facsimile printing of magazines and
newspapers with invisible ink through the air.
Today we are faced with the problems of today — and of a visible
tomorrow. We are dealing with practical but far-reaching questions
of change in the domain in which we live and work and solve our
daily problems — the present band of American broadcasting.
You, the members and the counsel of the Commission, and we,
the broadcasters, “are at it again” — restlessly striving to improve
the standards and service of American broadcasting, jointly seek¬
ing, as your announcement of this hearing phrased it, “to secure
maximum service in the public interest” from the use of the fre¬
quency band of SSO to 1600 kilocycles.
I believe any thoughtful observer who has attended both the
June hearing and this one must realize how striking in itself is the
fact of our being re-gathered here now, to attack with fresh impact
a wholly different set of problems, re-focussing all the resources of
the broadcasting industry on a new field of possibilities and ad¬
vancements — while the ink is barely dry on the reports of evidence
submitted in that recent exploration.
I find, in this sequence, a real significance. I believe it is a tribute
to the energy and ideals of both the industry and the Commission.
But in it I find something else. I find proof of a grave need for
great wisdom.
Searching ourselves, I find an instinctive impatience to be done
with the old and on with the new. That is typical. I believe it is
wholesome. But, by our very impatience, I believe we are throwing
upon you — as stewards of this public domain — a heavier load, a
more serious responsibility for wise and far-sighted guidance than
we have ever thrown before. I believe that the last few years in
the laboratory and the next few years in the field will long be
viewed, in subsequent perspective, as the catalytic period of broad¬
casting in which its ultimate form and function will have been most
largely crystallized. I believe that we are forming, in a sense, the
present fulcrum of a future lever “long enough to move the world.”
We must move wisely.
A Triple Approach
Our study of the field of proposed changes in the regulations gov¬
erning the allocation and use of frequencies in the present broadcast
band has followed three lines of approach. One is represented by
our technical staff, which has analyzed the engineering facts which
bear upon part or all of the contemplated modifications. A second
approach has been made by our Market Research Division, which
has related the known and the implied effects of this engineering
data to population distribution and to the coverage and service of
market areas, attempting to orient its conclusions to the economic
life of America and to the constructive service that broadcasting
renders to American industry.
Our third approach to the problem, while it depended for facts
on both the other two, expressly freed itself from the limitations of
both. This third approach was, in a sense, a social approach, or a
public service approach, and represented the sum of what we feel
the Columbia Broadcasting System is and should be — with all the
serious responsibilities which it embraces in our network relations
with more than a hundred separate broadcasting stations — and with
more than eighty million radio listeners. Subsequently, our thinking
moved on to still another plane, but I will come to that later.
What I want to say now is that the Columbia Broadcasting
System appears at this hearing not as a technical organization,
although our technicians will present certain exhibits which I be¬
lieve the Commission will find to be original and helpful contribu¬
tions. Nor does Columbia appear here primarily as a business
organization, except to the extent that economics are a necessary
means to any social end. Surely any stress of economics as an end
in themselves would betray a lack of understanding of the vital
role which broadcasting plays on every plane of American life.
I should therefore like to emphasize the point that further exhibits
which will be presented by our Market Research Division are not
offered as ends in themselves, but as additional data which may be
of assistance to the Commission in its complex problem of inter¬
relating the parts to the whole.
Columbia is appearing at this hearing primarily as a service
organization — because our record in broadcasting, and our proper
role, is one of service to the public. Only to the extent that we have
rendered such a service — broadly and well — have we grown and
progressed.
One Star Is Fixed
Of the many suggested topics and sub-topics outlined by the
Commission for discussion in this hearing, I have therefore felt
free to select only those basic proposals which we believe contain
the greatest potential effect on public service. And because we are
fundamentally committed to this concept, I should like to say at
once that any modification in the Commission’s rules, any change
in its regulations which will advance the public service which the
Columbia Network or the broadcasting industry as a whole can
render, must and will receive our enthusiastic support. By the
same unvarying compass, any changes which threaten to lower
present standards of public service we must as resolutely oppose.
From this viewpoint it seems to me that the most important
topics which lie within the scope of this hearing are the increases in
power above fifty kilowatts — presumably to five hundred kilowatts
—on clear channels, the duplicated use of other clear channel fre¬
quencies by two 50-kilowatt stations, and the horizontal increases
in power applicable to regional stations and permitting many of
them now limited to one thousand watts to operate simultaneously
with five thousand watts at night. I do not mean to minimize the
1615
importance of many of the other topics named for consideration
in this hearing. But I believe their importance is relative and, in
many instances, corollary to or parallel to these three basic shifts of
standards.
What Is Public Service In Broadcasting?
I have promised to view these changes from the standpoint of
public service. I should now like further to clear the ground by
defining what we of the Columbia Broadcasting System believe
service to the radio listening public must essentially involve.
Stripped of all controversial questions, reduced to the bare essentials
which we believe command universal agreement, we define it as
two things: a signal service and a program service.
These, we feel, are the two basic dimensions of public service in
radio broadcasting — the delivery of a clear signal to radio receiving
sets, and the use of that signal to bring to listeners programs of the
highest standards of creative art in the field of entertainment, the
highest standards of intellectual integrity in the field of education
and public affairs, the highest standards of honesty and good taste
in the fields of merchandising and advertising. I call these two
things — radio programs and radio signals — the two dimensions of
a single thing, public service, because it is self-evident that public
service in broadcasting cannot exist with only one of them. They
are related to each other as length and breadth, as form and
substance.
It is the essential indivisibility of these two factors which forms the
keynote of our thinking about contemplated changes in the present
broadcast structure. We have made it a keynote because we be¬
lieve there may be a danger, which I will touch on more fully later,
of seeing too clearly the advantages in signal service which more
and more power promises, without seeing as clearly the need for
searching analysis of any threat to program service which might
be the ultimate result.
This note of caution may seem a strange approach to what I am
going to say next.
Because 1 am prepared to state that, subject only to
variables which do not permit too specific a prediction,
we believe the public service offered by the Columbia
Broadcasting System, judged in terms of rendering the
greatest good to the largest number, will not be conspicu¬
ously affected by the general advent of super-power, of
duplicated 50-kilowatt stations, or of horizontal increases
in power by regional stations.
That is our best judgment of the changes and counter-changes,
the additions and subtractions, the adjustments and readjustments,
which we believe would result from those three basic changes in the
broadcast structure.
Let me touch separately on our attitude, as a network, toward
each of the three moves, because our conclusions as to their com¬
bined effect are, of course, based on the separate effects of each.
I shall do this briefly, at this point, only to pave the way for a more
detailed analysis, which I wish to offer from a fresh and different
viewpoint shortly.
Super-power and the Network
First, super-power. To protect our thinking in terms of super¬
power, it was necessary to make certain assumptions. Since the
effect of super-power would naturally vary in degree with the num¬
ber and location of 500-kilowatt stations, we assumed what seemed
to be a probable outside limit for the development of super¬
power stations. In other words, we asked ourselves the question,
“How would the public service which Columbia renders be affected
if a maximum number of super-power stations were built?” We
estimated that maximum, under any general ruling which en¬
couraged super-power on unimpaired clear channels, to permit as
many as twenty-five SOO-kilowatt stations in the United States.
We then further assumed — although I think I would be justified
in calling this “expert opinion”, rather than mere assumption —
that we would be forced to drop from our network any stations
which lay within the primary service area of each new super-power
station. Conversely, we assumed that we would not be forced to
drop any stations in fair-sized or larger cities which lay outside that
primary area, but which did lie in the secondary area of the super¬
power stations — that is, in the area of their distant night-time
coverage.
When I say “forced to drop certain stations”, I mean simply
this: we owe certain things to each station on the Columbia Net¬
work. Chief among these things are programs. They are of two
kinds, commercial and non-commercial programs. Whichever they
are, they are aimed at so high a standard of entertainment or edu¬
cation or information that they will build and maintain for that
network station a large and steady audience. This audience must
be large enough and dependable enough to permit the station profit¬
ably to render a corresponding local service in its own community.
I am not unmindful of the striking examples of distinguished
programs which these stations, out of their own local resources,
have frequently originated — some of them so worthwhile that we
have been proud to carry them over the coast-to-coast CBS Net¬
work. But this in no way alters the fact that the network station
depends — and has a right to depend — on the fullest support of net¬
work programs. This is a creative, competitive, constructive kind
of support and lies at the base of much that is vital to American
radio.
I say we owe that support to each station on our network. Now
it would be obviously unfair for us to undermine the very stations
to whom we have pledged that support by providing the same
programs to several stations that lay in each other’s primary service
area. Instead of building audience for each, this would divide it.
That is true of both sponsored and non-sponsored network pro¬
grams, and lest it be overlooked, let me point out that today many
of the most popular programs from the audience standpoint, as well
as many of the finest musical and educational programs, are spon¬
sored programs.
Need I add, that even were we willing as a network, to supply
the same sustaining programs to stations that lie in each other’s
primary service area, the sponsor of commercial programs would not
make the same mistake. He would not and could not buy wasteful
duplication. The smaller stations in the primary area of super¬
power stations, even were they kept nominally on the network,
would thus fail to receive the strong schedule of sponsored network
programs and would fight a losing battle.
In short, so far as we can estimate its effect on Columbia as a
network, it is our reasoned conclusion that super-power would
result in the substitution by advertisers of one super-power station
for several of the smaller stations now on the network in the area
encircling any new super-power station. The net result should
increase our service to remote rural areas at night — at the possible
expense of providing parts of certain cities with a remote signal
wholly satisfactory for reception, but of lower level than the present
signal of the network stations now within those cities. So much,
for the moment, about super-power.
50,000-Watt Duplication and the Network
Our network viewpoint of the second of the three possible moves
I am discussing can be summarized almost in a sentence. In the
duplicate use of certain clear channels by two 50-kilowatt stations,
we see a real improvement in public service, particularly on those
clear channels already impaired by the presence of two stations
sharing time, and thereby limiting the over-all public service ren¬
dered by each in its area. But here, too, I must point out that
any corresponding gain in our network service would be reduced
by two interlocking factors. (Although we know of no probable
area in which both of these factors are apt to occur, we must
admit their possibility and be prepared to cope with it.) On
the one hand, any such 50-kilowatt stations which lay within the
primary area of new 500-kilowatt stations would, like lower power
stations, tend to be dropped from the network. On the other hand,
the gain in service from any station remaining on the network
which increased its power to 50 kilowatts under this move would
sooner or later force us to drop regional or local stations which
lay, in turn, within the enlarged primary service area of the
50-kilowatt station.
5000-Watt Regional Stations and the Network
The third contemplated move is negligible in its effect on net¬
work service, compared to the two I have touched on. In the
increase of power for many regional stations from 1000 to 5000
watts, we see gains for each station in signal service. It must be
remembered, however, that to the extent such stations were forced
off the networks by the other two moves, these gains in coverage
would not be reflected in the service rendered by the networks
themselves.
Revised Network Structure
Broadly then, and still speaking from the viewpoint of the service
which we of the Columbia are rendering as a network, we believe
that all three moves toward super-power, toward duplication and
toward 5000-watt regional stations, combine to force a new pattern
of network coverage — a pattern involving the use of fewer stations
1616
of greater power . . . with a stronger signal service in rural
areas . . . with a satisfactory, if sometimes lesser signal service
in cities where stations must be dropped from the network to
maintain a balance of economics and of public service. We fore¬
see no material effect upon our program service, in such a network
structure. We believe that it is salable, perhaps at somewhat
higher cost, to those leaders of American industry whose use of
broadcasting as a medium for nation-wide advertising has pro¬
vided the economic base for the finest program service of any
country in the world.
Under the present broadcast structure, $10,000,000 annually for
talent alone is poured into sixteen hours a day of Columbia pro¬
grams. Under the possible new structure I have outlined, we
believe this generous endowment would not be threatened. It is
upon this kind of reasoning, based on innumerable maps and
charts and work-sheets which I have gone over in the past few
weeks, that I venture the statement which I have made that
Columbia’s service to the public, super-power or no super-power,
will be steadfastly maintained.
Another Viewpoint
Up to this point in my comments, I have discussed the con¬
templated changes in the broadcast structure solely from the view¬
point of the Columbia Network. I have done this deliberately.
I have tried to do it dispassionately. I think that it would be
less than honest not to admit that this viewpoint must be our
first viewpoint. More than that, I believe that the program serv¬
ice Columbia is rendering to the nation is a sufficiently important
part of the total public service in radio broadcasting to constitute,
if it did hang in the balance, a factor to be weighed by the Com¬
mission in its review of the entire problem. That we find it does
not hang in the balance, that we find no vital issue involved, from
our own standpoint, is the focal point of everything else that I
have to say.
I mentioned at the outset of this talk that our thinking moved
from one plane onto another, as we progressed in our analysis of
the problems. The first plane was the one I have described — the
interests of Columbia as a network, in terms of the public service
which we render. The second plane was that of Columbia, not
as a whole, but as the various parts of that whole.
Our identity is, in reality, the identity of 10S stations which
compose our network. Those 105 stations include clear channel
stations, regional stations, and local stations. And because we
found that Columbia as a whole could view with essential neu¬
trality all or any of the proposed changes, we were placed in a
position to study impartially and sympathetically the effect of
these changes on our member stations in each classification.
These stations are not, to us, mere kilocycle numbers on the
wave-band or power ratings at transmitters. They are station
owners and managers. They are people and groups of people
who have grown with us and worked with us through the last
eight years of broadcasting. They have helped us solve our prob¬
lems and we have been able to help them with theirs. And I
propose to outline briefly here the specific effects, the disadvan¬
tages and the advantages, which we believe super-power, as the
most drastic single change under consideration, promises to each
of these three groups of stations.
In this effort to divide ourselves into the identities of our affili¬
ated stations, I believe we have at once projected our thinking
beyond even those boundaries. I mean that our inferences in
behalf of Columbia stations on clear, regional and local channels,
have necessarily been extended to stations in these classifications
regardless of what their network affiliation may be.
A Broader Evaluation
I hope that such a listing of the pros and cons of super-power,
from a source within the industry which numbers affiliates in each
class of station, will add something of sound perspective to the
evidence submitted at this hearing. I should like to offer it with¬
out the presumption that we know any station’s individual prob¬
lems as well as it knows its own, but only with the assumption
that we are in a unique position to attempt this broad evaluation.
Some of the advantages and disadvantages which we see will
be stated as conclusions, some will be stated as questions, either
because we believe that more searching and complete data are
needed than are now available, or because regardless of data only
the play and counter-play of practical experience can write the
final answers.
If I seem, in this further analysis, to refer more frequently to
the economics of broadcasting from the standpoint of individual
stations, I think you will find, before I have concluded, that again
we have given thought to these considerations only as essential
strands in the fibers and cross-fibers of the service to listeners
which these stations render.
Effects of Super-power on Super-power Stations
First, what are the benefits and dangers of super-power to the
super-power stations themselves? Are there pitfalls in the path of
those stations which hope to benefit most from super-power?
The advantages of super-power to the super-power station itself
are self-evident. A stronger signal throughout its entire area, an
extension of that area of service, an increase in rural audience, a
greater theoretical revenue because its time should be more valuable.
The disadvantages are, on one hand, less specific, on the other
hand, more numerous. First, if the station’s own program standards
are not to suffer, its greater theoretical sales revenue must carry the
load of an investment in the neighborhood of half a million dollars
and an operating cost estimated to be $150,000 higher annually than
that of even a 50,000-watt station. This presumes no profit what¬
ever on the additional investment or operating cost. If its in¬
creased sales fail to provide all of this differential, then funds now
going into program service and management must be taken out of
programs and management and put into transmitter operation.
A second disadvantage emphasizes the first: Except in the largest
cities, and except for the largest merchants, the increased card rate
necessary to a 500-kilowatt station will tend to make it a prohibitive
medium for local advertisers. Single exceptions notwithstanding,
the record of local advertising media whose circulation has grown
well beyond their trading areas reveals that they have been forced
to lose local retail advertising, or to offer it at a special and lowered
rate. This is feasible for a newspaper, for instance, which can sell
its city circulation at a lowered rate, because it can exclude the local
merchants’ advertising from its state-wide or inter-state editions.
That, however, is impossible for a super-power radio station. If it
does lower its rate to local advertisers, while delivering the same
coverage as it delivers to national advertisers, the net result is apt
to be an actual operating loss on the sale of local advertising, which
must be compensated by an artificially high rate to national adver¬
tisers. An economic paradox results which makes the super-power
station’s problems harder.
The third disadvantage for the super-power station lies in the
multiplication of its numbers. Here I should like to fall back upon
questions. Can twenty or twenty-five super-power stations be as
successful as one? Will the existence of many 500-kilowatt stations
tend to equalize and nullify the advantages of each, although it does
nothing to nullify the heavy investment and operating cost of each ?
In other words, isn’t it dangerous to project the phenomenon of
one superpower station into the commonplace of many?
Defensive Necessity
And now I should like to abandon, for a moment, these pros and
cons, to make a point which I think is essential to all our thinking
about super-power. I said in the first part of this report that in our
analysis, we had assumed a maximum number of super-power sta¬
tions — as many as twenty-five. We assumed this because we believe
it is exactly what will happen if super-power is once admitted by
new regulations. There has been, I think, some belief that super¬
power would limit itself, by reason of common sense and economics,
to a few of our largest markets. I do not believe this is so. I
believe that once the bars are let down, no one can stop it. Stations
which do not want it and cannot support it will be driven defen¬
sively to apply for it and build it — either to protect their own serv¬
ice areas from invasion or to maintain their competitive position
in prestige and sales. I think we must face honestly the almost
certain fact that if super-power is generally admitted under the
rules, it will appear in cities and in markets that have little possi¬
bility of supporting it without detriment to local program service,
and will extend so widely that it becomes a commonplace.
Effects of Super-power on Regional Network Stations
Turning now to the effect which super-power stations are likely
to exert on regional stations throughout the United States, we find
the likelihood of strong repercussions. There appear to us to be
definite advantages which should accrue to certain regional stations.
It is our belief that regional stations located in the same cities as
new super-power stations may well strengthen rather than weaken
their competitive position. These regional stations are now com¬
peting locally with clear channel stations whose present maximum
power is 50,000 watts. For the most part, it is a successful competi¬
tion. In the field of retail advertising by local merchants, corn-
1617
petition with a super-power station should favor the regional
station. It will remain a lower-cost medium for reaching the metro¬
politan market without waste, and should “inherit” the advertising
accounts of many local merchants who find super-power prohibitive
in cost and wasteful in circulation.
Again, however, the disadantages of super-power in its effect
upon regional stations are more numerous, and, in this class of
station, more specific. For instance, the one advantage I have just
cited in behalf of regional stations in large cities becomes a serious
disadvantage when we move out of those metropolitan markets.
Let’s look at the problems of regional stations in medium-size and
smaller cities, in which an outside super-power station will deliver
a strong signal. Such regional stations have no local business to
gain from the distant super-power station, but they have a sub¬
stantial amount of national business to lose. The national adver¬
tiser who has used these stations for transcriptions or spot announce¬
ments will be able to reach the regional station’s market satisfac¬
torily with super-power. He will tend, just as the network adver¬
tiser will tend, to pay a higher price for fewer stations. How can
such regional stations expect to stay on his list?
But perhaps the most serious problem which confronts these
regional stations which are now on one of the networks, and which
lie within the future service area of a super-power station, is the
fact that they must face the probable loss of their network affilia¬
tion. Without trying to glorify the importance of network service
to regional stations, but looking at this service realistically, its loss
is apt to prove a serious detriment to the survival of such stations,
or at least to the standard of public service which they now render.
This loss is of three kinds. First, a loss of audience, and on this
point we need not rely upon theory or opinion. Authentic and
authoritative data are available, running back over a six-year
period, to show what difference in a station’s audience network
programs make. Our data cover the addition and subtraction of
stations to and from both the Columbia and NBC Networks. The
addition of network programs seldom fails to double the habitual
audience of a station, even within its own city. The subtraction of
network programs seldom fails to reduce that audience by half. I
need hardly add that when a station’s audience is cut in half, many
consequences follow. Its time is substantially less salable, its
revenues are threatened, it is faced with the choice, usually, of ac¬
cepting undesirable business not in the public interest, or for fore¬
going that business and stinting its own program service.
The second loss involved in dropping a station from the network
is the station’s loss of actual revenue from the network for its time.
This loss in turn has two aspects, a positive and a negative aspect.
The positive aspect represents the amount of money which the sta¬
tion no longer receives from the network. The negative aspect is
the consequent additional cost to the station in budding its own
programs to fill the hours previously filled by sponsored network
programs, except to the extent that it can sell those hours locally.
The third loss which such a station faces is the loss of many hours
a day of non-commercial network programs available to it now,
representing many of the high points of station prestige and of
audience appeal. It must find the funds, out of a diminishing
return, to fill those hours, too, with its own programs.
I have dwelt on these three losses separately, not with any wish
to dramatize them, but because they reflect the essential nature of
the relationship between the network and the stations which it
serves.
Effect of Super-power on Local Network Stations
As to the effect of super-power on local stations, we find only
disadvantages and dangers. All of the disadvantages which I have
mentioned in behalf of regional stations will hit first and hardest
at local stations. Obviously, those which lie within the service
areas of super-power stations will be the first to be forced off the
networks. Because they tend to lie in still smaller communities,
their task of finding both local revenue and programs to maintain
their service to the public will be still harder.
As an example of the specific effect of super-power in two cities
on the present Columbia Network, we found that seven stations
would, in all probability, have to be dropped from the network.
This was determined by the simple yardstick which I mentioned
earlier. We mapped conservative contours of the primary service
area of a theoretical 500-kilowatt station in each of these two
cities. These contours were based upon careful engineering re¬
search, upon carefully chosen transmitter sites, upon detailed
knowledge of terrain, soil conductivity, and attenuation. The
seven stations of which I speak, both regional and local, fell clearly
within the primary service areas of the two super-power stations.
May I add that we would have no desire to drop these or any
other stations, but that it is our inescapable conclusion, for rea¬
sons already set forth, that we should be forced to do so.
Effect of Super-power on Non-Network Stations
It was inevitable that our thinking along these fines, once it
was freed from any threat to the service Columbia renders as a
network, should go one step further. All of the stations I have
considered up to this point are network stations. There remains
another group of stations upon whom the effect of super-power
would be considerable. These are stations not on any network,
nor within the primary service area of any present network
station. They are stations, for the larger part, located in cities
with populations ranging from less than 1000 to over 100,000.
Their average population is 26,173. These stations range in power
from 5,000 watts down to 50 watts. Most of them are 500-watt,
250-watt and 100-watt stations. There are 203 such stations in
the United States. They are stations which, for the most part,
have established a balance, even though a precarious balance, in
the economic fife of their communities. Taking the broadcasting
day as a whole, they rarely command a sizable portion of the
audience within their limited trading areas, because in practically
all of them they are competing with the distant signal of more
powerful stations, carrying outstanding programs. But they enjoy
sufficient audience for the local sale of time at modest rates. And
for perhaps an hour in the morning, or a half-hour at noon, or in
some period early or late in the evening, they do a giant’s job for
their communities, because they reflect the fife and express the
pulse of their own people. They deliver, to those communities,
a signal which is at least good enough to compete with present
signals from outside stations. Moreover, many of these smaller
stations render a regular service to outlying farms — a service
keyed to the special crops and the special soil of the community,
to county agricultural problems, to community blight problems —
a service, in other words, which no remote station can render.
What will happen to most of these 203 stations if the signal from
distant stations sweeps through their communities with three and
four times its present strength, and if the number of distant sta¬
tions now competing with these local stations in their own towns
is also substantially increased? Can they continue to hold an
average audience large enough for them to preserve their modest
revenues from the sale of time? Are we threatening, by means
of super-power, the actual existence of these stations, these “inno¬
cent bystanders” of super-power — and the splendid role they play
in the social and civic fife of their communities?
The Strong Will Grow Stronger
I think it will be clear from what I have said that, in contrast
with our interests as a network, we are seriously concerned with
the many problems super-power raises outside the network field,
in the interests of radio broadcasting as a whole. I am not trying
to plead two sides of a case, but all the evidence at our disposal
and all the logic we can bring to bear on the issue of super-power
tends to show simply this: super-power, if awarded to anyone,
can only be awarded to the stations which today have the highest
power. Its threat lies against the stations with lower power, its
worst threat against those of lowest power. In effect, it will make
the big fellow stronger, it will make the little fellow weaker.
Unless some way can be found to check or counteract this
tendency, it would seem destined to hurt, not to help, the complex
local, regional and national service which radio broadcasting now
renders, if all of America’s audience is given equal consideration.
In attempting to give farm areas themselves a better national
service, it might well undermine the valuable local service which
many of those farms now depend on.
In fact, I wonder if there has been any clear evaluation of the
degree of improvement in signal service throughout the nation
generally — and in farm areas specifically — which super-power
would, in reality, achieve. I wonder if advocates of super-power
have been thinking in terms of black and white, in which the
black is too black and the white is too white. If we consider
super-power not in terms of the stations which would benefit
by it or the stations which would suffer from it, but in terms of
the listening public, what do we find? We find that the difference
between 500 kilowatts and 50 kilowatts is clearly not the difference
between good service and bad service. Even in deep rural areas,
it is rarely the difference between a usable and a non-usable signal.
The Commission’s own study of farm reception showed that prac¬
tically every farm home actually listened to three or four stations,
and named them as favorite stations. Perhaps in one-half of one
percent of the radio homes of the United States, and there only
1618
at night, super-power, as such, would make the difference between
an adequate and an inadequate signal. And in about half of these
homes, the replacement of obsolete sets with new sets could effect
an equal improvement, since they are preponderantly farm homes,
the only class of homes in which the replacement of old sets has
lagged behind.
I believe we should cling, in shaping the direction of progress
in radio broadcasting, to the sound principle of providing “the
greatest good for the largest number.” If, to achieve merely “a
moderate good for the smallest number”, super-power threatens
the full and varied service now rendered to all radio homes in the
United States, including the farm homes it is most meant to benefit,
it is self-indicted at the outset.
A Familiar Cross-roads
Let me diverge for a moment from the hard ground of cause
and effect I have been treading to make a more general observa¬
tion. Too often in the history of scientific or inventive achieve¬
ment, the physical development of an invention is allowed to
eclipse its proper place in human life. Too often the machine
runs away with itself, as it were, instead of keeping pace with the
social needs it was created to serve.
I believe that in the indiscriminate use of super-power in radio
broadcasting, we may well face the same kind of threat. I hope
and believe that, in this enlightened day and in this enlightened
industry, we can avoid so needless a mistake. For the progress of
radio is already marked by a striking change in interest — a
qualitative change from mechanical interest to social and mental
and human interest. Eight years ago we maintained a complete
department to answer radio listeners in remote sections of the
country who sent in records of the stations they had heard, the
call letters of the stations, the wave-length on the dial, the hour
at which they tuned it in. These correspondents asked just one
thing — that we verify the fact that such a station did broadcast
such and such a program on such and such a wave-length at the
stated hour. The listener was interested in the mechanical phe¬
nomenon as such.
Today that department is no longer in existence. Today listeners
write about the significance of a broadcast message they have heard,
the validity of a talk they have tuned in, the arrangement of music,
the character of a performer, the spiritual quality of a sermon, the
performance of a symphony.
Dynamic Equilibrium
That shift from radio’s domination by the machines which trans¬
mit it — that shift to radio’s liberation as an art — typifies not only
the listening audience. It typifies the actual work of the broad¬
casters. Our own energies have found new outlets. Today we
are in the middle of a quarter-million dollar program of research
into new studio techniques, new acoustical principles for broad¬
casting, new dimensions of sound to create symphonies which com¬
posers of the past could not have dreamed of. We have endowed
a group of contemporary composers to do something they have
never tried to do before: to write serious music expressly for radio
broadcasting, music freed from the intrinsic limitations of the
instruments which will play it, by virtue of the microphone and
sound control. Instruments of such delicate tone that they could
be heard only in the hush of small drawing-rooms of the past may
reappear to dominate brasses and drums in great orchestras of the
air. New experiments are going on in surges of creative zeal. A
dozen young men are seeking new forms of the dramatic art in
Columbia’s Dramatic Workshop. Millions of children are finding
history brought to life through the new artistic forms of Columbia’s
School of the Air. I may seem to draw too heavily on our own
creative work. But I am sure it is typical of the broadcasting
field. I am sure it represents the true purpose of radio. I do not
mean to infer that vigilance has been relaxed, or should be relaxed,
from the physical facilities of radio, but that preoccupation with
those physical facilities should not subtract from our contributions
in other fields. We have, I am sincerely convinced, struck what
might be called a dynamic equilibrium between the physical re¬
sources of radio — and the vital and moving forces which promise
its fullest social usefulness. Let us not upset that equilibrium.
Above all, let us not reverse the nature and direction of the progress
broadcasting has made.
Coming back from this foray into the abstract truths which. I
believe, lie behind our concrete problems, I should like to urge upon
the Commission and the industry one basic consideration on the
subject of super-power:
Study it.
I do not believe any of us knows enough about the immediate
effects and the subsequent effects of super-power, both in itself and
in relation to the progress and welfare of radio broadcasting and
radio listening in American life. Many of the doubts I have raised
have been, expressly, doubts. Many of them have been questions,
not answers. We need those answers. I believe the Commission
needs those answers before altering the basic structure of broad¬
casting. I believe that a dozen studies of the most exhaustive sort
are in order. Studies which will fell us more than we know now
about listening and signals in rural areas. Studies which will tell us
more about super-power as it bounds and rebounds against itself
and against regional and local stations. Studies which will tell
us whether super-power, held within rigid geographical and nu¬
merical limits, might render a service free from the threats of wide¬
spread super-power. Studies which will determine if it has a
sphere of real usefulness.
We need specific facts to answer such questions as these: Can
a 500-kilowatt station located on either seaboard be as efficient as
one located in the center of the country ? Isn’t half the coverage of
a super-power station which is squandered on an ocean a proof of
self-evident waste? By barring super-power, at least from east
and west coasts, how many more channels would be open for dupli¬
cated SO-kilowatt stations ? Might not these additional SO-kilowatt
stations, strategically placed, produce a greater total public service?
Members of our Market Research Division will outline, at this
hearing, the specific nature of the further research which we hope
may precede any change in the Commission’s regulations on this
score.
There is one final point which I wish to throw into the balance
against any drastic change in the broadcast structure at the present
time. That is the threshold of new pioneering into other fields
UDon which the broadcasters stand. I spoke of the June hearing
at the opening of this talk. I would like to close with the same
reference — put into more definite terms. The industry as a whole
is faced with capital expenditures that many individual broad¬
casters may still have no conception of. In television alone, it is
my opinion, after a study of European developments and a knowl¬
edge of television’s status here, that the broadcasters are less than
two years away from commitments of many millions of dollars.
Columbia’s budget alone is over $2,000,000 — for experimental broad¬
casting work in this new field. Many more millions must follow,
in the public interest, before there is any hope of return.
Now what about the cost of super-power? Our careful estimates
of the cost of 500-kilowatt stations indicate a burden of over
$10,000,000 of capital investment by the broadcasters — with an
additional operating cost of between $3,000,000 and $4,000,000 per
year. These are not guesses, but careful estimates by engineers and
accountants. Knowing the economics of broadcasting as well as
we do, I feel justified in saying that if the burden of cost of super¬
power is thrown upon the industry at almost the same time it is
faced with costly developmental work in new fields, one or the
other is very apt to suffer.
Meanwhile, the Columbia Broadcasting System stands ready to
accept its share of the load, if super-power is admitted as a full-
fledged member of the broadcast family. If the Commission sees
fit, in the light of all the evidence, to sanction super-power, Colum¬
bia will apply for its full quota. Three of our affiliate stations,
WJR, Detroit, WHAS, Louisville, and KSL, Salt Lake City, have
already applied. Certain of our other affiliate stations will apply.
Six more of the clear channel stations on the Columbia Network,
six stations which we own ourselves, will similarly file applications
for five hundred kilowatts in New York, Chicago, Charlotte, Minne¬
apolis, St. Louis, and Los Angeles. We have, in fact, no other
choice. If the individual station, to protect its own signal from
disparity or to protect its signal area from invasion, is forced to
build super-power in its own market, this is still more true of the
network. Because all markets are the markets of the network.
All areas are its service areas. All listeners, in a constant creative
bidding for their interest, are its listeners. Therefore, if super-power
is to come we will build and operate 500 kilowatt stations wherever
the Commission will sanction them at strategic points on the
Columbia Network.
The engineering conception of the clear channel, Dr. Alan Hazel-
tine, President of the Institute of Radio Engineers told the Com¬
mission, “has always been the absolute absence of duplication of
assignments in the North American region during night hours. If
more than one station is assigned for night operation on a given
channel that channel automatically becomes shared and it is be¬
lieved that it should be so classified by the Commission.”
Dr. Hazeltine said that the Institute recognizes that engineering
1619
problems involved in broadcast allocation are intimately interwoven
with problems of social, legal and economic character.
Dr. Hazeltine continued:
In the announcement of this hearing the Commission has out¬
lined in considerable detail the topics on which discussion is desired.
Many of these items are essentially technical and quite funda¬
mental in their nature. It has been felt, therefore, that comment
by a purely engineering group, such as the Institute of Radio
Engineers, should be helpful and would be welcomed. Accordingly,
the statement which follows has been prepared by the Institute’s
Broadcast Committee and is presented to you with the approval
of its Board of Directors.
Engineering Problems
At the outset, the Institute of Radio Engineers recognizes that the
engineering problems involved in broadcast allocation are inti¬
mately interwoven with problems of social, legal and economic
character. Such latter problems are inherently less capable of pre¬
cise formulation than engineering problems; and their tentative
solutions are best described under the term general policy.
Among the matters of general policy lies that of maintaining
both reasonable stability in the broadcast structure and its healthy
growth. On the one hand, no sudden and drastic change, regard¬
less of its technical merits, would be possible from a practical
standpoint. For we have a great body of listeners who collectively
have an investment in over 25,000,000 radio receivers and behind
them a well established industry employing tens of thousands of
people and representing a large capital outlay. Thus for the time
being at least the country will look to the 550-1600 kilocycle band
for the bulk of its broadcast service. On the other hand, provision
is needed for the application in service of technical advances, both
in improving conditions in the 550-1600 kilocycle band and in
making use of other portions of the spectrum that may be found
suitable and available for broadcasting. Thus the present policy
of granting experimental licenses to qualified applicants for explora¬
tory work is sound and should be continued. The questions that
must be answered before a decision can be reached on the estab¬
lishment of a broadcast service at frequencies remote from the
present broadcast band are so wide in scope and so involved that,
in general, only actual operation over a reasonable period of time
will afford adequate information. The pioneering work that is
now being done in the high frequency and very high frequency
bands is thought to be particularly worthy of encouragement. It
is firmly believed to be in the public interest that such changes as
are found desirable in methods of operation or in the bands
allocated to broadcasting should be made on an evolutionary basis
after experimental trial.
Clear Channels
An important matter of policy is the establishment of clear chan¬
nels and the determination of their number and their geographical
and frequency distributions. The engineering conception of the
clear channel has always been the absolute absence of duplication
of assignments in the North American region during night hours.
If more than one station is assigned for night operation on a given
channel, that channel automatically becomes shared; and it is be¬
lieved that it should be so classified by the Commission.
Some three years ago, the Institute’s Broadcast Committee pre¬
pared a statement dealing with the question of the relative number
of clear and shared channels. This statement was transmitted to
the Radio Commission and subsequently published in the IRE
Proceedings (vol. 21, p. 331, March, 1933) under the title “The
Clear Channel in American Broadcasting.” Subsequent develop¬
ments have not affected the validity of the conclusions; and the fol¬
lowing quotations from it may serve to indicate more clearly the
existing situation with regard to such matters and to point out the
direction in which remedial measures should be applied.
Statement
The statement first points out that:
1. “The field of the shared channel is to afford broadcasting
service to important detached centers of population, such as
our cities and larger towns.
2. “The field of the clear channel is to afford service to those
vast intervening areas in which the density of population is
so low that a broadcast service could not otherwise be sup¬
ported, and in addition to a single large center.”
From these definitions it is concluded that:
1. “Decreasing the number of clear channels by assigning
additional stations (for nighttime operation) to channels now
used by only one station at a time would have the effect of
affording additional services to certain localized urban groups
but at the expense of decreasing the service to rural listeners
and to those at remote points.
2. “Increasing the number of clear channels at the expense of
the shared channels would have the opposite effect, assuming
that assignments for the stations thus displaced could not be
provided for on the remaining shared channels.”
And finally the situation is summarized in the final paragraph as
follows:
“Assuming that service to distant listeners is to be maintained
it is evident that continued provision must be made for an
adequate number of clear channels. Whether the number
should be forty, or more, or less, however, is a matter that can
be determined only by careful study. The balance of service
between the rural listener and the urban listener is determined
in considerable measure by the relative number of allocated
clear and shared channels. Decision as to the correct balance
point is a matter of general policy.”
Adequate Channels
From the engineering standpoint, it is believed that the continu¬
ance of an adequate number of clear channels is the only economic
way of extending broadcast service worthy of the name to the scat¬
tered populations of the nation’s farms and country towns and thus
to comply with the provision of the law that “the Commission
shall make such distribution of licenses, frequencies, hours of opera¬
tion and of power among the several States and communities as to
provide a fair, efficient and equitable distribution of radio service
to each of the same” (recent revision of the Communications Act,
Section 307 (b)). If there were ever any doubt concerning the
extent to which rural listeners depend upon clear channel stations
for their service, the results of the Allocation Survey recently pub¬
lished by the Commission should serve to remove it.
Define Clear Channels
It is believed that, to avoid confusion of thought and action, it
would be helpful to include in the Commission’s regulations a defini¬
tion of a clear channel station as one adapted to serve a substantial
portion of the whole country. Essential elements in achieving this
purpose are recognized in the “empirical standards” employed by
the Engineering Department of the Commission. The incorpora¬
tion of standards of this character into the regulations in also
recommended.
The exclusive nature of the clear channel assignment can only be
justified by the night-time service to remote points which is made
possible thereby. Such an exclusive assignment, therefore, carries
with it a responsibility for extended rural service that should be
fully recognized by all concerned. Of prime importance in this
connection is the matter of power. After sixteen years of experi¬
ence there is certainly ample technical evidence with regard to the
dependence of satisfactory service on adequate power. Under the
circumstances, it seems only logical and consistent to require on
channels that are set aside at some sacrifice to serve the more
distant rural sections of the country the use of the highest power
that is technically and economically feasible. In view of the great
success of the experiments with high power at WLW, which is
strikingly confirmed by the results of the Allocation Survey, it is
evident that a desirable power for at least some clear channel sta¬
tions is 500 kilowatts or more. Many of the reputed limitations
of clear channel coverage which have come up for discussion in
recent years are undoubtedly merely the inevitable consequences
of inadequate power for this type of assignment.
Allocations
Turning now to the shared channel allocations, we are fortunate
in having available for guidance the principle embodied in the dis¬
tance tables of the Commission of affording protection against inter¬
ference to the good service area of a station. Here the Institute
recognizes the policies necessitated by other than engineering con¬
siderations of classifying stations in accordance with the different
degrees of protection afforded and of modifying the degree of pro¬
tection in specific instances when this appears to be in the public
interest. However, it is felt that distance tables, revised from time
to time as the radio art advances and as more transmission data
become available, constitute a valuable general guide, and it is
1620
recommended that they be given formal recognition in the Com¬
mission’s regulations. In applying and in revising these distance
tables, the Institute invites attention to the engineering factors out¬
lined in the following paragraphs.
Distance Tables
In applying the distance tables, the data which should determine
whether or not a particular assignment is satisfactory from the
interference standpoint should preferably not be average values
computed to be reasonably representative of conditions throughout
the whole country, but actual measurements made within the area
under consideration, whenever these are available. The wide varia¬
tions in earth conductivity known to exist in the country, and the
recognized change of attenuation with frequency, combine to pro¬
duce wide departures from the national average in particular cases.
Under the circumstances, it is believed that better balance within
the allocations structure and increased capacity for service within
the broadcast band will be promoted by allowing the distance
tables to be superseded in specific instances by an adequate showing
of fact.
In revising the distance tables, it is recommended that the most
recent transmission data be employed. In particular, the trans¬
mission data resulting from the Allocation Survey is evidently based
upon a much greater number of observations and should be much
more complete and reliable than those previously available.
Service Area
The good service area of a station is bounded by a contour at
which its field intensity has some specified value, as one millivolt per
meter, and within which the listeners to that station are protected
against interference from other stations. The proper value or
values to be selected for the limiting intensities are associated with
the general power level of the stations. Engineering considerations
call for adequate power as the primary means for minimizing natural
and man-made noise. The noise background is an extremely im¬
portant factor in determining the entertainment value of a repro¬
duced program. This has been very clearly demonstrated in the ex¬
perience of the radio industry during the past few years with high
fidelity receivers. It has been shown that in urban areas under
many conditions even the local stations do not establish sufficiently
strong fields to bring out the inherent qualities of the apparatus
and the artistic excellence of the programs. On the shared channels,
for obvious reasons, higher night-time power cannot be regarded as
a measure for reaching a larger group of listeners, but rather as a
desirable step to improve the service being received by the audience
which already exists. It is believed that in many cases 1 kilowatt
is wholly inadequate for affording the grade of service which the
local communities served by regional stations have a right to expect
at the present stage of the art. Doubling the limiting field intensity,
as from 1 to 2 millivolts per meter, would permit quadrupling the
powers of a group of stations without altering their mutual inter¬
ference.
Limiting Ratio
The assumed limiting ratio of 20:1 between wanted and un¬
wanted signals is thought to be a fairly representative figure and
it is recommended that it be retained as a minimum. A 20:1
ratio represents a fair grade of service when the relatively low
fields to which it is applied and the correspondingly high noise
levels due to natural and man-made disturbances are kept in mind.
To attempt to apply a much higher ratio generally under existing
conditions is undoubtedly impractical. It is also recommended
that the 20:1 ratio be understood to apply for 90% of the time,
or in other words, intermittent interference that does not exceed
the specified value more than 10% of the time should be taken to
indicate compliance. This procedure is consistent, it is believed,
with the practice now being followed by the Commission’s engi¬
neers.
Receiver Selectivity
There is considerable evidence to the effect that the receiver
selectivity curve assumed for the present distance tables is appre¬
ciably below the capabilities of modern receivers. It is under¬
stood that the Radio Manufacturers Association will present data
on this point. In undertaking to establish a new average curve
for regulatory purposes, it is felt that the Commission is justified
in setting a reasonably high standard in fairness to the owners of
the better classes of modern receivers. It seems neither logical
nor equitable to base the service for the entire country on the
poorest receivers now being bought, nor on receivers that were
bought so long ago that they are effectively obsolete. Since good
selectivity must necessarily be reflected in the purchase price,
it is practically certain that receivers below any reasonable stand¬
ard adopted by the Commission will continue to be sold for some
time to come. There are undoubtedly locations in which such
receivers will give very acceptable service, and, in any event, the
listener should be permitted to choose his own price and obtain
a curtailed service if he so desires. In so far as obsolescence is
concerned, the receiver data resulting from the Allocation Survey
are most interesting and seem to indicate that consideration for
early types of receivers is not as important as has sometimes been
assumed.
Allocation Factor
In recomputing the distance tables, it is believed that special
consideration should be given to the “allocation factor.” This
factor was evidently employed in the original calculations because
the data then available were relatively meager and empirical
methods were necessary. Since the factor employed in evaluating
adjacent channel interference varies over a range of several hun¬
dred per cent, however, it is thought to play an unjustifiably
prominent part in fixing the minimum geographical spacings.
With more adequate information on transmission and on receiver
characteristics, it should now be possible to employ more accurate
methods and unless its use can be shown to be essential, the
avoidance of any arbitrary factor of this character is recommended.
Service Conditions
In the course of its work, the Commission is undoubtedly con¬
fronted at relatively frequent intervals with the necessity of decid¬
ing upon an appropriate course of action in the absence of
adequate information with regard to actual service conditions.
There is evidently need for a much more detailed and accurate
engineering survey of radio service throughout the entire country
than is now available. Such a survey should not only chart the
service areas of individual stations but should also endeavor to
integrate the service available to listeners in various sections so
that some picture may be obtained of the structure as a whole.
This is obviously an undertaking of large magnitude which will
require the slow and painstaking assembly and analysis of a mass
of engineering data relating to conditions at numerous points in
the country. It will undoubtedly take years for its completion
and will have to be started as a skeleton structure, to be supple¬
mented, clarified and developed in greater detail as further infor¬
mation becomes available. It is firmly believed, however, that
this is the course that the Commission and its engineers must
follow to make fully effective the provisions of Section 307(b).
Radio transmission over a large heterogeneous area such as the
North American continent is too complex a phenomenon and is
subject to too many exceptions and variations to be fully repre¬
sented by so rudimentary a concept as the distance tables, useful
as these are for obtaining a first approximation to the minimum
geographical spacing between stations. No amount of measuring
and averaging of conditions throughout the entire country, how¬
ever, will give a simple formula which can hope to express in the
same terms the results achieved by a low-frequency station on the
plains of Texas and a high-frequency station in New England.
In our efforts to make intensive use of the broadcast band, we
have passed the point where nation-wide averages will afford
adequate guidance and it is only by recognizing the fact that the
phenomena with which we have to deal are subject to wide varia¬
tions in various sections of the country that we can hope to
rectify the service deficiencies which now exist and to effect further
improvements.
In conclusion, the Institute of Radio Engineers wishes to express
its appreciation for this opportunity of appearing before the
Commission and its desire to aid the Commission, whenever pos¬
sible, in clarifying the technical and engineering principles under¬
lying frequency allocation.
Bond Geddes, Executive Vice-President of the Radio Manufac¬
turers Association at this point read into the record resolutions
adopted by the Board on September 24 in New York City in con¬
nection with the hearing as follows:
Resolutions
Whereas the Radio Manufacturers Association is of the opinion
that the clear channel stations render a distinct service to the
listening public of the United States, due both to the fact that no
other stations are on the same wave length, and, just as important,
because the clear channel stations, as a general rule, are high-
powered stations serving large territories and affording good re-
1621
ception to communities remote from broadcasting stations. The
elimination or impairment of clear channels would thus result in
poor and practically unintelligible response to many listeners by
reason of the interference of stations who might be on the same
wave length, thereby greatly restricting the use and quality of re¬
ception of a large majority of people, particularly in the remote
and rural areas, and also would tend to restrict the power used
by stations.
Therefore, Be It Resolved, That the Board of Directors of the
Radio Manufacturers Association recommend to the Federal Com¬
munications Commission that clear channels be retained as they now
are; that restrictions as to increase of the power used by these
stations on clear channels be withdrawn and that the Commission
establish minimum power requirements for such clear channel
stations.
Short Wave
Whereas the Radio Manufacturers Association is of the opinion
that short wave broadcasting in this country is far behind that
offered by foreign short wave stations, and that because of this
situation many of our nationals residing in foreign countries, as
well as citizens of other countries, are thus deprived of the oppor¬
tunity of listening to the United States programs, and
Whereas good short wave broadcasting would reach and serve
many locations in this country where, because of remoteness from
regular broadcasting stations, bad static conditions, and other
natural conditions, day time reception on the standard broadcast
band is practically impossible and night time reception is poor, and
Whereas the Radio Manufacturers Association is of the opinion
that the building of higher-powered, more efficient short wave
broadcasting stations with better and more regular programs is
being retarded, if not entirely stopped, because licenses for the
operation of short wave stations in this country are on an experi¬
mental basis only, and commercial use and sale of the time of these
stations is denied to their owners and operators,
Therefore, Be It Resolved, That the Board of Directors of the
Radio Manufacturers Association recommend to the Federal Com¬
munications Commission that restrictions as to commercial use in
the sale of time by the short wave stations of this country be
eliminated, and that said short wave broadcasting stations be
placed on the same commercial basis as the broadcasting stations
on the standard broadcast band.
Pick Up
Whereas under the present rules it is unlawful for any broadcast
station to pick up a short wave program and rebroadcast it, and
Whereas there are many low-powered, local stations serving
communities, who because of their lack of power and consequent
small coverage are unable to maintain and broadcast good pro¬
grams, therefore, necessitating the use of phonograph records and
in some cases the pick up of programs of larger broadcast stations
and their rebroadcast with the permission of the originating sta¬
tion, the latter is very successfully done where the broadcast sta¬
tion whose program is picked up is not too far remote, and where
static and natural conditions do not interfere too greatly. In the
latter case, if these stations were allowed to pick up good short
wave programs from the larger stations with, of course, the per¬
mission of the originating station, these programs could be picked up
at a greater distance and with greater clarity and less interference
from static and other natural conditions.
Therefore, Be It Resolved, That the Board of Directors of the
Radio Manufacturers Association recommend to the Federal Com¬
munications Commission that the restrictions regarding the pick up
and rebroadcast of short wave programs be eliminated and be on
the same basis as those regulations governing the pick up and
rebroadcast of programs from stations broadcasting on the stan¬
dard broadcasting band; such pick ups and rebroadcasting only
to be done with the expressed permission of the originating station.
Horle On Technical Aspects
L. C. F. Horle who presented the technical aspects of the case on
behalf of the Radio Manufacturers Association at today’s hearing
told the Commission that the Engineering Division of the Associa¬
tion had been instructed by the Board of Directors “to provide all
available data of value to the Commission in this hearing and it
here presents that data along with certain recommendations based
not only on the data that is offered but on its general experiences in
apparatus design and its experience in the use of that apparatus in
the field.”
Mr. Horle stated that several of the research and development
groups in its membership which are largely concerned with tech¬
nical problems of the industry were encouraged to gather this data.
Fidelity of Receivers
The data he stated falls into two categories. “The first concerns
itself with the selectivity and fidelity of receivers as commonly de¬
fined and, in fact, comprises the results of measurements made on a
host of receivers manufactured during the last three years from
which measurements the engineering division believes the Commis¬
sion can make useful deductions as to receiver performance in the
field of value in the solution of some of the problems which it faces
in the allocation and assignment of frequencies to broadcasting.”
Mr. Horle testified that “the engineering division does not feel
that its limited experience and familiarity with allocation and fre¬
quency assignment problems provide sufficient basis for the inter¬
pretation of the data given in terms of suggested rules or regula¬
tions.”
Chambers Uses Slides
J. A. Chambers, radio technician, appearing at the hearing
today on behalf of the clear channel group, showed elaborate
lantern slides together with sound effects. He showed during the
course of his statement the results of duplication and conditions
on duplicated channels. He made an analysis of the results now
being obtained under present conditions and stated that it would
be most undesirable to change the allocation at once. He spoke
in some detail of the present use of the broadcast spectrum and
of the geographic distribution of broadcasting stations throughout
the country.
Distribution of Stations
Mr. Chambers also talked on the distribution of stations on
clear channels and took up the night coverage of a typical 500-
kilowatt station. He spoke not only of clear channels but of
regional and local stations and stated that all of them are needed.
No one of these types, he said, can serve the public exclusively
or should be abandoned. The rural and small town listeners, Mr.
Chambers said, need the operation of clear channel stations. He
contended that the high frequencies will not be good for clear
channels.
The present clear channel stations, Mr. Chambers testified,
should be allowed to remain as they are. During the course of
his illustrated talk he took up the soil conductivity in the United
States and also spoke at length on the constant development in
radio receivers. He stated that eleven million receivers have been
sold in this country from the beginning of 1935 up to the 1st of
September this year.
Mr. Chambers spoke also of field intensities and showed by the
use of records the absence of blanketing by WLW.
Among those attending the conference were:
A
Abell, Rev. 0. L., S.J., Director WWL, Loyola University, New
Orleans, La.; Adcock, S. E., Station WROL, Knoxville, Tenn.;
Aitkenhead, Jr., John, Station WADC, Akron, Ohio; Alcorn, W. C.,
V-P. & Gen. Mgr., Station WBNX, 260 E. 161st St., New York
City; Allman, Fred L., Graybar Elec. Co., Richmond, Va. ; Arnoux,
Campbell, Gen. Mgr. WTAR Radio Corp., Norfolk, Va.; Ashby,
A. L., Nat’l Broadcasting Co., 30 Rockefeller Plaza, New York
City.
B
Bailey, Stuart L., Jansky & Bailey, Nat’l Press Bldg., Washing¬
ton, D. C.; Baker, I. R., Manager Transm. Sales, RCA Mfg. Co.,
Camden, N. J.; Baldwin, James W., Managing Director, N.A.B.,
Nat’l Press Bldg., Washington, D. C.; Barroll, Jr., Hope H., Ex.
V-P. Station WFBR, Baltimore, Md.; Bleakley, E. G. C., City
Atty. WCAM, Camden, N. J.; Barron, John, Consulting Engr.,
Earle Bldg., Washington, D. C.; Bartley, R. T., F.C.C., Washington,
D. C.; Batchelder, H. W., V-P. & Treas. Sta. WFBR, Baltimore,
Md. ; Benson, W. W., V-P. Station WIL, St. Louis, Mo. ; Bill, Edgar
L., Station WMBD, Peoria, Ill.; Blatlerman, H. L., Earle C.
Anthony, Inc., Station KFI-KECA. Los Angeles, Cal.; Bookwalter,
L. S., Chief Engineer, Stations KOIN and KALE, Portland, Ore.;
Born, Hiram A., WHBL Press Pub. Co., Sheboygan, Wis. ; Brackett,
Quincy Adams, Conn. Valley Brdcstg. Co. Sta., WSPR., Springfield,
Mass.; Bridges, W. C., Gen. Mgr., Head of the Lakes Brdcstg. Co.,
Duluth, Minn.; Brimberg, Isaac, Radio Engr., City of New York,
Municipal Bldg., New York City; Brown, Willet H., Don Lee
1622
Brdcstg. System, 7th and Bixel St., Los Angeles; Bryan, J. M.,
President, WBIG, Greensboro, N. C.; Buckwalter, Isaac Z., Mason-
Dixon Radio Group, Inc., Lancaster, Pa.; Burke, J. F., Station
KFVD, 64S S. Maraposa Ave., Los Angeles; Butcher, Harry C.,
Col. Brdcstg. System, Earle Bldg., Washington, D. C.; Butler,
Burridge D., Pres., Sta. WLS, 1230 Wash. Blvd., Chicago, Ill.;
Butman, Carl H., Radio Consultant, 704 Natl. Press Bldg., Wash.,
D. C.
C
Caldwell, Louis G., Lawyer representing Clear Channel Group,
914 Natl. Press Bldg., Wash., D. C.; Campbell, Martin, Gen. Mgr.,
WFAA, Dallas, Texas.; Chambers, Joe A., McNary & Chambers,
Nat’l Press Bldg., Washington, D. C.; Chatterton, C. O., “Portland
Oregonian,” Sta. KGW and KEX, Portland, Ore.; Chilton, A. L.,
Stations WGST-KLRA, Kirby Building, Dallas, Tex.; Clarke, A. S.,
Clarke Engineering Service, 1306 Sheridan St., N. W., Washington,
D. C.; Cohen, Lester, Hogan, Donovan, Jones & Guider, Colo.
Bldg., Washington, D. C.; Collins, Ray, Engineer, WFAA, Dallas,
Tex.; Cosman, J. V., Federal Telg. Co., 200 Mt. Pleasant Ave.,
Newark, N. J.; Coulson, W. L., Station WHAS, Louisville, Ky.;
Courtney, Rear Adm. C. E., Director of Naval Communications,
Naval Operations, Navy Dept.; Cowles, Jr., Gardner, Iowa Brdcstg.
Co., Des Moines, la.; Craig, Edwin W., Chairman, Clear Channel
Group, Nat’l Life and Accident Ins. Co., Nashville, Tenn.; Crane,
A. G., Nat’l Committee on Education by Radio, Laramie, Wyo.;
Cummings, John, Tech. Director, WCAM, Camden, N. J.; Crosley,
Jr., Powel, The Crosley Radio Corp., Station WLW, Cincinnati, O.;
Cruse, Andrew W., Chief, Electrical Div., U. S. Bureau of Foreign
and Domestic Commerce, Dept, of Commerce, Washington, D. C.;
Culver, Ronald H., Jansky & Bailey, Nat’l Press Bldg., Washington,
D. C.
D
Dakin, E. F., Col. Brdcstg. System, 485 Madison Ave., New York
City; Daly, C. J., Attorney, St. Paul, Minn.; Damm, Walter J.,
Promotion Manager, Milwaukee Journal, Milwaukee, Wis. ; Davis,
Geo. C., F. C. C.; Dellar, Lincoln, Col. Brdcstg. System, 485 Madi¬
son Ave., New York City; DeWitt, Jr., J. H., Station WSM, Nash¬
ville, Tenn.; Dill, C. C., Attorney, 815 15th St. N. W., Washington,
D. C.; Doolittle, Franklin M., Station WDRC, 750 Main St., Hart¬
ford, Conn.
E
Eaves, A. J., Graybar Elect. Co., 420 Lex. Ave., New York City;
Evans, S. Howard, Nat’l Comm, on Edu. by Radio, 1 Madison
Ave., New York City; Everson, C. M., Gen. Mgr., WHKC, Colum¬
bus, Ohio; Evans, Walter C., Westinghouse E. & M. Co., Chicopee
Falls, Mass.
F
Falknor, Frank B., Station WBBM, 410 No. Mich. Ave., Chicago,
Ill.; Fall, W., Harris & Ewing, Photographers, 1313 F St., N. W.,
Washington, D. C.; Fisher, Ben S., Attorney, Earle Bldg., Wash¬
ington, D. C.; Flamm, Donald, Station WMCA, 1697 Broadway,
New York City; Floegel, M. E., Station KFEL, Denver, Colo.;
Foss, Wm. L., Consulting Engineer, 815 15th St., N. W., Washing¬
ton, D. C.; Foster, A. S., Station WWL, New Orleans, La.; Foster,
D. E., Radio Corp. of America, 711 Fifth Ave., New York City;
Furth, Lt. F. R., U. S. Navy, Navy Dept., Washington, D. C.
G
Geddes, Bond, Ex. V. P. and Gen. Mgr., R. M. A., 1317 F St.,
N. W., Washington, D. C. ; Gillespie, Wm. C., Station KTUL, Tulsa,
Okla.; Gimbell, Jr., Benedict, Pres., Station WIP, Philadelphia, Pa.;
Girard, E. J., Mackay Radio & Telg. Co., 1420 New York Ave.,
N. W„ Washington, D. C.; Glade, Earl J., Gen. Mgr., Sta. KSL,
Salt Lake City, Utah; Gleason, W. J., Sec., Don Lee Brdcstg.
System, 1076 W. 7th St., Los Angeles, Calif.; Gluck, E. J., Pres.,
Sta. WSOC, Charlotte, N. C.; Gregory, S. D., Asst. Mgr., Westing-
house Radio Stations, Chicopee Falls, Mass.; Grimes, David, Philco
Radio & Television Corp., Philadelphia, Pa.; Grimwood, Fred O.,
Cons. Radio Engineer, Evansville, Ind. ; Guider, John W., Lawyer,
Colo. Bldg., Washington. D. C.; Gum, James W., Attorney, 815
15th St., N. W., Washington, D. C.
H
Hanley, James H., Attorney, Tower Building, Washington, D. C.;
Harvey, Harry, Chief Engr., Sta. KFAB-KOIL-KFOR. Lincoln,
Nebr. ; Havens, Wilbur M., Sta. WMBG, Richmond, Va.; Hen-
nessy, Jr., Philip J., N. B. C., Nat’l Press Bldg., Washington, D. C.;
Hetland, Julius, Chf. Engr., WDAY, Fargo, N. Dak.; Hewitt,
Leslie G., Chf. Engr., KFWB, Warner Bros., Hollywood, Calif.;
Hill, Ivan; Hill, Luther L., Iowa Brdcstg. Co., Des Moines, Iowa;
Hogan. John V. L., Pres., Interstate Brdcstg. Co., Inc., 41 Park
Row, New York City; Holliway, Harrison, Sta. KFI-KECA, 1000
S. Hope, Los Angeles; Hooper, Capt. S. C., Navy Department,
Washington, D. C.; Hopkins, III, John T., Mgr. & Chf. Engr.,
Station WJAX, Jacksonville, Fla.; Horn, C. W., Nat’l Brdcstg. Co.,
New York City; Howard, Jack, Continental Radio Co., Nat’l Press
Bldg., Washington, D. C.; Howland, John, Phila. Storage Battery
Co., Philadelphia, Pa.; Hull, Earl C., Sta. WKY, Oklahoma City,
Okla., KLZ, Denver, WKY, Radiophone Co., Oklahoma City,
Okla.; Hynes, Rev. J. W., S.J., Sta. WWL, Loyola Univ., New
Orleans, La.
J
Jansky, Jr., C. M., Jansky & Bailey, Natl. Press Bldg., Washing¬
ton, D. C.; Johanknecht, Richard, Watertown Daily Times, Water-
town, N. Y. ; Jolliffe, C. B., Radio Corp. of America, 30 Rockefeller
Plaza, New York City; Jones, George I., Graybar Elec. Co., 1119-
14th St. N. W„ Wash., D. C.; Jordan, R. P., Mgr. Sta. WDBJ,
Roanoke, Va.
K
Kahn, Alexander, Lawyer, Sta. WEVD, 220 Broadway, New
York City; Kay, Lambdin, Gen. Mgr. Sta. WSB, Atlanta journal,
Atlanta, Ga.; Kendall, John C., Lawyer, 358 U. S. Bank Bldg.,
Portland, Ore.; Kerney, John E. Trenton Times, Trenton, N. J.;
Kerney, Thomas L., Times Newspapers, Trenton, N. J.
L
Lafount, Harold A.; Lancaster, Wm., Graybar Electric Co., 1119-
14th St., N. W., Wash., D. C.; Law, George S., Westinghouse
E. & M. Co., E. Pittsburgh, Pa.; Leonard, Laurence, Sta. WFMD,
Monocacy Brdcstg. Co., Frederick, Md. ; LeRoy, Howard S., Cul¬
bertson & LeRoy, Colo. Bldg., Washington, D. C.; Leydorf, G. F.,
Crosley Radio Corp., Cincinnati, Ohio; Litten, Glen, Manager,
KFSD, U. S. Grant Hotel, San Diego, Calif.; Lodge, William B.,
Col. Brdcstg. System, 485 Madison Ave., New York City; Loucks,
Philip G., Lawyer, Natl. Press Bldg., Washington, D. C.; Lovett,
Eliot C., Attorney, 729-15th St. N. W., Washington, D. C.; Loyet,
P. A., Tech. Director, Sta. WHO, Des Moines, Iowa.
M
Maland, J. O., Radio Sta. WHO, Des Moines, Iowa; Marcy,
Alfred R., Chf. Engr., WFBL, Onondaga Hotel, Syracuse, N. Y. ;
Mason, Richard H., Mgr., Sta. WPTF, Raleigh, N. C.; Marquardt,
Maynard, Tech. Supervisor, Sta. WCFL, Chicago, Ill.; Matheson,
Ralph G., Wat. WHDH, Boston, Mass.; Mathoit, T. E., Tech.
Director, Mason Dixon Radio Group, Lancaster, Pa. ; McCarty,
H. B., Pres., Nat’l Ass’n of Edu. Brdcstrs., Station WHA, Madison,
Wis. ; McCollough, Clair R., Gen. Mgr., Mason Dixon Radio Group,
Lancaster, Pa.; McGlashan, Ben S., Owner, KGFJ, Los Angeles,
Calif.; McKay, D. B., Graybar Elec. Co., Atlanta, Ga. ; McNary,
James C., McNary & Chambers, Natl. Press Bldg., Washington,
D. C.; Meyers, C. J., WGN, Inc., Tribune Tower, Chicago, Ill.;
Myers, C. W., Pres., Sta. KOIN, Portland, Ore.; Meyer, Harold H.,
Mgr., Sta. WSUN, St. Petersburg, Fla.; Meyerson, J. I.; Sta. KLZ,
Denver, Sta. WKY, Oklahoma City, 500 N. Broadway, Oklahoma
City, Okla.; Millar, J. Z., Western Union Telg. Co., 60 Hudson St.,
New York City; Milston, David R., Attorney for Sta. KVOO, Tulsa
Loan Bldg., Tulsa, Okla.; Mitchell, M. R., Chf. Engr., WJR, Fisher
Bldg., Detroit, Mich.; Mitchell, Robert, Program Director, Sta.
WMBG, Richmond, Va.; Morrill, Harold B., Hildreth & Rogers
Co., Publishers, 285 Essex St., Lawrence, Mass.; Mitchell, L. S., Sta.
WDAE, Tampa, Fla.
N
Nafzger, Lester H., WBNS, Inc., 33 N. High St., Columbus, Ohio ;
Nelson, E. L., Bell Tel. Labs., New York City; Nockles, E. N.,
American Fed. of Labor, Chicago, Ill.
O
O’Fallon, Gene, Sta. KFEL, Albany Hotel, Denver, Colo.; Ore,
Leigh E., U. S. Govt., Radio Section, Works Progress Adm.; Otter-
man, H. B., Dept, of State, Treaty Division, Winder Bldg., Wash¬
ington, D. C.; O’Dea, Richard E., Sta. WHEN, 501 Madison Ave.,
New York, N. Y.
P
Pack, Eugene G., Chf. Engr., Sta. KSL, Salt Lake City, Utah;
Page, E. C., Constr. Radio Engineer, Evanston, Ill.; Pape, W. O.,
1623
Sta. WALA, Mobile, Ala.; Patrick, D. M., Attorney, Colorado Bldg.,
Washington, D. C.; Peck, Herbert M., General Counsel, Sta. WKY
& KLZ, 500 N. Broadway, Oklahoma City, Okla. ; Peery, Harold G.,
Don Lee Brdcstg. System, Los Angeles, Calif.; Peter, Paul F., Joint
Committee on Radio Research, 420 Lexington Ave., New York
City; Pettey, Herbert L., Station WHN, 1540 Broadway, New York
City; Pickard, Greenleaf W., Natl. Asso. Regional Broadcasting Sta¬
tions, Seabrook Beach, N. H.; Pierce, R. Morris, Station WGAR,
Cleveland, Ohio; Pitts, B., Sta. KFEQ, St. Joseph, Mo.; Porter,
Wm. A., Attorney, Union Trust Bldg., Washington, D. C.; Powell,
C. S.; Graybar Elec. Co., Louisville, Ky.; Powell, Garland, Direc¬
tor, Sta. WRUF, Gainesville, Fla. ; Prescott, M. L., Gen. Elec. Co.,
Schenectady, N. Y. ; Price, C. U., Station KFH, Wichita, Kans.;
Proffit, Jas. L., Asso. Geo. O. Sutton, Natl. Press Bldg., Wash, D. C.;
Pyle, K. W., Director, KFBI, Abilene, Kans.; Pyle, W. D., Pres.,
Colo. Radio Corp. KVOD, Continental Oil Bldg., Denver, Colo. ;
R
Rapp, J. C., Radio Station KM A, Shenandoah, Iowa; Redman,
Cmdr. J. R., U. S. Navy, Navy Department; Reid, Frank R.,
Aurora, Ill.; Ridge, Edney, Director, WBIG, Greensboro, N. C.;
Rockwell, R. J., Crosley Radio Corp., Sta. WLW, WSAI, Cincinnati,
Ohio ; Rogers, Naylor ; Rosenberg, Manuel, Editor & Publisher, The
Advertiser, 11 W. 42nd St., New York City; Rothrock, Harold B.,
Clear Channel Group, Natl. Press Bldg., Washington, D. C.; Rubin,
M. F., Pres., WJAY, Cleveland, Ohio; Runyon, J. W., Gen. Mgr.,
KRLD, Dallas, Texas; Russell, F. M., V-P., NBC, Natl. Press Bldg.,
Washington, D. C.; Ryan, J. H., Sta. WSPD, WWVA, WMMN,
Commodore Perry Hotel, Toledo, Ohio.
S
Salisbury, Morse, U. S. Dept, of Agriculture; Scharfeld, Arthur
W., Attorney, Natl. Press Bldg., Washington, D. C.; Schuette,
Oswald F., Natl. Press Bldg., Washington, D. C.; Scott, Frank D.,
Attorney, Munsey Bldg., Washington, D. C.; Scripps, William J.,
Sta. WWJ, Evening News Assn., Detroit, Mich.; Searle, Don., Radio
Sta. WIBW, Topeka, Kans.; Sharp, Thomas E., Radio Sta. KFSD,
San Diego, Calif.; Shepard 3rd, John, The Yankee Network, Bos¬
ton, Mass.; Sherley, Swagar, Attorney, representng Clear Channel
Group, Amer. Security Bldg., Washington, D. C.; Sherman, John
M., Station WTCN, Minneapolis, Minn. ; Shinnick, H. H., Attorney,
Natl. Press Bldg., Washington, D. C.; Shrode, M. G., U. S. Coast
Guard, U. S. Coast Guard Headquarters; Singleton, Harold C., Chf.
Engr., KGW-KEX, The Oregonian, Portland, Ore.; Slavick, H. W.,
Gen. Mgr. WMC-WNBR, Memphis, Tenn.; Smeby, Lynne C.,
Engr. of WXYZ & Michigan Radio Network, Madison Theatre
Bldg., Detroit, Mich.; Smith, Calvin, J., V. P. & Gen. Mgr., Sta.
KFAC, Los Angeles, Calif.; Smith, Frank M., Radio Sta. WLW,
Cincinnati, Ohio.; Smith, George W., Mang. Director WWVA,
Wheeling, W. Va. ; Smith, J. E. ; Natl. Radio Inst., 16th and U Sts.
N. W., Washington, D. C.; Smith, Karl A., Attorney, Colorado Bldg,
Washington, D. C.; Snyder, Glenn, Station WLS, Chicago, Ill.;
Spearman, Paul D. P., Counsel for Natl. Assn, of Regional Broad¬
casting Stations, Natl. Press Bldg., Washington, D. C.; Sprague,
Stuart, Attorney, 117 Liberty St., New York City; Stahl, B. E.,
Natl. Brdcstg. Co., 3308 14th St. N. W., Washington, D. C.; Stinson,
L. W., Engr. KVOO, Tulsa, Okla.; Stollenwerck, Frank, Natl. Press
Bldg., Washington, D. C. ; Summerville, W. H., Sta. WGST, Atlanta,
Ga.; Sutton, Geo. O., Attorney, Natl. Press Bldg., Washington, D. C.
T
Tidmore, A. V., Sta. WFMD, Monocacy Brdctstg. Co., Frederick,
Maryland.
V
Van Dyck, Arthur, Radio Corp. of America, New York City;
Veatch, J. P., Chf. Engr. KFEL, Denver, Colo.; Vinsonhaler, S. C.,
Sta. KLRA, Little Rock, Ark.
W
Wagner, James A, Sta. Mgr., WHBY, WHBY, Inc., Green Bay,
Wis.; Walger, Louis, Graybar Elec. Co., Richmond, Va. ; Wallen,
A. C., Truscon Steel Co., Youngstown, Ohio; Warner, Sydney E.,
Chf. Engr. WlXBS, Waterbury, Conn.; Watson, Loren L., Asso¬
ciated Recorded Program Service, 25 W. 45th St., New York City;
Way, Wm. B., V-P. & Gen. Mgr., Sta. KVOO, Tulsa, Okla.; Webb,
J. S., Sta. WLB, Univ. of Minn., Minneapolis, Minn.; Webster,
Bethuel M., Attorney, Webster & Carside, 15 Broad St., New York
City; Weekes, John Wesley, Attorney, Decatur, Ga. ; Wenger,
Wiley D., Station KFNF, Shenandoah, Iowa; West, Wm. H., Sta¬
tion WTMV, E. St. Louis, Ill.; Wheeler, Clarance, V-P. & Treas.,
WHEC, Inc., Rochester, N. Y. ; Whittemore, L. E., American Tel. &
Telg. Co., New York City; Wilder, Harry C., Sta. WSYR, Syracuse,
N. Y. ; Willebrandt, Mabel Walker, Attorney, Shoreham Bldg.,
Washington, D. C.; Willets, R. N., Western Elec. Co., 195 Broad¬
way, New York City; Wilmotte, Raymond M., Constr. Engineer,
41 Park Row, New York City; Wilson, Herbert, Engineer, 260 E.
161st St., New York City; Winch, S. R., Stas. KOIN-KALE, Port¬
land, Ore.; Wing, John E., Attorney, Chicago, III.; Withycomb,
Donald, WFIL Brdcstg. Co., Public Ledger Bldg., Philadelphia, Pa.;
Walfram, Rev. A. L., Station WAWZ, Zarephath, N. J.; Wood,
Wilfred H., Tech. Dir. WMBG, Richmond, Va.; Woodruff, Jr.
J. W., WRBL Radio Sta., Inc., Columbus, Ga. ; Woodworth, Samuel,
Gen. Mgr., WFBL, Syracuse, N. Y.; Woolley, Easton C., Sta. WWJ,
The Detroit News, Detroit, Mich.
1624
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D, C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright, 1936. The National Association ot Broadcasters
Vol. 4 - - No. 52
OCT. 7, 1936
Crosley and Others Testify on Third Day
of Allocation Hearing
Powel Crosley, Jr., R. J. Rockwell, technical supervisor of WLW,
Cincinnati, Ohio, and Joseph A. Chambers, technical advisor on
behalf of the Clear Channel Group were the only witnesses heard
today in connection with the allocation hearing before the Federal
Communications Commission.
During the course of Mr. Crosley’s testimony he was cross-
examined by Commissioner Payne of the Telegraph Division in
connection with time which his station gives to minority political
parties and competitors in some lines of business.
“I believe that the high powered station located on a clear chan¬
nel frequency performs a definite and necessary function,” said
Mr. Crosley “and as a meritorious institution should be preserved
and encouraged. This belief is based upon experience.”
During the course of his testimony Mr. Crosley also discussed
the history of WLW, the economic effects of S00 kilowatt station
operation and other topics relative to the latter question.
Paul Crosley
Mr. Crosley said:
Although some of the views which I will express here have been
expressed by other members of the industry, I have taken the op¬
portunity afforded me to appear and give to the Commission certain
facts, which relate particularly to the operation of Station WLW.
Having been engaged in business as an independent broadcaster
and manufacturer of receiving apparatus for more than fourteen
years, I feel that some of my experiences and observations over
this period may have a bearing upon the many and difficult ques¬
tions which confront this Commission in determining its future
allocation policies. Since these policies, as determined by you,
will, to a large extent at least, determine the broadcasting future
of this country, the importance of this meeting and the decisions
to which it will ultimately lead can scarcely be exaggerated or over¬
emphasized.
On Experimental Basis
While I am not speaking as the advocate of any particular
theory of allocation, our experience has largely been in the develop¬
ment of stations using power greater than that commonly and
currently in use, and my remarks, since confined to that experi¬
ence, will be largely so directed. Moreover, the fact that we have
been permitted by the Commission to operate with power of 500
KW on an experimental basis has put in our possession certain
information which we believe will be helpful to the Commission
and to the industry at large.
It will, therefore, be my purpose to acquaint the Commission
with such facts as I have relating to the operation of so-called
“super-power” stations, as that term has been understood and
applied from time to time; and more particularly and specifically
to various stages in the development of WLW. I shall also take
the liberty of reciting such of my own personal experiences as
may or might have a bearing upon the solution of this issue, since
they are related to the presentation and determination of similar
issues in the past. I believe that the high powered station located
on a clear channel frequency performs a definite and necessary
function, and as a meritorious institution should be preserved
and encouraged. This belief is based upon experience.
History of Station WLW
While the records of the Commission contain a full disclosure
of the history of Station WLW from its inception down to date,
I believe that a brief recital of the following facts will make
some of my statements and observations more understandable.
We first became interested in radio broadcasting in the early
“twenties”, at which time we were engaged in the manufacturing
business, making phonograph cabinets and other articles of a
similar nature. We were attracted at the outset by the various
and what appeared to me to be the unlimited possibilities of radio
from its social and educational, as well as its economic, aspects.
I saw, or thought I saw, at the time, a new field for an entirely
new article, namely, radio receiving sets. I realized that the public
demand for such sets would be directly in proportion to the number
of high quality programs which listeners could receive. We, there¬
fore, became interested in the research end of radio broadcasting
and made application for and were granted an experimental broad¬
casting license, and in April, 1921, began the operation of a station
with a power of 20 watts under the call letters 8CR.
Originate in Workshop
The programs of this station were originated in a workshop in
my home and consisted largely of the playing of phonograph
records and conversation. We conducted this station until March,
1922, when we constructed a station to be operated with a power
of SO watts under the call letters WLW. This was the beginning
of the station which has been continued under the same call letters
and under various frequency and power assignments down to date.
The changes in our operating power have been as follows: From
March, 1922, to September, 1922, with a power of SO watts; Sep¬
tember, 1922, to January, 1925, with power of 500 watts; from
January, 1925, to May, 1928, with power of 5000 watts; from
May, 1928, to March, 1934, with power of 50,000 watts; and since
March, 1934, down to date, we have been permitted to operate
experimentally with power of 500,000 watts.
Super Power
The first time that I heard the term “super-power” was back in
1922 just after we had inaugurated our first 50-watt station with
the call letters WLW. Another organization in Cincinnati, oper¬
ating a 20-watt broadcasting station for some months, encouraged
a radio club in Cincinnati composed of prominent radio listeners
to get together and make a protest about our 50-watt “super¬
power” transmitter. A committee was appointed to investigate.
I was invited to appear before this committee. I did so with a
clothes basket full of letters, many of them from far away points
such as Troy, Ohio.
The committee pondered the evidence weightily and a week later
reported to the radio club its finding that even though we were
using 50 watts we were evidently rendering a better service than we
would be able to render with 20 watts as indicated by the favor¬
able comments and congratulations upon our forward step as ex¬
pressed in this mass of letters.
I well remember the deadlock on the question of power that
existed at one of the early radio conferences called by Secretary
Hoover. There again the question of “super-power” reared it head
when the question came up as to whether 500 watts should be the
limit of power or whether 5,000 watt stations should be permitted.
I was one of those strongly advocating the proposal that broad¬
casting stations that wished to, might increase their power from
500 to 5,000 watts. The deadlock was finaly broken down by a
compromise that power of 5,000 watts might be tried experi¬
mentally.
1625
We again presented a very grave question to the Radio Com¬
mission in 1928 when we asked to be allowed to increase from
5,000 watts to the “super-power” of 50,000 watts. I feel that the
Radio Commission was wise in permitting us to build an experi¬
mental transmitter to use 50,000 watts. I feel that the Federal
Communications Commission in 1934, having weighed most care¬
fully and studied the matter from every angle, was wise when it
permitted us to build experimentally our station of 500,000 watts.
Now why has my company continually advocated the use of
greater and greater power? Why have we pioneered the advance
from 500 to 5,000 watts; 5,000 to 50,000 watts; and from
50,000 to 500,000 watts? Perhaps it is because we have been
manufacturing radio receiving sets during the same period ; because
very early in the game we appreciated that a radio signal is of
identically the same nature as static and forms of man-made
interference. We recognized the futility of any effort to separate
the two signals in the receiving set, and realized that the answer
to better radio reception was simply more power in the transmitter.
Our interest in greater power was manifest long before the
present commercial possibilities of broadcasting became evident.
Our policy has constantly been to improve our service; to plow
back into better service a large portion of the profits that might
accrue from the improvement of that service. I sincerely feel that
the public has been served better by each and every step-up in
power of our broadcasting station.
I shall attempt to be more specific in this matter and more par¬
ticularly in the last stage of WLW’s operation, by the recital of
certain specific facts and conclusions which have been demonstrated
by our experimental operation.
Benefits to the Public
From the very beginning it was our desire to increase the range
of our station because we were selling large numbers of radio
receiving sets into the small towns and rural districts and we felt
a certain obligation to supply a broadcasting service to go along
with the sale of the sets themselves. We were constantly striving
to overcome the bugaboo of radio reception known as static. We
had little interest in reaching out into the urban centers and obtain¬
ing much of an audience, because we knew that those areas were
well taken care of by their local broadcasting stations. We were
and still are interested in reaching the sections of the country re¬
mote from good broadcasting. We have endeavored to cover that
“No Man’s Land” lying between areas well served by local or
regional broadcasting station, to deliver, winter or summer, in
spite of atmospheric or other forms of interference, satisfactory
reception for the radio listener who can not afford the more
elaborate and costly receiving sets. That we have succeeded in
doing this is evidenced by the recent engineering report of the
Federal Communications Commission, indicating the popularity of
our station in rural districts.
Commercial Angle
True it is we later became conscious of the fact that after many
years of operating broadcasting stations at our own expense, there
was a commercial angle to the venture, and perhaps we have
profited because of our desire to serve better. I repeat that most
of our profits have been plowed back into better and better pro¬
grams, more and more clostly presentation of programs, and better
and better electrical, mechanical and technical equipment. The fact
that we have been able to put our signal within the reach of more
and more people is amply demonstrated by many measurements on
file with the Commission which have either been supplied by us or
made by the Commission’s own technical staff.
Because of the fact that WLW has from the outset attempted
to reach and serve the rural listener and the residents of the small
town and countryside, it has perhaps engaged in less purely com¬
munity enterprises than stations whose objects and purpose is to
render an intensive service only to a particular metropolitan area.
This is illustrated by the fact that WLW has some years carried no
purely local advertising accounts ; this type of business being taken
care of by the other Cincinnati stations. It is further illustrated
by the fact that our public service features are not designed and
intended only for the residents of Cincinnati and the metropolitan
area, but are planned to appeal to and to be used by an audience
much more widely distributed.
Educational Programs
For example, for more than six years we have devoted one full
hour each week day during the school year to Ohio State Univer¬
sity at Columbus, Ohio, for its exclusive use in such a manner as
the directing heads of that institution see fit to use the time. This
feature is known as the “Ohio School of the Air,” and the programs
which have been broadcast during this period have been of wide
appeal, having included scientific talks, lectures on literature and
the classics, music appreciation programss and the giving of much
useful information in such manner as it could be applied by the
farmer or the housewife resident at points remote from either
Cincinnati or the City of Columbus. We have always broadcast
“The Farm and Home Hour” put on by the National Broadcasting
Company, from its inception, and it is the policy of our station,
observed throughout the years, that no fact or circumstance can
interfere with the regular rendition of this program. Throughout
the years we have regularly put on live-stock and weather reports,
which we know are used and relied upon by the farmers, small
merchants and producers throughout a vast area. As a matter of
fact, all the important livestock markets throughout the Middle
West, and as far East as Buffalo, are equipped with receiving sets
centrally located and tuned at these periods to WLW, from which
they obtain the most recent and up to date market quotations.
This service is used and relied upon in much the same manner that
traders upon the commodity and other exchanges utilize a ticker
service.
Survey of Service
We mention these facts, not with a view of making an exhaustive
survey of the public service features which we are now rendering
and have rendered throughout the entire period of our operation.
We refer to them only as illustrating the type of program which we
broadcast and the variety of audience which we attempt to reach.
Although I realize that fan mail is not always the proper criterion
of a station’s regular listening audience, or a true measure of the
extent of service which a station renders, due either to special
appeals or the extreme or sensational character of the program
broadcasts, nevertheless, it does offer some guide as to the number
and extent of a station’s potential listening audience. In this con¬
nection the following may be of interest.
Fan Mail
With the power of 500,000 watts during the first three months of
1935, we received almost 4 times as many fan letters as we had
received during the same period the preceding year operating with
a power of 50 KW. For the six-month period, October, 1935, to
March, 1936, operating with 500,000 watts, we received almost 5
times as many pieces of fan mail as we received during the same
six-months period, October, 1933, to March, 1934, when operating
with a power of 50 KW.
When you consider that a great bulk of our fan mail comes from
the small towns and rural districts, and the further fact that expe¬
rience has shown that a relatively small number of listeners do
actually write fan letters, it is clear that the power increase of
WLW has resulted in furnishing a radio service not heretofore
available to a vast number of such listeners.
By way of summary, I believe that the benefits to the public
from our successive power increases have been threefold. First,
many listeners received programs which, because of the type of
receiving equipment used or because of distance, they never would
have received otherwise ; second, the reception for those who could
hear the programs is vastly improved; and third, we have been
able by increased revenues to improve the programs themselves.
No Interference
One of the first and most frequently expressed fears against the
use of so-called “super-power” was that it would have a blanketing
effect on the reception of other stations. I heard this fear first
expressed in 1922, when we went from a power of 20 to 50 watts,
and it has been repeated at various times by those who are not
completely familiar with the facts ever since. Due to extensive
experiments and tests which we have made, I again say definitely
that such a fear it not borne out by the facts.
Certain of the experiments made at and near our station while
in operation with power of 500 KW have already been explained
and demonstrated. In the city of Cincinnati, 20 miles from our
station, one of our standard tests of our receiving sets is to separate,
without cross-talk, WGN from WLW in the daytime. WGN is
only 20 kc removed from WLW. At night at our proving station,
which is between 10 and IS miles from WLW, we regularly bring in
WOR, without cross-talk, which station is separated 10 kc from
WLW, whenever static and atmospheric conditions will permit the
1626
WOR signal to come through clearly. Our Mr. Rockwell will
demonstrate to you with a sound moving picture a receiving set
located only 2500 feet from WLW’s antenna with — — - volts from
WLW in the receiving antenna, bringing in stations almost all over
the dial with a #40 7-tube set. Mr. Rockwell will give still further
demonstrations, which in my opinion and in the opinion of com¬
petent technicians who participated in and observed these tests,
definitely explode the early fears of blanketing as fallacious and
unsound.
Cross Talk
I, of course, would be the last to assert that some radio
listeners in close proximity to certain stations, and in fact any
station, do not occasionally receive a form of cross-talk which is
undesirable and frequently so objectionable as to destroy the use¬
fulness of the desired program. I do assert that according to
experiments conducted by us, both in and out of the laboratory, the
prevalent cause for such a condition is neither defective receivers
nor the proximity of high-powered transmitting equipment. That
on the other hand, it is caused by the rectification of certain objects,
resulting from corroded power line connections, unsoldered splices
in antenna or ground leads, antenna leads loosely in contact with
metal window screens or sills, and other conditions of a similar
nature which are more or less common in metropolitan areas, and
more particularly, in such areas where the power lines, and the
radio and electrical appliances in use are not of recent installation.
The presence of such conditions results in a demodulation of the
desired signal or a separation of the audio frequency and radio
frequency components in such a manner as to result in the signal
of an undesired station appearing on the frequency of a desired
station. Mr. Rockwell will demonstrate this type of cross-talk and
the prevalent causes therefor.
Economic Effects of 500 KW. Operation
The economic results of the use of power of 500 kw. to a station
using it or to other stations are not as susceptible of definite proof
as are the technical benefits to the listening public or the absence
of injury to the listening public from the technical operation of
such a station. This is true because, among other reasons, each
station and each locality presents an individual problem. Differ¬
ences in location, in directing personnel, in program policies, in the
prior experience and popularity of the station, and many other
factors enter into the determination of these questions.
I am, however, able to give certain facts showing the relative
cost of installation and operation of a 500 kw. and a 50 kw. plant
based upon our experience, and since 50 kw. equipment is now
standard, and a sufficient number of such units have been installed
and in operation over a period of years, it should not be difficult
to apply these ratios to any given case.
Operating Costs
In determining total operating costs, it is necessary to provide
for a depreciation or amortization of the original cost of equipment
for a period which approximates the life of the equipment. In
the following comparison of figures we have used a depreciation
of 10% based on ten year life, for both the 50 kw. equipment and
its comparative 500 kw. equipment. Breaking down the purely
technical items, we find that it costs us 371% more for electrical
power; our water bill is 80% higher, tubes cost us 33% more in
operating the 500 kw. transmitter over a 50 kw. unit. These
figures do not take into account added program expenses, extensive
building or construction, or additions to the administrative or
executive staff which may be regarded desirable or even necessary.
In our own case we did add 140% to administration and salaries;
9% to fixed charges and rent; 75% to program costs, and deprecia¬
tion of 10%, so that in going from 50 kw. to 500 kw. our operating
cost has increased 68%. As against this total operating increase
of 68%, we increased our advertising card rate 20%, but have been
able with the greater demand for our station to operate at a profit.
It is even more difficult to estimate the economic effects of 500
kw. operation upon stations of other classes located within the
service area of the 500 kw. station. We have had no experience
on this point and no opportunity to observe, other than that
afforded by our ownership and operation of Station WSAI which
is a regional station also located in Cincinnati. In that case the
operation of the 500 kw. transmitter at WLW has had no adverse
effect upon the network or other business of WSAI. As a matter
of fact, the business of the regional station has increased steadily
through this period.
Conclusions
In conclusion, I wish to thank the Commission for the oppor¬
tunity of being permitted to state my views in a forum and for a
purpose of this kind. I am strongly of the opinion that proceed¬
ings of this nature are not only useful but absolutely necessary
to the industry for a proper understanding of its problems. Because
of the very nature of the work in which we are engaged, we tend
to become individualists and not members of a closely knit indus¬
trial organization. It is therefore well nigh impossible for all the
members of the industry independently to keep closely in touch
with the problems which confront us all. This type of proceeding
performs this function.
I sincerely hope that the Commission will find that it has not
suffered in vain, and that it will likewise derive some benefit from
the views expressed here.
Following Mr. Crosley’s statement he was cross-examined during
the course of which he stated that WLW, his 500 kilowatt station,
has been fully as good an investment for the Crosley Company as
was the 50 kilowatt station. This means, he said, that the station
is taking in more dollars than it was before because expenses of
operating the 500 kilowatt station are much more than for the
lower powered station.
The investment cost of the 500 kilowatt station Mr. Crosley
told the Commission is about half a million dollars more than that
for the 50 kilowatt one which preceded it including the erection of
a new antenna and a new building.
History May Repeat
Mr. Crosley was asked if he thought that the granting of thirty
500 kilowatt stations would have any effect on the present broad¬
casting system of the country. He said that in his opinion history
might repeat itself regarding the whole high powered question and
he expressed himself as being in favor of a horizontal increase in
power for small stations.
The small stations of the country, he contended, have a hard time
competing against network programs because of their excellence
but he expressed the opinion that there is a place in this country
for all classes of stations, high power, regional and local.
Mr. Crosley told the Commission that he personally is not
advocating any special policy on the high powered situation. He
did say, however, that he did not believe that establishment of thirty
500 kilowatt stations would keep local stations from operating or
take away their need in their own sphere of action.
Questioned on the European situation Mr. Crosley said that
his understanding was that most of the European stations are
government owned and contended that the broadcasting problem
there differs materially from the problem in the United States.
Just as the broadcasting problem is different in Europe and in
this country so, he said, engineering problems are also different.
Can Station Pay?
Asked what he thought should be the controlling factors in the
granting of a high power license by the Communications Commis¬
sion, Mr. Crosley stated that the Commission would have to con¬
sider among other things whether the station was able to pay for
the high power transmitter, the history of the station’s ability to
serve the public and how it has served the public in the past would
also be a matter for the Commission to think about in granting such
a license. The location of the proposed high powered station and
its relation to other stations would also have to be considered.
He definitely expressed himself against the Commission’s putting
any limit to high power.
Cross Examination
Commissioner Payne during the course of cross examining Mr.
Crosley asked about the profits which the latter had stated in his
testimony his company had plowed back into the business. Mr.
Crosley could not give any definite figures but said that one of the
ways in which this had been done was to establish better and
better programs. He was questioned as to the dividends of the
Crosley Company and stated that last year it had paid twenty-five
cents a share and on further questioning testified that he owned
about one-fourth of the stock of the Crosley Company.
Pharmaceutical Company
Commissioner Payne asked some questions relative to the General
Pharmaceutical Company. Mr. Crosley testified that his company
owns all of the stock of the Pharmaceutical Company which has
1627
two products. The Commissioner insisted on knowing whether
WLW made any charge for advertising this company’s products
on the air and Mr. Crosley stated that no charge was made either
for that company or for the Crosley Company manufacturing radio
sets or refrigerators.
Commissioner Payne was told in answer to one of his questions
that Mr. Crosley had not refused to allow labor questions to be
discussed on WLW. He stated that Townsend representatives had
been refused time on WLW only because hearings were being held
at that time by Congress on the Townsend question following
which the Townsendites had no desire for time on WLW. He
denied that Lemke had been refused time on his station and in¬
sisted that it was the policy of WLW to give the same treatment
to all political parties both major and minority.
Programs on WLW
Commissioner Payne further questioned Mr. Crosley relative
to some of the programs used over WLW. He spoke particularly
of one Alfred Gus Karger, a news commentator whom Commis¬
sioner Payne intimated talked for one political party. There was
some discussion also of a feature of the Gruen Watch Company
including talks by Drew Pearson and Robert Allen, also news
commentators. It came out during the course of this part of the
cross examination that the station was fearful of libel because of
the personalities discussed in this program. This matter was later
adjusted to the satisfaction of the watch company.
A letter from Senator Norris was read by Commissioner Payne
in which the Senator spoke about complaints he had received
against WLW in connection with political broadcasts. During the
course of this cross examination Mr. Crosley pointed out to Com¬
missioner Payne that he had to protect his station against possible
libel and this was in answer to a question by the Commissioner
relative to censorship in not allowing the Gruen Watch Company
to go on with its Pearson and Allen comment.
R. J. Rockwell
R. J. Rockwell, the technical advisor of WLW and WSAI,
showed sound pictures with the intent of demonstrating the fact
that good reception can be obtained in close proximity of high
powered stations taking WLW as a typical example.
He showed three separate exhibits to demonstrate the actual
conditions in the operation of Station WLW. One of these in¬
cluded a recording of a WLW broadcast taken 300 miles from that
station and using both SO kilowatt and 500 kilowatt power. Mr.
Rockwell also discussed complaints which had been received fol¬
lowing the removal of WSAI to a new location which appeared
to include external cross modulation. He said that WSAI is still
continuing experiments to find out exactly what is happening.
Mr. Rockwell contended during the course of his talk that no
blanketing exists in connection with WLW using 500 kilowatt
power.
Chambers Continues
Joseph A. Chambers, technical advisor for the Clear Channel
Group, returned to the stand today to continue his testimony of
yesterday. He was cross examined by T. A. M. Craven, chief
engineer of the Commission, and then there was redirect examina¬
tion by Louis Caldwell, counsel for the group.
Mr. Chambers told the Commission that about fifty million
people in the United States depend upon clear channel stations at
night for their reception and between thirty and forty million
during the day time. He stated that the use of a number of clear
channel stations could cover the whole country.
European Stations
He discussed at some length also the use of high powered
clear channel stations in Europe and he stated that the Europeans
think it necessary to use high power and further that it is necessary
to retain clear channel stations.
Mr. Chambers also discussed the service radii of fifty and S00
kilowatt stations and went into the theoretical day time coverage
area of a 50 kilowatt station. This latter he stated has a day time
coverage of a hundred and sixty-six thousand two-hundred square
miles with a night time coverage of approximately half a million
square miles. He discussed further the trend of maximum and
average power of United States licensed stations and said that
not less than 50 kilowatts should be used by clear channel stations.
Under cross examination Mr. Chambers spoke of his qualifica¬
tions as a radio engineer from 1922 on, stating that at one time
he had been connected with General Electric, later with Crosley,
and is now Consulting Engineer.
Doctrine of Group
Questioned on the doctrine of the Clear Channel Group he was
asked if each high powered station believes that it should serve the
whole United States. He answered by stating that each station
would try to cover remote areas but there are other factors going
into the complete coverage of the country. He stated also in
answer to a question that there has been no change in the doctrine
in the high power group since the early radio conferences.
Mr. Chambers contended that even if all clear channel stations
are operating they could probably not give a good signal all over
the United States. Mr. Craven endeavored to get a correct answer
from Mr. Chambers in connection with the number of clear channel
stations to cover the whole country. Mr. Chambers said that in
his opinion all of the rural inhabitants could get good service from
fifteen clear channel stations. In this connection, however, he
stated specifically that this would be night time reception and that
day time reception would be definitely limited. In his opinion
he said the Commission would be taking a chance in giving up
any more clear channels.
Directional Antennas
Local stations Mr. Chambers believed might be taken care of
on the frequency band from 1500 to 1600 kilocycles. He spoke of
the possibilities of the use of directional antennas by regional sta¬
tions and he stated definitely that he had no suggestions to make
regarding the abandonment of either regional or local stations.
Mr. Chambers said that cross talk on adjacent channels is one
of the limitations at present on the use of 500 kilowatt stations.
External cross modulation he stated is really the basis of many of
the complaints of blanketing.
Still under cross-examination Mr. Chambers said that a 500 kilo¬
watt station on the West Coast and a 500 watt station located in
Maine with a directional antenna would not give good results
owing to interference, especially if the West Coast station wished
to serve rural population. The West Coast station he stated un¬
doubtedly would put out some signals that would reach into Maine.
Problems Similar
From an engineering point of view Mr. Chambers stated that
European and United States problems are similar. The use of high
power is a good insurance against interference in the United States
from outside sources.
In connection with the cost of 50 kilowatt transmitters Mr.
Chambers stated that the technical cost of such a station including
depreciation, maintenance and operation would be about $66,000 a
year while for a 500 kilowatt station it would be about $200,000.
On redirect examination Mr. Chambers said that there would
be no chance of interference between a 500 kilowatt station in the
United States and Europe. In his opinion he said the waves take a
southern route going from this country to Europe thereby traveling
a distance greater than that represented by air miles. If the
Europeans increase their power and we do not and if there is inter¬
ference then he said that we would be the sufferers.
Additional Registrations
The following additional registrations were made with the Com¬
mission yesterday:
A
Allen, Edward A., Lynchburg Brdcstg. Corp., Lynchburg, Va.
B
Berne, Louis W., Station WCNW, 846 Flatbush Ave., Brooklyn,
N. Y. ; Blackley, Chas. P., Station WSVA, Harrisonburg, Va.;
Bennett, Edw., Univ. of Wis., Madison, Wis. ; Blanton, Matthews,
Attorney, KRBC, KBST, KPLT.
C
Campbell, Richard D., Engineer, Amer. Tel. and Telg. Co., 195
Broadway, New York City; Carpenter, H. K., United Brdcstg. Co.,
Terminal Tower, Cleveland, Ohio; Corkhill, C. W., Station KSCJ,
Sioux City, Iowa.
F
Faske, Arthur, Station WCNW, 846 Flatbush Ave., Brooklyn,
N. Y. ; Fraser, Russell, Imperial Aerogram Corp., Hollywood, Calif.
1628
G
Goulden, Stanley W.. RCA Mfg. Co., Inc., Camden, N. J.
H
Hamilton, Ray V., Stas. KXOK-KFRU, St. Louis and Columbia,
Mo.; Hill, C. A., Station WIBM, Jackson, Mich.
P
Ponsford, Walter W., Graybar Elec. Co., Philadelphia, Pa.
R
Richards, J. E., Gen. Mgr., Station WBNO, St. Charles Hotel,
New Orleans, La.; Rosenberg, E. J., Transamerican Brdcstg. &
Television Corp., 521 Fifth Ave., New York City.
S
Staubitz, E. J., Blaw Knox Co., Pittsburgh, Pa.
T
Thomas, Norman A., Station WDOD, Hotel Patten, Chattanooga,
Tenn.
W
Williamson, Jr., W. P., WKBN Brdcstg. Corp., Youngstown,
Ohio; Wooten, Hoyt, Pres, and Owner, Station WREC, Memphis,
Tenn.
I
1629
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright* 1936. The National Assoeiation of Broadcasters
Vol. 4 - - No. 53
OCT. 8, 1936
IN THIS ISSUE
Page
Securities Act Registrations . 1631
Federal Trade Commission Action . 1631
Federal Communications Commission Action . 1633
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Thorrez & Maes Manufacturing Company, Jackson, Mich. (2-
2479, Form A-l)
Marchant Calculating Machine Company, Oakland, Calif. (2-
2482, Form A-2)
Susquehanna Capital Corporation, Jersey City, N. J. (2-2483,
Form A-l)
Selected American Shares, Inc., Chicago, Ill. (2-2484, Form
A-2)
A & K Petroleum Company, Oklahoma City, Okla. (2-2485,
Form A-l)
Charles P. Limbert Company, Holland, Mich. (2-2486, Form
A-2)
Lexington Brewing Company, Lexington, Ky. (2-2488, Form
A-l)
Gilbert Klinck Brewery Corporation, Buffalo, N. Y. (2-2489,
Form A-l)
Celanese Corporation of America, New York City. (2-2490,
Form A-2)
American Refrigerator Transit Co., St. Louis, Mo. (2-2495,
Form A-2)
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2930. Misrepresentation of the tone quality and value of
an electrical musical instrument called “The Hammond Organ”
is alleged in a complaint issued against the Hammond Clock
Company, 2915 North Western Ave., Chicago. The respondent
company’s practices in the sale of its instrument are held to con¬
stitute unfair methods of competition in violation of Section 5 of
the Federal Trade Commission Act.
Among representations allegedly made by the respondent com¬
pany in its advertising matter are that use of “The Hammond
Organ” means “that real organ music of unbelievably beautiful
quality is now possible in any home at an expense no greater than
that of a good piano”; that the instrument “produces the entire
range of tone coloring necessary for the rendition, without sacri¬
fice, of the great works of classical organ literature,” and that
many organists agree the instrument is comparable to pipe organs
costing $10,000.
No. 2931. Alleging suppression of competition in interstate
commerce in the hot air furnace industry, a complaint has been
issued against the New York State Sheet Metal Roofing and
Air Conditioning Contractors’ Association, of Utica, N. Y.,
Fox Furnace Company, of Elyria, Ohio, and officers of both
organizations.
Unfair competition against hot air furnace manufacturers sell¬
ing their products to mail order houses is the principal charge.
The complaint alleges that the New York association, whose
membership consists of plumbing contractors and dealers in sheet
metal, roofing supplies and hot air furnaces, entered into an agree¬
ment and combination with the Fox Furnace Company, manu¬
facturer of hot air furnaces, to blacklist or boycott hot air furnace
manufacturers selling to mail order houses.
According to the complaint, the respondents, in their alleged
combination and conspiracy, sought to prejudice members of the
New York association and other trade associations against manu¬
facturers selling to mail order houses, and to urge them to pur¬
chase only from the manufacturers recommended by the New York
association and the Fox Company.
No. 2932. A complaint has been issued against J. W. Gibson,
trading as J. W. Gibson Company, 1828 Central Avenue,
Indianapolis, charging use of false advertising in which he mis¬
represents the quality of his extracts and food flavors and the
amount of money salesmen may earn selling his merchandise.
Gibson is said to advertise that agents can obtain from him
free sales kits, earn from $24 to $50 a week, and receive a new
automobile as a bonus in addition to regular commissions, when,
the complaint alleges, such representations are untrue.
According to the complaint, the respondent requires a deposit
of $1 for each sales kit, which amount is not refunded until the
agent has purchased a stated quantity of merchandise ; agents’
earnings do not approximate the amounts advertsied, and agents
do not receive an automobile free, but on the contrary must sell
merchandise amounting to $4,500 before they are entitled to a
car. It is alleged that no salesman has ever received an automobile
from the respondent, free or otherwise.
No. 2933. P. A. Lefebvre & Company, Limited, of Alex¬
andria, Ontario, Canada, and Zatique Lacomb, are named
respondents in a complaint charging them with unfair methods of
competition in connection with the sale of “Magic Gas.” The
company has its manufacturing establishment and an office for
business transacted within the United States at Malone, New York.
According to the complaint, “Magic Gas,” when mixed with
gasoline or kerosene and used in internal combustion engines of
motor vehicles, does not, as the respondents allegedly advertise
and represent, eliminate “knocks” or carbon trouble, increase
mileage and engine power, save gasoline or oil, make cars pick up
easier or quicker, or solve the gasoline problem.
These false and misleading claims, the complaint charges, tend
to deceive purchasers regarding the value and effect of “Magic
Gas,” and divert trade unfairly to the respondents from competi¬
tors who truthfully advertise their products.
No. 2934. Misleading representations in connection with the
sale of “Dr. Haller’s Famous Prescription 5000,” a woman’s rem¬
edy, are alleged in a complaint issued against Lewyn Drug In¬
corporated, 1928 Taft Ave., Hollywood, Calif.
In magazines of national circulation, the respondent corporation
is said to advertise that the preparation is safe and dependable,
has been dispensed through ethical channels for almost half a
century, and is the best product of its kind in the world.
These representations are untrue, according to the complaint,
which charges that use of the preparation may produce serious
results.
Nos. 2935-2936-2937. Three complaints charging violations of
the Robinson-Patman anti-price discrimination act, amending
Section 2 of the Clayton Act, have been issued. They are the first
complaints to be issued by the Federal Trade Commission under
the Robinson-Patman amendments to the Clayton Act, enacted
during the closing days of the last session of Congress.
One complaint, brought under Section 2 (a) of the Robinson-
Patman Act, names the Kraft-Phenix Cheese Corporation, of
Chicago, as respondent. In another, the Shefford Cheese Com¬
pany, Inc., having its principal place of business at Syracuse,
N. Y., is the respondent. This complaint also charges violation
of Section 2 (a) of the Robinson-Patman Act. The third com¬
plaint names Bird & Son, Inc., the Bird Floor Covering Sales
Corporation, a subsidiary of Bird & Son, Inc., both of East
Walpole, Mass., and Montgomery Ward & Company, Inc., of
Chicago, as respondents. In this complaint Bird & Son, Inc., and
the Bird Floor Covering Sales Corporation are charged with viola¬
tion of Section 2 (a) of the Robinson-Patman Act, and Mont¬
gomery Ward & Company, Inc., with violation of Section 2 (f)
of that Act.
1631
No. 2939. A complaint has been issued charging Helena
Rubinstein, Inc., 8 East 57th St., New York, with misrepresent¬
ing the properties, nature and effect of a wide variety of cosmetics,
facial creams and toilet articles which the corporation sells in
interstate commerce.
In newspapers and magazine advertisements, in circulars and on
labels, the respondent corporation allegedly makes representations
to the effect that its preparations possess properties or contain
ingredients that feed or nourish the skin or lips, restore youth to
the skin, prevent crows’ feet and wrinkles, and contain hormones
or “living sparks of life” which increase the therapeutic value of
the products, when, according to the complaint, such claims are
exaggerated and false.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 1776. Edward Ehrlich, trading as Fairway Distribut¬
ing Company, 333 6th Ave., New York, in the sale of midget
radio sets, agrees to cease using the word “Majestic” alone or with
the words “Radio Corp.” as a trade name or brand so as to imply
that his products are manufactured by Grigsby-Grunow Com¬
pany, an Illinois corporation, when such is not a fact. Ehrlich
also will stop use of the word “Bell” independently or in con¬
junction with the word “International,” as a designation for radio
sets he sells so as to give the impression that such products are
made by the American Telephone and Telegraph Company, its
subsidiaries or associates, or the Western Electric Company, Inc.,
when this is untrue. According to the stipulation, the name
“Majestic” is now vested in Frank McKey, trustee in bankruptcy
for the creditors of Grigsby-Grunow Company, and the name
“Bell” and the representation of a bell as used are the legal prop¬
erty of the American Telephone and Telegraph Company, its sub¬
sidiaries or associates, and the Western Electric Company, Inc.
No. 1777. Benedict Oskin, 5144 Cornelia Ave., Chicago,
trading as United States Supply Co. and selling watches and
spectacles by mail order, agrees to discontinue using any words in
such sizes and arrangements, either alone or in connection with
any pictorial representation which may have the tendency to
mislead purchasers as to the true meaning of his advertisements.
According to the stipulation, the respondent’s advertisements were
so worded and arranged that they tended to deceive purchasers
into the belief that they would receive a pair of spectacles for 20
cents, and would receive a watch for 20 cents, or an Elgin or thin
model, when in fact the watches sold by the respondent were
“Sport” models, manufactured by a company other than Elgin
and made to retail at $1.19 each. The respondent also will stop
failing to disclose in his catalogue that the watches listed are
second-hand and reconditioned.
No. 1778. W. M. .Jacobson, 308 F. 51st St., Chicago, trad¬
ing as Wonder Manufacturing Company and selling wood fiber
ornaments and gift shop novelties under the trade name “Wonder-
Tex,” agrees to discontinue using the word “Manufacturing” in
his trade name or in any manner so as to create the impression
that he is a manufacturer or owns or operates a factory where
his products are made or fabricated, when such is not a fact.
Jacobson also will cease representing that he is identified with
or is successor to the Syracuse Ornamental Company, Syracuse,
N. Y., which markets wood fiber ornaments, carvings, and similar
articles; that the merchandise he sells are the products of the
Syracuse company, or that he has purchased the machinery of that
company and equipped a plant in Chicago and resumed its busi¬
ness.
No. 1779. Bertram A. Straus, 1919 Broadway, New York,
a jobber trading as Columbia Pencil Company, stipulates that
he will discontinue use in advertising matter of such phrases as
“Direct from the factory” and “From the factory to the ultimate
consumer” so as to imply that he owns or operates a plant where
the pencils sold by him are manufactured.
No. 1780. Claire Frocks, Inc., Woodford Building, Cin¬
cinnati, engaged in the sale of women’s dresses, aprons, uniforms,
and hosiery, and men’s uniforms and shirts, agrees to stop em¬
ploying the word “manufacturers” alone or with other words in
advertising matter relating to products it does not manufacture,
and to cease use of that word or such statements as “Brought to
you direct from our big factory,” so as to imply that it manu¬
factures its products or owns or controls a factory where such
products are made, when such is not a fact. The corporation will
refrain from representing in advertising matter that dresses are
given free to its agents, when such purported gifts are in fact
bought and paid for by the services performed by the agents in
the sale of the respondent company’s merchandise.
No. 1781. Union Pharmacal Company, Inc., 67 Irving
Place, New York, trading as Certified Aspirin Company, will
discontinue advertising that its aspirin product is free from un¬
combined salicylic acid, is tasteless, is a remedy for colds or cold
infections, and that it complies with Government standards, when
such is not a fact. The respondent corporation will stop repre¬
senting that its product relieves pain generally, unless such repre¬
sentation is so limited as to apply to a few simple pains which
experience shows can usually be relieved by the use of aspirin.
No. 1782. Ramsey Accessories Manufacturing Corpora¬
tion, 3693 Forest Park Boulevard, St. Louis, engaged in the
manufacture and sale of automobile piston rings having an inner
spring, will cease making exaggerated representations respecting
the increase of its volume of business at any time; and will stop
advertising that its products, sold under the trade name “Ramco,”
represent 16 years’ concentration on spring ring construction or
that they are the result of exclusive patents held on spring ring
design. The respondent corporation also will discontinue claims
that automobile repairmen can make a profit of $16 on each
“Ramco job,” or that automobile motors can be overhauled for
$18, unless such representations are limited, with respect to the
type of car to be overhauled, to the kind and amount of work
to be done or to the parts to be supplied, and in such a way as
to bring the cost to the car owner and the profit of the repairmen
within the range of probability.
No. 1783. Schiller- Cable Piano Manufacturing Company,
Oregon, Ill., agrees to discontinue use of the word “grand” to
describe any piano not having its strings placed horizontally, with
gravity action, and not possessing the tonal and other qualities
associated by the trade and general public with grand pianos.
The company also will cease advertising that its piano sold under
the trade name “Schiller Vertical Grand” is a “big grand,” “a real
grand,” or “actually a grand piano accoustically.”
No. 1784. Hyman Abish and Joseph Roger, trading as
New York Hat and Cap Company, 840 Broadway, New York,
will cease use of the word “Panama” alone or with the word
“Toyo” to describe a hat not made from the leaves of the jipajapa
plant in accordance with the process used in the manufacture of
Panama hats, and will stop using the word “Panama” in any way
as descriptive of hats so as to imply that such products are
Panama hats, when such is not a fact.
No. 1785. Herman E. Ballard, 743 Dwight Way, Berkeley,
Calif., trading as Elco Chemical Co., and manufacturing and
selling valve lubricants, agrees to cease representing in advertising
matter that any of his products “is an exact duplicate” of, or that
he duplicates, the lubricants sold under the brand name “Merco”,
when such is not a fact. According to the stipulation, there is
a corporation known as Merco Nordstrom Valve Company, Oak¬
land, Calif., which manufactures and sells tapered rotary plug
valves and lubricants for use in such valves, under the trade name
“Merco.”
No. 1786. Charlotte Thomas, 1334 Douglas Ave., Los
Angeles, trading as Thomas Radium Cone Company, is en¬
gaged in the sale of “Radium Cones”, which are designed to
charge water with radio-activity. She will cease representing that
her products have any therapeutic or curative value for any bodily
ailment or disease; that the drinking of water activated by her
“Radium Cones” is a cure for or will ameliorate the symptoms
of any human ailment further than such benefits as may arise from
the drinking of an increased quantity of water, and that the Mayo
Clinic uses radium-activated water for treating patients. The re¬
spondent agrees to cease and desist from publishing the purported
opinions of physicians or medical experts in reference to the thera¬
peutic value of radio-active therapy not specifically applicable to
her product, unless the fact that such opinions were not made
specifically in connection with her product is also clearly indicated.
No. 1787. Wally Frank, Ltd., 10 E. 45th St., New York,
is engaged in selling tobacco, assembling pipes, and importing
finished and unfinished briar pipes and blocks of briar wood to be
made into pipes. The corporation agrees to cease and desist from
using in advertisements any pictorial representation of the British
royal coat of arms or the official seal of the King of England, alone
or with the words “Best British Brand” or “Wally Frank, Ltd.,
London,” which have the tendency to mislead purchasers into the
belief that the respondent is a British company with an office in
London, that it is registered under the British Companies Act or
that it manufactures the pipes it sells.
Other practices that will be discontinued are use of the words
“Sold Direct to You” so as to give the impression that the re¬
spondent corporation’s pipes move directly from the manufacturer
to the user, when such is not the fact, and use of words and figures
which exaggerate the true value of its products.
1632
No. 1788. Castilian Products Corporation, 1027 North
Seward St., Hollywood, Calif., in selling soap, will stop employ¬
ing the words “Imported Olive Oil” as a brand to designate its
products which are not composed wholly of imported olive oil;
and the word “Olive”, alone or in conjunction with the words
“Imported” and “Oil” so as to imply that the fatty content of the
soap is composed wholly of olive oil, when such is not a fact. The
corporation also will cease using the word “Importers” in any
manner that might lead purchasers to believe that it is an importer,
when this is not true.
No. 1789. Ansley L. Coleman, 809 Huger St., Columbia,
S. C., trading as New Aseptic Laboratories, agrees that in the
sale of absorbent and surgical cotton he will discontinue use of
the words “sterilized” or “aseptic” as a brand or label to describe
or designate products which are not free from bacteria both at the
time of the final packaging by the manufacturer and at the time
of the sale of the packages to the ultimate purchasers.
No. 1790. Philco Radio and Television Corporation, Tioga
and C Sts., Philadelphia, stipulates that, in advertising its radio
sets for sale, it will discontinue broadcasting representations, the
effect of which is to imply to listeners-in that the announcer has
actually tuned in a designated foreign broadcasting station; that
the program heard is picked up from such foreign station and is
being rebroadcast through the local station or network over which
the announcer is speaking, or that the foreign station was originally
picked up and a recording made therefrom, when such are not the
facts.
According to the stipulation, the respondent corporation, in
soliciting the sale of Philco products, caused advertising programs
entitled “Around the World with Boake Carter” to be broadcast,
these programs consisting of a series of electrically transcribed
talks in the form of continuities prepared by Carter and describing
his visits to foreign countries. At certain points during the broad¬
casting of such electrically transcribed discourses, Carter is said
to simulate a demonstration of tuning in a musical program from
a radio station in the foreign land being discussed, when, according
to the stipulation, the music heard by listeners-in does not come
from a foreign station but is produced in the studio of the station
from which the broadcast is being made.
The respondent corporation also agrees to cease and desist, when
referring to the possibilities of short wave radio reception, from
use of such statements as “With the new Philco I can tune what
I want now when I want it”, or any representations of similar
meaning, implying that foreign radio programs may be obtained
with a reasonable degree of clarity, regardless of static, atmospheric
conditions or signal strength.
No. 1791. Lewis Tannenbaum, trading as Sha-Po Manu¬
facturing Company, 12 Bleeeker St., New York, will dis¬
continue selling baseball caps or other novelty headgear manu¬
factured from second-hand, used or discarded felt or other materials,
unless he stamps upon such products words clearly indicating that
they are not manufactured from new and unused materials, but
from second-hand, used or discarded materials.
No. 1792. Gilbert Alexander Sheard, Post Office Box 666,
Dayton, 0., trading as Supreme Lubricants Company and as
Lubricating Specialties, agrees to discontinue employing the
name “Pyroil” on measuring cups used in connection with the
sale of his product which is not manufactured by the Pvroil Com¬
pany of La Crosse, Wis., and from using that name or making
any representation so as to imply that the lubricant he sells is
made by the Pyroil Company, when such is not a fact. Pyroil
Company, according to the stipulation, is the trade name under
which a graphited lubricant has become well known to and recog¬
nized by the trade and public to be the product made and sold
first by William V. Kidder and, subsequent to his death, by his
widow, trading as Pyroil Company.
The respondent also stipulates that he will cease using the labels
or in any other manner the words “Fyroyl” or “Powroil”, or any
other words simulating “Pyroil”, either alone or with the word
“original”, to designate his product so as to imply that it is manu¬
factured by Pyroil Company.
No. 1793. H. E. Ohls, Post Office Box 35, Marion, O.,
trading as Ohls Poultry Yards and Hatchery, stipulates that
in advertising matter he will refrain from representing that he has
sold more than 1,000,000, or any other number, of baby chicks in
a designated state or place during a specified period of time, when
such stated number of chicks so sold is inaccurate or much in excess
of the actual number.
No. 2370. Acme Distilleries, Inc., 723 West Pratt St.,
Baltimore, has been ordered to cease and desist from representing,
through use of the word “Distilleries” in its corporate name and in
advertising or on labels, that it is a distiller of whiskies or other
spirituous beverages. Findings are that the respondent company is
a rectifier, blender and bottler of liquors.
Under the order, representation that the respondent company
owns, operates or controls a plant where liquor is manufactured by
distillation, is prohibited, unless and until the company shall
actually own or control a distillery.
According to findings, the respondent company’s business was
placed in the hands of receivers and its assets sold by auction except
that no sale was made of the name “Acme Distilleries, Inc.,” or of
the right to use it, “unless and insofar as such right may be incident
to a sale made by said receivers to the Overbrook Co., another
Baltimore rectifier, of respondent’s unused labels bearing its cor¬
porate name.”
No. 2534. W. A. Gibbs & Son, Inc., Chester, Pa., has been
ordered to discontinue unfair methods of competition in connection
with the sale of animal traps designated as “Two-Trigger,” used
principally for trapping muskrats.
The order to cease and desist directs the respondent corporation
to cease representing in its advertising matter that its traps are 100
per cent efficient in operation or effect a 100 per cent catch; that
they will entirely eliminate misses, escapes, “wring-offs” or losses,
and that every animal that springs the trap will “stay caught.”
No. 2732. An order has been issued to cease and desist re¬
quiring Garten Table Pad Co., 131 Market St., Philadelphia,
to cease and desist from unfair representations in the sale of its
manufactured articles, namely, table pads used for protection of
table surfaces from hot dishes.
Representation is prohibited through use of labels or otherwise,
that this company’s table pads are backed with felt, a material pro¬
duced from wool fibres, or wool and cotton materials, which have
been matted together, compressed and shrunk, when in fact they
have not been backed with such material.
No. 2865. The Atlantic Coast Oil Company of New York,
Inc., with headquarters at Dry Harbor Road and Cooper Ave¬
nue, Glendale, Queens, New York City, blender and wholesaler
of motor oils and greases, has been ordered to discontinue repre¬
senting, through use of the emblem of the Pennsylvania Grade
Crude Oil Association, that it is a member of this association, until
and unless such is the case.
Findings are that the Pennsylvania association is composed of
practically all the refiners of motor oil produced from the Pennsyl¬
vania oil fields and a large number of jobbers and distributors of
Pennsylvania oil.
The order also directs the respondent company to stop represent¬
ing, through use of the Pennsylvania association emblem, and of
the phrase “Guaranteed 100 per cent Pure Pennsylvania Oil,
Specially Processed,” of the word “Pennsylvania,” of the phrase
“Permit No. — ,” or the word “License,” together with the emblem,
that the oil or greases sold by the respondent company are pure,
unadulterated Pennsylvania oils or greases produced in the Pennsyl¬
vania fields, unless and until this is true.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
No hearings have been scheduled before the Broadcast Division
or the Examiners of the Commission for the week beginning
October 12, because of the general allocation hearings which are
now being held.
The Broadcast Division did not have its meeting at the regular
time this week.
APPLICATIONS RECEIVED
First Zone
WGY — General Electric Co., Schenectady, N. Y. — Construction
790 permit to install new transmitter ; make changes in antenna ;
increase power from 50 to 500 kilowatts; move transmitter
from Mariaville Rd., near South Schenectady, N. Y., to
site to be determined, Schenectady, N. Y.
WBAL — The WBAL Broadcasting Company, Baltimore, Md. —
1060 Construction permit to install directional antenna for night
use; change hours of operation from shares with WTIC
to unlimited.
WIBX — WIBX, Inc., Utica, N. Y. — Construction permit to install
1200 new transmitter and vertical antenna; change power from
100 watts night, 300 watts day, to 100 watts night, 250
watts day; and move transmitter from 187 Genesee St.,
First National Bank Bldg., Utica, N. Y., to Schuyler St.,
Town of Marcy, N. Y.
1633
NEW — Kings Broadcasting Corp., Borough of Brooklyn, New
1400 York. — Construction permit for a new broadcast station
to be operated on 1400 kc., 500 watts, shares with WLTH
and WARD. Requests facilities of WBBC and WVFW.
WWRL — Long Island Broadcasting Corp., Woodside, Long Island,
1500 N. Y. — Modification of license to change specified hours.
Request hours of WMBQ.
NEW — Westinghouse Electric & Manufacturing Co., Portable-
Mobile. — Construction permit for low frequency relay
broadcast station on 1606, 2022, 2102, 2758 kc., 15 watts
power.
NEW — Westinghouse Electric & Manufacturing Co., Portable-
Mobile. — License to cover above.
Second Zone
WKBN — WKBN Broadcasting Corp., Youngstown, Ohio. — Con-
570 struction permit to erect a vertical antenna and move
transmitter from YMCA Bldg., 17 North Champion St.,
Youngstown, Ohio, to 3120 Sunset Blvd., Youngstown, Ohio.
NEW — West Virginia Newspaper Publishing Company, Clarks--
630 burg, W. Va. — Construction permit for new broadcast sta¬
tion to be operated on 630 kc., 5 KW power, unlimited
time. Amended: Change power requested from 5 KW to 1
KW night and 5 KW day power, giving studio site as 209-
215 S. Third Street, Clarksburg, W. Va., and change trans¬
mitter site from Clarksburg, W. Va., to 16 Chancery Street,
Buckhannon, W. Va.
WPHR — WLBG, Inc., Petersburg, Va. — Modification of license
880 to change hours of operation from daytime to unlimited,
using 500 watts power day and night.
WHBC — Edward P. Graham, Canton, Ohio. — Modification of
1200 construction permit (B2-P-241) to install new equipment,
increase power, requesting extension of completion date
from 4-27-36 to 7-27-36. Amended: Extend completion
date from 4-27-36 to 1-27-37.
WEST — Associated Broadcasters, Inc., Easton, Pa. — Authority to
1200 make changes in automatic frequency control apparatus.
WJIM — Harold F. Gross, M. B. Keeler and L. A. Versluis, d/b
1210 as Capitol City Broadcasting Company, Lansing, Mich. —
Voluntary assignment of license from Harold F. Gross,
M. B. Keeler, and L. A. Versluis, d/b as Capitol City
Broadcasting Company, to Harold F. Gross.
WSAN — WSAN, Inc., Allentown, Pa. — Construction permit to
1440 install new transmitter and vertical antenna.
WCBA— B. Bryan Musselman, Allentown, Pa. — Construction per-
1440 mit to install new transmitter and vertical antenna.
Third Zone
KTSA — KTSA Broadcasting Co., San Antonio, Tex. — Authority
550 to determine operating power by direct measurement of
antenna.
KTSA — KTSA Broadcasting Co., San Antonio, Tex. — License to
550 cover C. P. (B3-P-1294) for new transmitter.
WAML— The New Laurel Radio Station, Inc., Laurel, Miss. —
1310 Modification of license to change hours of operation from
specified hours to unlimited time.
WCOA — Pensacola Broadcasting Co., Pensacola, Fla. — Construc-
1340 tion permit to make changes in transmitter and antenna
and move transmitter from San Carlos Hotel, Pensacola,
Fla., to site to be determined, Pensacola, Fla.; increase
power from 500 watts to 1 KW.
KRBC — Reporter Broadcasting Co., Abilene, Tex. — License to
1420 cover construction permit (B3-P-439) as modified for new
station on 1420 kc., 100 watts power, unlimited time.
KGFI — Eagle Broadcasting Co., Inc., Corpus Christi, Tex. — Modi-
1500 fication of construction permit B3-P-1056 to move trans¬
mitter and changes in equipment ; change in frequency from
1500 kc. to 1330 kc.; increase in power from 100 watts
night, 250 watts day, to 500 watts day and night; make
changes in equipment; extend commencement and com¬
pletion dates.
Fourth Zone
WDAF — The Kansas City Star Co., Kansas City, Mo. — Construc-
610 tion permit to install new transmitter and vertical antenna;
move transmitter from 1729 Grand Ave., Kansas City,
Mo., to Mission Road and Somerset Drive, Johnson County,
Kansas.
NEW — Northwest Publications, Inc., Duluth, Minn.- — Construc-
920' tion permit to erect a new broadcast station to be operated
on 920 kc., 250 watts, daytime operation.
WEAU — Central Broadcasting Co., Eau Claire, Wis. — Modifica-
1050 tion of construction permit (B4-P-736) for new station,
further requesting changes in equipment, increase in power
from 250 watts to 1 KW.
WFBM — Indianapolis Power & Light Co., Indianapolis, Ind. —
1230 Modification of license to change power from 1 KW night,
5 KW day, to 5 KW day and night, using directional
antenna at night.
KGLO — Mason City Globe Gazette Co., Mason City, Iowa. —
1210 Modification of construction permit B4-P-789 for new
station, requesting changes in transmitter and antenna and
move transmitter and studio from State and Delaware Sts.,
Mason City, Iowa, to West 4th St., Mason City, Iowa;
extend commencement and completion dates from 9-24-36
and 3-24-37, respectively, to 30 days after grant and 90
days thereafter.
WBOW — Banks of Wabash, Inc., Terre Haute, Ind. — Construc-
1310 tion permit to install new transmitter, directional antenna,
night use; change frequency from 1310 kc. to 930 kc.,
power from 100 watts night, 250 watts day, to 500 watts
night, 1 KW day; and move transmitter from 25th and
Dimmick Sts., Terre Haute, Ind., to Terre Haute, Ind.
WTAQ — WHBY, Inc., Green Bay, Wis. — Construction permit to
1330 install new transmitter, increase power from 1 KW day
and night to 1 KW night and 5 KW day.
NEW — Harold A. Lason and Ernest G. Hendrickson, d/b as
1340 Lason-Hendrickson Broadcasting Company, Huron, S. Dak.
— Construction permit to erect a new broadcast station to
be operated on 1340 kc., 250 watts, unlimited time. Re¬
quest facilities of KGDY.
WDWS — Champaign News Gazette, Inc., Champaign, Ill.— Modi-
1370 fication of construction permit (B4-P-475) for new station
for changes in equipment; change in studio site from U. S.
Route No. 25, .6 mile south of city limits, Champaign, Ill.;
for approval of antenna and transmitter site as specified on
construction permit. Amended to correct transmitter site
to 600 feet south of Kirby Ave., Champaign, Ill.
NEW — The Waterloo Times-Tribune Publishing Company, Water-
1370 loo, Iowa. — Construction permit for a new broadcasting
station to be operated on 1370 kc., 100 watts, daytime
operation. Amended: From a special broadcast to a reg¬
ular broadcast station.
KOBH — Black Hills Broadcast Co. (Robert Lee Dean), Rapid
1370 City, S. Dak. — Modification of construction permit (B4-
P-231) for new station to change type of RCA transmitter
equipment from ET 4230 to ET 4240.
KABR — Aberdeen Broadcast Co., Aberdeen, S. Dak. — Construc-
1420 tion permit to install new transmitter, change frequency
from 1420 kc. to 1390 kc., increase power from 100 watts
to 1 KW.
Fifth Zone
KJR — Fisher’s Blend Station, Inc., Seattle, Wash. — Construction
970 permit to make changes and move present licensed auxiliary
transmitter of KOMO to 26th Ave., S. W., and Fla. St.,
West Waterway, Seattle, Wash., to be used as an auxiliary
transmitter for station KOMO and KJR, using the same
antenna.
KWJJ — KWJJ Broadcast Co., Inc., Portland, Ore. — Modification
1066 of construction permit (B5-P-837) for equipment changes
(antenna), move transmitter and studio, requesting exten¬
sion of completion date to 12-8-36.
KFIO — Spokane Broadcasting Corporation, Spokane, Wash.- — •
1120 Construction permit to install new transmitter; change
frequency from 1120 kc. to 1110 kc., power from 100 to
500 watts, time from day to unlimited ; antenna to be
determined; move transmitter from 526 Riverside Ave. to
site to be determined, Spokane, Wash.
KDON — Monterey Peninsula Broadcasting Company. Del Monte,
1210 Calif. — Construction permit to change frequency from
1210 kc. to 1280 kc., install a new transmitter, and in¬
crease power from 100 watts to 250 watts night and 1
KW day. Amended to change requested equipment.
KFJR — Ashley C. Dixon. KFJR, Inc., Portland, Ore. — Voluntary
1300 assignment of license from Ashley C. Dixon, KFJR, Inc.,
to KALE, Inc.
KGHF — Curtis P. Ritchie, Pueblo, Colo. — Authority to install
1320 automatic frequency control.
KUMA — Albert H. Schermann, Yuma, Ariz. — Construction per-
1420 mit to make equipment changes.
1634
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W, BALDWIN, Managing Director
NAB REPORTS .....
Cepyristit. 1936. The Naiional Association ol Broadcasters
Vol. 4 - - No. 54
OCT. 8, 1936
Clear Channel Group Completes Testimony
at Allocation Hearing
Joseph O. Maland of Station WHO, Des Moines, Iowa, at
today’s allocation hearing before the Federal Communications
Commission took up the social and economic questions on behalf
of the Clear Channel Group. With his testimony that group
completed its part in the hearing.
Others who addressed the Commission today included Louis G.
Caldwell, counsel for the Clear Channel Group; Judge John C.
Kendall, Portland, Oregon, on behalf of certain licensees on shared
clear channels; Harold A. LaFount, formerly a member of the
Radio Commission; John Shepard, 3rd, chairman of the Executive
Committee of the National Association of Regional Broadcast Sta¬
tions ; and Dr. G. W. Pickard who discussed technical questions for
the Regional Group.
During the course of today’s hearing Judge Sykes acting as
chairman announced that owing to the fact that the Broadcast
Division of the Commission wished to hold its executive meeting
on Friday, that hearings on the allocation question would be ad¬
journed at noon on Friday until 10:00 o’clock Monday morning.
LOUIS G. CALDWELL
Mr. Caldwell returned to the stand today on behalf of the Clear
Channel Group to put some figures into the record relative to the
expenses of clear channel stations.
A broadcaster now operating a SO kilowatt station would have
to expend about $310,000 to change that station to S00 kilowatts,
Mr. Caldwell told the Commission. He compared monthly operat¬
ing expenses of a SO kilowatt and 500 kilowatt station by stating
that the energy for a SO kilowatt station would cost about $1,600
a month, increasing to $6,500 for a 500 kilowatt station.
Mr. Caldwell said further that tubes for the lower power sta¬
tion would cost about $900 per month and for the higher power
station about $4,000. Personnel for the low power would be $800
per month, increasing to $1,000 for the higher power. He said
that monthly miscellaneous expenses for the low power station
would be about $200 with about $440 for the higher power.
Total expense per month for the SO kilowatt station he' estimated
would be $3,500 and $12,000 for the S00 kilowatt station. There
would be a depreciation charge of $2,000 per month for the SO
kw. station and $4,630 for the S00 kw. station. The totals for
the month therefore, he said, would be 55,500 for the 50 kw.
station and $16,630 for the 500 kw. station. He gave no estimates
for any increased appropriation for programs.
JOSEPH O. MALAND
Mr. Maland in a detailed discussion for the Clear Channel Group
said that his group is opposed to the abolishment or reduction in
the number of clear channel stations. That group he said, how¬
ever, supports a minimum of 50 kilowatts for clear channels and
urges that the present maximum limitation of 50 kilowatts be re¬
moved.
“The real danger in the economics of broadcasting,” said Mr.
Maland, “is that the interest of the advertiser in reaching large
masses of listeners, and the profit that is to be made in accommo¬
dating him, will result in laying down too many tracts of good
reception to thickly inhabitated centers and too few or none at
all, to sparsely settled areas, which are not such attractive
markets.”
Owing to the fact that the Broadcast Division
will hold its regular executive meeting Friday After¬
noon the Allocation Hearings will be adjourned at
noon on Friday until next Monday. Therefore there
will be no daily Bulletin until that dated October 12.
(NOTE — In Mr. Maland’s complete statement which follows
reference is made to certain figures and exhibits which are not re¬
produced in this Bulletin. However, his references explain what
these figures mean.)
Mr. Maland said:
Member of Group
My name is Joseph O. Maland. My residence is Des Moines,
Iowa. I am vice-president of the Central Broadcasting Co., and
manage WHO, a broadcast station operated by that company under
a license issued by the Federal Communications Commission. My
company is a member of the Clear channel Group, and I am mak¬
ing this statement in behalf of tha Group.
Two words, somewhat inconspicuously placed in the notice of
this hearing, are packed with more tantalizing and elusive oppor¬
tunities for debate than will be found in the several pages of
technical topics. These two words are “social” and “economic.”
Logically, I suppose, economic questions should be discussed by
an economist. I am not sure what kind of an expert social ques¬
tions require. So far as I know, I am not an expert in either field
(although I reserve the right to withdraw this confession), but,
like our chairman, Mr. Craig, I am just one of the executives
charged with the operation of a clear channel station. Frankly, I do
not know where we could have found an expert really competent
to throw any light on such economic and social issues as may be
raised in this hearing. These issues are so closely intertwined
with technical, legal and other problems thought to be peculiar to
the industry, that it is not easy to unscramble them. The members
of our Group have concluded, therefore, that it would be of more
assistance to you if the issues were discussed from a practical
standpoint by one of us who has had continuous and intensive ex¬
perience in the business side of broadcasting and yet is not un¬
familiar with the technical background. The choice has fallen
on me.
I do not mean, of course, that the peculiarities of broadcasting
call for the application of any radically new rules, economic, or
social. As a matter of fact, almost the opposite is true, if it is to
continue on a sound basis. On the economic side, broadcasting is
a medium of advertising, and belongs to rather a large family of
advertising media, including the newspaper and the magazine. On
the social side, broadcasting is an agency of mass communication
and belongs to a family which embraces, in addition to the news¬
paper and the magazine, the moving picture theatre, the public
platform, and other relatives, some closely akin and some very
distantly. These facts are often obscured by the impressive tech¬
nical and legal clothing which radio engineers and lawyers have
thrown over our industry, and by some of the surprising deduc¬
tions that others have drawn by looking at the clothes only. Strip
the industry of its technical language, however, and you find
1635
pretty much the same sort of creature as the members of its family
on both sides who have been familiar figures for years and even
centuries.
Economic and Social
Since I am apparently the first witness to deal specifically with
economic and social issues at this hearing, I have the privilege (and
the responsibility) of selecting my own definitions. I have chosen
the very commonplace method of reference to the dictionary for
my starting point. Among the wide choice of meanings provided
by Webster, I have chosen a definition of “economic” which, with
a little paraphrasing, reads:
“of or pertaining to the management of a business with refer¬
ence to its source of income, its expenditures and its main¬
tenance or productiveness.”
The word “social” was not quite so easy ; any definition I could
find was somewhat of a circle. So I have taken Webster’s defini¬
tion of “social” as
“of or pertaining to society or a social organism.”
although I am not completely satisfied with it.
The dividing line between the two words is not difficult to find
so far as broadcasting is concerned. Expressed in their simplest
terms, for the purpose of this hearing, “economic” seems to me
to have to do with the industry’s means of support, principally
advertising; “social”, I think, has to do with the industry’s means
of serving the public, its dissemination of program service. As
would naturally be expected, there is no hard and fast line between
the two for they frequently cross paths and react on each other.
The difference is largely a matter of emphasis but nevertheless it is
important.
So far as clear channels are concerned, there are two proposals
before you of sufficiently important character to call for discussion
of their economic and social effects. One proposal, to which our
Group is opposed, is that dear channels be abolished or reduced
in number. The other, which our Group supports, is that the
power minimum on clear channels be raised to fifty kilowatts and
that the present maximum limitation of 50 kilowatts be removed.
As you know, there are other proposals in which we are interested
but they are of minor importance compared to these two.
Economic Effects of Proposals Relating to Clear Channels
Before taking up the economic effects of either proposal, I must
review with you a few elementary facts about the business side
of broadcasting.
Broadcasting is supported by the sale of time, most of it to
American business concerns desiring to bring their products or
services to the favorable attention of the public. There are, of
course, sales of time for other purposes, one such purpose being
considerably in evidence during these pre-election months. It will
serve to simplify the discussion, however, if I assume that the
sale of time is all for advertising purposes.
American System of Ownership
This economic basis was made inevitable when the decision was
made, back in what Mr. Craig has called the prehistoric days, to
have broadcasting carried on under the American system of private
ownership and operation as contrasted with the system of govern¬
ment ownership and operation, accompanied by the licensing of
receiving sets, so prevalent in other parts of the world. In his
opening address at the Fourth National Radio Conference in 1925,
the then Secretary of Commerce said:
“The decision that we should not imitate some of our
foreign colleagues with governmentally controlled broadcast¬
ing supported by a tax upon the listener has secured for us a
far greater variety of programs and excellence in service free
of cost to the listener. This decision has avoided the pitfalls
of political, religious, and social conflicts in the use of speech
over the radio which no Government could solve — it has pre¬
served free speech to this medium.”
It is not necessary in this gathering, I take it, to justify the de¬
cision. I am sure that the American public, as a whole, does not
regret it, particularly when it now sees that in some of the coun¬
tries where other systems prevail the broadcasting systems have
become tools in the hands of dictators, that in none of them does
freedom of speech obtain in the sense that we know it, and that
none of them offers a program service even remotely approaching
ours. If a decision had been made the other way, we should not
be having a hearing such as this although we might be gathered
together to protest against the size of license fees the Government
was charging for the use of our own receiving sets or to complain
about the quality of programs the Government was broadcasting.
There was another important decision made back in those early
days, which has had both economic and social effects. It was,
that a monopoly of broadcasting would not be tolerated. The
Third National Radio Conference went on record as being “un¬
alterably opposed to any monopoly in broadcasting” and the
Secretary of Commerce said:
“It would be unfortunate, indeed, if such an important
function as the distribution of information should ever fall
into the hands of the Government. It would be still more
unfortunate if its control should come under the arbitrary
power of any person or group of persons. It is inconceivable
that such a situation could be allowed to exist * *
This decision, which was reflected in the laws passed by Congress
in 1927 and in 1934, is again one that I am sure no one regrets.
System Has Grown
Our system has grown, has prospered, and has served the public,
on the economic basis of advertising. No system, however, is per¬
fect, and we must reckon with the dangers in ours. The principal
danger in our system is not that which you most often hear
charged against it, namely, excessive or undesirable advertising.
Such missteps as may have been made in this direction were, I am
convinced, merely the growing pains of a young industry, accentu¬
ated by the depression. The real danger in the economics of
broadcasting is that the interest of the advertiser in reaching large
masses of listeners, and the profit that is to be made in accommo¬
dating him, will result in laying down too many tracks of good
reception to thickly inhabited centres and too few, or none at all,
to sparsely settled areas, which are not such attractive markets.
Analyze these issues that now face you to see if underneath the
elaborate technical charts and graphs and the impressive statistics
and tabulations you do not find a fundamental issue between those
who want more stations in cities that already have stations and
those who are striving to preserve what there is of rural reception
and to improve it.
An Autocrat
An autocrat can place his country’s broadcast stations where he
chooses and see to it that all parts of his domain are as well served
as the state of the art permits. Our stations must be so located
and given such assignments of frequency, power and hours of opera¬
tion that they can survive economically. Fortunately, there is
nothing in our system which prevents our doing as good a job in
laying down tracks of good reception as the autocrat. There
is simply the temptation and pressure to do otherwise, which must
be recognized for what it is and guarded against. That, I take
it, is one of the essential purposes of inserting the phrase “public
interest, convenience or necessity” in the radio law, to be sure
that the listener’s rights do not suffer because of some private
interest.
Let us turn now to a study of the broadcasting industry’s source
of revenue, and the prospects for its future increase. This will
help us determine whether, as an industry, it can afford to make
expenditures such as are contemplated in proposals for higher
power and the consequent increase both in investment and in cost
of operation. Let us take the source of revenue for all business,
the national income, as our starting point.
Figure No. 1 shows the income produced in this country since
1929 (the first year for which this information is available), in
terms of billions of dollars. The information is taken from a report
of the Division of Economic Research of the Department of Com¬
merce. No graph is necessary to inform you that in years prior
to 1929, or perhaps a year or two before then, the trend has been
steadily upward from the beginning, not in a straight line, of
course, but varied by peaks and depressions. As shown by the
graph, our national income in 1929 was $81,034,000,000. By 1932
it had declined to $39,545,000,000, but since then there has been
a steady increase to $52,959,000,000 in 1935 and it is freely pre¬
dicted that for 1936 it will exceed $60,000,000,000. Even were it
to remain at its present point, the financial condition of the
broadcasting industry as a whole would be healthy. But the
trend upwards is not going to stop with 1936.
National Income
Out of this national income is paid the bill for advertising. In
terms of dollars, as you would naturally expect, it follows the
1636
same general trend as national produced income. Figure No. 2 is
a graph prepared by the Bureau of Foreign and Domestic Com¬
merce in the Department of Commerce as a general index of ad¬
vertising activity from 1922 to 1935. Note that its peak year was
1929 and that its low point was 1933, a year after the bottom had
been reached in national produced income. Since then, general
advertising activity has followed an upward trend, keeping pace
with the income out of which it is paid. One significant point is
that in 193S the general index of advertising activity stood 42
points below the 1929 peak and 20 points below the 1928-1932
average. In other words, advertising volume will have to increase
25 per cent before it reaches anything like what might be called
normal and approximately 55 per cent before it reaches the 1929
level.
Out of that portion of the national income which pays the bill
for advertising, the broadcasting industry is supported. The indus¬
try is too young to be armed with any great amount of statistics.
It was not really until 1928 that it entered the commercial adver¬
tising field, which it has had to share with other media of adver¬
tising, including newspapers, magazines and outdoor advertising,
competing at every turn for the advertiser’s dollar. It enjoyed less
than two years of commercial advertising activity before the de¬
pression set in. Nevertheless, swimming against the current, its
revenue continued to rise until 1932 when it suffered its only
decline, reaching its low at the end of the year. Since 1933 its
rise has been sharp, both in terms of dollars and when compared
to the advance of other media.
Advertising
Figure No. 3 is a graph prepared by the Bureau of Foreign
and Domestic Commerce, made public last March, showing the
annual index of advertising volume of the five classes of major
media from 1921 to date. The first comprehensive compilation of
statistics on broadcast advertising was made by the National
Association of Broadcasters for the year 1934. Prior to that year
we have only estimates. The estimated total gross receipts for
1933 amounted to approximately $57,000,000. In 1934 they rose
to $72,887,169, an increase of 27 per cent over 1933. The receipts
for 1934 thus equalled, if they did not actually exceed, the previous
peak year of 1931 when, according to the calculations of the
Federal Radio Commission, corrected for duplications, the total
gross revenue ranged between $70,000,000 and $73,000,000. At
this point let me utter a word of caution. The figures I am giving
you are gross revenue, not profits. The survey made by the
Federal Radio Commission in 1931 shows that the industry as a
whole was operating at a net loss, and this was the peak year
up to that time. Broadcasting had had a decade of being heavily
in the red before it even approached breaking even, and it was
thirteen years old before it crossed the line into the black. Broad¬
casters were losing anywhere from a few dollars to half a
million dollars a year in that earlier period.
New Level
In 1935 a new high level was reached, with a total of $87,523,848,
a gain of 20 per cent over 1934. That the figures for 1936 will
exceed those of 1935 is evidenced by the fact that the total for the
first six months was $50,802,179, an increase of approximately 13
per cent over the corresponding period in 1935. I realize how
dangerous it is to predict or to raise false hopes for the future on
the basis of past performance. The fact is, however, that, reduc¬
ing the trend to terms of dollars, we may expect a substantial in¬
crease in broadcast advertising by the time advertising activity
reaches a normal level and a very large increase if and when the
1929 level comes.
This, however, is on the assumption that broadcast advertising
will remain at a standstill in its relative position among advertising
media. Figure No. 4 is a graph showing a comparison between the
index for broadcast advertising and the general index of advertising
activity. If the relative trend is maintained, the industry may look
forward to even greater increases than are indicated by the percent¬
ages and the sums I have mentioned.
Outlook for Increased Revenue
The truth is that not only is the outlook for increased revenue
from broadcast advertising better than at any earlier period in the
history of the industry but broadcasting is today outstripping all
other media in its bid for a share of the advertiser’s dollar. This
is attested every day by actual events.
Figure No. 5 is a chart showing the percentage increases each year
during the past three years in advertising volume of the four media,
broadcasting, national magazines, national farm papers and news¬
papers. It shows the following:
1933
1934
1935
Broadcasting
-18%
+ 27%
+ 20%
National magazines
-16%
+ 21%
+ 5.9%
National farm papers
-17%
+29%
+ 7.0%
Newspapers
-11%
+ 10%
+ 5.8%
Yet, in the face of all that I have said, the broadcasting industry
received but 10.8 per cent of the amount of money spent in 1934
for advertising in the major media, and but 11.9 per cent in 1935.
The future is one for optimism, indeed, if broadcasting continues
to enjoy the favor of its large listening public and thus to be an
increasingly attractive method of reaching that public.
Certainly, as we review these figures we cannot help being im¬
pressed with the fact that here is an industry that can well afford,
and might justly think it a duty, to turn some of its profit to
the high aim of improving the tracks of reception into American
homes, so that, so far as possible, the signal that is now marred
by its weakness, or by static, or by other electrical disturbances,
may be lifted to the level of satisfactory program service and so
that a greater measure of service can be extended over those vast
rural and remote areas where it is most needed and appreciated
and where, in some respects, it renders its greatest service and is
more of a necessity than a luxury. This means the placing of all
equipment in efficient condition, in keeping with the advancing
standards which the Commission’s technical staff has so com¬
petently and so reasonably devised for the sake of the listening
public. More than that, it means higher power for those that are
lagging behind, such as those who are using only five kilowatts on
a clear channel, and higher power for those who are financially
prepared and willing to pioneer ahead on other clear channels. It
means higher power for the regionals and the locals, an advance
all along the line throughout the broadcast spectrum with due
allowance for those cases where economic support may not yet
have reached a point that will justify the expenditure. The figures
show, in my opinion, not only that the industry can well afford
to lay down these improved tracks but that there will be plenty
left over to take care of prospective developments in television,
experimentation with the ultra-high frequencies, and any other
development that may be on the horizon. , Such a course is not
inconsistent with the selfish interest of the broadcasters them¬
selves.
What Does High Power Mean?
What does higher power mean from the economic standpoint?
What, if not more circulation? The attraction' of the broadcast¬
ing station to the advertiser lies primarily in the fact that it de¬
livers an interference-free signal at a satisfactory signal strength
over a territory inhabited by a certain number of people. I do not
mean, of course, that stations will not differ in their “circulation”
for other reasons, such as the good-will built up through excellent
programs, the ability of executives, and other factors. They do
differ, but these are variables under the control of the station own¬
ers and to avoid complicating this discussion I must assume they
are equal in such respects.
Our technical experts tell us that the broadcasting industry is
today failing to deliver what might be described as primary day¬
time service to about 75 per cent of the area in this country, con¬
taining over 40,000,000 people, not to mention the deficiencies in
its nighttime service. There are enormous areas and millions of
people that have no reception at day and only intermittent serv¬
ice at night. You appreciate, I am sure, that I am discussing this
from a coldly business point of view. The social aspects of the
failure to reach this large territory and these millions of people
belong under my second subject-heading. It is not without rea¬
son that there is only one receiving set for every 8.82 persons in
rural areas as against one for every 4.35 persons in the cities.
Here is a large potential circulation, which is untapped and which
advertisers can reach, in the daytime particularly, only by using
newspapers, magazines and bill boards. We speak of economics.
Is it good economics for the industry to attempt to lay down
tracks of good reception to this larger audience and to improve
the tracks to the present audience? Or is it good economics for
the industry not only to ignore the potential audience but also to
cut down its present audience still further and surrender it en¬
tirely into the hands of other media ?
Answer Clear
To me, the answer seems clear. The industry as a whole will
gain in revenue as it gains in circulation and as it gives better
1637
assurance that its programs will reach what it claims as its present
circulation. It will lose in revenue if it decreases its present cir¬
culation by cutting off listeners through interference. Much of
its present circulation is like a newspaper printed in poor type,
on obsolete presses, with large portions of it so blurred or faint
as to be illegible, and delivered by an unreliable carrier system.
This is not the proper time in which to discuss the ability of par¬
ticular stations in particular localities to meet the expense of going
to higher power. As Mr. Craig has already pointed out, for eco¬
nomic reasons traceable directly to advertising support, some cities
and regions are able to support SOO-kilowatt stations on clear
channels immediately. Others are not quite ready. As you know
from the applications pending before you, some clear channel
licensees are ready and anxious to take the step tomorrow if you
will permit it, and others are holding back. Others are reluctant
to do so immediately but would if the only alternative were to
suffer duplication on their channels. All matters such as the finan¬
cial ability of the applicant to make the expenditure, his wisdom
in doing so and the capacity of the city and region to support
the station, can, if they become pertinent, be decided on the
hearing of each particular application.
Statistics
You may, however, be interested in a few statistics of a general
character on this subject. The approximate additional cost of in¬
stalling a SOO-kilowatt transmitter, by those now having 50-kilo¬
watt stations, exclusive of such matters as land and buildings that
may be involved, is estimated at $310,000.
As Mr. Chambers has shown you, once the initial outlay has
been made, the additional cost of operating with the increased
power does not present any serious economic questions. Such an
increase would normally and necessarily be followed by an in¬
crease in rates on the part of clear channel stations. I have en¬
deavored to obtain some idea of how much this increase would
be but it is impossible to form any definite conclusion. In the
one example we have, the increase in rates has been a little over
25 per cent. Others, whose rates are probably already too low,
might have to adopt a somewhat greater increase. From what
I have already stated with regard to the trend of broadcast ad¬
vertising, and with the increased coverage that would result, it
can hardly be doubted that the higher rates would be easily
absorbed and would be met cheerfully by advertisers.
At this point, I want to digress for a moment to point out a
characteristic of the clear channel licensees composing our Group
which is very significant. I do this without intending to make
any invidious comparisons, for I know that there are many others
outside the Group of whom the same may be said. But, in gen¬
eral, this Group is comprised of concerns that have put service
ahead of dollars and cents, that have been in broadcasting since
its prehistoric days, that made heavy expenditures and suffered
tremendous losses for years before they operated their stations at
a profit, and that, in general, have poured what profit they have
made back into better equipment, higher power transmitters, and
better program service, instead of taking that profit in the form of
dividends. In the main they have grown from tiny installations
of 50 watts or less to efficient modern plants of 50 kilowatts and,
in one case, the station has grown from 20 watts to 500 kilowatts.
In general, they had expended anywhere from about $200,000 to
as high as $2,000,000 before they operated at a profit. Only a
minority of the number have ever paid any dividends; those have
been only in recent years and in modest amounts of five per cent
annually. The very small percentage of their time devoted to
phonograph records (in eight instances none at all) tells you
something of the responsibility they feel with respect to their pro¬
gram service, as do also their monthly expenditures for talent
which run as high as $40,000. I mention these circumstances to
show you that the members of our Group and, I think, clear chan¬
nel licensees generally, have had a high conception of their trust
from the outset, and that they can be relied upon to accept an
enlarged trust with the same spirit.
Another Side
Now let us turn to another side of the picture, the effect of the
two fundamental proposals on other broadcasters, regional and
local. First, I lay down the general premise that, even from the
most narrowly selfish point of view, no part of the industry has
anything to gain from a proposal that hurts the industry as a
whole or that impairs the service now rendered by it to the public
or that blocks the way to improvement of that service. Its “cir¬
culation” cannot be cut down without playing into the hands of
competing media, with an eventual adverse effect on all mem¬
bers of our industry. Future increases in that “circulation” can¬
not be prevented without a similar adverse effect on the indus¬
try’s natural growth, shared in by all its members. Fortunately,
however, it is unnecessary to rely on these broad principles to
prove my point. The proof is at hand in obvious facts and trust¬
worthy statistics.
Consider, first, the effect of introducing duplication on clear
channels. What will be the economic corollaries for those very
station-owners that now propose it, the National Association of
Regional Broadcast Stations? The most obvious corollary is that
there will be more stations which, with respect to power and
coverage, will in general fall in the category of regional stations.
Where will those stations be located? This is not difficult to fore¬
cast from past history and present tendencies.
667 Broadcast Stations
There are about 667 broadcast stations in the United States,
scattered over the country, but, as you have seen from the technical
exhibits, with a heavy concentration in the northeast. Ignoring the
existing duplication on certain clear channels, there are 47 dominant
clear channel stations located in 35 metropolitan areas, the most
populous being the New York City area with 10,901,424 people
and the least being Hot Springs, Ark., with 20,238 people. In those
same metropolitan areas are 135.5 other stations, 98 of them
regional and 37.5 local. I am including daytime and limited time
stations on clear channels as regional, and, where two stations
divide time, I count them as one station. Daytime and limited time
stations I am counting as separate stations. On this basis, there
are 280.25 regional stations and 250.25 local stations. Thus, 35
per cent of the regional stations and 15 per cent of the local sta¬
tions are now in metropolitan areas where clear channel stations
are located.
It is impossible to say categorically how large a city or trade
area must be to support a regional station. So many intangible
and variable factors enter into such a calculation, including, of
course, the number of other stations in the city, their power and
coverage, the wealth of the community and other items. I have
heard it said that a city should have a population of about 75,000,
and about 150,000 in the station’s service area, to support a one-
kilowatt full time regional. I do not know whether this is correct
but it will serve as a basis for some statistics I want to leave with
you. There are, it happens, ninety cities in the United States with
a population in excess of 77,000, the ninety-first being Manchester,
New Hampshire, with a population of 76,834, under the 1930
census. This is not on the basis of counting every separate munici¬
pality; it is on the basis of metropolitan areas. In the ninety
metropolitan areas there are 168 regional stations and 89 local
stations, or about 60 and 30 per cent respectively of the totals.
Different Angle
Figure No. 6 approaches the issue from a somewhat different
angle. It shows the location of stations in cities of various sizes
in population, those above one million; those from 500,000 to
1,000,000; those from 100,000 to 500,000; those from 50,000 to
100,000; those from 25,000 to 50,000; 10,000 to 25,000; 5,000 to
10,000; and those below 5,000. The figures with regard to reve¬
nue require some explanation and some qualification. They are
taken from the station renewal applications on file with the Com¬
mission, reporting the gross revenue. It is rather obvious that
several different theories of bookkeeping and accounting have been
followed, and variations due to the amount charged to exective
salaries, depreciation and other items are in all probability very
great. Still, as averages these figures serve a useful purpose and
cannot be ignored. They show a steady decrease in average as
the population decreases, although particular instances will vary
greatly because of the presence or absence of competition, the
desirability of frequency assignments and so on.
Study of Rates
As we turn to a study of rates we arrive at somewhat the same
conclusions. The best unit for comparison seems to be the highest,
the nighttime quarter hour rate. Taking the last issue of Standard
Rate and Data Service as the source of information, we find that
the lowest rate in the country is $1.80 charged by a local station
with power of 100 watts at Dublin, Texas; and that the highest
is $532 charged by a clear channel station with power of 500 kilo¬
watts at Cincinnati, Ohio. Between the two extremes, the classes
1638
of stations cross paths as to rates just as they do with respect to
revenue.
Figure 7 shows the average rates for the several classes of sta¬
tions in cities of the same population classification as shown in
the previous exhibit. This exhibit is exceedingly interesting, as it
portrays the rate at which rates decrease as population decreases
and also as coverage decreases. The progression is not entirely
mathematical but it comes very near being so. The rates strongly
suggest that the operation of clear channel or regional stations in
cities of less than 50,000 is, as a rule, a very doubtful venture from
a commercial point of view. So many factors enter into the
matter, however, that I refrain from making any more positive
statement.
Method o£ Approach
The next significant method of approach is in terms of pressure
exercised for new stations as evidenced by applications for new
stations, or for better assignments of frequency and power by
existing stations. For this purpose, we made an analysis of all
applications pending before the Commission, and all applications
which have been denied during the past year, in an attempt to
ascertain to what extent they came from cities that already had
anywhere from one to five stations or more. The results are in¬
corporated in Figure No. 8. This is based on a very elaborate
analysis which is in our possession in typewritten form and which
shows, with reference to each city from which such an application
has proceeded, the number and classes of stations located there and
the kind of station applied for. Let me say in explanation of this
exhibit that for simplicity the stations have been classified entirely
in accordance with the type of channel; in other words, a daytime
station on a clear channel has been counted as a clear channel
station. You will notice that while 71 of the pending applications
are from cities that have no stations, only eight affect clear or
region channels. The others are locals. These eight are from
the cities having populations as follows:
St. Cloud, Minn . 21,000
Traverse City, Mich . 12,533
Helena, Mont . 11,803
Sarasota, Fla . 8,398
La Cruces, N. M . 5,811
Marysville, Calif. (2 applications) . . 5,763
Mt. Pleasant, Mich . 5,211
The eight which were denied last year were from cities having
populations as follows:
Ann Arbor, Mich. (2 applications) . . 26,872
Johnson City, Tenn . 25,080
Cheyenne, Wyo . 17,361
Du Bois, Pa . 11,593
La Grand, Ore . 8,050
Lufkin, Tex . 7,311
Twisp, Wash . 335
Thus, out of a total of 124 clear and regional channel applications
now pending, 116 were from cities already having stations. The
detailed analysis shows, in general, that the more stations a city
has, the more applications are pending from that city, although
this is not always true. New York City has five, Los Angeles 4,
and so on.
Other Straws
There are other straws which give additional evidence of the
tendency. The applications for new stations that have been
granted in the regional and daytime clear channel classes during
recent years constitute one of them. The applications on the
part of regional stations, and even of local stations, to move from
smaller towns and cities into larger cities which already have sta¬
tions constitute another. We have not attempted to make an
analysis of these two categories but we are sure that instances in
point will readily occur to all of you.
Figure 9 is a study of pending applications and of applications
denied during the past year from the standpoint of cities of various
sizes with respect to population. Forty-seven of the applications
came from metropolitan areas having a population of 1,000,000
or more, and thirty-six of these were for assignments on clear or
regional channels. Only nineteen came from towns of less than
5,000 and fifteen of these were for locals. The greatest number of
applications (130) in any one population group was from cities of
from 100,000 to 500,000, of which fifty were for assignments on
clear or regional channels.
Even these Figures 8 and 9 and the supporting analysis are by
no means a true indication of the actual pressure from the cities
that already have stations. The Commission’s present regulations,
and the standards recommended by its engineering staff, although
not always adhered to, have undoubtedly kept down the number
of applications, particularly in the congested cities where a new
station could hardly be fitted in without reducing the traditional
50 kc. separation to 40 kc. or even less.
One Station
There is no city with a population over 81,000 that does not
have at least one broadcasting station. The largest city that has
none is Saginaw, Michigan, with a population of 80,715, and it
might well be included as part of the same community as Bay
City, Michigan, which has a station. Figure 10 is a tabulation
of cities having populations from that figure down to 20,000 that
do not have stations. Incidentally, I have discovered that, due to
oversight, this list is not entirely consistent with the analysis sup¬
porting Figure 8, and includes a few cities as separate municipal¬
ities that were considered as parts of communities listed in the
analysis. In this list you will find a number that have had sta¬
tions in the past but whose stations, with the approval of the
Commission, have been moved to larger cities. I have counted
fifteen that had stations according to the Commission’s allocation
list of June 30, 1928, and know that there must be others, such as
in the case of the regional station in my state that was moved
from Waterloo, Iowa.
There are seventy cities on the list. All but eleven of the cities
are east of the Mississippi and for those that are west of the
Mississippi, five are in Iowa (of which three formerly had stations
and gave them up) and two each are in Minnesota, Missouri and
Texas. Of the fifty-nine cities east of the Mississippi, all but two
are north of the Mason and Dixon line, the two exceptions being
in Georgia and Tennessee. Forty-three of the remaining fifty-
seven are in five states, Massachusetts, Connecticut, New York,
Pennsylvania and Ohio. The reasons for their not having more
stations will, from a technical point of view alone, be readily ap¬
preciated.
It is significant that, with the exceptions I have mentioned, every
city west of the Mississippi or south of the Ohio River with a
population over 20,000 has a broadcast station. The four cities
mentioned in Mr. Ring’s testimony as having a population of be¬
tween 50,000 and 100,000 and as being without broadcast sta¬
tions, are, according to our calculations, two in Ohio (one of
which formerly had a regional station and the other a local), and
one each in Massachusetts and Michigan.
Figures Not Conclusive
I hesitate to say that these statistics and figures are worth much
or little. I grant they are not conclusive. We have had to take
what we could find and put it together for what it is worth.
When, however, these various straws are added to what I think
each one of us knows in his heart to be true, perhaps one or two
additional conclusions may be ventured as to the economic effect
of breaking down clear channels.
The first of these conclusions is that, by paying the price of
destruction of present or future rural service, we shall merely get
additional stations which in general will belong to the regional
category and will be located in cities already well supplied with sta¬
tions. If this is true, while undoubtedly a few regional broad¬
casters who are dissatisfied with their present facilities may draw
something attractive out of the grab-bag, if they scramble soon
and hard enough, the rest of them will simply draw additional
competitors seeking to win the attention of their audiences and
the favor of their advertisers.
Second Conclusion
A second conclusion is that, in general, this breakdown will not
provide broadcast service to any appreciable amount of that por¬
tion of the country’s area and population that is not now receiving
service. Until you get down to cities having a population of less
than 50,000, the cities of this country are wonderfully well sup¬
plied with broadcast facilities. Until you get down to cities hav¬
ing a population of less than 20,000, with only a handful of ex¬
ceptions, all parts of this country, except a relatively small section
in the northeast, are supplied with broadcast facilities. A city of
20,000 in the rural south and west is something very different as
a centre of population from a city of the same population in
Massachusetts or Connecticut. The former is usually the focus of
1639
a sizeable tributary area, of farms and villages; the latter is flanked
with many other cities of equal or greater population packed into
a small area, each with only a tiny tributary area surrounding it.
In any event, it seems obvious that no matter what happens to
clear channels you cannot find facilities for every one of these
cities crowded together on either regional or clear channels. It
is not possible even to find positions for local stations in most of
these areas. They must share their radio service with other cities
close by. By reason of the congestion of stations in this part of
the country, and thanks to the high power clear channel station,
those listeners are now getting better than the average service given
to the rest of the country.
I am sorry that we cannot give you a breakdown of cities hav¬
ing population less than 20,000 but time has not permitted. From
such study as we have made, however, I am convinced that in
general the same situation obtains. The heavy majority of these
small cities will be found east of the Mississippi and north of the
Ohio.
Let us turn now1 to the other fundamental issue, raised by the
proposed elimination of the power maximum on clear channels.
Suppose that the Commission acts favorably on this proposal, and
as a result a number of SO-kilowatt stations increase their power
to S00 kilowatts. There are, I understand, thirteen such applica¬
tions pending, and no one has announced any intention of asking
for greater power.
What will be the economic effects of such a power increase on
existing regional and local stations? By way of introduction to
my answer, I shall make an assertion that may have the ring of a
challenge but I am confident that I can demonstrate its truth.
Regional and local stations, as a whole, will benefit and not suffer
from the increase.
Technical Facts
Take the physical technical facts as a starting point. These, at
least, are not difficult to prophesy. A 500-kilowatt station will
deliver a signal at any given point slightly over three times the
signal a SO-kilowatt station would have delivered at the same
point. Its contours in terms of field strength will be somewhat
enlarged, although not anywhere as much as the layman might
expect, as you have already seen from the technical exhibits. I
confess I am utterly unable to understand the thought the Presi¬
dent of the Columbia Broadcasting System expressed yesterday in
this connection. He said, as I understood him, that this tripling
of signal strength would make such a difference that Columbia
would be forced to drop affiliate stations located within the pri¬
mary service area of the clear channel station. A few minutes
later he said, as I understood him, that this same tripling of signal
would not substantially improve rural and remote service. In
any event, take any field strength you want, ten millivolts or five
or two or one-half a millivolt, and you will find the contour some¬
what further out and including some cities and towns that were
not included within the corresponding contour of the SO-kilowatt
station. The 10-millivolt contour, of course, encircles the area in
which a signal satisfactory for city-dwellers is delivered, accord¬
ing to the Commission’s standards. The 2-millivolt contour does
the same for the residential or suburban dweller. We can, I think,
disregard anything beyond the 2-millivolt contour, since the signal
is insufficient for listeners in any communities likely to have
broadcast stations. And I suspect that Columbia would not drop
any affiliate unless it were located at least within the five-millivolt
contour and perhaps closer.
Signal Strength
It becomes of interest, then, from the purely technical point of
view, to form some idea of what regional and local stations come
within the new zone of satisfactory signal strength added by the
increase in power of the clear channel station. In order not to
inflict too many different figures on you, we arbitrarily selected the
S-millivolt contour as the test. One or our technical staff prepared
a map, which I shall refer to as Figure No. 11, on which are plotted
the theoretical 5-millivolt contours of the thirty-one 50-kilowatt
stations in this country and of the same stations if increased to
500 kilowatts. These contours were based on the curves published
by the Commission’s engineering staff and on information as to
conductivity data which is believed trustworthy. The Commis¬
sion’s standard of antenna efficiency for clear channel stations was
used. Figure 11 -A lists the stations whose contours were thus
plotted, with their frequencies, their radii to the two contours, and
the conductivity assumed. While this map is, in a sense, theoretical,
it is, we believe, sufficiently close to fact to be used for the pur¬
pose I shall make of it. On the whole, its assumptions tend to
include a larger number of regional and local stations than are
really in any danger of being affected. Certainly, no one really
anticipates that 31 of the clear channel stations are going to con¬
struct 500-kilowatt stations in the immediate future.
By examination of this map, we find that 97 regional stations
(counted by licenses) are within the 5-millivolt contours of the
thirty-one stations at present and that, if they increase their power
to 500 kilowatts, 24 more will come within those contours, an
increase of 24 per cent. Of the 24, nine are affiliated with networks,
four with NBC and five with Columbia. These are the stations
which will lose network connections if Mr. Paley’s prophecy is
correct. There are 59 local stations (counted by licenses) within
the present contour and 26 more within the new contour, an in¬
crease of 44 per cent. None of these is affiliated with a network
and consequently no local will be injured in this respect.
Bridges to be Crossed
There are several bridges that must be crossed before there is
even a debatable question raised. If, for example, the regional
station is accorded a horizontal increase of power to 5 kilowatts,
then the relative difference between its signal and that of the 50-
kilowatt station which has increased to 500 kilowatts will be im¬
perceptible to the human ear. Even without this, the regional sta¬
tion will deliver a signal for a considerable area around its trans¬
mitter that is much stronger than the clear channel station can
compete with. A regional station of one kilowatt on 900 kc.,
with average conductivity will, I am told, give a signal of 5 milli¬
volts at 14 miles from its transmitter, and a 100-watt local station,
under the same circumstances, at sy2 miles. Within those contours,
the regional and local stations will deliver much stronger signals.
At a mile from its transmitter the regional station will deliver
around 150 millivolts and the local station about 40 millivolts.
Another bridge that would have to be crossed is that of listeners’
habits, the rather marked preference of the listener for the pro¬
grams of a station located in and serving his city as against those
of a station located somewhere else, other things being equal.
Let us cross all those bridges without more ado and attempt to
see where we arrive. What sources of information have we for
that purpose? What better than the actual experience, past and
present, of regional and local broadcast stations that have actually
been encircled within the 5-millivolt contours of clear channel
stations as they have progressed from 5 kilowatts or less to 50
kilowatts? At this point, we have an opportunity to be unfair
to our opponents. We have made a superficial check of the
financial record of regionals and locals under such circumstances to
determine what has happened to their gross receipts, their net
revenue, and their rates as the clear channel stations have made
this increase in power. They have shown a remarkable gain. It
was not necessary to make more than a superficial check, however,
to realize that the return of prosperity is more responsible for this
than any increase in the clear channel station’s power.
Method o£ Approach
We have, therefore, chosen another method of approach. It has
its weaknesses but it is the best that can be done. Taking the last
renewal applications of regional and local stations as our source of
information, we have calculated the average monthly profits of
regionals and locals within the 5-millivolt contours of 50 kilowatt
clear channel stations and have compared these figures with the
average monthly profits of regionals and locals outside those con¬
tours, as well as the over-all averages. We have, of course, ex¬
cluded non-commercial stations and 130 locals. The averages are
based on returns from 160 regional stations and 130 locals. The
average monthly profit of all regionals (so far as shown by the
applications) is $2,534.84. The average monthly profit of regionals
outside the 5-millivolt contours is $1,894.10. The average monthly
profit of regionals within the 5-millivolt contours is $3,675.05.
Incidentally, as a matter of interest, the average monthly profit
of the members of the National Association of Regional Broadcast
Stations is $2,904.33, or almost $400 better than the average for all
regionals.
True of Locals
The same holds true of the locals. The average monthly profit
of all of them, as shown by the renewal applications, is $535.10;
of those outside the 5-millivolt contours, $409.90; and of those
within the contours, $1,187.99.
The highest profits reported by any regional and by any local
are from stations located in cities having clear channel stations.
1640
The same is true of the highest profit reported by any regional be¬
longing to N. A. R. B. S.
We endeavored to compile the same figures with respect to the
one case where a clear channel station has increased its power from
50-kilowatts to 500 kilowatts. We immediately ran into the diffi¬
culty that is to be expected when you attempt to base averages
on a few individual cases. There are only two regional stations
in Cincinnati, and the renewal application of one of them does not
show its profit. If its profit be assumed to be the same as that
shown for the other, and this, I believe, is a legitimate assumption,
the average monthly profit for all regionals within the 5 -millivolt
contour of the 500 kilowatt station is $3,497.60, and, if you ex¬
clude a high power regional at Covington, the average becomes
$3,932.97. Otherwise, it drops to $2,545.45, due to the fact that the
station at Dayton, which was moved into that city during the past
year or two, records a monthly loss of $1,800 and the high power
regional shows a monthly profit of only $450. A very similar
situation appears in the case of the locals in that area, due to a
heavy monthly loss reported in the last renewal application of a
local in a small city in Kentucky, although in several preceding
license periods that station reported a profit.
It is difficult, therefore, to find any basis in actual experience
for the claim that the proposed increase of power of clear channel
stations would work injury to regional or local stations. It may
be claimed, however, that this method of approach is not fair
because it centers attention on regionals and locals in or near
thickly populated centers where clear channel stations are located.
This claim is not tenable, in my opinion, because no very different
question is raised, so far as distance from the principal city is
concerned, by an increase in the 5 -millivolt contour resulting from
use of 500 kilowatts.
Further Circumstances
Nevertheless, there are still further circumstances that confirm
the conclusion that no injury would result. I shall have to pass
over these very hurriedly but they are, I think, so obvious that
common sense makes the answer inevitable. The increase of power
of the clear channel station necessarily drives local advertising to
the regional and local stations. The increased power means in¬
creased rates. The local advertiser, interested only in coverage of
the city, cannot or will not pay for coverage that for him is wasted
on rural areas that give him no market. The clear channel station
becomes more and more distinct as an advertising medium, less and
less a competitor. To use a familiar analogy, it resembles a maga¬
zine read over a wide area as distinguished from a local newspaper.
The experience of all members of our Group already shows that
this is, and must be, so. Even with their present power of 50
kilowatts, they find themselves used increasingly and predominantly
for national advertising and not for local advertising. A rapid
survey of such information as I could get from members of our
Group showed that in most cases the national advertising con¬
stitutes 90 per cent or more and the local advertising 10 per cent
or less of the total. In only two cases does the national business
drop below 70 per cent, the lowest being 67.5 per cent. They all
tell me that the tendency is marked in this same direction. It is
bound to be so. They have all had the experience of losing an
increasing amount of local advertising to regional and local sta¬
tions in the same community. At least two of them have seen
regional stations move into their communities in the recent past
and take a large share of their advertising from them.
Regional or Local
Manifestly, a regional or local station fifty or one hundred or
more miles away from the clear channel station will not suffer with
respect to its local advertising. In fact, all regionals and locals
are more likely to gain than to lose. There is no greater incentive
to local advertising than the interest in advertising that is created
among prospective local advertisers by successful national adver¬
tising. They are awakened to its usefulness. This statement is not
susceptible of proof in the legal sense but I dare say every broad¬
caster in this room will confirm it from his own experience.
What about national advertising? Here, we must recognize
two kinds, network and non-network. Let us take first the net¬
work. I understand that there is apprehension among a few
regional broadcasters that have network affiliations that they may
lose those affiliations if clear channel stations in other cities are
permitted to increase their power. This apprehension is readily
understood in the light of statements such as were made by the
President of Columbia Broadcasting System. The number of such
instances would, at most, be very limited since the city served by
the regional would have to be close enough to the location of the
clear channel station so that the latter would deliver a very high
signal strength into the former’s territory, at least five and more
likely ten millivolts or more. Chicago clear channel stations de¬
liver an average of 6 millivolts into Milwaukee and the Columbia
station at Chicago an average, I am told, of eight millivolts. Yet
Milwaukee regionals still have their NBC and Columbia affiliations.
Suppose, however, that they should lose their present network con¬
nections. What reason is there for believing that additional net¬
works will not be established, or for believing that the regional
station may not find a very worthwhile mission to perform in
additional programs of a local interest? The apprehension is, how¬
ever, completely unfounded, so far as the independently-owned
dear channel station is concerned. The tendency would inevitably
be in the other direction, with the clear channel station taking a
smaller and smaller amount of network programs and the regional
station taking an increasing amount. This is not guess-work. It
can be demonstrated from actual experience.
Renewals of Regionals
The last renewals of all regional stations that are members of the
N. A. R. B. S. (so far as known to us) have been examined to
determine the amount of network programs carried by those mem¬
bers that have network affiliations. The process could have been
applied to all regionals but would have been tediously long, and
we have felt that the N. A. R. B. S. can safely be taken as a repre¬
sentative group. Fifty-two of its members are affiliated with
either NBC or CBS. The network affiliates in this Group devote
an average of 64.4 per cent of their hours to network programs.
So far as we know, only two of these are owned or controlled by
either of the networks, in both cases CBS, so that fifty of them
are independently owned.
The same process was applied to all the stations that are con¬
sidered dominant clear channel stations by the Commission, some
twenty-one or which are owned or controlled by the networks,
and naturally carry a heavy percentage of network programs.
Even with the totals thus heavily weighted, the average for all
was 63 per cent.
We then applied the process to the members of our Group, con¬
sisting of entirely independently owned stations. The average was
only 56.7 per cent. The one 500 kilowatt station showed slightly
less than 52 per cent. In addition, the tendency is everywhere
manifest among such stations to originate their own programs,
some, of course, to a much greater degree than others, depending
somewhat on the size of city in which each is located. The fact is,
that such clear channel stations are being more and more used for
a type of national advertising that cannot be handled over a net¬
work. It is what, for want of a better name, may be described
as regional coverage. Frequently it is supplementary to network
advertising and is in no sense a substitute for it. It belongs to the
category of national non-network business.
The advertiser who wants regional coverage in the sense of reach¬
ing the rural and small town population will not use a regional
or local station in any event. He does not do so now and he would
not do so if clear channel stations increase power to 500 kilowatts.
The advertiser who wants to cover any city of large or even fair
population intensively will not use a clear channel station 75 or
100 miles away; he will use a regional or local station in that city,
if it has a station. Even in this field of national regional adver¬
tising, a tendency is fast developing which bids fair to bring a
substantial source of revenue to regional and local stations. This
is in the rebroadcasting by such stations of programs disseminated
by a high power clear channel station some distance away. Several
of our members are already engaged in this arrangement on a
large scale, to the manifest satisfaction both of themselves and of
local broadcasters. From a technical point of view, this gives
ideal regional coverage. The rural areas are served by the clear
channel station. The cities and larger towns in that area, where
noise levels are too high to permit good reception, are served by
the local broadcasters who, by locating receiving apparatus away
from the inhabited area, are able to bring the rebroadcast program
to their listeners unmarred by local noise. The possibilities of such
service will be enormously increased with higher power. In a
sense, this is regional network broadcasting.
Advertising Revenue
Some idea of the part played by the several kinds of advertising
in the total revenue of the broadcast industry is given by the
analysis of gross time sales periodically published by the National
1641
Association of Broadcasters. For the past two years and a half,
these totals are as follows:
Class of Business 1934
1st 6 mo.
1935 1936
National Network .... $42,647,081
Regional Network .... 717,117
National Spot . 13,541,770
Local . 15,981,201
$50,067,686
1,110,739
17,063,688
19,281,735
$28,181,976
644,473
11,527,860
10.447,870
$72,887,169
$87,523,848 $50,802,179
The upward trends in all classes of broadcast advertising is clear
from these figures. To assume that the possibilities in any class
have been exhausted would be absurd. There are limitless oppor¬
tunities for each type of broadcast station to develop new business
from wells that have hardly been tapped, and in this development
the clear channel station, on the one hand, and the regional and
local on the other, are bound to pursue paths which diverge more
and more widely. They will compete with each other less and less
as the difference in these paths becomes more pronounced.
I am sorry to have taken so much time with arid figures and
to have placed so much emphasis on the prosaic subject of broad¬
cast advertising. So far as the statistics and tabulations are con¬
cerned, I shall have to accompany them with the legend “These
figures are not guaranteed but are believed to be substantially
correct.” I have not known how else to meet the economic issues
raised by the notice of hearing, in the time we have had for
preparation. Perhaps when the Commission has its next hearing
of this sort our industry will have better statistics and we shall be
able to do a better job.
More Economics
There is another kind of economics that I am not sure was
intended to be covered by the notice but which I should like to
mention. That is the economics of hearings before the Federal
Communications Commission. I hasten to assure you that I am
not speaking of the sort of hearing in which we are now engaged,
for I think it, in the long run, represents a saving for both the
Government and the Industry. Cooperative effort and a sharing
of expense is possible and, if sound regulations result, the effort
and expense will be more than repaid. I am talking about useless
hearings on applications which are, on their face, contrary to the
Commission’s regulations or its engineering standards and have,
or ought to have, no reasonable possibility of being granted. The
Commission undoubtedly already has some conception of the
large sums which broadcasters must pay annually to defend their
assignments and their listeners against such applications. It seems
to us that much will be gained by a rigid adherence to any regu¬
lations that may be adopted so that there will not be the continu¬
ous temptation to new applicants to gamble on a waiver of the
rules.
Social Effects of Proposals Relating to Clear Channels.
The Commission’s request for information on the social effects
of proposals made at this hearing can, so far as clear channels are
concerned be met by asking two questions which answer them¬
selves. One of these questions is whether it is socially desirable
that the broadcast service now being rendered to rural and remote
areas be impaired or destroyed. The other is whether it is so¬
cially desirable that broadcast service be extended to rural and
remote areas that now have no service and that it be improved
in those areas where it is now unsatisfactory.
I assume that it is unnecessary to justify broadcasting itself. No
one is urging that it be abolished. As an agency of mass com¬
munication, it was first a novelty, later a convenience, and now a
necessity for large portions of our population. Its social importance
is too obvious for discussion. Volumes have been written on all
its important social aspects, as a medium for entertainment, edu¬
cation, religious devotions, news and the other ingredients of its
daily program. Why, then is it necessary to debate whether the
vehicle on which this intangible commodity is transported should
be modernized, instead of being antiqued?
With the help of my associates in the Clear Channel Group, I
have canvassed everywhere for information with respect to our
program service that might be specifically arranged and classified
under the heading “social”. Our counsel has in his possession a
great deal of material which has been faithfully compiled by our
station staffs in response to questionnaires. We have examined the
information contained in present and past renewal applications of
all broadcast stations. We have supplemented this with a reading
of much current literature, learned and otherwise. Yet when it
is all done, the student can come to only one conclusion — the en¬
tire broadcast program service is important socially, the music and
entertainment as well as the education, the sports events as well
as the religious services, the comic strips as well as the news. The
question at this hearing is not whether any part of it is good or
bad but whether the whole should be extended in coverage.
I could devote days to an analysis of the program service ren¬
dered by members of our Group, or by clear channel stations
generally, or by any class of broadcast stations. There are im¬
portant differences but you know about them already. A clear
channel station with a large coverage endeavors to, and does, pro¬
vide a program service such as is needed and desired by listeners
within that coverage. A regional station does the same for lis¬
teners within its coverage. So also does a local station. Con¬
sequently, their programs, considered as a whole, differ in the
emphasis placed upon matters of general as against more local in¬
terest. The market reports desired by a single city are not the
same as those desired by a large agricultural region. Neither is
the educational or the informational matter. Neither is the music.
Neither are the political debates and election news. The sort of
program service expected from a 50-kilowatt clear channel station
costs more, on the average, than that expected from a 1-kilowatt
regional station, although there are instances where the two over¬
lap. For example, the average monthly talent cost of the clear
channel stations, as shown by their last renewal applications, is
$8,253.91, the highest being over $47,000. The average for the
regional stations that are members of the N.A.R.B.S. is $2,233.82;
the highest is $12,726.44.
But I am confident that you do not expect a detailed analysis
or comparison of program service, or statistics on program cost.
Conclusion
We have travelled a long way from our starting point. The re¬
quirement that we give thought to the broad economic and social
aspects of the issues involved in this hearing has been to our in¬
terest and profit. The work has been well worth while, both for
its educational value to ourselves and for the conclusion it points
to and confirms.
This conclusion is that there is no conflict, as is sometimes
claimed, between sound economic and social principles and sound
technical principles. Adherence to the latter will further the pub¬
lic or social interest, and at the same time will further the indus¬
try s true economic interest. It is non-adherence to sound technical
principles that leads to uneconomic and anti-social consequences.
CROSS-EXAMINATION
Under cross-examination Mr. Maland stated that he believes in
the doctrine of competition in the broadcast industry, in a variety
of programs and in better signal service to all. He also believes
that there is a definite place for local stations. Answering a spe¬
cific question Mr. Maland said that he did not believe that it
would be possible to have thirty 500-kilowatt stations in the next
two or three years. He said that in his opinion there is a trend
toward the 500-kilowatt station and that eventually this would
benefit all broadcasting. There is only one thing that is certain
about broadcasting, he stated, and that is that it is going to
change. However, he does not see any radical change in the next
few years.
STATION PROFIT
Answering further cross-examination questions Mr. Maland said
that his own station is now operating at a profit but he could not
tell definitely whether all clear channel stations are now profitable.
He is of the opinion, he said, that the shared clear channel sta¬
tions are now operating at a profit. Mr. Maland said the use of
500 kilowatts with increased revenue might have a tendency to
hasten television.
Mr. Maland said that he thought that the Commission should
limit the number of high powered stations under one ownership.
Increasing cost of thirty 500-kilowatt stations, he contended, could
be taken care of by the broadcast industry.
JOHN C. KENDALL
Judge John C. Kendall made a statement today on behalf of
stations interested in part time assignments on clear channels. He
said that the operation of such stations, after a trial of 8 years,
shows that it is economically unsound.
1642
Mr. Kendall said:
Come now Oregonian Publishing Company, Portland, Oregon,
licensee of Station KEX, Westinghouse Radio Stations, Inc., Fort
Wayne, Indiana, licensee of Station WOWO, West Virginia Broad¬
casting Corporation, Wheeling, West Virginia, licensee of Station
WWVA, Hot Springs Chamber of Commerce, licensee of Station
KTHS, Hot Springs, Arkansas, and WBAL Broadcasting Com¬
pany, licensee of Station WBAL, Baltimore, Maryland, and in
response to the request and invitation of the Federal Communica¬
tions Commission for the presentation at an informal hearing to
be held before it on to wit, the Sth day of October, 1936, of
evidence for the purpose of determining what principles should
guide the Commission in matters relating to or affecting the alloca¬
tion of frequencies, and in particular, what changes, if any, should
be made in the Commission’s existing Regulations, respectfully
show,
Cleared Channels
That heretofore and in November, 1928, the hereinafter named
broadcasting stations were assigned to cleared channel frequencies
on a time sharing basis, viz,
WBBM-KFAB
WFAA-WBAP
WWL-KWKH
WLS-WENR
KTHS-KRLD
WTIC-WBAL
WPG-WLWL
KVOO-WAPI
WOWO-WWV;
KEX-KOB
— 770 kilocycles
— 800 kilocycles
— 8S0 kilocycles
— 870 kilocycles
— 1040 kilocycles
— 1060 kilocycles
— 1100 kilocycles
— 1 140 kilocycles
l — 1160 kilocycles
— 1180 kilocycles
That such assignments to said stations were made primarily for
the purpose of making an equitable division of cleared channel
service among the various states to meet the requirements of the
Davis Amendment of the Radio Act of 1927.
Assignments Modified
Said station assignments have since been modified as follows:
a. WFAA-WBAP and WLS-WENR now use the same transmit¬
ters so that insofar as the listening public is concerned there is a
constant signal on the respective frequencies of 800 and 870 kilo¬
cycles.
b. WBBM-KFAB have been given experimental authorization
to operate in synchronism at nighttime.
c. WWL has received special authority to operate unlimited
time on 850 kilocycles while KWKH has received special authority
experimentally to operate on 1100 kilocycles, unlimited time, using
a directional antenna to protect WLWL and WPG.
d. WTIC-KRLD have received special authority on an experi¬
mental basis to operate unlimited time on 1040 kilocycles.
e. KTHS-WBAL operate simultaneously during daytime hours,
dividing time at night. However, after 9 P. M. WBAL operates
in synchronism with WJZ on 760 kilocycles with a reduction in
power from 10 kilowatts to 2500 watts. This makes it necessary
for KTHS to remain silent from local sunset to 9 P. M.
f. KVOO-WAPI, WOWO-WWVA and KEX-KOB have been
permitted to operate simultaneously during daytime hours.
g. No change has been made in the onerating assignments of
WPG and WLWL operating on 1100 kilocycles, but as has already
been noted, KWKH is now operating on this frequency experi¬
mentally, unlimited time.
Eight Years of Trial
More than eight years of trial and operating experience has
clearly demonstrated that the operation of cleared channel stations
on a time sharing basis is economically unsound and does not permit
of the rendition of the maximum service by such stations to which
the radio listening public is entitled.
Present operating assignments of shared time cleared channel
stations are economically unsound for the following reasons:
a. The same investment is required for installation and main¬
tenance as is required for a full time cleared channel station, and
the operating cost is substantially the same.
b. Due to the fact that nearly one-half of the most valuable
nighttime hours are not available there is a substantial loss in
station revenue.
c. Listener popularity and station prestige are seriously impaired
by reason of the interruption in the continuity of program service.
Public Deprived
The radio listening public is now being deprived of program
service from shared time cleared channel stations which with full
time operation from such stations would be available to it because:
a. Shared time cleared channel stations under present assignments
are required to observe a silent period up to a maximum of four
hours each day during certain months of the year. Such night¬
time hours are generally recognized as most valuable from the
standpoint of the listening public.
b. During the hours when these stations are forced to remain
silent occur the greatest number of programs in which the public
is most interested, such as the major commercial programs, local
and chain, local and national news reports, market reports, sports
events, educational programs, political speeches and other events
of public interest.
c. An analysis of the radio listener habits has demonstrated
that the early evening hours are the most popular to the rural
listener. On account of such silent period the shared time cleared
channel stations are unable to render the maximum service to the
rural listeners residing within their respective service areas.
In June, 1936, the Davis Amendment hereinbefore referred to
was repealed and we submit that the present is an opportune and
logical time to make it possible for these part time cleared channel
stations to operate full time.
Conclusion and Recommendation
Based upon the foregoing showing and representations, it is
respectfully submitted that the Federal Communications Commis¬
sion should now amend its existing Rules and Regulations, par¬
ticularly with reference to Rule 116, so as to permit full time oper¬
ation on such of the foregoing shared time cleared channel fre¬
quencies, as sound engineering standards and practice may deter¬
mine proper and feasible after a hearing to be held before your
body upon due notice to the stations affected.
HAROLD A. LaFOUNT
Harold A. LaFount, former member of the Federal Radio Com¬
mission, also made a statement at the hearing today in which he
said that he was speaking in his own capacity and not on behalf
of anyone.
He told the Commission that in his opinion without adequate
power and with only part time it is almost impossible to operate a
station without loss. He also advocated that the Commission de¬
lay action on applications of clear channel stations for power in¬
creases up to 500 kilowatts “until additional information has been
made available.”
Mr. LaFount said:
Engineering Problems
The Radio Engineering problems confronting your Honorable
Body have been so eloquently presented by so many distinguished
gentlemen that I hesitate to burden you with my views on that
subect. However, there are a few additional points which I should
like to present for your consideration. Before doing so, I want
to make my position perfectly clear. I represent no one. I am
not trying to make a case for any individual or any group of in¬
dividuals. I have absolutely no financial interest in any radio
station. My radio experience covers a period of fifteen years, and
includes many activities in that field. Nothing I say here should
be construed as a criticism of existing practices, rules or regula¬
tions, or of any station, chain or group of stations. My purpose
is to be constructive and helpful. I present my own opinions, and
have reached my own conclusions. They are given to you in a
spirit of helpfulness. I have no other purpose in addressing you.
State of Flux
The radio industry continues to be in a state of flux. This hear¬
ing is in recognition of past and impending changes in the struc¬
ture of radio broadcasting. Those changes have been many in
number and far-reaching in effect, and coming as they do with
increasing rapidity, it is well to take pause from time to time in
order to make an inventory of progress and to chart a course
which may be used as a guide to progress in the future. It is for
the purpose of clarifying the present position of the radio indus¬
try, as I see it, that I shall divide my remarks into three parts,
classified as follows:
1643
1. The objective;
2. Present conditions;
3. Suggested improvements.
Serve the Public
The Federal Communications Commission was created and has
been maintained so that it may serve the public interest, con¬
venience, and necessity. It, in turn, must fulfill that responsibility
by applying the same yardstick to the hundreds of radio broad¬
casting stations which fall within the purview of its authority. In
this sense, the obligations and responsibilities of the governing
body and the governed are identical. The broadcasting industry
must, by sincere and continuous cooperation with the Commis¬
sion, make it possible for this body to effectuate its mandate from
the Congress. The Commission must, by the same sort of co¬
operation, make it possible for the radio industry to fulfill its
responsibilities. Without this sort of mutual interest in the com¬
mon welfare, the very object and purpose of the Communications
Act must suffer defeat.
High Ideals
The path which leads to the attainment of the high ideals
prescribed for the industry is marked with pitfalls and barriers.
The problems confronting the broadcaster only begin with the
issuance of his license. The programs which he will air through
the facilities of his station must not only be in the public interest,
but must also interest the public. As you will appreciate, that
public includes authors, actors, carpenters, composers, poets,
plumbers, the rich and poor, the young and old, the single and
married. It is difficult to conceive of a more highly heterogeneous
group than the radio audience. To reach such a group requires
that the radio be all things to all men. It places the broadcaster
in the position of having to please as many of these diverse elements
as possible in the time at his disposal, and by the same token,
makes it necessary for him to incur the risk of displeasing one
group in order to please another. There can be no question that
one of the most difficult jobs on earth is to operate a radio station
successfully, not only from the financial standpoint which poses
a number of difficult problems, but also from the standpoint of
serving the conglomerate public.
Listening Public
The only phase of the radio broadcasting structure which enters
the consciousness of the listening public is the program itself. They
may not know which station it is coming from ; they may not
know whether it is a local or a network program ; they do not care
how high the antenna is nor how efficient the frequency monitor;
they only know whether or not they like what they have to listen
to. The observance of the very essential rules and regulations
promulgated by your Honorable Commission is, after all, but a
means to an end. The end is public service. We must be careful
to differentiate between the service itself and the technical or
engineering methods which have been adopted to make that service
possible.
I, therefore, suggest that the matter of paramount importance
to the public is the radio program itself. It is upon the success
and popularity of these programs that the mighty radio industry
depends for its existence. Under the present allocation and pro¬
gram arrangement peculiar to the United States, the radio industry
has expanded beyond the expectations of the most optimistic.
Nearly three-fourths of a billion dollars was the cost of entertain¬
ment by radio in the United States last year. With more homes
equipped with radio receiving sets than with either telephones or
electric lights, and the annual use of 3500 carloads of lumber, 1500
carloads of steel, and millions of miles of copper wire in servicing
the industry, everyone must be impressed with the size of the
undertaking of which every broadcaster is a part, and the size of
the responsibility which devolves upon him. If he fails in his
efforts to entertain or to interest the American public, or to render
a satisfactory service to that public, the effect upon this vast in¬
dustry would be devastating. Again, I acknowledge the impor¬
tance of satisfactory reception and quality of reproduction, but
urge that our prime object should be satisfactory program content
and quality of presentation.
Present Conditions
The present status of the radio art and industry is in many
respects extremely satisfactory. The results of your postcard
questionnaire, a part of your allocation survey, were gratifying.
It proves conclusively that cleared channel stations are produc¬
ing the results sought by their creation. The information com¬
piled by your inspectors is likewise most encouraging. As a matter
of fact, the results of the allocation survey are almost identical
with those I had anticipated, and in my opinion, reflect much
credit upon the efficient engineering staff of the Commission. In
addition to this information, it is interesting to study the distri¬
bution of power which also would justify our expecting the results
indicated by your survey.
On January 1, 1936, we had 374 full time radio broadcasting
stations. To them was assigned 2,188,650 watts power at night.
Of that amount, 2,000,000 watts were allocated full time stations
on cleared channels. It should be remembered too that all full
time, cleared channel stations are owned, operated or affiliated
with one of the three national chains, either The National Broad¬
casting Company, the Columbia Broadcasting System, or the
Mutual Broadcasting System. As I have said, the total night
power allocated to the 374 full time stations in this country is
2,188,650 watts. Of this amount 2,130,300 watts, or over 97%,
is used by the 165 full time stations affiliated with one of the three
national chains. This includes cleared channel and regional sta¬
tions. It will be seen that we have 58,350 watts power remaining
for the use of the 209 independent full time stations.
Stations Profitable
From my observation almost all full time stations are profit¬
able, especially those having a network affiliation. I have also
observed that part time stations are engaged in a struggle for
existence. I appreciate the fact that you are not obligated by law
to make it possible for broadcasters to operate at a profit. How¬
ever, I respectfully suggest that morally you are so obligated. In
my opinion it is of the utmost importance that due consideration
be given the economic aspects of broadcasting.
Under our system, broadcasting is maintained by advertisers,
time being sold at rates proportionate to the size of the potential
listening audience. There are hundreds of other contributing
factors, but power is one of the most important. Without ade¬
quate power and with only part time, it is almost impossible to
operate a station without loss. With such stations, profit-making
is the exception rather than the rule. Under these adverse cir¬
cumstances, a station cannot hope to fulfill its responsibilities. The
ability of any station to support itself, is the measure of its ability
to render a public service. One definitely depends upon the other,
so that although not directly, you are indirectly responsible for the
type of programs broadcast and you are thus the arbiter of the
service rendered by all radio stations. Practically all full time
stations, and some part time stations, are doing a splendid program
job. The chains, especially, are providing entertainment and render¬
ing a service to the American public unequaled on earth. But,
gentlemen, all stations cannot be and should not be affiliated with
these national networks.
Chain Broadcasting
Realizing the value of so-called chain broadcasting, smaller
groups of regional and local stations are operating successful units.
Credit is due Mr. John Shepherd and others for their efforts along
these lines. However, do not forget that these unaffiliated full
time stations, of which there are 209, have a combined night
power of only 58,350 watts, or little more than is assigned to the
average cleared channel station. Included in this number of full
time outlets there are 153 local, or 100 watt stations. Also, I call
your attention to the fact that no independent station in this
country has more than 1000 watts power at night.
624 Stations
On January 1, 1936, we had approximately 624 stations licensed
to operate in the regular broadcast band, 374 full time and 250
part time stations. The total day power allocated to the part
time stations was 460,700 watts, and the night power, 328,900
watts. This figure, however, is very misleading. It should be
understood that where two stations share time on the same fre¬
quency, the power of each is included in the figure given although
obviously only one station is on the air at a time. For example,
WPG, 5000 watts, and WLWL, 5000 watts, sharing time have
been considered 10,000 watts. Of the total power allocated these
part time stations, 279,450 watts day power and 265,800 night
power are used by stations affiliated with national chains, leaving
181,250 watts day power and only 63,100 watts' night power for
use by 232 part time, independent stations. Certainly I need not
tell you of the many problems confronting these small, indepen¬
dent broadcasters. They have the desire and usually the ability
1644
to render a much greater public service than is possible under such
conditions. I have heard it said by some people that these broad¬
casters should be put out of business. However, from my observa¬
tion, I find them usually very competent and anxious to render
a service, but without a chain connection and without power or
adequate time, they are severely handicapped. The solution lies
not in eliminating them, but in the elimination of the handicaps
which beset them. It is interesting to note the location of these
part time stations. For instance, the nine southeastern states have
only 19, while the State of New York has 27, Pennsylvania, 18,
and Illinois, 21. New Jersey has only two full time stations, and
11 part time stations.
Part Time Stations
The following states have more part time than full time sta¬
tions: — Colorado, Connecticut, Illinois, Indiana, Iowa, Missouri,
New Jersey, New Mexico, New York, Pennsylvania, and South
Dakota. The following states have no part time stations: Tennes¬
see, South Carolina, Wyoming, Utah, Idaho, Kentucky, Rhode
Island, Nevada and the District of Columbia. One of the reasons
for the existence of so many part time stations is the partial ad¬
herence to the Commission’s separation requirements which, in
my opinion, have outlived their usefulness. I can thoroughly
understand why the signal of a southern or western station serv¬
ing a large area should be protected almost to the vanishing point,
but in the east and middle west where stations are very close
together, and where programs are so frequently duplicated, such
protection seems entirely unnecessary. The eastern and middle
western stations frequently have no desire to be heard at any ap¬
preciable distance. They have a large population in rather close
proximity to the station, thus making an effective appeal to ad¬
vertisers. However, in the west and south a station must in some
instances cover the entire state and even then its potential listen¬
ing audience is less than 100,000.
New Frequencies
There seems to be some justification for the belief that broad¬
casting stations may within a few years be operating in a totally
different band of frequencies, the effect of which will be far-
reaching. The realization of this fact necessarily causes the
smaller broadcaster some concern. It is a cause of concern to this
body, and to all broadcasters. If, as a result, the Commission
should authorize as many new stations as engineers may make
room for, the result would be disastrous to most of the 441 inde¬
pendent stations, and especially to the 2S0 part time stations. The
law of supply and demand is as thoroughly operative in the field
of radio broadcasting as in any other competitive field.
Local Business
As you doubtless know, independent stations must depend largely
upon local business for their support. Especially is this true of the
local and part time station, and, gentlemen, when you realize that
some cities have more radio stations than newspapers, you can be
sure that selling enough time to desirable advertisers to make the
station profitable is a very difficult task. We should also remem¬
ber that a few years ago the newspapers handled almost all of the
local advertising. Today we have the same number of newspapers,
plus our radio broadcasting stations, both depending upon the
same source of revenue for their existence. Also, we must re¬
member the amount of advertising a radio station must refuse to
accept, in order to conform to the ethical standards of this body,
the Federal Trade Commission, and the station’s own management.
All of these considerations complicate administrative and operative
procedures.
National Advertisers
National advertisers buy time on the national chains. They
likewise buy it from the individual chain stations, but national
advertisers are seldom interested in buying it from part time or
local stations, and only a very limited amount of such business
is available. An advertiser is safe in the presumption that the chain
station has an audience, due to its ability to present meritorious
programs. This ability is not necessarily due to an enterprising
station management, but rather results from the fortuitous cir¬
cumstances that one of the national networks selected that sta¬
tion as an outlet. But, on the other hand, the independent station
must prepare and present its own program, sell its own time
locally, and with a very limited power assignment, the price they
can command from their local advertisers is only a small portion
of that which comes alomst without effort to the chain station.
It must be remembered also that most of the stations affiliated
with the national chains sell time to local advertisers during the
day. Consequently, the problems confronting the independent
broadcaster becomes still more complicated.
Place in Radio
But, regardless of all his problems, there is, in my opinion, a
definite place for him in the radio picture, unless you permit com¬
petition to the point of extermination or absorption. Gentlemen,
if I talk for anyone, it is the independent, small broadcaster, who
all too frequently has his life’s savings invested in his station and
possesses a sincere desire to render a public service, but due to
the problems here referred to, plus others far too numerous to
mention, has a task of tremendous magnitude. I believe in local
and independent stations. I know there is a real need for them,
and I urge your consideration of the 441 stations not affiliated
with national networks. I could not say too much for the chains
and what they are doing, but certainly they can and do take care
of themselves.
Unaffiliated Stations
The function which the affiliated station can perform is in many
respects distinct and separate from that which the unaffiliated
station performs. A local station is in a position to provide a pro¬
gram product to the community it serves, which a network station,
devoting much of its time to national broadcasts, cannot hope
to perform. The facts which I have reviewed here, are conclusive
evidence, it seems to me, that the interests of this large group of
independent broadcasters have been sadly neglected. The ratio
of the value of local service to the value of network service is
incorrectly reflected in the ratio of independent station power to
network station power.
These small stations can be of great public service. They are
operating under a mandate from this Commission to provide that
service. Without adequate time and power, they will remain with¬
out adequate revenue. Without adequate revenue, they cannot serve
the public interest effectively. Compared with their big brothers,
they are in a very disadvantageous competitive position. It is
very easy for one to comply with the requirements of the law and
this Commission, but the other must start with a very great handi¬
cap.
Suggested Improvements
In the light of these facts, I should like to recommend a few
possible improvements.
First, I sincerely believe we have all the radio broadcasting sta¬
tions this country can possibly support, and that additional facili¬
ties will necessitate the commercialization of stations to the ex¬
clusion of public service programs. With an increased number of
stations, advertising rates must be decreased. With decreased ad¬
vertising rates, more time must be sold in order to operate the
station. With more sponsored time on the air, public service and
sustaining programs must of necessity be reduced in number.
Second, action upon the applications of cleared channel stations
for power increases up to 500 kw. should, in my opinion, be de¬
layed until additional information has been made available. The
survey conducted by you proves conclusively that these stations
are now serving the rural listeners, and that additional power at
this time is not essential. It is not expected that the signal
strength provided city listeners be also available to rural listeners,
any more than the rancher expects four or five deliveries of mail
a day. As a matter of fact, he is satisfied with one. The additional
investment necessary is not justified from the standpoint of serv¬
ice to the rural listener, but may be profitable and justifiable
from the standpoint of monopolizing city and urban receiving sets
in that their signal strength would be so very much greater than
that of any local station. The fact that all full time, cleared channel
stations are affiliated with the national chains makes additional
power assignments to these stations at this time and under these
circumstances unnecessary. National chain programs are heard
satisfactorily in almost every part of the United States. The ex¬
ceptions would likely not be benefitted by the granting of any of
the pending applications. The question of the duplication of pro¬
grams also becomes a subject of great importance. It seems entirely
probable that the networks would, if granted 500 kw. at certain stra¬
tegic locations, discontinue affiliated stations in that general vicin¬
ity, thus forcing more stations to depend upon local business and
increasing local competition.
1645
Mileage Separation
Third, the mileage separation requirements of the Commission
should be discontinued, and every case considered upon its merits,
giving due consideration to all factors, including duplication of pro¬
grams in certain areas, and also the economic problems involved.
There can be no advantage to the public, to the industry, or to the
Government in permitting existing or new stations to operate at a
loss or to struggle for a bare existence because of inadequate
assignments.
Consolidations
Fourth, all part time stations should be urged to consolidate, to
move to new locations where there are no existing stations, and
population sufficient to support them, or be given an opportunity to
become full time stations. I am aware that such changes cannot
be initiated by the Commission, but applications for such changes
should, in my opinion, be given preference over applications for new
stations. The investment in equipment already having been made,
such adjustments would be of benefit to the public, to the industry
generally, and to the broadcaster specifically.
Fifth, all broadcasting licenses should be issued for a period of
at least two years. This would materially help the morale of broad¬
casters and do much toward stabilizing the industry.
These things will aid substantially in improving service to the
radio listener, in forestalling lopsided progress, in increasing the
ability of broadcasters to render a public service in the highest
sense of that word, and in providing a firmer foundation upon
which to build even greater achievements than those which the
radio industry has already contributed to contemporary civilization.
CROSS-EXAMINATION OF LaFOUNT
Under cross-examination Mr. LaFount said that after having
made a survey of many of the stations of the country he felt as¬
sured that half of the independent stations in the United States
did not make a profit during the past year. Some of them have,
he said, but this depended very much on location. He advocated
that the Commission not grant new station applications but that it
increase the power of present ones and allow consolidations of
shared time stations instead. He believed that the Commission
should go so far as not even to grant applications for new stations
in cities where there are no stations at present. Under further
cross-examination he said that there are a few cities in the United
States today who can support a radio station where there is none.
CANNOT SUPPORT TWO STATIONS
Mr. LaFount testified that in his opinion in a town with a popu¬
lation of 15,000 it would be impossible to support two broadcasting
stations.
He stated that the two clear channel stations in the Fifth Zone
cover that zone satisfactorily. He also advocated two-year licenses
and said that if this were granted it would not freeze the situa¬
tion. He asserted that the broadcasters of the country could do
a much better job with a two-year license than a six-months
license.
JOHN SHEPARD, 3rd
John Shepard, 3rd, chairman of the Executive Committee of
the National Association of Regional Broadcast Stations, opened
the argument before the Commission on behalf of the Regional
stations.
He said that his Association advocates supporting changes in
the rules of the Commission so that they would permit the
operation “of Regional Broadcast Stations with 5000 watts power
at night, as well as day, and so as to permit the operation of more
than one full time station on a clear channel.”
He said that members of his group feel that they would be
adversely and most seriously affected if stations should be author¬
ized and regularly licensed to operate with 500 kilowatts.
Mr. Shepard said.
As Chairman of the Executive Committee of the National Asso¬
ciation of Regional Broadcast Stations, and at the very outset of
the presentation of evidence supporting the position of the Associ¬
ation, it is in order that the Commission be informed as to what
the National Association of Regional Broadcast Stations is, how
it came into being, what its purposes are, and what it has been
doing.
Discuss Regionals
At the convention of the National Association of Broadcasters
held in Chicago last July, some of those who are responsible for
the management and operation of regional stations began to discuss
informally what regional stations should do and what an organiza¬
tion of such stations could do in assisting the Commission in col¬
lecting data for this hearing. No attempt was made to organize
the regional stations at that particular time, but some of them
met in Chicago later and organized the National Association of Re¬
gional Broadcast Stations. Between the informal discussions dur¬
ing the NAB convention in Chicago and the time the Association
was organized, numerous regional station licensees were talked to
and their problems and ideas were all found to be generally the
same. It was therefore relatively easy to determine at the
time the Association was organized what the interests of regional
stations were and to determine what general proposals this group
of regional stations should make to you.
The Association has 81 members located in 34 states and has
one or more members on 35 different frequencies out of 40 fre¬
quencies assigned to regional stations. Thus this Association is,
in the fullest sense, truly representative.
Stations’ Interests
Having determined what all of the stations’ general interests
were and attempting to condense these into as few definite pro¬
posals as possible. It was unanimously determined that the Asso¬
ciation should sponsor and present evidence supporting changes in
the rules of the Commission so that such rules as amended would
permit the operation of regional broadcast stations with 5 kw.
power at night, as well as day, and so as to also permit the
operation of more than one full time station on a clear channel.
It was also definitely determined as the governing policy of the
Association that it should and therefore would sponsor these
changes in Commission rules for general application to regional
broadcast stations. Your Division, in giving notice of this hear¬
ing and in inviting participation in it, made it clear that the infor¬
mation and data desired should go to general applicability of rules
rather than attempt to produce evidence in support of relatively
few stations or a small number of regional frequencies. The Asso¬
ciation has tried sincerely to comply with this implied if not direct
request of the Commission and has prepared the showing which it
will make along these lines.
Unanimous Opinion
The Association was unanimously of the opinion that regional
stations, both as a group and as individuals, would be adversely
and most severely affected if stations should be authorized and
regularly licensed to operate with 500 kw. Believing in our
own stations and being convinced that they are rendering an
indispensable service to the American public, we were convinced
that we would be negligent in our duty as individuals and as an
Association, to both this Division and ourselves, if we did not
show some of the facts as to how the regional stations would be
so adversely affected by the regular operation of 500 kw. stations.
Prepare Evidence
An executive committee of the Association was elected and au¬
thorized to engage assistance for the purpose of preparing the evi¬
dence and to present it to your Division. After the Executive
Committee had studied the question of how best to present the
evidence, it decided that such evidence should be presented, not
alone as to the technical or engineering questions involved, but
also as to the all-important social and economic questions and
considerations which we believe are of primary importance and
which we also believe must be the controlling factors in any final
conclusion reached by this Commission as to what rules shall govern
the future of American broadcasting.
The Association engaged Dr. Greenleaf Whittier Pickard to
direct the technical studies and Paul D. P. Spearman to direct
the other studies which we shall present for your consideration
with the sincere hope that the facts and principles so presented will
prove beneficial. Dr. Pickard has had the assistance of several
able engineers and Mr. Spearman has had several assistants work¬
ing in cooperation with him. It would have been impossible to
prepare and present our evidence in any other way. To make pos¬
sible the consumption of the smallest amount of your time, the
technical studies and investigations will be presented by Dr.
Pickard. The results of the remaining studies and investigations
will be presented under the direction of Mr. Spearman.
Peculiar Problems
The regional stations have their own peculiar problems and the
interests of regional stations may conflict with the interests of
1646
some other class of stations or some other station within a class,
and if such conflicts should arise the only way the facts can be
fairly and fully presented on behalf of regional stations is through
an organization or association made up of such stations. The
National Association of Broadcasters having a membership which
is made up of every class of station cannot, of course, afford to,
and the regional stations would neither ask nor expect it to take
sides with the interests of any other class of station represented
by membership in the National Association of Broadcasters.
Conclusions
Our Association appreciates the action of your Division in af¬
fording the opportunity which this informal hearing does afford to
lay our problems before you and to present the facts with respect
to such problems. Every member of the Association is deeply
grateful to your Commission and appreciates fully your desire and
intention to study the important questions involved in the regula¬
tion of broadcast stations in this manner, and to get some of the
practical viewpoints, as well as the theories to which you should,
we believe, give most careful consideration.
Dr. Pickard will, as I have already stated, present the techni¬
cal and engineering evidence on behalf of the National Association
of Regional Broadcast Stations. He will be the first to appear on
our behalf.
DR. G. W. PICKARD
Dr. G. W. Pickard followed Mr. Shepard on the stand taking
up the technical side of the regional station situation. He pre¬
sented lantern slides by which he pointed out possible duplications
on clear channels.
He took up three specific hypothetical cases of duplications on
clear channels. One of these dealt with a proposed station at
Seattle, Washington, on 760 kilocycles, the frequency of WJZ. The
Seattle station he proposed would use a directional antenna and he
contended that with its use WJZ would be given full protection.
He also took up a hypothetical case of a station at San Francisco
using 1170 kilocycles which is the frequency of WCAU and other
stations. In a third example he proposed a hypothetical station
at Cincinnati on ISO kilocycles, that now used by KNX. In all
of these cases Dr. Pickard contended that there could be duplica¬
tion without serious interference.
Open Space Coverage
Dr. G. W. Pickard said that SO kilowatt stations could not cover
the great wide open spaces and even if these were increased to 500
kilowatts he contended that there could not be complete daytime
coverage of these places. He even went so far as to state that 5000
kilowatt stations could not give good daytime coverage.
International Interference
Dr. Pickard then took up the international side of the use of
500 kilowatt stations. He spoke in this connection particularly
of the interference range. He contended that a 500 kilowatt sta¬
tion would create interference well down into South America, into
portions of Europe as far as Berlin, into Asia, Africa, and large
portions of the Pacific Ocean. He spoke also of the reception in
Europe of America’s stations, mostly of 50 kilowatt power and
located on the Coast. Dr. Pickard will continue his testimony on
Friday morning.
1647
The National Association of Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN. Managing Director
NAB REPORTS
Ctpyrioht. 1936. The National Aisoclation of Broadcasters
Vol. 4 - - No. 55
OCT. 12, 1936
Regional Group Concludes Engineering
Testimony
The Federal Communications Commission today resumed its
hearings in the general allocation case which was adjourned last
Friday.
Dr. G. W. Pickard, engineer for the regional group, was on
the stand all day today undergoing cross examination by the
chief engineer of the Commission, T. A. M. Craven. He concluded
his part of the case today and it is expected that Paul D. P.
Spearman, counsel for the regional group, will present the eco¬
nomic side of their case tomorrow, which will conclude what that
group has to offer.
It is anticipated by members of the Commission that the hearing
will conclude this week but it is possible that it may have to sit
next week.
Pickard Continues
Dr. Pickard, at a short session of the hearing on Friday morning,
continued his testimony. He discussed further the question of
international interference from 500 kilowatt stations. He called
attention to the fact that there are a number of Mexican stations
operating on the same frequencies as our own clear channels and
that the Mexican stations have really made our clear channel
stations anything but clear.
Coverage
He discussed at some length the distribution of both day and
night regional service and told the Commission of a study of
coverage of regional services which he had made. He stated that
his survey showed that regional stations in the United States
cover a daytime audience of 175,206,988, which of course, he
pointed out, is an overlapping of regional service. Nighttime
coverage of these stations, he asserted, reached 245.292,649.
During the course of his examination Dr. Pickard stated that
he agrees in part with the Engineering Division of the Commis¬
sion in connection with signal intensity. He said that in his
opinion a ten millivolt signal is too low and that it should be
twenty millivolts. In connection with a signal in the residential
part of the city, he contended that two millivolts are too low and
that this should be increased to five millivolts. He said also that
in rural areas the signal intensity of one tenth of a millivolt is
too low.
Agrees with Engineers
Dr. Pickard testified under cross examination that he agrees
with many of the conclusions reached by the Engineering Division
of the Commission in its recent allocation survey. However, the
Commission’s standard on blanketing is too low, Dr. Pickard
contended.
Asked regarding radio problems from the standpoint of the
listener and the government, Dr. Pickard said that he best under¬
stands the radio problem from the standpoint of the listener. He
advocated reallocation on a frequency basis to give such stations
as the regionals a frequency in keeping with soil conductivity.
He admitted that it would be hard to accomplish such a re¬
allocation.
City Listeners
Dr. Pickard told the Commission that the listeners in the cities
should be given stronger signals than they now receive. City and
rural listeners have much the same listening likes and dislikes,
Dr. Pickard continued, and said that in his opinion the broad¬
casters should give the greatest variety of programs to rural as
well as city listeners.
Staggering Stations
Dr. Pickard suggested in answer to one of Mr. Craven’s ques¬
tions the staggering of station frequencies where two or more
stations are on the same frequency. By staggering the stations
approximately 17 cycles it would eliminate the zero beating, sea
wash effect which is much more objectionable, he stated, than the
overlapping of two programs.
Dr. Pickard pointed out that from zero to 10 cycles difference
between stations an objectionable flutter is experienced but from
10 cycles to approximately 25 cycles the heterodyne between
stations is not audible, due to the inherent characteristics of a
receiver. He suggested that an acceptable ratio of 10 to 1 between
two stations would be satisfactory where this staggering is used,
instead of 20 to 1 where this staggering is not employed.
Local Stations
It was contended by Dr. Pickard during the course of his
examination that local stations should be used for local problems.
He said that full time is much more important to the listening
public than part time.
There is a definite limit, Dr. Pickard testified, as to what can
be done in the duplication of clear channels.
Mr. Craven called Dr. Pickard’s attention to the fact that there
are now 40 clear channels designated as such and he asked him
how many duplications there could be. Dr. Pickard expressed
the opinion that possibly there should not be more than 10 or 15
of these channels duplicated. He advocated a horizontal increase
in power to 5 kilowatts for all regional stations.
Canadian Channels
Dr. Pickard said that in his opinion stations on Canadian shared
channels could go to 5 kilowatts with the use of a directional
antenna. He contended that 5 kilowatts will increase fields but
not interference. He also advocated the consideration by 250
and 500 watt stations going to 5 kilowatts. He admitted that
there is a serious engineering problem here but contended that
it could be worked out. He said further that if the regional
stations of the country should increase their power that local
stations on adjacent channels would not be seriously interfered
with.
Rural Interference
It was testified by Dr. Pickard also that no rural interference
would be caused if regional stations increased their power and
the clear channels stay at their present power. He advocated the
use of directional antennae for all stations on shared frequencies,
including locals, and said he knew of no reason why at least certain
of the local stations should not be permitted thereby to increase
their operating power.
City listeners, Dr. Pickard stated, still answering questions by
the chief engineer, need higher power through their local as well
as distant stations. He expressed it as his opinion that shared
time stations should go to full time if this is at all possible.
1649
Rural Listeners
Rural listeners now receive good service under the present engi¬
neering standards, Dr. Pickard stated, but he repeatedly advocated
higher power for the regional stations.
Taking up again the question of rural listeners, Dr. Pickard
said that his investigations show that they receive at least two
network programs and in many cases three. However, he stated
definitely that the rural listeners do not receive good daytime
service from clear channel stations. His contention was that no
matter how much the power of the clear channel stations was
increased it would not give good daytime reception to the rural
listeners.
All Listeners Alike
Dr. Pickard told the Commission that in his opinion all of the
listeners of the country, both rural and city, should be treated
alike but it is not technically and economically possible. He said
in this connection that it is no more possible to give the rural'
listeners as good a program as the city listeners receive than it is
for the rural residents to have sewers, lights, police protection,
etc., compared with city dwellings.
Dr. Pickard thought that the rural listener could be better taken
care of by increasing the number of stations, by increasing power
on regional stations, and by synchronization.
No Inflexible Regulations
Dr. Pickard went on record in a most emphatic manner against
the imposition by the Communications Commission of any in¬
flexible regulations which would hamper radio experimentation.
He stated positively that in his opinion the use of 500 kilowatts
is not a technical advance.
In this connection Dr. Pickard drew an analogy between the
use of high power on clear channels and the distribution of energy
via telephone lines. He said that it had been his experience as a
telephone engineer that there were definite limits beyond which
power could not be distributed from one source; and that it
was more economical to distribute it by steps. Questioned by
Mr. Craven as to how his analogy applied to the horizontal in¬
crease in the power of regional stations to 5 kilowatts, he drew
a further analogy with the use of light. In this connection he
explained that our seniors had been forced to use weak and in¬
efficient candle and lamp light but that today there was a level
beyond which it was not necessary to go in furnishing efficient
light.
Higher Power for Regionals
He made a very positive statement to the effect that higher
power should be granted the regional stations of the country but
that no increase should be granted to the clear channel stations.
He said that the use of 500 kilowatts is not feasible or the best
solution of the present problem. He contended (1) that the
stations have reached the useful limit of their increased power,
(2) he compared this increased power with the telephone situation,
(5) he brought up the question of international interference, and
(4) economic reasons.
WLW
Questioned regarding the service of WLW 716 miles away from
the station, Dr. Pickard said that it is not rendering a satisfactory
service in June or July. He said in fact that if a circle were
drawn around WLW 716 miles in circumference that there would
be certain times when it would not give a good service. The
summer service of the station, he contended, is impaired as com¬
pared with fall, winter and spring. He admitted, however, that
if the power was reduced it would impair the service range.
Satisfactory Service
Dr. Pickard told the Commission that he believed that the
broadcasters of the country should give such satisfactory signal
to the listener as is acceptable to him. This, he said, of course
will vary with the circumstances of the listener. During the
course of his examination Dr. Pickard stated that his observation
showed that there is a higher disturbance on the east coast than
on the west coast.
There should be a signal intensity, said Dr. Pickard, of more
than 500 millivolts used to cover towns and villages even in rural
areas.
Rural Stations
Many towns and villages in the United States now have no
radio station of their own, Dr. Pickard testified, at which point
Mr. Craven read into the record that there are 280 towns in the
United States today having inhabitants from 10 to 15 thousand
which have no radio station and there are 562 towns with in¬
habitants of between 5,000 and 10,000 who have no station of
their own.
Florida has a high disturbance area in the summer because of
the storms, Dr. Pickard said. Dealing still with this state he testi¬
fied that there are a number of towns in Florida having from
2,500 to 25,000 inhabitants which are dependent on clear channel
stations for their radio reception. He said that in a case of this
kind increased power would help.
The increasing of the power of clear channel stations he said
in his opinion would give rural listeners better programs only to
a very limited extent. Neither regional nor clear channel stations
use a hundred per cent network, Dr. Pickard testified, but he did
not know what percentage of network time these two classes of
stations used.
One Wave Franklin Antennas
Dr. Pickard pointed out that clear channel stations, by the use
of One Wave Franklin Antenna, could increase their coverage to
a degree which would be the equivalent of an increase in power
from 50 kilowatts to 136 kilowatts. Asked whether he would
advocate the use of the One Wave Franklin Antennas by clear
channel stations, Dr. Pickard said that he would favor their use
particularly if such stations operated on the higher frequencies.
Following is a supplemental list of those attending the hearings:
B
Baker, Thomas S. ; Berne, Louis W„ Station WCNW, Brooklyn,
N. Y.
C
Chafey, Clifford M„ Station WEEU, Reading Pa.
F
Faske, Arthur, Station WCNW, Brooklyn, N. Y.; Frazier,
Howard S., Cons. Engineer, Hotel Philadelphia, Philadelphia, Pa.
G
Gillin, Jr., John J., Station WOW, Omaha, Nebr. ; Godley,
Paul F., Cons. Engineer, Montclair, N. J.; Gould, Purnell H.,
Commercial Mgr., Station WFBR, Baltimore, Md.
H
Halff, Hugh A. L., Station WOAI, San Antonio, Tex.; Harmon,
R. N. Westinghouse Co., Chicopee Falls, Mass.; Hildreth, Melvin
D., Attorney, WORL, Boston, Mass.
L
Landis, Harold O., Station WEEU, Reading, Pa.
M
Megargee, Frank, Station WGBI, Scranton, Pa.
P
Prall, A. M., V.-P., Trans-American Broadcasting & Television
Corp., 521 Fifth Ave., New York City.
T
Tolman, David E., Segal & Smith, Washington, D. C.
W
Webb, William H., Attorney, 1128 Connnecticut Ave., N. W.,
Washington, D. C.; White, Ray B., Stations WAWZ-KPOF,
Zarephath, N. J.; Wrathall, Grant, Utah Broadcasting Co., Sta¬
tion KUTA, National Press Bldg.
1650
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * • *
Cogyrignt. 1933. The National Association of Broadcasters
Vol. 4 - - No. 56
OCT. 13, 1936
Regionals Testimony Completed by
Spearman
Paul D. P. Spearman, counsel for the National Association of
Regional Broadcast Stations, completed their presentation before
the Federal Communications Commission today at the allocation
hearing when he took up the social and economic considerations
vital to regional stations.
Mr. Spearman was subjected to cross examination by T. A. M.
Craven, chief engineer of the Commission on behalf of the Com¬
mission, and questions were propounded through him at the direc¬
tion of Chairman Sykes prepared by Louis G. Caldwell, counsel
for the Clear Channel Group. It is expected that Paul M. Segal,
counsel for a group of regional stations who have asked the Com¬
mission for an increase of power to 5 kilowatts, will present their
case tomorrow. It is anticipated also that some time during to¬
morrow’s session the National Broadcasting Company will present
testimony.
Economic Questions
Mr. Spearman told the Commission at the beginning of his state¬
ment that his particular discussion would be limited to the social
and economic questions involved.
“The group which I represent,” said Mr. Spearman, “holds as
fundamental and self evident truths that social and economic con¬
sideration and facts taken into account by the Commission and
used as the basis for the future regulation of broadcasting trans¬
cend and outweigh in importance any question or questions of
mechanics which might be given consideration or which might
affect the future of radio broadcast regulation.”
Mr. Spearman contended that regional broadcast stations are the
backbone of American broadcasting. “The Association which I
represent,” he said, “has no quarrel with the networks as such.
Chain programs have made possible the growth and popularity of
broadcasting.”
Regional stations, said Mr. Spearman, render unique program
service to their communities and adjacent areas which it is diffi¬
cult, if not impossible, for other classes of stations to duplicate.
Recommendations
“The National Association of Regional Broadcast Stations,”
said Mr. Spearman, “on the bases of the social and economic facts,
which are of primary importance, and the technical facts as well,
all of which we believe sincerely to have supported our proposals,
once again most respectfully urges the promulgation of rules or
changes in rules so as to permit the operation of regional stations
with 5 kilowatt night power; permit duplication and operation
of more than one station on the clear channels, and retain the
present rules fixing SO kilowatt as the maximum power with which
any station will be regularly licensed to operate.”
Paul D. P. Spearman
Mr. Spearman said:
The Broadcast Division of the Commission in giving its notice
of this informal hearing, stated that its purpose was to obtain the
most complete information available with respect to the broad
subject of allocation, and emphasized that the data desired was
not limited to technical or engineering facts, but included a re¬
quest for the presentation of evidence with respect to social and
economic considerations which should be considered in the formu¬
lation of regulations and standards governing the use of the band
550 to 1600 kilocycles. It was to make social, economic and en¬
gineering studies and to present the results of these studies at this
hearing that the National Association of Regional Broadcast Sta¬
tions was organized. This Association is composed of licensees who
operate a large number of regional broadcast stations, including
commercial and non-commercial stations, as well as stations affili¬
ated with national networks and commercial stations operating
independent of such networks.
The National Association of Regional Broadcast Stations em¬
ployed Mr. G. W. Pickard to direct the studies of technical ques¬
tions affecting regional stations in particular and broadcasting in
general. I was retained to direct and to present studies affecting
the other phases of the regional stations’ presentation. This par¬
ticular discussion will be limited to the social and economic ques¬
tion involved, and if references are made to technical matters it
will be because of the inter-relationship which may appear to
make this necessary. It is not the purpose of this statement to
deal with engineering questions as such, and the only technical
references which will be presented in this discussion are those
which may directly bear upon a proper presentation of the social
and economic aspects of the questions being considered. More¬
over, such reference as may be made to technical questions are
based upon the main body of the engineering presentation which
has been made on behalf of the Association by Mr. Pickard.
Importance of Social and Economic Considerations
The group which I represent holds as fundamental and self-
evident truths that social and economic considerations and facts
taken into account by the Commission and used as the basis for
the future regulation of broadcasting transcend and outweigh in
importance any question or questions of mechanics which might
be given consideration or which might affect the future of radio
broadcast regulation. These social and economic laws and facts
cannot be measured with absolute precision or mathematical ex¬
actitude, yet they are the factors of paramount importance which
should be reckoned with and first solved as far as possible before
consideration is given to the mechanics of radio in the formulation
of rules to guide and govern the future of broadcasting. After,
and only after, the social needs and economic demands and limits
have been determined can the Commission ascertain how and in
what way the mechanics of broadcasting should be fitted into the
result. The only reason for the existence of radio transmitters
and receivers is to serve the social and economic needs and de¬
mands of the public. The public and its social problems do not
exist merely for the purpose of being reached through the mechanics
of radio and their interests should not, and we are sure will not,
be subordinated to mere technical considerations. The public is
the master and radio its servant. To set up engineering or technical
rules and then attempt to fit the public needs into the resultant
picture would be tantamount to the “tail wagging the dog.” The
group which I represent appreciates fully and is proud of the great
advances made in the technique of radio. It is convinced that
where engineering theories run counter to social demands and
economic laws, the needs and demands of the public must control.
The Position of Regional Stations in Broadcasting
Regional broadcast stations are the backbone of American broad¬
casting. We do not believe this statement will be challenged. We
do believe, however, that the importance of regional stations in
the present structure and listener service of broadcasting and the
important function they perform would not be amiss if pointed
out here.
1651
In the allocation of 1928 the Federal Radio Commission estab¬
lished three classes of stations, each intended to render a particular
kind of service, i. e., clear channel, regional and local. Clear channel
stations were provided for the purpose of rendering general service
over large areas. Regional stations were created for the purpose
of serving important communities and their adjacent areas of in¬
fluence. Local stations were designed to serve localized needs in
more limited territories.
Out of that allocation and from this classification of stations
there developed a natural but important aspect of American broad¬
casting; specialization of function. Each class of stations was
designed, and indeed best suited, to serve a particular function.
Much of American radio broadcasting and the service which the
public has received has developed since that basic allocation as
the direct result of the natural working out of this specialization
of function.
The principle of specialization of function strikes deeper into the
broadcast structure and the daily operation of broadcast stations
than might appear at first glance. Not only does it affect the
range of radio signals, but it exerts a powerful and important in¬
fluence upon the nature of the program service rendered and, as
well, upon the economics involved.
Local stations more and more have come to develop program
service designed to meet particular local needs and to fit into local
demands and local psychology, finding in this development or evo¬
lution the only successful means of winning and holding listeners
in competition with the network and larger and more prosperous
stations. This specialization or concentration by local stations on
local conditions and local factors has been a most constructive
addition to the field of broadcast service and has added materially
to the wealth and variety of listener service made available.
Program Service
The differentiation of program service between regional and clear
channel stations has been less marked, just as the difference be¬
tween their range of service and influence is at times less clearly
defined. On the other hand, however, there has been a particularly
noticeable tendency for the regional stations to be more and more
closely allied to every civic enterprise of the community and area
which it serves and to tie itself as closely as possible to the com¬
munity life, the reference to community here being not only to
the city in which a given station may be located, but includes as
well the adjacent areas which it serves. Part of this policy has
been dictated by clear channel competition, and part by desire to
win and hold a loyal, local following in general. Again specializa¬
tion of function has tended to develop a distinctive service on the
part of many regional stations.
This specialization of function has also affected the economic
operation of stations of various classes. Local stations have tended
to specialize in local advertising and to render important service
to smaller retail establishments. Regional stations have tended to
serve and do serve those larger commercial concerns — department
stores, local manufacturers, bakeries, and the like — interested in a
wider area than the immediate locality and concerned with and
desirous of reaching the entire trading area of the community.
Regional stations from the beginning have served as important
network outlets and in this way have served regional and national
distributors in a most important capacity.
Clear channel stations have served and continue to serve as im¬
portant links in the chain of American broadcasting. Their wide¬
spread coverage has, as would naturally be expected, given them less
local interest and has tended to restrict their scope of local service
and at the same time, so far as the circulation received outside of
the community and its adjacent trading area is concerned, has
introduced a large element of waste for the local advertiser.
Populous Areas
In more populous areas there is the grave question as to whether
the clear channel station has performed any function different from
that of the regional station enjoying good coverage. In many of
these populous areas a clear channel station has served either as a
key station or outlet station for networks, thus performing prac¬
tically the same function and giving generally the same service of
regional stations elsewhere which are affiliated with such networks.
Thus it is seen that the principle of specialization of function has
worked itself out in the technical, social and economic fields and
these three classes of stations may be compared roughly to three
aspects of the press. The clear channel station may be compared
to the large metropolitan daily with a large circulation scattered
over a large portion of the country. The New York Times would
be an example in point. The regional station may be compared to
the average city newspaper which constitutes the backbone of the
American press as the regional stations constitute the backbone of
American broadcasting. Finally, the local station is similar to
the country press or to the neighborhood papers in the large cities.
It might be said, however, that in community movements and com¬
munity drives the large metropolitan daily with its scattered cir¬
culation may not be relied upon and such movements must depend
for their success upon the local daily newspaper which builds its
service around the city and its environs just as the regional station
does.
Press and Radio
Analogies may be dangerous, but to the extent to which the press
and radio are at all similar, this comparison serves to point out the
development and the value, socially and economically, of specializa¬
tion of function as it is found in American broadcasting. From it
we may draw an important conclusion: that specialization of func¬
tion and specialized service must be preserved in future allocation
systems, and indeed, must be encouraged. This encouragement
should not go so far as to injure any important class of stations
rendering service to the American public unless it is conclusively
shown that such injury will be more than compensated for by the
added service rendered by any class so preferred in encouragement.
Regional stations have rendered and continue to render a dis¬
tinctive and unique service to the listeners within the communities
where they operate and this service is, as we pointed out, by no
means limited to the immediate city but includes the areas in which
the cities wield social and economic influence. 44 per cent of all the
stations in the country are classified as regionals and number ap¬
proximately 277. 78 per cent of all the stations affiliated with either
the National Broadcasting Company or the Columbia Broadcasting
System are regionals. If the regional stations which are affiliated
with the Mutual Broadcasting System are considered, it is found
that 80 per cent of all stations affiliated with all national networks
would be placed in the regional category.
The Association which I represent has no quarrel with the net¬
works as such. Chain programs have made possible the growth
and popularity of broadcasting. Without the cost of producing
programs of a high order which have been and are being carried
by the networks being distributed over a large number of stations
including a preponderance of regional stations, bringing about a
relatively lower cost in the production of these programs, this excel¬
lent service to the listening public would have been economically
impracticable, if not impossible. By directly or indirectly absorb¬
ing their share of these costs the regional stations of the country
have made possible a high order of program service which would
have been impossible without them. Again I repeat that regional
stations are the backbone of broadcasting; have been and still are
the backbone of national network service.
Regionals Serve Bulk
Moreover, regional stations serve the bulk of our population.
Unlimited-time regional stations serve all of our important cities
and their contiguous areas of influence. 48.9 per cent of all regional
stations and S3. 9 per cent of those which operate unlimited time are
located in cities of 100,000 and over. Within 20 to SO miles of these
93 largest centers live almost half of our entire population including
a large rural population. Sl.l per cent of all regional stations and
46.1 per cent of all those operating unlimited time are located in
cities having populations of less than 100,000. Thus it is seen that
regional stations are widely distributed throughout the country and
it cannot be disputed that the majority of the regional stations
being located in cities of less than 100,000 population must and in
actuality do serve the preponderance of the rural listeners of the
country.
In addition, it is found that daytime and limited time regional
stations are concentrated in the smaller towns where they render
important rural service. As a matter of fact it is common knowl¬
edge that these stations build their programs around the needs and
with the purpose of serving, reaching and appealing to large rural
audiences. Further study with respect to the location of shared¬
time regionals disclose that these are situated in small towns and in
large metropolitan communities. Being so situated they have
catered to rural audiences on the one hand or localized neighbor¬
hood audiences on the other. Those who have catered to the latter
serve principally as counter-parts of localized or neighborhood
newspapers in these large centers.
The importance of regional stations in the economic fabric of
broadcasting may be ascertained from the Commission’s own
records.
1652
Study
A study was made of the regional stations which have regularly
reported their revenues and expenditures to the commission and this
study reveals that of approximately 277 regional stations in the
country, 240 of them have been so reported. Taking into account
the 240 regional stations so reporting and studied, their distribution
over the country is found to be as follows:
Number of
Per Cent
Size of Community
Stations
of Total
under 50,000 .
. 62
25.7
50-99,000 .
. 37
15.4
100-199,000 .
. 43
18.0
200-499,000 .
. 53
22.1
500,000 and over .
. 45
18.8
Total .
. 240
100%
Of the entire group of regional stations mentioned, it is found
that 141 of these are located in the 93 cities of the country having
a population of 100,000 and over. It follows, therefore, that the
other regional stations accounted for are located in cities or com¬
munities of 100,000 population or less.
When those stations which have regularly reported their revenues
and expenditures to the commission are separated and the un¬
limited time stations are segregated, their distribution is found to
be as follows:
Size of
Affiliated
with NBC
or CBS
Percent
Indepen
dent
Percent
Total
Percent
under 50,000
16
14.6
17
31.0
33
21.7
50-99,000 . .
. . . . 18
16.5
8
15.1
26
17.1
100-199,000
23
21.1
11
20.7
34
22.3
200-499,000
500,000 and
32
30.2
11
20.7
43
21.7
over 20
17.6
6
12.5
26
17.2
Total . .
. . . . 109*
100%
53
100%
162
100%
* The latest count shows that there are actually 122 regional
stations affiliated with NBC or CBS. The 109 accounted for are
those which have regularly reported their revenues and expenditures
to the commission.
Affiliations
From these figures it will be seen that 71.7 per cent of all the un¬
limited time regional stations of the country are affiliated with
either the National Broadcasting Company or the Columbia Broad¬
casting System. It is therefore at once apparent and obvious that
regional stations and networks are mutually dependent upon each
other. The fact that the networks are using so many regional sta¬
tions is proof of the present dependence of networks on regional
stations.
As has been pointed out, 71.7 per cent of the unlimited time re¬
gional stations of the country are affiliated with and carry the net¬
work programs of the National Broadcasting Company and the
Columbia Broadcasting System. According to the 1935 U. S. Census
of Business, 22.2 per cent of the revenues of all stations in the
United States came from national networks. This represents more
than $12,500,000 per annum and by far the largest number of sta¬
tions in any one class participating in this revenue are the stations
in the regional category.
A questionnaire was sent to regional broadcast stations asking
for a breakdown of their revenue as to sources, i. e., national net¬
work, regional network, national spot and local business. A tabu¬
lation and study of the responses made by 19 regional stations in
various parts of the country shows that the average percentage of
the total revenues received by these stations from national networks
for 1935 was 27.4 per cent of their total revenues. While this is not
a large number of stations, it is believed to be representative since
the responses came from stations located in the various classifica¬
tion of communities by populations used heretofore. Moreover,
the majority of the stations studied are optional and the minority
of them are on the basic, national networks. Had a majority of
them been on the basic networks the percentage of revenues from
network business would have been greater. If the cost of oprating
these 19 stations is deducted from their total revenues to ascertain
the profit from operating them, and if then from the profit so
arrived at the income from networks should be subtracted, it is
found that taken as a group these 19 stations would be operated
at an annual loss of $111,798.00, or an average loss per station of
$5,884.00. 10 of these 19 stations would be operated at a loss if
they should lose their network business, while 9 of them would
more than break even. If the cost of supplying sustaining pro¬
grams to take place of the network programs which the stations
receive from the networks should be added, this net loss would be
much greater than $111,798.00.
It is therefore apparent that the national networks and regional
stations are mutually dependent upon each other. It is likewise
clear that any disturbing influence which would affect the present
relationship between networks and regional stations, particularly the
revenues received from the networks, not only might but most cer¬
tainly would adversely affect that class of stations which consti¬
tutes the backbone and mainspring of American broadcasting, and
if such disturbing influence should so adversely affect the economic
and financial structure of these stations it would just as surely de¬
preciate the quality of service which the public has come to rely
upon and which it has the right to continue to expect.
Further economic data will be presented in connection with spe¬
cific questions to be discussed later in this statement.
Community Importance of Regional Stations
Regional stations render unique program service to their com¬
munities and adjacent areas which it is difficult, if not impossible,
for other classes of stations to duplicate.
It is common knowledge, as already pointed out, that regional
stations have affiliated themselves with and tied themselves to the
peculiar interests of the communities in which they are located. It
is well known that regional stations cooperate with all worthwhile
civic organizations and give generously of their time and facilities
to all such organizations and institutions throughout their entire
service areas. Civic movements often reach beyond the mere boun¬
dary lines of the city in which a radio station is located. Many of
these movements affect either directly or indirectly the areas ad¬
jacent to these cities and the urban dweller as well as the rural
resident is often vitally interested in them. In this connection the
regional stations of the country render a distinct and peculiar serv¬
ice. It is one of their natural functions and fields. As a rule local
stations cannot cover these areas, and distant listeners not, being
interested in these movements, do not care to listen to the programs
when carried by clear channel stations. Why should a listener in
Mobile, Alabama, be interested in a discussion as to where a new
high school building should be located in St. Louis, Missouri? And
why should a listener in St. Louis be interested in a discussion as
to what part of the city a municipal swimming pool will be located
in Mobile? And why and on what theory would a cotton farmer
in the South be interested in a program calculated to aid the wheat
farmer of Iowa, and vice versa? The regional stations naturally
fit into these uses to which radio can be and is put. They cooperate
with the heads of the schools and school systems and render valu¬
able aid to them since it is usual that the schools within the area
served by a regional station have more or less the same problems.
Like cooperation is given to colleges. This cooperation is rendered
to both the academic and athletic fields. It is not limited merely
to the regular schools and colleges, but in many instances it has
reached out into the field of adult education and in cooperation
with local school officials who understand the problems at hand and
the psychology of those whom they seek to aid and has done yeo¬
man service in furtherance and support of this worthy cause.
Economically Important
The cities of this country in which regional stations are located
are not only economically important to their environs, but they are
the cultural centers for these areas. The urban and the rural radio
listener looks to these cities for cultural guidance and business
leadership. Radio stations aiding in the handling and solution of
cultural and economic problems certainly have more influence and
carry much more weight than some distant station could hope to
wield unless the economic structure of regional stations is so dis¬
turbed as to deplete their revenues and reduce the amount which
they can invest in and spend for programs broadcast by them.
They will remain influential and will be listened to only so long as
they can afford to broadcast programs which will arrest the atten¬
tion and hold the interest of their respective audiences, and no
longer. If they should lose their audiences or any appreciable por¬
tion of their listeners, their value as an advertising medium will be
proportionately reduced and their value to the communities in
which they are located in cooperating with civic, education, cultural
and economic forces and in furthering these interests will be dealt
a death blow. This will be not merely a solar plexus to the regional
stations of the country, but will be a mighty blow delivered
against these highly important institutions and organizations.
1653
As pointed out, not only the urban but likewise the rural listener
looks to the cities and towns in which regional stations are located
for cultural guidance. He enjoys listening to music and sermons
from nearby centers. He learns to appreciate the cultural value of
the local symphonies and the better local talent. His interest is
stirred and he is persuaded to visit and make use of the local
libraries. He becomes acquainted with its educational institutions
and his outlook is broadened and his ambition and that of his chil¬
dren is increased. These are not mere passing fancies but are prac¬
tical actualities and interest in them is more easily built at short
range than from long distances.
Farmer Interested
The farmer may be somewhat interested in what the wheat
quotations in Chicago are, what the cotton market may be in
New York, New Orleans or Liverpool or what wool is bringing
in New York City, but he and you understand that what he gets
for his produce and what he received for his farm products is
almost entirely determined by the markets in the cities in which
regional stations are located. The housewife who lives in the
medium or small city or on the farm is interested in knowing what
the department stores in the nearby cities have to offer, and if
interested at all in what some department store may be offering
500 or 1,000 miles away, her interest arises out of pure curiosity.
The urban dweller and the farmer and their folk want to hear
national news, of course, but who would challenge the statement
that they are not more interested in receiving news from a nearby
regional station which covers the local territory? They are in¬
terested in knowing what the weather forecast is for their local
areas and care little or nothing about what it is for some distant
state. They prefer to hear the mayor of the local metropolitan
center and other public officials discuss local economic and political
questions. They prefer to listen to local forums and hear local con¬
ditions and local issues debated and aired. They prefer to listen
to programs publicizing and aiding local drives for worthy causes
than to hear like drives for the benefit of far distant cities.
These are among the limitless number of services for which re¬
gional stations are peculiarly fitted and which they render.
The foreign population and the population of foreign extraction
in this country is largely concentrated in and adjacent to the cities
in which regional stations are located, and regional stations are
the natural medium for reaching these groups and they are reach¬
ing them with emphasis on Americanism. Programs of this char¬
acter, if broadcast by stations having the coverage claimed for
clear channel stations, would be done at the expense of an ex¬
tremely high waste circulation. A very large percentage of those
who would be reached in this way would be as disinterested in
such programs as the listeners in one state would be in programs
on conservation, agriculture and industry originating in a wholly
dissimilar state and built around the specific and different problems
of the latter.
Professor Edmund deS. Brunner in a recent publication entitled
“Radio and the Farmer” has included some very interesting in¬
formation. Of the services rendered to the farmers by national
networks this publication shows that all of these programs are
carried around the noon hour. Taking the states up one by one
he points out the programs carried in the various states in the
interest of those engaged in agricultural pursuits, and shows the
day of the week and the time of day when these programs are
broadcast. A study of this exhaustive list shows that almost all
of them, like the national network programs, are broadcast during
the daytime. In only three or four states is it shown that any
programs of this nature are broadcast during the evening hours.
The most amazing result of a tabulation of the stations which co¬
operate in this agricultural service is that more than 90 percent
of all these agricultural programs are broadcast by regional sta¬
tions. We commend Professor Brunner’s publication, “Radio and
the Farmer”, to the Commission as proof positive of the high order
of service rendered to the rural listener by regional stations, coming
as it does from an entirely neutral source.
Economic Service of Regional Stations
As will be seen from the distribution of regional stations already
referred to, these stations afford advertisers coverage of the prin¬
cipal markets of the country. As was also pointed out, regional
stations have played an important and indispensable part in build¬
ing the national networks and are today the mainstays of both the
National Broadcasting Company and the Columbia Broadcasting
System. Regional stations account for probably half of the reve¬
nues of the entire broadcasting industry. We have already pointed
out that the average monthly revenues of stations as reported to
the commission for the last license period before July of this year
show that the average monthly revenues of the clear channel sta¬
tions is in round figures a little more than $1,380,000, and that all
the regional stations accounted for average monthly revenues
slightly in excess of $2,000,000. (These figures dp not include sta¬
tions owned and operated by the national networks. The national
networks operate both clear channel and regional stations and if
these were accounted for, regional stations would still show that
they receive approximately one half of the revenue paid to all
stations of all classes.)
The results of an analysis of the business of 65 stations repre¬
senting approximately 25 per cent of the volume done by the
entire industry was made by Bernard Rose at the Wharton School
of Finance and Commerce of the University of Pennsylvania in¬
dicated the following situations with respect to varying types of
business prevalent over different classes of stations and pending
the publication of detailed analysis of this situation in the final
census report on the radio broadcasting industry, this is the most
authoritative information available on the subject. These are
similar to the results which have been reported in NAB Bulletins.
When non-network volume was considered it was found that 60
per cent of dear channel and high-power regional station volume
was national and regional in origin and 40 per cent local. In the
case of regional stations as a group, 35 per cent of their business
was national and 65 per cent local. On local stations national
business represented approximately 12 per cent and local business
88 per cent of their total revenue.
Advertising by Retailers
Advertising by retail establishments showed equally interesting
concentration. In the case of clear channel and high-power re¬
gional stations 16.9 per cent of non-network business represented
that from retail establishments. Regional station non-network
business was 33.1 per cent retail in origin. 43.4 per cent of the
total business done by local stations came from retail establish¬
ments, and if all advertisers whose business approached the nature
of retail distribution were included, the proportion would have
been much higher or close to 2/3 of the total volume of local sta¬
tion business.
Although the ratio of retail business advertising, to total non¬
network volume, is highest in the case of local stations, the largest
dollar volume is probably found on regional stations. In 1934,
on the basis of this study and other information available to him
as to station non-network volume, Dr. Herman S. Hettinger of
the University of Pennsylvania, estimated that approximately 56
per cent of all retail establishment advertising was done over re¬
gional stations, 24 per cent over local stations and 20 per cent over
clear channel and high-power regional stations. (See “Some
Fundamental Aspects of Radio Broadcasting Economics”, Harvard
Law Review, Autumn 1935.) These general conclusions as to the
placement of business are generally in line with the conclusions
which must be necessarily drawn from statistical data published
in the reports of the National Association of Broadcasters. (See
NAB Reports, V. 3, No. 33; V. 3, No. 36.)
With this preponderance of local business in favor of regional
stations, the fact remains, as already pointed out, that these sta¬
tions cannot continue their present high quality service unless they
continue to hold and receive the revenues now being received from
national network and national spot advertising. Moreover, these
facts emphasize the economic importance of regional stations and
unmistakably warrant, and, in fact, demand that their economic
and indispensable service be safeguarded in any allocation system
or in any changes which the Commission may make for the regu¬
lation of regional stations or the regulation of any other class of
stations, which change in regulation might affect regional stations.
They also show that local advertising is insufficient alone to support
regional stations and guarantee the continuance of the present high
order of service rendered by them.
The protection to which regional stations are justly entitled can
be best effected by safeguarding the position of these stations in
their natural markets. We have pointed out the service which
these stations render; we have shown that they render a service
which is not and cannot be rendered by any other class of station.
That service and their importance to the whole listening public
are such as to show clearly that these stations are the closest ap¬
proach to fitting ideally into the statutory standard of public in¬
terest, convenience and necessity.
The proposals which the National Association of Regional Broad¬
cast Stations makes for changes in existing regulations are based
upon the premise that regional stations as a class are of such im-
1654
portance and are rendering such service as to entitle them to the
improvements which would inure to these stations and to the pro¬
tection which they are entitled to enjoy and which they must
have if they continue to be what they most certainly are — the
backbone of broadcasting.
Proposals for Changes in Regulations
The National Association of Regional Broadcast Stations offers
three definite proposals, two of which require changes in the
existing rules and regulations of the commission, and the third
requires no change as the Association submits that the present
maximum authorized power of SO kilowatts with which any sta¬
tion is authorized to operate should be retained.
These proposals are:
I
Change the present regulation limiting regional stations to the
use of a maximum of 1 kilowatt power at night so as to permit
their operation with S kilowatts power both day and night. To
accomplish this, the Association respectfully suggests that the com¬
mission amend the last paragraph of Rule 120 so that as amended
the last paragraph of that Rule will read as follows:
“The operating power of such a station shall not be less
than 2S0 watts, nor during night time or day time, greater
than 5000 watts.”
And further suggests that the commission amend Rule 123 so
as to delete therefrom all that portion thereof which follows listing
of frequencies in the Rule.
II
Maintain the present regulations which limit the maximum power
with which any station will be regularly licensed to operate to 50
kilowatts.
III
Change the present regulations so as to permit the operation of
more than one unlimited-time high-power station on the so-called
clear channels. To accomplish this, the Association respectfully
suggests the following specific amendments to the existing rules
and regulations.
A. Amend Rule 116 so as to read as follows:
“116. The following frequencies are designated as high-power
channels.”
and follow this with a list of frequencies as now set out in Rule
116, leaving out all reference to zones.
B. Amend Rule 117 so as to read as follows:
“117. The authorized power of a high-power channel sta¬
tion shall not be less than 5 kilowatts nor more than 50
kilowatts.”
C. Amend Rule 72 so as to read as follows:
“The term ‘high-power station’ means a station licensed to
operate on a frequency designated as a high-power channel.”
Authorize Regional Stations to Operate with 5 Kilowatt
Power at Night
The technical evidence already submitted by the National Asso¬
ciation of Regional Broadcast Stations shows that if regional sta¬
tions should be authorized to operate with 5 kilowatts night power
instead of 1 kilowatt, the effect would be to increase the signal of
such stations 2.2 times their present signal intensity throughout
the entire service area of each regional station.
The commission has stated on numerous occasions that the mini¬
mum signal intensity of broadcast stations necessary to give satis¬
factory service in residential sections of urban communities is *2
MV/M. The basis on which this standard was established was the
knowledge the commission had that in such communities the local
noise level is of such intensity as to destroy the value of programs
unless the radio signal was of such intensity as to overcome local
interference, and the knowledge that a radio signal having an
intensity of 2 MV/M was necessary to accomplish this.
In view of the great body of evidence which the commission has
received to support its numerous findings that a minimum signal
intensity of 2 MV/M is necessary to give reliable and satisfactory
service in residential sections of urban communities, we are justi¬
fied in assuming that such sections do not receive reliable and satis¬
factory service if they must depend for their programs on stations
the field intensity of which is less than 2 MV/M.
The Commission has stated generally that the protection which
would be afforded regional stations would extend over the area in
which a given station delivered a signal of 1 MV/M or greater.
Protection to Regionals
Taking the protection to regional stations of 1 MV/M and the
commission’s standard of a minimum of 2 MV/M signal intensity
necessary to render satisfactory service to urban communities, it
follows therefore, that listeners in residential sections of urban com¬
munities who are located between the 1 MV/M and the 2 MV/M
contours of any station cannot and do not receive satisfactory and
reliable radio service. If stations now licensed to operate with 1
kilowatt power at night should be authorized to operate with 5 kilo¬
watts power at night the resulting signal would be 2.2 times as
strong as the present signals are, and all listeners who now receive
only 1 MV/M in signal intensity from these stations would receive a
signal of 2.2 MV/M, thus providing, according to the commission’s
standard, satisfactory residential service to the thousands upon thou¬
sands of urban dwellers who now live outside, over, and beyond the
2 MV/M contour of practically all regional stations and inside their
present 1 MV/M contours. This would be the result and is the
improvement which can be expected even if the interference free
service area of regional stations should remain constant. By “inter¬
ference free service area” is meant the area in which the signal of
any given station is not limited by heterodyne or cross-talk inter¬
ference.
It has been argued by some that a horizontal increase of night
operating power of regional stations would not extend their service
areas beyond their present limits. Those who have argued thus do
admit, however, that the signal intensity of the stations would be
appreciably increased, and that the ratio of signal intensity to noise
level would likewise be materially increased and improved. As
already pointed out, such an increase in signal intensity and im¬
provement by increasing ratio of signal to noise level, would bring
thousands upon thousands of listeners who live in cities and towns
within the primary and satisfactory night time service area of such
stations.
Not Limited to Heterodyne
There are at least some few regional stations which are not limited
by heterodyne and cross-talk interference to their 1 MV/M con¬
tours. This is shown by the commission’s allocation survey of
September 1, 1936, as the average satisfactory signal on which
listeners depend at night, based on regional stations, is less than
1 MV/M. If the average is less than this intensity, certainly some
of them must have been much lower. This is also supported by
actual investigation made in other regional station areas. If the
stations which operate on the same frequency occupied by WMC,
for instance, should each use five times as much power at night,
WMC would still be free from heterodyne and cross-talk inter¬
ference out to and beyond its present 1 MV/M contour. It re¬
quires little argument to this commission which is conversant with
the facts, to show or indicate what a material, and, in fact, won¬
derful improvement this would work in the service area of this
station. It is therefore apparent that local interference or noise
level and not heterodyne or cross-talk interference is the limiting
factor marking the outer limits of areas within which reliable service
from some regional stations is now possible. It is at the same time
apparent that a horizontal increase in regional station operating
power from 1 kilowatt to 5 kilowatts at night would actually ex¬
pand service area of regional stations and make possible a satis¬
factory reception of programs broadcast by them by thousands
upon thousands of listeners who cannot now enjoy this service.
Here, as everywhere in broadcasting, the all important question
of economics enters and must be weighed and carefully considered
along with the social benefits which would accrue to the public, if
the upper limit for night time power for regional stations is raised
from 1 kilowatt to 5 kilowatts.
Because programs from many commercial regional stations can¬
not now be satisfactorily received, because of local noise and local
interference, even though in these areas their signals are free from
heterodyne and cross-talk interference, they have lost many desir¬
able advertising accounts and have failed to receive large revenues.
These revenues could have been used for the general improvement
of the stations and would have afforded wider latitude in building
and broadcasting programs of a high order.
Reason for Discontinuance
It has been determined that the definite reason why some ac¬
counts were discontinued over regional stations was because the
1655
individual responsible for the continuation of the business could
not receive the programs satisfactorily in his home located in a
populous residential area because of local interference although at
these places the signals of the stations in question were free from
heterodyne and cross-talk interference. In some of these cases
which have been investigated, it was determined that if the signal
was twice as strong as it is at present, the intensity would be suffi¬
cient to overcome the prevailing noise level and deliver satisfactory
service. As examples of this, three accounts were lost by WNAC
because of this condition.
Because of the same prevailing conditions, regional stations in
many locations have been unable to induce prospective sponsors
to make use of their facilities. Based on the information which
we have received from a large number of regional stations, this
condition seems to be a chronic condition and has tended to prevent
regional stations from receiving increased revenues.
Since regional stations constitute close to half of all the stations
in the country; do half the combined business of the industry; serve
the social and economic needs of local trade areas, and cater to the
cultural and business needs of these communities; and since the
local advertiser pays taxes in the community served by regional
stations, contributes to and supports the welfare organizations,
adds to its social life and cultural influence and depends almost
entirely on the area served by regional stations for existence; and
since the listeners within such areas in return receive concessions
from local business men and look to and depend upon them for
economic leadership, the Association which I represent respectfully
submits that regional stations should be permitted to increase the
intensity of their signals so that the service rendered by them to
their respective regional areas may be improved and made satis¬
factory. These principles and these facts were necessarily con¬
sidered and finally determined in favor of regional stations and
were the basis on which the commission necessarily acted in per¬
mitting regional stations to increase their day time operating power
to 5 kilowatt.
Increasing the reliability of signals throughout regional station
areas will definitely improve the service rendered by them; will
enhance their value as advertising mediums, increase their revenues
and generally improve the economic fabric of the stations. The
program service given by any station depends very largely and, in
fact, in the main on its income or on its financial and economic
condition. It follows, therefore, that if by increasing the reliability
of signals delivered by regional stations this will increase the rev¬
enues received, the ultimate effect will be to improve greatly the
quality of program service which the stations broadcast.
Increasing Signal
These improvements which will result from increasing the signal
intensity of regional stations within their respective trade areas will
make listening to such stations easier for the public and will build
larger, more loyal and more valuable audiences for all of them.
The value of a station as an advertising medium depends upon the
number of listeners and the regularity of their listening.
Mr. Pickard has spoken of the great benefits which many stations
could secure from operating on staggered frequencies so that the
carrier waves of these stations would be separated by more than the
maximum difference in carriers which produce flutter and by less
than the difference in cycles necessary to produce heterodynes. He
has stated quite definitely that the ratio of desired to undesired
signals on the same channel or frequency could be reduced to 10
to 1 in figures if the stations would but follow this system of opera¬
tion, which they could do within the present deviation tolerance
permitted by the Commission’s Rules and Regulations. This is a
new and great improvement over the improvements which we have
detailed and if it is added to the other improvements which would
be experienced by regional broadcast stations, it requires little or
no imagination to calculate the vast benefits that operation of
regional stations with 5 kw. power, day and night, on staggered
frequencies would mean to the vast majority of American listeners.
It has been found somewhat easier to sell the services of regional
stations to local advertisers, if the local advertiser is convinced that
the station has been carrying a large amount of national business,
as many advertisers believe that the popularity of a station is
largely dependent upon national business for high quality programs.
Thus, again, it is seen that if regional stations are to maintain their
local business, they must at the same time retain their national
business, and it is also seen that any disturbing influence which
might reduce the national business carried by regional stations
would tend to make them less desired by local advertisers.
We have attempted to ascertain what influence the operation of
regional stations with 5 kilowatt day time power has had. Inquiry
was made of regional stations authorized to so operate, and, with¬
out going into cold statistical data, suffice it to say that the ex¬
perience of every one of these stations from which responses were
received shows that their business has been increased, their ad¬
vertisers sponsoring day time programs have become better satis¬
fied, their day time programs have been improved, and the listeners
have received better service, both from the viewpoints of better
signals and better programs. A greater number of listeners have
been able to receive their programs as a natural consequence.
For these and for numerous reasons already stated, the Associa¬
tion is convinced that like results and experiences would follow if
the commission should authorize regional stations to operate with
5 kilowatt power at night.
Further Inquiry
Further inquiry of regional stations authorized to operate with
S kilowatt day time power indicates that the increased cost in
technical operation with 5 kilowatt day time power has been rela¬
tively slight. For 5 representative stations which furnished authen¬
tic and reliable data to the Association as to the increased costs of
operation with 5 kilowatt day power as Compared to costs of tech¬
nical operation before shifting over from their low operating powers,
it is found that the average rise in technical operating expenses was
18.9 per cent. These stations have the necessary equipment to
operate with 5 kilowatt power at night as well as during the day
time. They have necessarily had to provide practically all of the
prerequisites necessary for operating with S kilowatt power at night
and on the basis of the facts reported by these same 5 representa¬
tive stations, it is found that the increased cost to cover mechanical
operation with 5 kilowatts power at night time would be another
2.58 per cent. This cost would be largely for power and tube
replacements and like expenses.
In these inquiries information of the most exact nature was asked
for and received touching the question of program expenditures. It
is interesting, if not indeed heartening, to note that these five
stations which were studied in detail have shown a definite willing¬
ness to increase their program expenditures materially. The average
increase made by them in program expenditures when they were
authorized to operate with 5 kw. day power was 12.73 per cent,
and it is estimated that these program expenditures would be in¬
creased by another 17 per cent if they were authorized to operate
with 5 kw. night power. These increased expenditures would be
met because the stations would be more valuable to advertisers,
and because they would become more valuable, the advertisers
would not object to reasonable increases in rates. This is shown
by the fact that regional stations operating with 5 kw. power day
time could increase their day time rates and instead of losing busi¬
ness increase their revenues. It is only reasonable to expect like
results from 5 kw. night time operation.
Experience of Regionals
Based on the experience of regional broadcast stations in gen¬
eral, and more particularly upon the specific information which
has been furnished by stations having experience in operating re¬
gional stations with 5 kw. day time power, there can be little if
any question but that the increased volume of business would
easily offset the relatively small increased cost of operation which
would arise out of regional stations operating with 5 kw. night
time power.
That reasonable increases in station rates may be made is also
shown from the most reliable estimate of radio receivers now in
operation, as compared to the number in use in 1930. This in¬
crease in the number of radio sets in use has increased the
potential audiences so that more valuable results accrue to the
advertiser. The official 1930 census showed that there were
12,078,000 radio families in the country. The Joint Committee on
Radio Research (maintained by the National Association of Broad¬
casters, the Association of National Advertisers, and the American
Association of Advertising Agencies) in its report issued July 2,
1936, showed 22,869,000 radio families in the United States in
1936, or a gain of 94.2 per cent over the number shown by the
official census of 1930.
Compared to__1931, station rates in 1934 had declined 8.6 per
cent. This decline has probably been made up since then, but it
is doubtful if the 1931 rates have been exceeded. (Harvard Busi¬
ness Review, Autumn 1935, p. 24.) With the potential radio
audience almost doubled, it would seem fair to assume that re¬
gional stations would be able to increase their rates to meet any
added cost of operation growing out of their being authorized to
use 5 kw. power at night.
1656
With the increased and constantly increasing number of families
having radio receiving sets, the reliability of radio signals should
increase at least to the same extent. The technical evidence which
has been adduced on behalf of the regional Association shows
what vast improvements would be made in the reception from
regional stations if the commission should authorize their opera¬
tion with S kw. at night. This is so conclusively shown by the
technical evidence, and from this irrefutable evidence it appears
with such complete certainty that the percentage of listeners who
could receive reliable service from regional stations is so great that
when all the evidence as to effect and result is taken into account
it is hard to find any logical argument whjch can be used against
such an increase in power for regional stations. We have tried
to anticipate what, if any, reasoning could be interposed against
the proposed increase in power, and we have frankly been unable
to find any disadvantage which would result from such an in¬
crease that approaches anywhere near in importance the great im¬
provements which such an increase would bring about.
Argument in Opposition
The only argument which has been advanced in opposition to
granting 5 kw. power at night to regional stations is the argument
that at some time in the future the commission might find it de¬
sirable to authorize the construction and installation of a new
regional broadcast station in some small city which does not now
have such a regional station, and the argument that such a small
city might not be able to afford commercial support for a S kw.
regional station, although it might support a 1 kw. station. We
have already shown from actual experience of representative sta¬
tions that the cost of technical operation incident to a S kw.
regional station so far as daytime costs are concerned is, on the
average, only 18.9 per cent. We have also shown that on the
basis of the actual experience of these same representative stations
it is estimated that if those stations which are now authorized to
operate with S kilowatts power during day time and licensed to
operate with 5 kw. at night, the increase in the cost of mechanical
operation will be only 2.58 per cent. From this it is deduced that
if those stations are permitted to operate with 5 kw. both day and
night the additional mechanical and technical cost of operation
will be 21.48 per cent greater than was their average technical
and mechanical cost of operation before they began operating with
5 kw. day power. While this increase in cost of operation by
21.48 per cent might be considered great if that percentage was
based on a basic cost of operation which ran into the hundreds
of thousands of dollars, yet the fact remains that this increase in
cost of operation, in dollars and cents, and from a practical view¬
point nowhere near approaches the practical effect if like increases
in power should be made in some other station class. To say the
most which can be said in support of such argument, in the final
analysis, leads to the simple conclusion, on a practical economic
basis, that if a city can not support a regional broadcast station
operated with 5 kw. power both day and night, there is the gravest
doubt that such a city could or would support a regional station
which operated with only 1000 watts power.
Although we have, as already stated, tried to ascertain and de¬
termine what, if any, logical reasons or argument could be offered
in opposition to the proposal that regional stations be authorized
to operate with 5000 watts power during night as well as during
daytime, the one mentioned is the only argument we have heard
advanced and the reasoning used in support of such an argument
fails of its own weight.
Increased Power
The National Association of Regional Broadcast Stations in
asking that the upper limit of permissible night time power for re¬
gional stations be changed so that the rule will fix the maximum
night time power at 5 kilowatts instead of the lower powers now
provided. It is clear from the commission’s notice calling this
hearing and the thought which runs through it that what the
commission is interested in is in ascertaining what general policy
should govern and what general rujes should be applied to broad¬
casting in the future. It is just as definite from the notice that the
commission is not interested in having presented at this hearing
evidence in support of any individual station or small group of
licensees which may be operating regional stations. In keeping
with what we understand the notice to mean, we respectfully
submit that the commission’s rule fixing 1 kilowatt as the maximum
night time power with which any regional station will be per¬
mitted to operate should be changed and with just as much sin¬
cerity we urge that the rule which limits the power of regional
stations operating on Canadian-shared channels to even less power
should be changed so that the maximum power permitted will be
uniform and that all regional stations may come within a single
rule so far as the maximum authorized power is concerned.
We believe that so far as stations operating on exclusive Ameri¬
can regional frequencies are concerned, there is no good reason
why this change should not be made and every reason why it
should be made.
Although the United States has a gentleman’s agreement with
Canada and is a party to the Madrid Treaty of 1932, we still
cannot see any reason for fixing the power limits for stations
operating on Canadian-shared channels as they are in the existing
rules and regulations of the commission. 1 Should the Canadian
authorities find it desirable to increase the power of Canadian
stations operating on regional frequencies shared with this country,
it would be necessary for American stations operating on these
frequencies to make like increases in their operating powers. To
fix the maximum power permitted uniformly for all regional sta¬
tions does not mean that the commission would automatically
permit all of them to operate at such maximum powers. To
keep a rule in force when this possibility points to becoming a
probability serves no good purpose.
Ask General Rule
As we have already tried to make clear, this Association is ask¬
ing that the general rule fixing the limit on power which a regional
station may use be changed not for the benefit of any individual
licensee or small group of licensees. We submit that to pick out
and set aside a limited number of regional channels and to author¬
ize them to operate with 5 kw. power day and night on the basis
of engineering or technical considerations only is to lose sight of
the two controlling factors which should, and we are sure will,
guide the commission in this matter. The economic and social con¬
siderations involved, as already emphasized, must be first con¬
sidered and determined. If only a small number of regional sta¬
tions should be permitted to increase their night time operating
power to 5 kw. on the basis of technical considerations only, it
might be and probably would be found that many other regional
stations are so located that the economic and social demands are
such as to require an increase in operating power and this require¬
ment for the latter might exceed in importance the benefits which
would come from increasing the power of a limited number of
regional stations without regard to the social needs and economic
demands of the listening public.
Change in Rules
The National Association of Regional Broadcast Stations takes
the unqualified position that the change in the rules should be
made general and should apply to regional stations as a class, and
that individual applicants should be permitted to apply for author¬
ity to increase their respective operating powers and the commis¬
sion in turn should decide such individual applications on the
basis of the economic, social and technical questions involved in
considering them. Can the commission, without inquiry or other
knowledge except the separations involved between stations and
without knowing the needs and demands of the public which are
served by them, pick out at this great distance on the basis of
technical considerations and nothing more, the most meritorious
cases for increasing operating power of regional stations? We
submit that to ask this question makes impossible the giving of
but one sensible answer, and that answer is most certainly in the
negative. This, to this Association, appears conclusive that the
change should be made so as to apply generally and so as to permit
individual applicants or groups of applicants operating stations on
common frequencies to come in and urge the merits of their re¬
spective cases. It appears just as conclusive that to pick out a
few without regard to their merits and without considering the
social and economic questions involved and to give them authority
to increase their operating power without giving it to others would
be most unfair, both to the regional station licensees and even to
a greater degree to the American public.
Opposition to 500 kw. Station Menace
Consideration of any basic radio policy, including the proposal
to establish 500 kw. stations, must begin with an investigation to
determine what are the fundamentals which govern the develop¬
ment and operation of a broadcasting system. Unless such funda¬
mentals are considered and carefully weighed in the light of the
results to be expected in the future, it will be impossible to evalu¬
ate the effect of the policy being studied or contemplated.
1657
We begin with the axiomatic assumption that the sole reason for
the existence of a broadcasting system is the fact that people listen
to radio programs The listener is the sole excuse for broadcasting
and the service the listener receives, together with his viewpoint,
must dominate all radio policy
Listening to a broadcasting system or any of its component units
implies two things: (1) The ability to receive and hear the signal
of one or more stations and (2) the desire to listen to the programs
conveyed by the radio signal or signals in question. Both the tech¬
nical and program aspects of service to the listener, therefore, are to
be considered as fundamental in the development and determina¬
tion of radio policy and they are controlling factors which must
guide the commission in formulating regulations to govern the
future of radio broadcasting.
Providing an adequate signal and program service requires the
expenditure of large sums of money, which must be raised from
some source before it is disbursed for either purpose. Economic
laws and economic aspects of listener service therefore are as funda¬
mental, as important and as controlling as are the program and
technical questions involved.
These fundamental facts with respect to economics, program serv¬
ice and technical operation lead inevitably to this conclusion: Any
system of allocation must be able to be justified on three bases:
(1) Any station or class of stations included in any such sys¬
tem of allocation must render unique and fundamental
listener service.
(2) It must be economically practicable.
(3) It must be technically feasible.
We do not believe that these fundamentals or the fact that they
must be considered as fundamental in determining policy to guide
and govern future broadcasting will be challenged.
In the light of these fundamentals and the dominating and con¬
trolling influence which they should exert, we submit that the pro¬
ponents of super power stations who would have the commission
authorize the operation of stations with 500 kw. power must show
three things:
(1) That 500 kw. clear channel stations will render unique
listener service which is not available and which cannot be
provided under the existing broadcasting structure.
(2) That such stations will be economically practicable as a
group, and the economic practicability of super power sta¬
tions must be judged on the basis of a large number of 500
kw. stations and not on the isolated existence of one or
two.
(3) That the creation of such stations will in no way impair
or disturb the fundamental service rendered by important
classes of existing stations.
Tests Fundamental
We maintain that 500 kw. stations can meet none of these three
tests. These three tests standing separately are each fundamental.
The principal argument which has been advanced from the allo¬
cation of 1928 to this day to justify the necessity for this type of
station has been the service which it was alleged such stations
would render to rural listeners. This claim has been based largely
upon the theory and conjecture, and more recently on a post card
and interview survey made public by the commission in its alloca¬
tion of September 1, 1936, although we know they do render a very
worthwhile service to rural listeners.
Allocation Survey
We respectfully suggest and urge that those references in the allo¬
cation survey released on September 1, 1936, dealing with listener
behavior be wholly disregarded in any determination of future
policy having to do with the allocation of radio facilities. This
sincere request is based on the fact that the post card and interview
survey in question, both in basic technique and in the presentation
of results, follows few if any of the principles of sound research and
is of no practical value.
To be more specific, the short-comings of this survey may be
summarized as follows:
1. The questions asked on the post card are of such a nature and
are stated in such a way as to be completely invalid as a means of
collecting information for use in determining what principles should
govern the allocation of radio facilities.
2. The sample gives indication of being entirely too small to
allow for the drawing of any final conclusions from the informa¬
tion secured. The number of post cards returned to the commission
constitute but a small fraction of 1 per cent of the radio homes of
this country.
3. The units used in the tabulation and summarization of the
information collected are such as to make a detailed scientific analy¬
sis, and therefore, deduction of sound conclusion impossible. The
survey refers only to states and the returns are not broken down
into any units smaller than the states.
4. Such conclusions as have been drawn appear superficial and
some of them at least are open to serious question.
Post Card Survey
While these faults and objections relate principally to the post
card survey, they hold with equal, if not greater force, in the case
of the listener interviews conducted by the commission’s field
inspectors.
Considering first the post card, we find the questions asked are
not valid means of securing any fundamental information worthy
of consideration. The desired information might be of two kinds:
It might be desired to determine (1) which stations rural listeners
in various parts of the country could, hear most satisfactorily. The
stations should preferably be listed in the order in which their
signals were acceptable from the viewpoint of strength, clarity and
reliability. Or else, the information requested might be designed to
determine (2) which stations rural listeners in various specific parts
of the country listen to regularly, the stations preferably being listed
in the order of the amount of time which each of them was used
on the average. If a large enough and sufficiently representative
group of questionnaires was returned on the first of these points,
one might be able to derive from them a general idea of where
various stations and classes of stations could be heard. A similar
representative sample on the second point would give a general
idea of the habitual use of stations.
It should be noted with emphasis that habitual use and ability
to receive signals are two different matters. Listening to a radio
station is compounded by (1) the ability of the listener to hear its
signal and (2) the desire of the listener to hear the programs broad¬
cast by that signal. Habitual listening is therefore the result of
signal and programs. Listening by no means varies directly with
quality and reliability of signal alone; listeners, if necessary, being
willing to put up with a certain degree of inferiority of signal if
this is compensated for by program superiority. The listener sur¬
vey referred to should have secured information on both the re¬
ception and use if the public service aspects of various classes of
stations were to be studied and analyzed.
The questions asked on the post card reveal neither type of in¬
formation accurately. The basic question is: “Name your favorite
radio stations by call letters in order of your preference,” and this
question is followed by four blank spaces numbered 1 to 4 for con¬
venience in listing the listeners’ favorite stations.
Measure of Reception
The word “favorite” is so vague and indefinite as to have little,
if any, practical value. It most certainly is not a measure of re¬
ception. Moreover, there is a sufficient connotation of desirability
as against accessibility to make the auestion a most dubious meas¬
ure of habitual listening. One may have a favorite station, the
programs of which one always selects when they are available, but
unfortunately reception conditions may make it impossible to hear
the station for more than a small fraction of the time, and this
unfortunate inability to receive the favorite station may exist dur¬
ing a major portion of the whole time and may co-exist during
the same time that other stations are delivering reliable signals
which could be received satisfactorily.
This aspect of desirability is further intensified by the phrase
“Order of preference.” Preference is a very different thing from
use. One may prefer a station but reception conditions may be
such as to make reception from it impossible and these conditions
likewise may co-exist over the vast majority of the time when the
listener could receive service of a satisfactory order from other
stations.
Experience in research by sampling, we are informed, has shown
time and again that defects in the wording of questionnaires are
sufficiently serious to destroy the entire value of a survey, since
they either mislead the reader as to the information desired or may
induce an element of confusion which will cause different people
to answer the same question in various ways.
We do not assume to know the perfect manner in which these
questions should have been asked, but we do believe and we are
in fact sure that the inadequacy of the question used can be clearly
1658
illustrated by presenting a type of question which would have been
more desirable and much more fruitful. “List the stations which
you can hear most satisfactorily, in the order of the strength and
regularity with which you can receive programs broadcast by
them,” and follow as in the case of the post card survey with blank
snaces numbered from 1 to 4.
The suggested question should most certainly be asked separately
for day and nighttime reception and careful check should be made
of results in various areas to ascertain whether the questions were
answered accurately.
If further information is desired to indicate the habitual use of
stations, then the following question might be asked, again sep¬
arately for day and night, “List the stations to which you listen
regularly in the order of the amount of time to which you listen to
each of them. (Put the station you listen to most first, etc.)” and
follow with spaces as before.
Allocation Survey
Comparison of the questions asked on the Dost cards which were
returned and formed the basis for that portion of the allocation
survey released on September 1, 1936, which refers to this data with
these suggested questions clearly indicate the total inadequacy of
the questions asked on the cards which were used. The post cards
which were used were therefore not designed to secure any reliable
information on station coverage.
The second factor which raises grave question as to the value of
the listener survey being considered is the relatively small number
of returns secured. The sample of 32,671 returns, when scattered
over nearly 3,000 counties — as it should be if it is to cover all
counties having a rural population, is indeed a small sample. If
the information desired is general enough, it may be an adequate
sample if no specific data is wanted. But if detailed information
is desired or if detailed breakdowns of the information are needed,
then a much larger sample is essentially required. In this instance,
as we shall show, detailed breakdowns are required if any sound
analysis or interpretative work is to be made possible.
Another important question in securing representative rural sam¬
ple, and which must be investigated in a case such as this, is the
fact that “rural” and “urban” in spite of attempts at definition, are
relative terms. It is estimated that nearly one-half of our total
population lives within a 20 to 50 mile radius of the 96 cities and
metropolitan centers of 100,000 or more population. This one-half
includes among its numbers more than 8 per cent of the population
of the country which is classified as rural. It is safe to say that
this so-called “rural” population is much more urbanized in every
way than is the urban population of a small town of 2500 to 3000
situated far away from any other center.
The important thing here is, that if we measure “rural” listening
we must make certain that it is neither too much nor too little rural
— that it is a real cross section.
These questions have been raised to indicate the problems in¬
volved in making an adequate rural survey. Since no information
beyond state-breakdowns has been made available as to distribution
of sample, and has confined its presentation of material to state
data, it is impossible to judge the soundness of the survey or to
appraise the value and the exact nature of its results. This not only
makes impossible the use of the data in an intelligent manner by
the outsider, but robs the summaries and attempted interpretations
of any value which they otherwise might possess.
Defect of Survey
This brings us to the third defect of the survey, namely, that the
units used in presenting summaries are of such a nature as to pre¬
clude intelligent use of the results. For the reasons mentioned
previously, state data are of little significance. This is all the more
true because of the number of important stations situated suffi¬
ciently close to state lines to affect important portions of more than
one state. Detailed analysis of county information would make
possible the determination of the exact location of a station’s prin¬
cipal influence within a state. Where smaller size stations are
being considered — regional and local stations — their relatively more
restricted coverage areas make such county analysis especially im-
Dortant. Exactly what stations rural listeners in counties adjacent
to regional stations listen to is a highly important consideration in
determining future policy toward classes of stations. This lack
of county analysis is the most serious defect in the presentation
of results.
Station Preference
The presentation of station preference, granting that they are at
all significant when based on a question such as the one used, also
has been made in a way to make impossible their practical evalua¬
tion. There is even grave question as to whether the classification
of stations as “clear channel” is correct. On page 2 of the alloca¬
tion survey it is found that in arriving at the percentages given, 95
stations are listed as “clear channel.” This number includes many
stations of regional and local power, some of which operate limited
time and some of which operate daytime only. As will be pointed
out, it is impossible to arrive at the percentages given by states in
favor of clear channel stations without including these limited time
and daytime stations. Everyone knows that there are not 95
“clear channel” stations operating in this country, and it seems
elementary to us that if all the votes cast for daytime and limited
time stations operating on frequencies used by some dominant
clear channel station are credited to clear channel stations,
the result will be highly exaggerated, if not indeed very much
bloated. The summaries on pages 2 and 3 of the study do not say
whether the percentages set forth are merely the first choice or a
summation of all four choices. If percentages are for first choice
alone, and we understand they are, they are of particularly doubtful
significance. One may assume in this study, that ability to hear
the station is the most basic fact to be determined; to borrow a
phrase from the report (top of page 4), “the relative effectiveness
of stations of the various classifications in renderine rural coverage
in different states.”
First choice is the least desirable measure which could be used for
such a purpose. If it has any meaning, it connotes the most popular
station. Popularity is especially dependent upon programs as con¬
trasted to coverage.
First Choice
In addition, first choice is a highly relative matter. If more than
one station can be heard with any degree of satisfaction whatso¬
ever, the listener is almost certain to habitually utilize the service
of more than one transmitter. The degree to which he utilizes or
prefers his first choice station more than his second choice may vary
from a hairline distinction to a much more pronounced partiality.
For this reason, first, second, and third choices, at least must be
considered. They must be considered first separately and indi¬
vidually, and then probably cumulatively. Only by following this
general type of procedure can habitual listening and true measure
of service be analyzed to any degree at all. This information must
be studied on a county basis to be significant.
This brings us to our final reason for believing that the listener
survey portions of the allocation study as released possesses little
practical value, namely, that the results which have been drawn
from the data and the results possible on the basis of the data as
presented, are seemingly so superficial as to be of little, if any,
value.
The foregoing statement regarding the type of analysis which
should have been made in itself indicates the superficiality of the
summary and interpretation which was presented. A few addi¬
tional examples may suffice to further indicate this point. The
editorial matter on page 4 indicates that even in the highly popu¬
lated eastern states “though there are many broadcasting stations
of the regional and local classification operating, a high percentage
of the rural listeners preferred service from clear channel stations.”
In the first place, we should like to know the location of the
rural listeners in question. In the second place, we venture to pre¬
dict that if urban listeners were taken in a number of these states,
this still would be true.
As we have said previously, programs determine listening as much
as signal. Notwithstanding the splendid local service rendered by
regional and local stations and the importance of that service to
listeners, it is the network presentation-sustaining programs and
even more especially the big sponsored shows, which have the
greatest popular appeal. They will weigh largely in station popu¬
larity; so that the network affiliated station enjoys an advantage
over the independent at the present time in securing a large habitual
audience. An examination of a number of the highly populated
eastern states reveals some interesting information. In New York
State, of the stations affiliated with the networks of NBC or CBS,
five are clear channel, one is high-powered regional station, five are
regional stations and one local. The clear channel stations in the
state also are located in the most populous areas, viewed from the
rural as well as the urban angle. It is only natural that large num¬
bers of listeners should turn to them for network programs. It is
probably the program which exerts the major influence.
Network Stations
In New Jersey two stations, WOR and WPG, are the only net¬
work affiliated stations in the state. The highly populated areas
1659
of North Jersey range no more than SO miles from New York City
and even include the transmitters of two of the New York clear
channel stations. South Jersey, including rural as well as urban
population, is immediately adjacent to Philadelphia, where two
of the three national network affiliated stations are clear channel.
If listeners in these areas want network programs they must turn
to clear channel stations. Do they turn to them because they are
clear channel stations or because they carry network programs?
In other states the same general situation prevails.
There is evidently more to this pronounced preference of clear
channel stations than signal or the stations’ own home programs.
Except jn some remote areas, network service is a deciding factor in
all probability. One might ask whether the coverage of the Rhode
Island regionals is the answer to the Rhode Island preference for
regional stations, or the fact that two out of three are national
network affiliated and the third is a member of the Yankee net¬
work.
Examination of states in other sections gives rise to the same
question. In Illinois 87.4% of the listeners preferred clear channel
service and 6.8% regional service, according to the table on page 2.
Amazingly, 5.6% preferred local stations. In Illinois, there are six
clear channel stations all affiliated with national networks, and one
regional, WMBD, Peoria. If an Illinois citizen, farmer or other¬
wise, wants a network program, he must listen to a clear channel
station.
In Iowa, enjoying excellent coverage from at least one clear chan¬
nel station, only 64.3% preferred clear channel service and 34.1%
preferred regional service. Within that state, there is one clear
channel national network affiliate and five regionals, only one of
which is on a low frequency — WMT on 600 kilocycles.
We do not wish in any way to draw final or all-embracing con¬
clusions from the aforementioned instances. We merely wish to
indicate that there is more to a practical, layman’s analysis of the
situation than can be found in the scant summaries presented.
And these are things which the layman can easily understand, and
I speak as a layman on research of this character.
Interviews by Inspectors
No record so far released shows the total number of interviews
made by field inspectors and which are referred to and taken into
account in arriving at the percentages shown in the first portion of
the allocation survey released on September 1st. The only way the
number could be ascertained would be by making guesses. It is
apparent that all of the objections to the post card survey obtain
with respect to these interviews, but we cannot and do not propose
to guess what the degree of such objections are.
The regional group which I represent most certainly does not
take the position that clear channel stations are not operating in
such a way as to render a high order of service to the public. On
the contrary we realize full well that as the most of them are now
operated the clear channel stations of the country are rendering a
most meritorious service. Any survey such as the post card survey
referred to, however, which attempts to show such a great pre¬
ponderance of service by the clear channel stations as compared
to the regional stations of the country cannot go unchallenged in
the light of the facts.
To determine just what the post card survey referred to did
show, we made detailed studies of the post cards returned from
certain states which we were informed might be regarded as typical.
To go into all of these would serve no good purpose, but to give
the Commission the benefit of the actual facts from at least one of
these typical states is essential.
We went over the individual post cards returned from the State
of Nebraska and at the time these post cards were examined a
count was made of both the first and second choices or preferences
as to station on each. These preferences were kept by counties and
by stations preferred by those responding from each county.
Our count of the individual post cards from Nebraska which
showed such station preferences totaled 814. Since our study was
completed information has been released to the effect that 868 such
responses were used in tabulating the post card survey from Ne¬
braska in connection with the allocation survey released September
1, 1936. The cards have been in the Commission offices for many
months and it is probable that our study may have missed the 54
cards which represents the difference between those we examined
and those considered in the beginning.
Based on a tabulation of the 814 cards which we had occasion
to study, it is impossible to credit 65.4% of the first choices or
preferences to clear channel stations. Only 46.2% of the 814 choices
were for clear channel stations. If every one of the additional 54
cards taken into account in making up the September 1st release
should be credited as having given clear channel stations as their
first choice and not one of them counted for a regional, limited
time or daytime station, the first choices which would be thus
credited to clear channel stations would be only 48.33%. (The
last percentage based on 868 cards.)
Examination of Post Cards
In view of this it is apparent that the 65.4 percentage of first
choice returns credited to clear channel was by no means based on
clear channel stations. The difference must have been made up
by adding to the first choice returns which actually mentioned
clear channel stations, a large number of first choices or preferences
for daytime or limited time stations. On the basis of our examina¬
tion and tabulation of the 814 cards, it is found that a very large
portion of this number actually showed a daytime station to be
their first choice. These daytime station choices were for two
500-watt, two 1 kw., one 2 y2 kw. and one 5 kw. daytime stations.
It is obvious therefore that the 65.4% credited to clear channels
was so credited on the basis of the. daytime stations in question
being licensed to operate during daytime hours on a channel occu¬
pied by some distant, dominant, bona-fide clear channel station.
The impression one gets from the percentages of preferences
shown by states for clear channels is that these preferences were
for clear channel stations. This positively is not true in the Ne¬
braska case. Not only does one get this impression, but since the
release of the figures in question they have been widely publicized
to this effect. This is not giving credit to regional stations as
should be the case, and produces an exaggerated picture of the
relative popularity of clear channel stations against that of regional
stations.
Who would ever claim that a daytime station operating with 500
watts, regardless of what frequency it might occupy, is more akin
to a clear channel station than to a regional station? This Com¬
mission has classified stations into four general groups. The public
has become accustomed to referring to them as clear channel, re¬
gional, high-power regional and local stations. The public has come
to think and in fact the Commission has considered that a 500-watt
daytime station, a 1 kw. daytime or a 2*4 kw. daytime station
are, during the daytime, merely nothing more nor less than counter¬
parts of regional stations. They have done this regardless of fre¬
quency for the very good reason that power has been the determin¬
ing factor in this manner of thinking. We most respectfully submit
that stations which operate during daytime hours only with from
500 to 5,000 watts, and especially since two of them here in ques¬
tion operate with only 500 watts, two with only 1 kw., one with
iy2 kw. and only one of them with 5 kw, day power, if they are
to be included in such tabulations along with either clear channel
stations on the one hand or regional stations on the other, should
have been included with and credited to regional station popu¬
larity. A better way and one which would have made this tedious
job wholly unnecessary, would have been to have shown the re¬
sponses received which showed daytime stations as the favorites in
a separate classification from either clear channel or regional sta¬
tions.
Question of Importance
This question is of grave importance to regional stations. It
means much to them economically and the manner and character
of service which they shall continue to give depends more upon
their economic status than on any other thing. If the percentages
shown on pages 2 and 3 of the portions of the allocation survey
referring to station popularity were taken as final and without
the necessary explanation which has been made, the effect on busi¬
ness done by regional stations would be tremendous and that effect
would most assuredly be adverse to them.
It may be said that the percentages represent rural popularity
and that they do not indicate the relative popularity of classes of
stations among urban listeners, yet the all-important fact remains
that it is the easiest thing in the world to forget to use the quali¬
fying word “rural” in connection with them.
We are at the same time fully cognizant of the fact that regional
stations for years have been and still are the backbone and main¬
spring of the broadcasting system enjoyed in this country. And
when we consider that nearly half the total population of this
country is located within a radius of 50 miles of the 93 cities
having a population of 100,000 or more; that these centers are all
served by regional stations; when we stop to consider that the
majority of regional stations in this country are located in cities
of less than 100,000 ; when we stop to consider that a large number
of daytime and limited time stations are likewise located in centers
where they can and do serve large rural audiences, we are sure the
Commission realizes that this class of station is serving an in-
1660
dispensable need. Add to this the fact that in the State we have
gone into in detail — Nebraska — 32.7 per cent of all the returns
tabulated and taken into consideration in making up the allocation
survey referred to, showed regional stations as their preference or
first choice, the social importance of regional stations is definitely
shown to be of unsurpassed importance. Add to these the further
fact that a very large proportion preferred day time stations of
regional powers and it at once becomes apparent that any step
taken which might adversely affect them would upset the most im¬
portant sectors of our broadcasting system.
Economic and Social Considerations
To justify themselves socially, 500 kw. stations must show that
they will provide listeners with program service which is not
available to them at the present time.
The Commission is thoroughly familiar with the affiliations of
the various clear channel stations and knows that every one of
them, since the acquisition of KNX by the Columbia Broadcasting
System, that operates any appreciable amount of time, is affiliated
with and carries the programs of the National Broadcasting Com¬
pany, the Columbia Broadcasting System or the Mutual Broad¬
casting System. Had we had sufficient time we might have pre¬
pared data and tables showing the portion of time devoted by
clear channel stations to carrying network programs. Because of
the lack of time this was impossible but we realize that the Com¬
mission is fully acquainted with the facts. An examination of the
Commission’s own records will reveal that clear channel stations
are devoting as much of their time to broadcasting network pro¬
grams as are regional stations carrying such network programs.
Further examination will disclose that the percentage of time de¬
voted to carrying chain programs by clear channel stations has
not decreased on clear channel stations as a group since the Fed¬
eral Radio Commission established the policy of permitting them
to operate with SO kw. Clear channel stations devoted most of
their time to network programs before they were authorized to
operate with 50 kw., they have devoted most of their time to the
carrying of such programs since and they are still doing this. It
has been said that “By their fruits, ye shall know them,” and if
this test is applied to clear channel stations this Commission can
make no other finding than that clear channel stations will con¬
tinue to devote the greatest portion of their time to broadcasting
network programs in the future. It is therefore obvious that the
service which the public will receive from tuning and listening
to clear channel stations in the future will be as it is today and
as it was yesterday — network programs.
In view of these facts this Commission should give consideration
to the present coverage by network programs. The networks and
the stations, including practically all classes of stations affiliated
with these networks, have done this job for the Commission and
have done it well. Both the National Broadcasting Company and
the Columbia Broadcasting System have conducted thorough and
painstaking surveys to determine coverage of their respective net¬
works. The thoroughness with which these surveys were con¬
ducted and the results analyzed cannot be compared with the post
card survey which we have discussed. The networks have done a
much more thorough job.
Results of Survey
The survey and the results of the survey made most recently by
the Columbia Broadcasting System are set out at great length
and in detail in their publication “Day and Night.” In this will
be found a description of the thorough manner in which the
Columbia Broadcasting System went about making and analyzing
the coverage its programs get. Maps for individual outlet stations
affiliated with it and a map of the United States showing the
composite coverage by the combined stations carrying Columbia
programs show definitely what the night time primary listening
areas of this total network are and what the national area is.
We have taken this survey and, based on it and facts disclosed
in it, we have prepared two tables. The first of these (Table I)
shows a breakdown of coverage by states and opposite each state
we have shown in the first column the percentage of population
of the whole United States which is located in any given state and
in the primary night time listening areas of Columbia outlet sta¬
tions. In the second we have shown for each state the percentage
of the total United States population in that state which is out¬
side the primary night time listening areas of Columbia stations,
and have then shown the total percentage the population of each
state as compared to the population of the whole country. These
three columns are all under the main heading “Population”. The
population figures shown are from the U. S. Census of 1930. In
a like manner we have shown in three columns under the main
heading “Radio Families”, first, the percentage of radio families of
the whole United States in the respective states which are in the
primary night time listening areas of Columbia outlet stations;
second, we have shown like percentages of radio families for the
respective states outside such primary night time listening areas
of Columbia stations, and third, have shown the state total per¬
centage of radio families, such percentages being percentages of
the whole United States. These figures are based on the Estimates
of the Joint Committee on Radio Research as of January 1, 1936,
already referred to. Under the main heading “Retail Sales” we
have shown the same kind of information on retail sales for the
respective states divided between retail sales in counties which are
within the primary night time listening areas of Columbia stations
and those which are outside such night time primary listening
areas, and finally, have shown the percentage of national retail
sales for each of the respective states.
Breakdown by States
In addition to the breakdown by specific states for Columbia
coverage, we have grouped the states by divisions and have pre¬
pared a table (Table II) showing like information for the nine
divisions of the United States and totals for the whole country
on this same table. The result of this investigation shows that
90.2339 % of the total population of the United States is within
the primary nighttime listening areas of stations affiliated with
and carrying the programs of the Columbia Broadcasting System,
and shows that only 9.77661% of the population of the country
is not included in some night time primary listening area served
by a Columbia station. This breakdown also shows that 94.7992%
of the radio families in the United States are included in the night
time primary listening area of one or more Columbia stations and
only 5.2008% of them are not so included. Based on retail sales
from the 1933 Census of Business, it is found that 95.9118% of
such retail sales are included in the nighttime primary service
areas of Columbia stations, and onlv 4.0882% of such retail sales
are outside the Columbia nighttime primary listening areas. Since
making the survey, WJR has changed from NBC to CBS but still
serves as many listeners.
Following methods differing in detail as to mechanics but con¬
ducted for the same purpose and with like thoroughness to the sur¬
vey made by the Columbia Broadcasting System, the National
Broadcasting Company has determined the population and has pub¬
lished data showing the nighttime primary listening areas of stations
affiliated with both the Blue and Red Networks of that Company.
Coverage
Coverage maps for the individual affiliated stations and a com¬
posite map showing the combined coverage of stations affiliated
with each of the networks of the National Broadcasting Company
were prepared and published along with the supporting and ex¬
planatory, data in the National Broadcasting Company’s “Aireas”.
In making up tables from the individual maps and the composite
map showing combined coverage of the stations carrying programs
of the Blue and Red Networks, it was found possible but at the
same time a most inconvenient task to eliminate from the coverage
that which is credited to WLW. As in the making up of the tables
showing coverage by the Columbia Broadcasting System, we have
picked this coverage up county by county and state by state with
the result that we have prepared a table showing the same infor¬
mation as to coverage in population, radio families and retail sales
for both the Red and Blue Networks of the National Broadcasting
Company. Table III shows the coverage of the Red Network by
states and the information referred to. It does not include any
coverage by WLW. The coverage of WLW was carefully elimi¬
nated so that no question of 500 kw. station operation would in
any way affect the results which are shown on the table. As was
done in the case of the Columbia survey, we prepared a table
showing population, radio families and retail sales for the nine
divisions of the United States and the totals for the whole country.
This data is shown in Table IV and refers only to present coverage
by stations carrying the Red Network programs of the National
Broadcasting Company at night without including, but specifically
excluding, coverage by WLW.
Primary Listening
Information made up in the identical manner was prepared to
show the population within the primary nighttime listening areas
of stations carrying the Blue Network programs of the National
Broadcasting Company, the number of radio families and the retail
1661
sales in these nighttime primary listening areas. As was done in
connection with the data prepared on coverage by stations carry¬
ing the Red Network programs of the National Broadcasting Com¬
pany, WLW is not included, but is specifically eliminated for the
reason stated. This information on coverage by stations carrying
Blue Network programs is shown in Table V for the various states
and the information for the nine divisions of the United States and
the totals for the country are shown in Table VI.
Had we been able to secure information as to the nighttime pri¬
mary listening area of WLW while it operated with SO kw. power,
we would have included it, but not being able to secure this data it
is impossible to give any specific figures in that connection. These
figures would most certainly have increased the percentage of popu¬
lation, the percentage of radio families and the percentage of retail
sales included within the primary nighttime listening areas of the
National Broadcasting Company. WLW was well and favorably
known while it operated with 50 kw. Had the figures for that sta¬
tion based on SO kw. operation been available I am sure that both
the National Broadcasting Company and the management of WLW
would heartily agree that if they were added to the coverage by the
National Broadcasting Company exclusive of WLW, they would at
least equal the coverage which the Columbia Broadcasting System
has.
Here let us emphasize that the coverage figures for the Columbia
Broadcasting System and for both the Red and Blue Networks of
the National Broadcasting Company are intended to show and do
show coverage by primary listening areas. We have not dealt with
nor attempted to show what the secondary nighttime listening areas
of these networks are. Both of them claim almost complete cover¬
age of the remaining portion of the country as coming within their
respective secondary nighttime listening areas. If any appreciable
percentage of the small portion of the population and families hav¬
ing radio receivers who are not included in the primary nighttime
listening areas of these three networks receive secondary service
from them, it certainly leaves almost no population and few fami¬
lies who have radio receiving sets outside their present coverage.
CBS and NBC
The Columbia Broadcasting System and the National Broadcast¬
ing Company have evidenced such faith in and have put such
reliance on their respective surveys that they have given them
general circulation. They cannot, and I am sure they will not,
question the accuracy of the facts as we are presenting them. Not
only have they made use of this data, but it is common knowledge
that the management of stations affiliated with both the National
Broadcasting Company and the Columbia Broadcasting System
have made extensive use of the survey of their particular stations.
To question the accuracy of the composite survey is to question the
accuracy of its individual units, the individual station’s coverage.
Since it is shown that the data collected on and forming the basis
for arriving at the coverage of individual outlet stations was done
in the same way for all of the stations affiliated with either of the
networks in question, it must be said that all are accurate or none
are accurate. We are therefore likewise convinced that no indi¬
vidual station, be it a clear channel or a regional station, the cover¬
age of which is reflected in the surveys mentioned, can question the
accuracy of such survey. The individual stations having made use
of the individual coverage surveys, and this is common knowledge,
adds to the standing of the survey as a whole and to the credit
which each of the surveys should be given. The individual sta¬
tions must, and we are sure they will, agree that the surveys are
accurate and reflect the true conditions as to present coverage by
the three networks discussed.
The coverage shown for Columbia stations in the composite
coverage for all stations affiliated with that network were based on
and determined from 700,000 returns. The details of how these
returns were secured will not be gone into. The fact that the re¬
sults are based on 700,000 returns shows that the reliability of the
survey is as many times as good as that number compares to the
number of post card returns tabulated in connection with the allo¬
cation survey of September 1st.
The coverage of the stations affiliated with the National Broad¬
casting Company and the composite coverage shown for its Red
and Blue Networks are based on a combination of field intensity
and the analysis of one and one-half million pieces of mail. This
ought to give a fair cross-section and representative picture of
listening habits and accessibility of signals. We believe it does
this.
Computing Areas
Engineers employed by the National Association of Regional
Broadcast Stations have spent many days computing the areas
and preparing maps to show coverage of the country by clear chan¬
nel stations. The technique and results of these studies have
already been fully covered by the testimony of Mr. Pickard. He
has not, however, covered a most important phase of this coverage,
and that is the population breakdown by counties and by states
so that the number or percentage of families having radio receiv¬
ing sets could be determined. We have made these investigations
and have the computations. This data shows that 90.2% of the
families having radio receivers would receive signals from clear
channel stations if operated with SO kw. with the minimum in¬
tensity of .414 MV/M. Without counting or in any way consider¬
ing the population served by any other class or classes of stations,
it is therefore found that 90.2% of the entire radio population of
the United States is within the areas in which the several clear
channel stations would deliver a minimum signal of such order as
to give the character of rural service in signal intensity referred to
in the allocation survey. As has already been pointed out and as
is common knowledge, the reason which has always been given the
greatest weight in supporting clear channels has been their service
to rural listeners.
We submit that it is fundamentally unsound to permit the opera¬
tion of clear channel stations with S00 kw. power and thus to give
them only a ten percent increase in population which they could
serve, if in granting this authority it might in any way tend to dis¬
turb the status of other important classes of stations.
Reliable Survey
Another, and what we consider to be the most important as well
as the most reliable survey of all with respect to the population
served by clear channel stations has been made, using as a basis
therefor the testimony of Mr. Pickard and the exhibits which he
has prepared showing the coverage of 35 clear channel stations
under present allowable conditions and showing what the coverage
of these stations would be if they were authorized to operate with
500 kw. As was carefully pointed out by Mr. Pickard, the con¬
tours within which service by clear channel stations is now re¬
ceived is limited to the .414 MV/M line. The contours within
which a .414 MV/M signal would be delivered if these stations
should increase their operating powers to 500 kw. is likewise shown
on the exhibits introduced by him.
Using these areas it is found that 99.78% of the radio homes of
the United States could receive at least one and 98.41% two clear
channel network services based on a minimum signal intensity of
.414 MV/M and counting present clear channel stations alone, if
they are operated with SO kw. power.
The areas within which two, three or four clear channel services
would be received with a minimum signal of .414 MV/M have been
carefully studied and the counties which would receive these
various numbers of clear channel services have been determined,
together with the total population of each based on the 1930 Census
figures and the number of radio homes in each based on the esti¬
mate of the Joint Committee on Radio Research which has lready
been referred to. So that the Commission may see the population
by states which is within the areas thus receiving two, three or
four clear channel services with a minimum signal of .414 MV/M,
we have prepared Table VII. This table shows, alphabetically,
each of the states of the Union, its 1930 population and the number
of radio homes estimated to be therein as of January 1, 1936. The
table also shows both the population and estimated number of radio
families which could, based on 50 kw. power, receive two, three
or four clear channel services of the order described. As already
pointed out, it shows that nearly all of the radio homes and popu¬
lation of the United States would receive a minimum of two clear
channel services. It also shows the portion of the population and
radio homes within each state which would receive three or four
such clear channel services. The fourth service is, of course, limited
to services from the two clear channel stations affiliated with
the Mutual Broadcasting System and not affiliated with any other
network, viz., WGN and WOR.
Radio Homes
The table shows the population and number of radio homes for
each of the states which would receive service from clear channel
stations if these stations should all be authorized to operate with
500 kw.
1662
The final tabulation or recapitulation set out in the table shows
the composite figures for the United States as a whole. Under
present policy governing operating conditions in addition to 99.81%
of the population and 99.78% of the radio homes of the country
which would receive a minimum of one clear channel service, it also
shows that 98.41% of the population and 98.35% of the radio
homes of the country would receive two such services, 97.25% of
the population and 90% of the radio homes of the country would
receive three of these services. It emphasizes the small percentage
of additional radio homes which would be served if not a few but
if all of the 35 clear channel stations should be authorized to oper¬
ate with 500 kw., and although this is emphasized it nevertheless
is the true picture based on recognized engineering standards and
data which were described and testified to by Mr. Pickard.
This Association is convinced and respectfully submits that the
installation and operation of equipment for stations with an oper¬
ating power of 500 kw. is economically unsound. After intensive
study of the questions involved the engineers employed by the
Association have advised that the cost of mechanical or technical
operation of a 500 kw. station would be slightly more than two
and a half times and less but closely approaching three times the
technical or mechanical cost of operating a 50 kw. station. To
determine a close approximation of the mechanical or technical
operating cost of a 500 kw. station is therefore relatively easy.
Such a determination has been made relatively easy because a
group of well known radio engineers have determined and reported
what the minimum cost of operating a 50 kw. station would be.
These gentlemen constituted the Advisory Committee on Engineer¬
ing Developments of the National Advisory Council on Radio in
Education. The Committee making the report was headed by Dr.
Alfred N. Goldsmith, Vice President and General Engineer of the
Radio Corporation of America, and Messrs. C. W. Horn, Chief
Engineer of the National Broadcasting Company; E. K. Cohan,
Chief Engineer of the Columbia Broadcasting System ; Lloyd
Espenschied of the American Telephone and Telegraph Company;
John V. L. Hogan, Consulting Engineer; C. M. Jansky, Consult¬
ing Radio Engineer; O. H. Caldwell, former member of the Fed¬
eral Radio Commission, and others. The Committee referred to,
without dissent, reported that the cost of maintaining and oper¬
ating the plant of a 50 kw. station including depreciation and obso¬
lescence on transmitter and other equipment, buildings, furnishings,
taxes and insurance on land and buildings, salaries, power, main¬
tenance of equipment, but excluding wire lines and all other costs
incident to studios and offices, would be $194,750.00. These figures
are based on the operation of such a station only twelve hours per
day and, as already stated, the Committee reports that they are
to be “regarded entirely in the light of approximations of the mini¬
mum costs involved.” If consideration is given to the fact that
full time clear channel stations operate sixteen to eighteen hours per
day these minimum costs would have to be increased to cover the
additional power consumed in the operation of a 50 kw. station.
The minimum cost of current to operate a 50 kw. station twelve
hours per day is given as $30,000. If sixteen hours daily operation
is considered this figure will be increased $10,000 and become a
total operating cost of $40,000. Our engineers advise that under
such operation the costs of tube replacements would be increased.
The Committee composed of the eminent engineers mentioned give
the annual cost of tubes, etc., necessary in the operation of a 50
kw. station only twelve hours per day as $50,000. Without in¬
creasing these costs in direct radio to the increase from the twelve
hours per day operation on which these figures are based to the
sixteen hours per day operation, but increasing this figure by only
one-fifth it is found that an additional $10,000 must be added for
this item alone. If these two $10,000 items, one covering ad¬
ditional power and the other tube replacements, etc., are added
to the $194,750 taken from the Committee’s report, it is found
that the annual technical cost of operating an efficient 50 kw.
clear channel station will be a minimum of $214,750.00.
Difference in Cost
Our engineers after investigating the difference in cost of operat¬
ing a 500 kw. station as compared to the cost of operating a 50
kw. station, advise that the cost of operating a 500 kw. station will
be more than two and one-half times and slightly less than three
times as much as the cost of operating a 50 kw. station. If we
take the minimum difference and multiply the cost of operating a
50 kw., which is $214,750 by two and one-half it is found that the
minimum cost of operating a full time 500 kw. station will be
$536,875, or $322,125 more than the minimum annual cost of
operating an efficient 50 kw. station.
Late last Saturday afternoon, after the preparation of this state¬
ment had been completed, I received a new edition of the report.
The figures have been changed and the cost of operating a 50 kw.
or a 500 kw. station have been, according to the same committee,
somewhat reduced. The amazing disclosure that comes from the
new report of the committee is that in 1936 it cost only $10,000
to cover all the power needed to operate a 50 kw. station 16 hours
per day whereas the report of the same committee showed that
the power bill in 1932 to operate a 50 kw. station would be
$30,000. This means that power rates have been reduced 75%
and that they are now only 25% as much as they were in 1932.
Does anyone believe that such reductions have been made in
power rates? If you do not believe that power rates have been
reduced 75% since 1932, you cannot take the new report as being
accurate. The new report on page 1 is dated July, 1936, and on
page vi it is found that the foreword is dated August 1, 1936.
Is it a mere coincidence that this report should be brought out
after the Commission called this hearing, and after the question
of 500 kw. operation was being considered? This new report does
more than support certain other figures given to you on the neces¬
sary new investment if stations are to be operated with 500 kw.
power. The figure is given by us at half a million dollars and
the new report referred to by the committee of eminent engineers
gives the figure of $582,000 as the cost of those items incidental
to the transmitting plant only without accounting for one penny
to cover studios or other necessary investments. It has been neces¬
sary to add this paragraph to our original statement as prepared
but in deference to the Commission and its right to all facts we
could find, we have added it here.
Costs
The only factor open to question is the information which has
been given by our engineers to the effect that it will cost more
than two and one-half times and slightly less than three times as
much for technical and mechanical operation of a 500 kw. station
as it would cost to operate a 50 kw. station. We do not believe
that this ratio is open to question. It was arrived at after the
engineers had made painstaking investigations to determine what
the difference in cost of operating the two classes of stations
would be.
No additional expense for improved programs or other expenses
incidental to the operation of a 500 kw. station with the sole ex¬
ception of the items mentioned are included in the figures given.
In view of these facts it becomes necessary to look to the present
operating revenues of stations so that it may be ascertained
whether there is sufficient clear channel business to support 500 kw.
stations; whether the rates charged by them must be increased;
whether any additional advertising will be necessary to cover the
increased cost of operation, or whether the increase will come
from business now held and carried by regional stations.
To ascertain what clear channel stations of the country are
doing in the way of business, during the month of August we
went over the sworn statements contained in the renewal appli¬
cations of the clear channel stations of the country, with the
exception of clear channel stations owned and operated by the
National Broadcasting Company and the Columbia Broadcasting
System, and took from the last six renewal applications of each
station then on file the sworn statements made by them as to
their average monthly revenues and arrived at averages on the
basis of these figures. When the averages were arrived at it was
found that the average monthly revenues reported in the last re¬
newal applications filed by. the clear channel stations were higher
than the average and because those figures are higher and because
they are more recent, it is believed that they are, having been
sworn to by the stations, representative of the average monthly
revenues received by clear channel stations.
On the basis of the sworn statements as to monthly revenues
just referred to, it is found that one clear channel station operates
in a city having a population of less than 50,000 and that its
monthly revenue reported was $3,055. Five clear channel stations
located in cities having populations between 50,000 and 99,000 re¬
ported total gross average monthly revenues of $94,000.23, or an
average monthly gross revenue per clear channel station in such
cities of $18,800.05. There are six clear channel stations located
in cities having a population of 100,000 and less than 200,000 and
these six clear channel stations reported total average gross monthly
revenues of $132,763.65, or an average of $22,127.17 per clear
channel station in cities of this size. Twelve clear channel stations
operating in cities of 200,000 to 499,000 population showed total
average gross revenues per month of $357,259.21, or an average
gross monthly revenue of $29,754.93 per station. In cities having
1663
a population of 500,000 and over, thirteen stations reported a
total average gross monthly revenue of $800,678.68, or an average
gross monthly revenue per clear channel station in the largest
cities in the United States of $61,590.67.
Monthly Revenue
The average gross monthly revenue of all the stations mentioned
in various size cities as reported under oath by the various stations
is found to be $37,506.93.
The same stations classified in the same way by population of
cities with one exception (a station operating in a city having a
population of more than 100,000 and less than 199,000) showed
the following: The station which operates in a city having a popu¬
lation of less than 50,000 reported an average expenditure for
talent for the last six renewal application periods up to the time
the investigation was made and the data collected in August of
$762.50. The five stations located in cities of 50,000 to 99,000
show an average report for the same periods of monthly talent
expenses averaging $2,379.21 per station. The six stations located
in cities of 100,000 to 199,000 showed average monthly talent ex¬
penditures for the same periods of $4,804.59 and stations in cities
having a population of 200,000 to 499,000 showed for the same
periods average monthly expenditures for talent of $4,221.14 per
clear channel station. For the same periods the thirteen stations
located in cities of 500,000 and over reported average monthly
expenditures for talent of $13,947.95. The average for all of the
clear channel stations in cities of various sizes showed that their
average monthly expenditures for talent during the periods men¬
tioned was $7,307.48.
(The station not included in accounting for talent expenditures
located in a city having a population between 100,000 and 199,000
showed average monthly expenditures for talent of $95,000. This
is obviously so far out of line that it was necessary to eliminate
it and we believe we were justified in eliminating it on the theory
that the statement was a typographical error.)
It will probably be said that these figures include some time¬
sharing stations who do not operate full time on a clear channel.
They do include such part-time clear channel stations, but regard¬
less of how much time a station operates it must have a trans¬
mitter to operate at all. It is therefore necessary that all of them
be included or the resulting picture would be wholly incorrect.
Moreover, if average figures on expenditures for talent include
part-time stations this will result in a lower final figure on the
cost of operating a clear channel station. This is to the benefit
of the clear channel stations and is ultra-conservative on our part.
To be conservative and fair to the clear channel stations in ar¬
riving at whether or not the operation of such stations would be
economically sound, we have, as clearly indicated, taken the
average monthly expenditures for talent over the six last renewal
periods and in "doing this the cost of operation is less than if we
had taken the most recent average monthly expenditures for the
same purpose. Again we have leaned backwards in favor of the
clear channel stations.
Chain Programs
We have already indicated that the major portion of the time
used by clear channel stations is consumed in broadcasting chain
programs. This the Commission can find easily from its own
records. If stations should be permitted to go to 500 kw., are
they to continue merely as outlets for network programs in the
future as they have in the past, or will the Commission expect and
demand that they do something original to merit their place on
such a high pedestal in the broadcast spectrum? If they render
any different service or any service that is unique, their talent ex¬
penditures will soar far above what they are or what they have
ever been in cities where sufficient talent is available to produce
high quality programs. It is common knowledge that the number
of cities which afford sufficient talent to perform such a job is very
small. The cost of talent in cities other than talent centers will be
even higher, or else those stations will continue in the future as in
the past as outlets from which network programs are broadcast.
We have already shown that this country is now being served by
network programs and that there is no justification for increasing
the power of clear channel stations to 500 kw. to afford coverage
by Columbia and NBC programs. It follows, therefore, that there
is no excuse for a 500 kw. station unless that station will do some¬
thing original and render a unique service not now available to
the listening public.
An examination of the figures already given on average monthly
revenues most recently reported, and these averages are higher
than if the last six renewal periods had been taken into account,
show that the average monthly gross revenue of clear channel sta¬
tions in cities of 500,000 and over is $61,590.67, or an average
annual gross revenue of $739,188.01. If the cost of operating a
500 kw. station, which we have found to be $536,875.00, is sub¬
tracted from this average gross annual revenue, it shows that sta¬
tions in such cities now have an average annual gross profit of
only $202,313.01 more than the annual cost of mechanical opera¬
tion. If from this the average annual talent expenditure referred
to is subtracted, it leaves only $34,575.53 to cover any return on
investment in plant and studios, to cover all sales expense, rental
of studios and all other expenses incident to the operation of the
business and offices except the specific items mentioned. It has
been stated time and time again that a 500 kw. station would entail
a minimum new investment of half a million dollars. In a business
such as broadcasting, the remaining $34,575.53 represents less and
certainly not more than a reasonable return on the actual new in¬
vestment in the station. It is found, therefore, that if good business
practices are followed, 500 kw. stations are economically unsound
even in cities of 500,000 and more. If good business practices are
not followed the station will not continue in operation.
Costs of Operation
If the cost of operating a 500 kw. station is compared with the
hope for profit if operated in a city with a population of less than
500,000, based on these averages taken from sworn statements as to
revenues and talent costs, it is found that no such station can
operate except at an extremely great loss. Figuring the average
monthly revenues, average monthly expenditures for talent, the
cost of mechanical or technical operation of a 500 kw. station for
these cities and taking into account the same consideration, exclu¬
sive of any return on investment, it is found that the average 500
kw. station if operated in such cities would be so operated at an
average annual loss of $230,269.44. As figures are developed for
cities of less than 200,000 population the annual out-of-pocket loss
from the operation of such 500 kw. station increases in substantial
amounts.
What will be the result of clear channel stations operating after
this fashion?
It will mean the financial ruin of such stations or else it will
mean that these stations must increase the amount of business done
by them to offset these losses. This brings up a practical question.
Will this necessary amount of additional business done by them
come from new business, from increased advertising budgets, or
will it come from regional stations, and if from regional stations,
what effect will the depletion of their revenues have on them?
We have been unable, after diligent search, to find where the
vast amount of new business will come from. This question is of
such momentous importance that the Commission should never
authorize the operation of 500 kw. clear channel stations until it
has been satisfactorily answered and to date no such satisfactory
answer has been made, nor is such satisfactory answer being at¬
tempted. The facts are that until this question is definitely and
conclusively answered, this Commission cannot assume to say that
such new business will offset these extraordinary out-of-pocket
losses and it must necessarily conclude that if such clear channel
stations secure enough business to offset these heavy losses, it must
come from increased rates, greater participation in advertising
budgets and from regional stations. No facts have been pointed
out and none have been found by us indicating that advertisers
are going to increase their budgets by anything like the percentage
necessary to leave their existing business on regional stations and
add a sufficient sum to take care of the losses incident to the opera¬
tion of 500 kw. stations and pay a reasonable return on the invest¬
ment of the owners of these stations.
Must Make Decision
In the final analysis the question of what to do about 500 kw.
stations is to make a decision that such stations will not be per¬
mitted, or else to look for a fight to the death and finally for the
survival of the fittest as between regional and clear channel sta¬
tions. Such a fight will not help either. Moreover, if the 500 kw.
stations are authorized and they increase their rates to such an
extent that their present business at the new rates will make it
possible for them to operate without loss, and if the advertising
budgets from which these revenues come are not increased, this
means that enough business will be taken from the regional stations
of the country to put them all in the red. This is especially true
of national spot advertising. If 500 kw. stations are authorized,
these stations are going to do their dead level best to sell the
1664
national spot advertiser on the theory that the coverage which he
will get from using these 500 kw. stations is so great that they can
afford to pay the increased cost and that they do not need regional
stations now used by such national spot advertisers to reach the
American public. If 500 kw. stations continue in the future
as they have in the past to carry chain or network programs,
it follows as a matter of course that the rates for carrying these
by 500 kw. stations must be severely increased, and if the adver¬
tisers using chain programs having fixed budgets determine, as
many if not the majority of them will, to use 500 kw. stations
as outlets to broadcast their programs, these increases in rates by
the clear channel stations will absorb and eat up the entire budgets
of such advertisers, leaving nothing for the regional stations.
This is further supported by the fact that the management of
500 kw. stations will be going to the advertiser and to the agency
to sell them on the idea that their coverage is so great that regional
stations within their service areas will not be necessary to secure
complete coverage. The exhibits which have been prepared by the
engineers for the National Association of Regional Stations show
this possibility clearly. Take Chicago, Illinois, as an example, and
within the areas of the stations in Chicago and if the power of the
clear channel stations is increased to 500 kw. it will be found that
the signal of these 500 kw. Chicago stations will be just as strong,
if not indeed stronger, in cities now served by regional stations
than these regional stations deliver in those cities themselves.
Milwaukee, Wisconsin, is a good example of this. In this city one
regional station serves as the outlet for NBC programs and an¬
other regional serves as the outlet for CBS programs. It will be
relatively easy to make field intensity measurements of the stations
in Chicago operating with 50 kw. and compare them with the
intensities delivered in and about the Milwaukee area by the Mil¬
waukee stations, and if this is done it will show that these Chicago
stations have invaded the Milwaukee area and the result will be
that national spot advertisers and chain advertisers will be shown
that the 500 kw. station in Chicago is all he needs and that the use
of a Milwaukee station is unnecessary.
Typical Examples
These are but typical examples. Philadelphia, Bridgeport and
others could be pointed out. One case of a regional station already
proves this so far as chain programs are concerned. There is a
high class regional station, the area of which is covered by a 500
kw. station. The regional station was affiliated with the National
Broadcasting Company and because the chain advertisers would
not use this regional station sufficiently, although it is a very high
class station, the regional station no longer serves as the NBC
outlet but has affiliated itself with the Columbia Broadcasting
System. The facts with respect to this case have become common
knowledge and if this has happened in this case, who will say that
it will not happen to all regionals whose areas are covered by 500
kw. stations located in distant cities?
Reverting to the Milwaukee stations, it is essential that the high
status of the stations be maintained and that they continue to re¬
ceive the patronage of the chain and the national spot advertiser.
If they should lose these or any appreciable portion of them it
would be extremely costly to the regional station to build com¬
parable programs to take the place of those which they lose and
they would therefore not only lose the revenues received for car¬
rying the program, but they would lose the additional amount
necessary to produce comparable programs to take the place of
those which they lost. If large amounts are not spent to produce
high class programs to take the place of programs lost by the
regional stations, it is elementary and merely common sense which
leads us to know that the listening audience of that station would
be severely reduced. Its value in carrying local advertising pro¬
grams would be materially lessened. Its value to the community in
furthering civic projects, civic movements and in publicizing and
supporting the educational, religious, charitable and general com¬
munity services, institutions and organizations would be lessened
even more.
Spot Business
If half the national spot business and half the chain business now
carried by regional stations should move over to 500 kw. stations,
and this percentage of movement and more would probably take
place in short order, it is seriously doubted that it would offset the
losses incident to the operation of 500 kw. stations. What is more
important, our investigations disclose that if anything approaching
this percentage of chain and spot advertising should move from
regional stations to 500 kw. stations, it would destroy the economic
status of regional stations and cause them to operate at a loss if
their continued operation could be carried on at all in many places.
This question of opposition to 500 kw. stations is not founded
on some flimsy pretext. The facts, indicate that the stake of the
regional stations in this question is great and that it may mean life
or deatlr economically to them, and death to them economically
means the destruction of their service in a social way to the im¬
portant communities in which these stations are located.
There are other questions which should be considered by the
Commission before it authorizes the operation of 500 kw. stations.
It should be remembered that broadcasting is, relatively speaking,
a new industry and that no one can tell what tomorrow may bring
in the technical advancement and development of the art of radio
broadcasting. If the Commission should authorize the operation
of 500 kw. stations and they are constructed, the investment in
each of them and in the group will have the practical effect of
freezing development along current fines and will act as a positive
and important impediment to future progress along such technical
lines. Such investments will be so great that even though great
and important advances may be made and may come from the
laboratories ready for practical use, it will be impossible to use
them. With knowledge on the subject of radio increasing by leaps
and bounds, it seems to us that any step by the Commission which
might freeze future broadcasting to present developments and pre¬
clude the inclusion of the advances which may come later would
be dangerous.
There is another question, and it is in important consideration.
Everyone knows that radio broadcasting in its influence over the
land has come to rival and many claim surpass in power the in¬
fluence of the press. We do not believe that this powerful and
probably most powerful medium for swaying public opinion and
directing public thought should be concentrated in the hands of so
small a number as would be the case if the operation of 500 kw.
stations is permitted. To state this proposition brings up at once
numerous facts to support it which are self-evident.
Technical Evidence
As part of the technical evidence introduced by Mr. Pickard, it
is clearly shown that if 500 kw. stations are licensed they will set
up interference in foreign countries. The information and the
exhibit showing this international angle and complication is based
on interference to foreign stations 20 percent of the time, or twice
the amount of time the Commission has heretofore adhered to as
the time interference could be received without being objectionable
and intolerable. It is therefore safe and ultra-conservative to say
that if 500 kw. stations are licensed they will interfere with stations
in foreign countries over twice as much time as the Commission has
heretofore permitted to exist in the way of interference as a
standard for stations in this country. If this testimony and the
exhibit illustrating the interference which 500 kw. stations in the
United States would do by way of interfering with foreign stations
had been prepared on the basis of interference only 10 percent of
the time instead of the ultra-conservative 20 percent, the resulting
degree of interference would have been much greater and more
severe than that shown by Mr. Pickard’s testimony or the exhibit
illustrating this point.
The testimony of Mr. Pickard and the exhibit referred to show
that interference to foreign stations operating on frequencies oc¬
cupied by 500 kw. stations if permitted to operate in the United
States would be objectionable in Europe and in both North and
South America. It may be argued that the time difference between
European stations and American stations may compensate some¬
what for this. The fact remains, however, that European stations
like American stations have the right under international agree¬
ments, to which this country is a party, and as a matter of common
sense and right, to operate twenty-four hours per day. If Euro¬
pean stations should do this the time differential must be entirely
eliminated as an excuse for operating 500 kw. stations in America
and delivering an interfering signal in European countries.
The Central and South American nations are in the same time
zones with the United States. No time differential can be injected
here, and the testimony of Mr. Pickard based on the 20 percent
time-interference and based on the standards which this Commis¬
sion has followed in establishing the standard of 20 to 1 of the
desired over the undesired signal for stations on the same channel
to give satisfactory service, his testimony and the exhibit showing
the contours of interference, show conclusively that during 20
percent of the time American stations operating with 500 kw.
would interfere with stations on the same channel at night oper¬
ating in practically every Central and South American country.
If these contours of interference had been based on field intensities
which would be delivered in these distant foreign countries only
1665
10 percent of the time, they would have shown and his testimony
would likewise have proven that interference to foreign stations
would be still worse and more severe.
Aware o£ Facts ^
This Commission is not unmindful of the delicacies involved. It
is fully aware of the facts and the precarious condition into which
American broadcasting in general could be thrown by foreign sta¬
tions if we do unto them as we have sought to prevent them doing
unto us. The United States cannot have its cake and eat it. The
establishment and operation of S00 kw. stations in this country,
knowing the severity of the interference they would set up in
foreign countries, would be tantamount to making an attempt to
do just this. This question of international interference is loaded to
the guards with dynamite. If this Commission would license 500
kw. stations and authorize their operation with that power, it
might well be, and most likely would be. the force which would
set off this charge and result in such a conflagration as would be
embarrassing and adverse in effect to the whole American system
of broadcasting. The National Association of Regional Broadcast
Stations sincerely entreats this Commission not to set off this ex¬
plosion in this manner.
If any 500 kw. stations are established, and this Association
opposes the establishment of any of them, and if the facts which
we have given are considered insufficient to prevent their operation,
then the facilities must be granted upon the following bases:
Bases
1. The stations must be located where they will actually render
unique service which cannot be duplicated by any other means — if
such areas exist.
2. Consideration must be given to all applicants possessing the
requisite capital and general qualifications to operate a 500 kw.
station. Authorizing the operation of such stations by the present
licensees of clear channel stations only without making inquiry into
their past operations and like inquiry of many regional licensees
who have done a much better job than many clear channel stations
have, would be to license these 500 kw. stations without regard
to the ability of the licensee to carry on in the highest and most
commendable fashion. We do not need to remind this Commission
that numerous regional stations are today rendering just as good
service as are the clear channel stations, nor do we need to remind
this Commission that many regional station licensees are doing
a superior job to many licensees of clear channel stations. Many
regional station licensees would welcome a comparison of their
performances and service rendered to the performance and service
rendered by many of the clear channel stations. We believe that
such a comparison should be made and that if any 500 kw. stations
are established, the fact that someone now operates a clear channel
station should not give him any preference over other station
licensees, and this is especially true if the other licensees can show
that they have heretofore performed a higher degree of service
than some of the clear channel stations. This is also true because
many regional station licensees are better able to make the neces¬
sary investment to operate an efficient 500 kw. station than some
clear channel station licensees, and the fact that the investment
in such a station must be made anew by whoever constructs it
should place all licensees on an equal footing.
The National Association of Regional Broadcast Stations reiter¬
ates, however, its unqualified opposition, for the reasons already
given, to the regular licensing of any 500 kw. stations.
Duplication of Stations on Clear Channels
We have proposed that the Commission’s rules be amended to
permit and to license the operation of more than one station, un¬
limited time, on the so-called clear channels.
The fundamental facts and conditions surrounding this question
are stated in connection with other classes of stations already dis¬
cussed. The technical or engineering evidence of Mr. Pickard not
only explains the mechanics and engineering facts to be considered
but shows definitely what the effect of such operation would be.
His testimony shows that interference to other stations would not
result and to prove this has prepared exhibits and produced them
here showing concrete cases. His testimony and exhibits are so
clear-cut and conclusive that there can be little, in fact no doubt
that such stations may be operated without interference. This
evidence shows that large areas and large populations would re¬
ceive service in addition to those now receiving service from a given
frequency on which only one full-time station operates. It proves
that stations now operating alone on such frequencies, regardless
of power, are not serving and cannot serve the areas which would
be added and that they cannot and do not serve the thousands
upon thousands of listeners who could receive additional service
if these stations are authorized to operate in addition to those now
operating full time on the clear channels. The only conclusion
which can be reached as to the best use to be made of these fre¬
quencies is that such duplication should be permitted and if not
permitted the waste growing out of the partial use of such fre¬
quencies will be extremely great.
Fundamental Factor
We have already stated as a fundamental factor that social and
economic needs and demands should control the proper solution of
these problems. Without going further into cold statistics, suffice
it to say that, as this Commission knows full well, there are many
regional stations in this country operating on regional frequencies,
the coverage and service of which could be materially improved
and expanded if some of them should be authorized to duplicate
the use of clear channels. The engineering testimony shows that
the interference now received by regional stations is such as to
limit them, on the average, to slightly less than 2 MV/M at night.
This condition has been brought about by crowding regionals in too
large numbers too close together geographically. If some of these
regional stations should be permitted to move off regional channels
and onto clear channels, a large percentage of this interference
would be obviated, great improvement to the listening public
would result and the stations would be generally better able to
serve their audiences and be of much greater social value to them.
There is nothing so sacred about a clear channel as to put it be¬
yond being so used that it will render service based on the greatest
good to the largest number. It is clear that duplication of stations
on these channels will not interfere with any worthwhile service
now being rendered ; that such use of channels can be made to im¬
prove the regional service to a very great degree and that thou¬
sands upon thousands of listeners will be provided a much greater
variety of programs and the number which would be afforded such'
greater latitude in program selection is much greater than the num¬
ber which would be thus accommodated by being added to the
present audiences through increasing the power of clear channel
stations to 500 kw.
In asking that duplicate operation of stations on clear channels
be permitted, stations of such powers as have been operated suc¬
cessfully for many years are suggested. No suggestion is made for
any change in the rules except for stations on these frequencies to
operate with 5 to 50 kw., depending on the comparative need for
such stations in given communities, separations between stations
and ability of the respective communities to make the operation
of such stations commercially successful or economically sound.
Effects of Operation
The effects from operation of these stations as to social and eco¬
nomic facts to be considered can be definitely determined, not on
one or two isolated examples but from a great mass of data and
facts based on the long and successful operation of a large number
of stations.
The facts we have presented indicate a great upheaval and upset
in the economics affecting regional stations if 500 kw. operation
should be permitted. No such disturbance would result from mov¬
ing some existing regional stations to duplicate operation on clear
channels. As we have already pointed out, such duplication would
make possible great improvements and there would be no such
exodus of business from regional stations as would, we are con¬
vinced, take place if the Commission should authorize 500 kw. sta¬
tions to be constructed and operated.
Another advantage which would be found would be the fact that
the service of these stations would be over the proper areas and
within the sphere of influence of each where it should be. This
would tend to ally them more closely with the general social and
economic needs of these areas and the degree of their usefulness
would be enhanced in direct proportion to this union. The natural
areas which regional stations have sought to serve have been the
trade territories centering in the cities where they are located.
The moving of some regional stations to clear channels would
assist in rendering and improving this service. It has already been
pointed out that the problems of those within these trade terri¬
tories are much more common than their problems are to some
distant city or area.
We submit that the operation of these stations on clear channels
1666
should be provided for in view of the facts that their operation
would not limit or interfere with any worthwhile service now being
rendered; would make for a greater use of facilities and less waste
in their use; would tend to relieve interference to regional stations
and generally expand and improve their service, and generally im¬
prove radio service by providing a greater number and greater
variety of programs to a much larger population than could be
done in any other way. The proposal is sound socially and
economically and these are of primary importance. It is, of
secondary importance, technically feasible.
Conclusion
The National Association of Regional Broadcast Stations, on the
bases of the social and economic facts, which are of primary im¬
portance, and the technical facts as well, all of which we believe
sincerely to have supported our proposals, once again most re¬
spectfully urges the promulgation of rules or changes in rules so
as to permit the operation of regional stations with S kw. night
power; permit duplication and operation of more than one station
on the clear channels, and retain the present rules fixing SO kw.
as the maximum power with which any station will be regularly
licensed to operate.
Cross Examination
Under cross examination Mr. Spearman admitted that he is
neither a radio engineer nor an economist. He added that the only
qualification necessary to a complete understanding of his state¬
ment was a knowledge of elementary arithmetic as taught in the
grammar school. In this connection and in a facetious vein he
said that he thought the engineers had been running the radio
game long enough and that now lawyers and economists should
have their chance.
Mr. Spearman said in connection with a direct question on the
subject that local stations are undoubtedly a very important factor
in radio but his group has deliberately stayed away from the
subject of local stations in its presentation.
Network affiliations of the regional stations which were con¬
tained in his direct testimony Mr. Spearman stated were taken
from the Commission’s own records.
Regionals Serve Cities
In connection with a further question Mr. Spearman said that
regionals can become associated with any network that they want
to legally but. not economically. He contended that many re¬
gional stations serve cities of 50,000 inhabitants which have no
stations of their own. The regionals he stated want higher power
to overcome city noises.
Every man, woman and child would be able to get reception
clearly from 96 stations with 96 separate programs Mr. Spearman
said if he had his way but this is clearly a practical impossibility.
The regional group he stated is not asking for any horizontal
increase of power to 5 kilowatts. He asked that radio be not put
into a straight jacket and then on interrogation from Mr. Craven
said “except clear channels”. Duplications on clear channels should
be used he asserted to improve the regional set-up. Some part
time stations he testified are not making good financially but they
might make good if they were granted full time and this might
be done through duplication of clear channel stations.
If regional stations went to 5 kilowatts Mr. Spearman stated
it would have no marked effect on local stations ; at least it would
not have as much effect on local stations as the clear channel sta¬
tions would have by increasing their power to 500 kilowatts on
regional stations. Up to this time he said no local stations have
ever complained when a regional station has increased its daytime
power from 1 to 5 kilowatts.
Allocation Survey
Mr. Spearman said that in his opinion the Commission’s allo¬
cation survey developed nothing on which the Commission could
base an allocation plan and he made some criticism of the post
card survey.
The Commission, Mr. Spearman said, should not set up standards
of service, because on some channels there is much more inter¬
ference than there is on others. Mr. Spearman qualified himself
as a real radio fan.
He said that the association which he represents is against grant¬
ing any 500 kilowatt stations and when asked specifically about
WLW he called attention to the fact that this has only an experi¬
mental license and that his association has taken no specific position
regarding that station. He expressed his opinion that if regional
stations went to 5 kilowatts that these stations would be able to
increase their rate which would undoubtedly take care of any addi¬
tional expense incurred. Mr. Spearman stated that in his opinion
there are several clear channel stations in the country who could
not make the grade from a financial standpoint if they had to go
to 500 kilowatts.
1667
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The National Association of Broadcasters
NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB
REPORTS
*
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Vol. 4 - - No. 57
OCT. 14, 1936
CoDyriunt. 1936.
The National Assoeiation of Broadcasters
Lohr Presents NBC Case at Allocation
Hearing
Lenox R. Lohr, president of the National Broadcasting Company
at today’s allocation hearing before the Federal Communications
Commission discussed the economic and social aspects of the case
as they appear to his company. Arthur Van Dyck, engineer in
charge of the RCA License Laboratory, also presented a statement
on behalf of NBC in which he supplied facts concerning the per¬
formance of receivers in the home today.
Paul M. Segal, counsel, and Raymond M. Wilmotte, engineer,
also appeared on behalf of the stations on the 940 kilocycle channel.
During the course of Mr. Lohr’s testimony he recommended
that the period of broadcast licenses be extended to three years, the
maximum permitted under the law. He also suggested that the
Commission take no action which would limit the existing capacity
of clear channel stations “or preclude the development of a better
and more extensive service by them.”
Mr. Lohr recommended also that regional station power be
increased to 5 kilowatts for both day and night and he further
suggested power increases for local stations “whenever the engineer¬
ing and economic factors warrant the use of such power.”
Lenox R. Lohr
Mr. Lohr said:
It is my purpose in appearing before you today to discuss some
of the economic and social aspects of the tremendously complex
problems with which these proceedings deal. Before doing so I
want to make clear that I speak only for the National Broadcasting
Company, and the stations which the National Broadcasting Com¬
pany is licensed to operate. We have not been authorized by any
affiliated station to present its case to you nor have we joined
with any other station or group of them. Of course, none of them
have purported to speak for us.
In its preparation for this Conference the National Broadcasting
Company’s objective has been to express its opinions in the form
of specific recommendations wherever possible. At the conclusion
of the Conference, you gentlemen will have before you not only
our specific proposals but many others representing widely diver¬
gent views. If you adopt some you must reject others. And, in
the process, each proposal will be subjected to the test of whether
its adoption will serve the public interest, convenience and neces¬
sity. Because our suggestions reflect our interpretation of the
phrase “public interest, convenience and necessity” I would like
to set forth, necessarily in general terms, what we conceive to be
the connotation of these words.
First
We believe the term implies that the dominating influence at this
proceeding must be the welfare of the listener. We place this re¬
quirement first, both in position and importance, because the wel¬
fare of the listener may be too easily subordinated in some of the
differences of opinion existing between stations or groups repre¬
sented here today, merely because the listener himself is not present
and is therefore inarticulate.
Not Altruism
We would not have you believe that the National Broadcasting
Company’s concern for these listeners is one of pure altruism.
We do want to impress upon you that National Broadcasting
Company’s only business is that of broadcasting; that our planning
and thinking are based upon the premise that we will be in it for
many years to come ; and that, in the long run, he who serves best,
profits most, in this business above all others.
There are two methods by which broadcasting may be conducted.
One is to compel the listener to subscribe for the service and to
discontinue it when he ceases to pay. That is the foreign method.
The American system of broadcasting differs in one marked
respect so extraordinary as to be unparalleled in any other business
or in any other country — -its listeners support it voluntarily through
their purchases of radio advertised products. Their good will is
the National Broadcasting Company’s most valued and vital asset;
upon our ability to retain it depends our very existence. Their
welfare cannot be an academic matter to us.
Second
We believe that the term “Public Interest” means the welfare
of all listeners throughout the United States.
It is unnecessary to tell this Commission that, from a narrow
business viewpoint, it is easier and usually more profitable to
render broadcasting service to those areas where there is heavy
concentration of population. Sparsely settled areas are not only
more difficult to serve because they require greater power, with
larger capital investment, but this service is frequently less profit¬
able. Unfortunately these sparsely settled areas are also the areas
where there are fewer theaters, newspapers, schools and other
sources of entertainment and information. They are the areas where
broadcasting means the most. We believe that these considerations
must be accorded weight in deciding how much and what kind
of service rural listeners are entitled to receive. And in this con¬
nection we ask you to note that the recent amendment to the
Communications Act declares it to be the intent of Congress that
all the people of the United States be given fair, efficient, and
equitable broadcasting service. The standard is not merely one of
equal service.
Difference of Opinion
It is no more than natural that there should be differences of
opinion among the various parties represented at this Conference
as to what constitutes a fair and equitable distribution of radio
service to all the people of the United States. The American Sys¬
tem is based upon competition and competition engenders divergent
views. Each individual station owner competes with his neigh¬
boring stations for audience and for advertising. He competes
with others more distantly located for increased power, a better
frequency, or some other advantage which will permit him to
improve his service to his listeners and thus to increase his net
profit from operations.
We would not have you believe that National Broadcasting
Company is immune to these influences. But we do want to
emphasize that for many years we have supplied programs to out¬
lying stations, frequently at a monetary loss, in order that our
service might be national in scope. The National Broadcasting
Company relies for its support upon all listeners throughout the
country.
Third
The term “public interest” means high quality programs. The
American audience has become accustomed to a broadcasting serv¬
ice which, for eighteen hours a day, day in and day out, supplies
programs which could not possibly be originated in any single city.
Our talent resources are, literally, those of the entire world. Pro¬
grams of the character, quality and diversity which we now regard
1669
as commonplace could not be broadcast by any single station or
for any advertiser using a single station. But they can be built
for release over a network of stations — and the larger the network
the larger the audience and the better the program can be.
This practice of syndication not only brings a wealth of fine
program material to all parts of the United States, hut it has made
American network programs the finest in the world. Nearly half
the stations which you now license to operate receive some sort
of network service either from a national or sectional network.
These stations and their network programs constitute the corner¬
stone of American broadcasting.
Fourth
The term “public interest” means signals of sufficient intensity
to permit satisfactory reception. It is not remarkable that the
high quality signal of a few years ago has become the unsatisfactory
signal of today. Neither is it mere coincidence that high-quality
programs and high-quality reception almost invariably go to¬
gether. No matter how strong its signal may be no station will
retain its audience against present day competition unless it fur¬
nishes an attractive program schedule. By the same token, how¬
ever, unless the station is able to deliver its programs to the loud
speaker sufficiently free of interference from other stations, and
sufficiently above the noise level of its community, to render an
acceptable and enjoyable service its listeners are not receiving the
maximum service which it is possible to give them.
Finally
The term “public interest” means an industry operating upon
an economic foundation strong enough to carry these current obli¬
gations and to provide resources for the laboratory development
of the radio to tomorrow.
The history of broadcasting is that of an industry existing in a
hand to mouth fashion, under six month licenses, against a back¬
ground of constant change and rapid obsolescence. Some stations
favorably located have rendered excellent service and returned
substantial profits to their owners over a long period of years.
Some, particularly those having limited hours or operating at some
other competitive disadvantage hang on from week to week in
the hope that a miracle will eventually bring a sufficiently increased
income to justify their existence.
In the long run, most of the economic problems facing this in¬
dustry must be decided by the owners of stations themselves. But
it is obvious that to whatever extent undue economic burdens are
imposed upon the broadcaster by regulations, to that same extent
must his capacity to render service suffer. Or, by exercising your
regulatory power wisely, you can bring about an ascending spiral
wherein the industry, built upon sound economics, supplies better
programs through better stations to a better satisfied public and
thus become increasingly prosperous itself.
* * * * * * *
Service to Listener
So much for our interpretation of the words “public interest,
convenience and necessity.” Because it is predicated upon service
to the listener and is national in scope, and therefore coextensive,
geographically, with the Commission’s own sphere of jurisdiction,
we feel that it is one with which the Commission can properly
agree.
May I call to your attention the fact that next month the Na¬
tional Broadcasting Company completes ten years of national net¬
work operation. All that anybody knows about nation-wide net¬
work service has been gained within that single decade. We have
obtained a fairly good idea, I think, of what the American listener
wants and what he may reasonably expect to get from his loud
speaker.
Ten years ago there were S. 200, 000 receiving sets in use in the
United States. By the end of this year there will be approximately
30,000,000. In proportion to population Europe has about one-
fourth as many. America’s six-fold increase in ten years is at¬
tributable, in a large measure, to the excellence of American net¬
work programs. At the same time there could hardly be a more
persuasive indication that the policies and the fundamental engi¬
neering principles for the allocation of broadcasting stations,
adopted in 1928, were sound.
Not only has the American radio audience continued to increase
every year through prosperity and depression but every single year
this audience has given the American system of broadcasting the
finest possible endorsement — a constant and continued willingness
to patronize broadcast advertisers. From time to time the size and
satisfaction of our radio audience under the American system is
explained away. We are told that the intellectual level of these
listeners is not very high and that they lack powers of discrimina¬
tion and critical analysis. We urge you not to rely too heavily
upon any such explanations. In working out your problems you
can still tie to one fact above all others — that it is not yet possible
to fool all the people all the time.
Development of Industry
In the development of the broadcasting industry, National
Broadcasting Company’s interest has always been a dual one.
On the one hand it operates stations some of which are clear
channel stations, others regional and one a part-time station. On
the other hand our networks include not only our own stations
but a much larger number of stations, independently owned and
operated, which are associated with us. Each, we believe, is ren¬
dering a public service of a high order within its own sphere.
We have given serious consideration to the possibility of improv¬
ing service through a general reallocation of all station assign¬
ments such as took place in 1928. In many ways the prospect
is more intriguing to us as a network than it can be to any single
station. If it were possible to rearrange the power and frequency
of all stations so as to bring about a network in which the service
areas of the individual stations would fit together like the pieces
of a jig-saw puzzle most of our present problems would be an¬
swered. Notwithstanding the fascination of this prospect, in the
end we have been compelled to return to the point from which
we started out — that there are some 680 stations and not more
than 100 channels for their operation. You may divide and sub¬
divide, shuffle and reshuffle these stations and channels in an
infinite variety of combinations. In the process you may improve
some stations but inevitably what vou give to one must be taken
away from someone else. We perceive no substantial benefit to
the public as a whole or to the industry which could be accom¬
plished by any such reallocation.
We do not mean to imply that the present system is so perfect
that there is no room for progress or that we do not anticipate
many adjustments in the future. We do say that it should not be
changed unless the public will profit substantially thereby and that
a heavy burden of proof rests upon those who advocate changes
in the fundamental structure.
Increased Power
We consider that the most important single issue before all
stations today is that of increased power. Since its earliest days
power has been the outstanding controversial issue of the industry
— there has been more misinformation available upon it than upon
all other subjects combined. Your records of past conferences are
filled with the fears of false prophets who deplored increases in
power but who failed to stay the progress of the radio art.
There are two valid objections to increased power. One is an
engineering objection — that of actual physical interference. Our
engineers have already given you our views as to what should be
considered serious objectionable interference.
The other is economic. In most instances increased power will
necessitate substantial expenditures for new equipment. We believe
that it would be unwise and unduly disturbing to the industry for
you to require large expenditures for this purpose by any class of
stations at this time. And in using the word “require” we mean
to include not only affirmative mandatory regulations but also any
action which would permanently penalize the station owner who
fails or is unable to install higher power upon short notice.
Satisfactory Evidence
Your present practice is to require that each applicant who
comes before you seeking increased power shall present evidence
satisfactory to you that he has adequate financial ability to incur
the increased operating expenses involved, including depreciation,
without jeopardizing his economic ability to render service. We
see no reason to change this requirement. What shall be considered
adequate financial responsibility must be a question to be deter¬
mined upon the facts in each case and therefore, the only standard
we can suggest is that of reasonableness. We do think that the
prospect of increased profit subsequently is not a complete justifi¬
cation for the grant. Considerable weight should be attached to
the applicant’s ability to prove that he has been able heretofore
to do something more than merely to balance his books.
There are no valid social objections to higher power. You have
been told that if you authorize higher power on some stations
1670
it will enable them to deliver satisfactory signals in areas not now
served by them and that, because their program service is superior,
these higher powered stations will attract listeners who must now
be content with something less. This has not been the experience
of the industry. On the contrary, it has been our experience, and
that of the receiving set manufacturers, that when broadcasting
service improves in any community the interest of that community
in all broadcasting increases proportionately. Moreover, higher
power will not come over night. It will come gradually and will
be assimilated over a period long enough to give each station an
opportunity to readjust its methods of operation and to find its
proper place in the economic and social structure. In any event,
it is no answer to protect a station thus affected by depriving the
listening public of a superior service. The solution is to improve
the service of the smaller station. To that end within the past
few years the National Broadcasting Company and others have
undertaken to supply recorded programs of high quality at rela¬
tively low cost.
Now as to our specific recommendations:
First — We earnestly recommend in the interest of economic sta¬
bility for the industry that in your new regulations you lengthen
the license period for all broadcasting stations to the three year
maximum permissible under the law.
Second — With respect to the continuance of clear channels your
record will disclose that upon the forty frequencies designated as
clear channels in 1928 fifty stations were licensed to operate, each
as a dominant clear channel station. In order to bring about this
result the Radio Commission required twenty stations to share
time upon ten channels. On the whole the past eight years have
demonstrated that part time operation of this sort is not successful
either from the listeners’ standpoint or for the station operator.
In some instances the stations have worked out their own salva¬
tion by joint use of a single transmitter, synchronization, directive
antennas, or some other means. A number of the stations still
operating part time on clear channels have asked that they be per¬
mitted to submit a plan to the Commission which will give each
of these stations full time operation and they propose that a hearing
be held upon such plan. We believe such a hearing should be held
and an earnest effort made to find a solution to the problem.
There remain out of the original forty clear channels some
twenty-five or thirty upon which progressive forward looking sta¬
tions are being operated today. Their value as a means of service
to rural listeners has been reaffirmed by the recent Clear Channel
Survey. We recommend that your Commission take no action
which will either limit the existing service capacity of stations of
this type or preclude the development of a better and more exten¬
sive service by them.
Third — With respect to the power of clear channel stations we
recommend that your regulations be revised to remove any limita¬
tion of maximum power to be used by the dominant station upon
these channels. Having adopted regulations of this sort we recom¬
mend that each individual application be considered and acted
upon with due regard for the interference problems and the eco¬
nomic justifications which each case presents. Following this rea¬
soning my Company has concluded that at one station, WJZ, S00
kw power would be desirable when measured by the standards
referred to previously.
Fourth — With respect to power on shared channels we recom¬
mend increases in power for regional stations to 5 kw, day and
night, and we recommend increases in power for local stations
whenever the engineering and economic factors warrant the use
of such power.
Fifth — With respect to differentiation in the maximum power
permitted in the daytime and at night we see no objection if the
benefit to be derived from the greater power justifies the expense
of maintaining the added equipment.
I want to add just a few more words upon the possible future
use of frequencies in the band above 30,000 kc for aural broad¬
casting and for television.
For the past several months the National Broadcasting Company
has been operating a transmitter at the top of the RCA Building
in New York City with power of 100 watts on a frequency of
42,000 kc. The details of these experiments have been made known
to you in the reports which we have submitted. I want to add
to those reports the general comment that for the most part the
results of this operation have been highly gratifying. However,
our engineers have encountered some difficulties with which we
do not have to contend in the present broadcast band. They have
found that while ultra high frequency signals are relatively free
of natural static, man-made noise, from automobile ignition and
diathermy machines for example, is much more objectionable.
We think it very probable that sometime we will be rendering a
service of greater fidelity than at present to urban audiences
through stations operating in that part of the spectrum above
30,000 kc. Before we can do so it will be necessary for all these
listeners to purchase receivers designed for the new service. Ob¬
viously, this will not come about over night.
Television
The National Broadcasting Company’s views with respect to
television are derived from experience which we have gained
through operating experimental television stations continuously
since 1928. For the past several months we, in cooperation with
other RCA Companies, have been operating a new television trans¬
mitter from the top of the Empire State Building in New York
City as part of a practical field test. We now have in daily use
some seventy receivers of standardized design most of which have
been placed in homes and are operating under service conditions.
We have designed and built the first studios for the production
of television programs. Not only has there been substantial prog¬
ress within the past few years in television and facsimile, but that
there is likely to be greater progress in the next few years. Here
again, however, it will be necessary to re-equip the public with
entirely new receiving facilities.
High Frequencies
We have discovered nothing in our investigation of ultra high
frequencies, either with respect to sound broadcasting or television,
which would militate against the recommendations which we have
made here for stations operating between SS0 kc and 1600 kc.
We believe that the American audience is going to continue to
receive its aural broadcast service upon present frequencies for
several and perhaps for many years. Our proposals have been
made with a view to giving the best service that it is possible
for this audience to receive.
In conclusion may I repeat for the purposes of the record in
this proceeding, the announcement which was made when the
National Broadcasting Company was organized:
“Any use of radio transmission which causes the public to feel
that the quality of the programs is not the highest, that the
use of radio is not the broadest and best use in the public
interest, that it is used for political advantage or selfish power,
will be detrimental to the public interest in radio, and therefore
to the Radio Corporation of America.”
****** *
“If others will engage in this business the Radio Corporation
of America will welcome their action whether it be cooperative
or competitive.”
* * * * * * *
“The necessity of providing adequate broadcasting is apparent,
the problem of finding the best means of doing it is yet experi¬
mental. The Radio Corporation of America is making this
experiment in the interest of the art and the furtherance of the
industry.”
* * * * * * *
Stumps To Be Pulled
That announcement dates back ten years — to a time when there
was still many stumps to be pulled and many rocks to be blasted
in the field of broadcasting. The industry has now reached a
point where there is plowed land available for cultivation. And
the paramount issue before this Commission is whether we shall
continue the process of clearing new acres.
On this issue the National Broadcasting Company takes the
same position that it took in 1926 — its purpose is still to develop
and not to exploit broadcasting. If ten years of experience have
proven anything to us they have proven that the public interest
is also the best interest of the National Broadcasting Company,
its advertisers and its associated stations. If higher power, which
is one of the problems before us today, means better service to the
public then let there be higher power. If it produces hazards to
our present methods of network operation then let us adjust our
methods to meet the public interest. The art must be allowed to
develop along progressive lines and always in the fullest measure
for the best interests of the public. No responsive Government
agency can do more than this — none dares do less.
1671
Lohr Cross-Examination
At the conclusion of Mr. Lohr’s testimony he was given a short
cross-examination by T. A. M. Craven, chief engineer of the Com¬
mission. Answering questions of the chief engineer, Mr. Lohr
stated his experiences up to the time he went with the NBC and
indicated that he had only been president of NBC for something
less than two years. However, he stated that he thought he was
beginning to understand some of the problems of the broadcast
industry.
Mr. Craven during the course of the cross-examination several
times referred to the possibility of thirty 500 kilowatt stations
but Mr. Lohr doubted he said whether there would be that many
in the near future. However, he said that in his opinion the effect
of the creation of high power stations would be beneficial to the
country. Mr. Craven called his attention to the fact that there
are now pending before the Commission 14 applications for 500
kilowatt stations and he suggested that there might be more;
possibly 20. Mr. Lohr said that undoubtedly each application
should be decided on its own merits. The broadcast industry, said
Mr. Lohr, can certainly take care of 500 kilowatt stations as well
as new developments in the industry.
Answering further questions of Mr. Craven, Mr. Lohr said that
the chain renders a national rather than a local service and it
should cover as many people in the United States as possible. If
thirty high power stations were in existence he said that he was
informed by his engineers that the primary coverage would be
extended only 25 to 30 miles. In his opinion, said Mr. Lohr, use
of 500 kilowatts would be a technical advance and if thirty 500
kilowatt stations were constructed that the NBC would undoubt¬
edly keep substantially its same network.
Interference With Locals
In connection with the effect which 500 kilowatt stations might
have on locals Mr. Lohr said that there probably would be a few
cases in which the local stations would be affected but he con¬
tended that the matter should be looked at from a long range
standpoint and the greatest good to the greatest number. He said
of course in his opinion there must be local means for local self-
expression.
Mr. Lohr admitted that there is an international problem in con¬
nection with high power stations and in answer to questions by
Commissioner Stewart he contended that the Commission would
have to decide for itself the number of 500 kilowatt stations which
any one person should own or control; that he believed 500 kilo¬
watt stations should not be required to originate their own pro¬
grams; and that the question of overlapping programs by high
power stations must be decided by the Commission.
Arthur Van Dyck
During the caurse of Mr. Van Dyck’s testimony today he took
up the receivers now in use, a discussion of general considerations
of broadcast receivers, and classes of interference. Mr. Van Dyck
also discussed at some length the method of measurement and
entered into a discussion of various kinds of interference. In sum¬
marizing his conclusions Mr. Van Dyck said:
Identifying subjects by the same numbers used in the Commis¬
sion’s Notice of Hearing, the following summarized conclusions are
submitted.
6 (a) Frequency Separation
From the quantitative conclusions tabulated above it is seen
that the most serious interference limit resides in the 10 kc.
heterodyne beat condition, and it is the determining 10 kc.
factor rather than the 10 kc. cross talk. At lesser separa¬
tions than 10 kc. this factor becomes increasingly worse and
intolerably limiting.
6 (b) SO Kilocycle separation between stations in same community .
From data presented it appears that the improved receiver
selectivity existing today could be used to advantage in
either reducing separation of stations in the same community
to 40 kc, or by maintaining the 50 kc. separation and per¬
mitting higher field intensities. From the results of the clear
channel survey conducted by the Commission, the latter
alternative is obviously preferable, since it gives improved
service in rural areas without causing objectionable inter¬
ference close to the transmitter.
6 (c) Mileage frequency separation tables.
In spite of the fact that the broadcast system determination
of overall performance involves consideration of numerous
factors, it is possible to set up tables showing relations be¬
tween essential factors, which will take satisfactory account
of the great majority of allocation problems. There will of
course be special cases where general, average condition
tables are not suitable, but in the main, and used with dis¬
cretion, averaged tables can be highly useful.
We therefore believe that suitable tables may be set up if
appropriate standards are utilized for their preparation.
The standards must include those for wave propagation, in¬
cluding factors of attenuation, transmitter power, antenna
efficiency and directivity, and those for receiver performance
including selectivity, fidelity, percentage of receivers which
may experience interference, and the lower limit of field
intensity from desired station necessary to protect.
It is believed that the frequency separation tables now used by
the Commission can be reviewed and revised with advantage, in
view of the additional and later data submitted herein, which was
not available at the time when the present tables were set up.
6 (d) Permissible disparity in power between stations on adjacent
frequencies.
This is merely one particular case of the general problem
of allocation as influenced by frequency separation and
relative field intensities. The data which has been given
herein, together with propagation data, can be used to de¬
termine the performance of stations on adjacent frequencies
with any disparity in power, and the permissible disparity
determined therefrom for any given case.
7 Blanketing Signal.
The present Commission definition blanketing signal is be¬
lieved to be satisfactory in general, except that where it is
expressed in terms of area and an average broadcast receiver,
it might be expressed more usefully in terms of signal in¬
tensity and receiver percentages as used in the data pre¬
sented herein. In these terms, and imposing the reasonable
conditions that the desired signal intensity be five millivolts
per meter, and frequency separation be fifty kilocycles, a
blanketing signal is one which causes interference in more
than 20% of existing receivers, as determined from standard
performance curves.
From this fundamental definition it results that for receivers
existing in homes today, a blanketing signal is one having
field intensity of 1,000 millivolts, or one volt, per meter.
Mr. Van Dyck will be cross-examined at the opening of tomor¬
row’s session.
Paul M. Segal
Mr. Segal on behalf of the stations on the 940 kilocycle channel
said that they would offer no specific amendments to the Com¬
mission’s regulations.
Mr. Segal said:
I want to begin by saying that the 940-kc. stations, whom I
represent in this matter, are proposing no specific amendments to
your regulations as to any named frequency, nor is it our purpose
to discuss individual stations or frequencies. Rather we intend
to confine ourselves to general considerations.
Paragraph 120 of the Rules and Regulations establishes a classifi¬
cation of regional frequencies allocated for use by regional stations.
It designates the frequencies so classified and prescribes that the
operating power of such stations shall not be less than 250 watts
nor, during nighttime, greater than 1000 watts.
Among the matters to be considered at the present conference
is the question whether or not some change is desirable in this
classification so as to permit greater power during nighttime upon
some or all of these frequencies.
I assume that anything in the character of an engineering study
of this question which has been conducted with care, and which
can be presented in detail would be acceptable as helpful to the
commission in its labors.
For some years there has been a unique cooperation among the
stations assigned for nighttime operation to the 940-kc. frequency,
to the extent that they have acted in cooperation in matters affect¬
ing their allocation, have exchanged technical information among
themselves, and have from time to time appeared before the Com¬
mission under common legal representation.
Asked 5 Kw.
Six years ago these stations jointly initiated consideration of 5
kw power for a regional frequency and filed and prosecuted appli-
1672
cations requesting authority to use 5 kw nighttime. Those applica¬
tions were denied by the Federal Radio Commission on August 12,
1932, by a divided vote, Commissioner Lafount dissenting. In the
Commisisoner’s dissenting opinion he urged the soundness of the
technical considerations for 5 kw power on this frequency.
I think it is fair to say that the principal reason for the denial
of the applications was the then-prevailing quota system.
Since that date, and from time to time, the 940-kc. stations have
renewed their request and have made cooperative studies of the
problem.
Our purpose here today is to present to the Commission the
results of those studies.
We do not appear to urge consideration of the merits of any
station on 940 kc., or demand any specific regulations for any one
or more frequencies.
Our presentation is for the purpose of indicating the general
considerations to be borne in mind on the S kw question and when
examples are given, they are given for illustrative purposes.
We hope that our studies may be of assistance to the Commis¬
sion in its determination whether or not there are regional fre¬
quencies which permit horizontal increases in power, and if there
are, then the determination of the standards which may be used
in selecting such frequencies from the whole group of regional
frequencies.
I wish to offer the testimony of Mr. Raymond M. Wilmotte.
Raymond M. Wilmotte
My name is Raymond M. Wilmotte. I have a First Class Honors
Degree (M.A.) from Cambridge University, England.
I have worked on radio propagation problems at the National
Physical Laboratory in England. This Laboratory is the British
equivalent of the Bureau of Standards. In the course of this work
I was connected with the British Post Office in the design of its
long distance radio transmission service.
In this country I was in charge of the research work of the
Aircraft Radio Corporation, and am now a consultant with offices
in New York City.
In 1931 I designed and built the first directional antenna for a
broadcasting station to be approved by the Commission. I have
published some thirty papers in the technical press, dealing with
propagation problems, allocation and design of equipment.
Introduction
In this discussion, I intend to consider the possibilities and limi¬
tations of the service that may be provided by regional broadcast
stations. Before considering the engineering problems involved,
the difference in the service required of stations on clear channels,
regional channels, and local channels must be reasonably well
agreed upon.
Clear channels are ideally suited to provide service over large
areas, areas that may be so large that programs of national interest
may and should be broadcast from them. Local stations serve only
restricted areas. These areas are so small that these stations are
suitable for service for towns or cities. The purpose of regional
stations is to provide a type of service lying somewhere in between
these two extremes. There is room in the United States for pro¬
grams which are of interest over rural as well as urban areas, and
which are not necessarily of national interest. A kind of service
is desirable, therefore, which will serve large local areas comprising
both urban and rural communities. It is with this service in view
that the regional station differs in its purpose from that of the
clear channel and local station. In certain cases, the regional
station may have a further special reason for existence. In large
centers of population, the noise level is high. There it becomes
essential to provide strong signals to overcome this form of inter¬
ference. It is frequently impossible to allow local stations sufficient
power for this purpose, for they would interfere with other sta¬
tions on the same frequency, or adjacent frequencies, for which an
increase in power may be neither desirable nor economically pos¬
sible. Clear channel and regional stations may provide this service
satisfactorily.
In this discussion I am assuming, therefore, that the main pur¬
poses of regional stations are:
a. To provide programs of local interest, which should not
and cannot be satisfactorily provided by clear channels.
b. To serve reasonably large centers of population.
c. To serve as much of the surrounding rural area as possible.
The engineering problem is, then, to allocate sufficient, but not
too much, power to the stations on regional channels, and space
them a sufficient distance apart in order to obtain this desirable
service in the best possible manner.
Station Separations
The separation between stations limits the possible service area
free from interference. Having once settled on the location of the
stations on one frequency, there is a certain radius around each
station beyond which the ratio of its signal to the interfering sig¬
nals from the other stations on the same frequency is too small, and
the programs from the interfering stations become objectionable.
Since the interfering signals are on the same frequency, this radius
is independent of the type of receiver used. It is also independent
of the general power level of the stations ; the power of the stations
could be increased ten or a hundred times without affecting this
radius, provided that the power of all the stations was increased
in the same ratio.
What, then, is the advantage of a horizontal increase of power?
The advantage is a reduction in the apparent noise level at the
receiver; the effect of power lines, of telephone dials, refrigerators,
etc., will be less noticeable to the listener when the power is in¬
creased. With the present trend of the art toward higher fidelity
in both receivers and transmitters, the need for overcoming ex¬
traneous noise is gradually increasing for two main reasons: first,
the trend of receiver design is toward the reception of a broader
audio-frequency band, and consequently toward receiving more of
the undesirable noise; and second, the trend toward high quality
of transmission is leading the better stations to adjust their normal
operation to a lower average modulation percentage than was com¬
mon a few years ago. Still another trend is the increasing use of
so-called midget sets. Many of these sets now on the market have
very poor sensitivity, and even in quiet surroundings are unable to
pick up weak signals satisfactorily. All these factors seem to lead
in the same direction, that as the art progresses, more power will
be required.
Adjacent Channel
The effect on adjacent channels limits the extent by which the
power of all stations on a single frequency may be increased hori¬
zontally. If the power is so increased, the interference which these
stations will cause to the stations on adjacent channels will be also
increased. If it is desired to retain a status quo of interfering
patterns, the power on the adjacent channels would have to be
increased in proportion. This argument may be applied from
channel to channel, until finally a situation will be reached in which
an increase in power on a single channel would lead to a horizontal
increase in the power of all broadcast stations. The development
of a receiver design may be of assistance, however. Modern re¬
ceivers are much more selective than they used to be some six or
seven years ago, and with the gradual elimination of tuned radio
frequency sets and the substitution of superheterodynes, the dis¬
crimination between stations on adjacent channels is gradually
improving. Broadcast channels are therefore gradually becoming
more nearly independent of each other.
Fundamental Difference
There is a fundamental difference between the engineering prob¬
lem of the proper allocation of stations on a single frequency, and
the allocation of these stations relative to stations on adjacent
frequencies. The separation and power required by stations on a
single frequency to provide good service is practically independent
of the design of the receiver. The allocation of stations within a
single frequency is therefore entirely wtihin the control of the Fed¬
eral Communications Commission. The separation between sta¬
tions on adjacent frequencies is only indirectly controlled by the
commission. In this case, there are two forces acting toward each
other. One is the effort of the commission to adjust the separation
of stations in adjacent channels to fit the selectivity of the receivers
in use, and the second is the efforts of manufacturers of receivers to
design receivers which can satisfactorily meet the interference which
the commission thinks proper.
I am therefore going to consider separately the two problems of
the interference by stations on the same channel, and the interfer¬
ence by stations on adjacent channels. I shall first of all consider
the coverage possible on a single frequency, assuming that there
is no need to meet the problem of interference with adjacent chan¬
nels. I will then consider what are the limitations introduced by
these adjacent channels. In the first section, when considering the
service area limited only by the interference caused by stations on
the same frequency,, I shall analyze four cases:
A. A single isolated station.
B. Two stations 2,000 miles apart.
1673
C. A few fairly spaced stations.
D. A few closely spaced stations.
I will then compare these cases (Section E) and consider whether
different operation of the stations could improve their service
(Section F).
940 Channel
For the fairly spaced stations, I have selected an actual case —
the 940-Kc. channel. This channel is convenient as an example be¬
cause it is near the middle of the broadcast range, and the stations
operating on it are reasonably well spaced. For the more closely
spaced stations, I have selected an arbitrary situation. The arrange¬
ment selected approximates and may be considered typical of a
number of regional channels as they exist at the present time.
In making the calculations, I have made much use of the infor¬
mation gathered by the Engineering Division of the commission.
The Division is to be congratulated on the material it has recently
gathered in the field strength surveys of the clear channel stations.
The analysis of the results is already extremely valuable. If the
variables, such as time of night, direction of transmission, nature
of the ground at the receiver and the transmitter, are segregated,
it is possible that the variations shown in the published curve may
disappear. We will then have a far more complete and accurate
picture of radio transmission within the broadcast band than we
have ever had before.
Possible Coverage Without Interference from Adjacent
Channels
When there is no interference, the area which can be satisfac¬
torily served depends upon the power of the station and the noise
level at the receiver. Exhibit I and Table I show the service area
in square miles during the day and the night, at selected power
levels.
TABLE I.
Service area of a single station on 1000 kc. with a ground conductivity of 5 x 10-14
Service area for a minimum signal of
-20 db. -6 db.
Radius
Area
Radius
Area
Power of station
miles
sq. miles
miles
sq. miles
0.5 kw. regional
55
9,000
29
2,700
1 kw. regional
63
13,000
33
3,600
5 kw. regional
750
1,800,000
49
8,000
10 kw. regional
850
2,200,000
150
70,000
I have used decibels instead of
millivolts per meter as
the unit
for signal strength, taking 1 mv/m=0 db. In making calculations
it is frequently easier to use decibels instead of millivolts per meter.
Decibels are proportional to the logarithm of the signal strength
measured in millivolts per meter. The convenience for calcula¬
tions of signal levels lies in the fact that, when they are measured in
decibels, in order to find the ratio between two signals, it is only
necessary to subtract their value. If one is not accustomed to this
unit, it can be very readily transferred back to millivolts per meter
after the calculations have been made. I have assumed a fre¬
quency of 1,000 Kc., and a conductivity for the ground of S x 10*14.
Throughout this discussion, I have used for the strength of the sky
ray the average value obtained by the Engineering Division in their
recent survey on clear channel stations. The curve used was that
corresponding to two hours after sunset. If a later time were
taken, the numerical results would be changed, but the general
deductions would remain substantially unaltered. In making these
calculations, the curve for the sky ray has been assumed to indi¬
cate the strength of the signal as definitely as though it were a
ground ray. It must not be forgotten, however, in interpreting the
results of these calculations that the value of the signal from the sky
ray varies up and down over a considerable range from day to day,
season to season, and year to year.
The lines in Exhibit I show the service area for signals of -20, -6,
0, 6, and 20 decibels. These figures are equivalent to 0.1, 0.5, 1, 2,
and 10 mv/m respectively. There are two charts in Exhibit I.
The only difference between them is a difference in scale. The right
hand chart shows the service areas down to a signal of -20 db., while
in the left hand chart, the minimum signal is -6 db. The scale
of one chart is five times that of the other.
0 db. +6 db. +20 db.
Radius
Area
Radius
Area
Radius
Area
miles
sq. miles
miles
sq. miles
miles
sq. miles
21
1,500
15
800
7
150
24
1,900
17
1,000
8
200
35
4,000
27
2,300
13
500
41
5,000
32
3,500
15
800
Large Change
It will be noticed that there is an extraordinary large change in
the area covered by signals greater than -6 db. when the power is
increased from 5 to 10 kilowatts. Exhibit II gives the explanation
of this effect. This exhibit shows how the signal varies with the
distance for a 1 -kilowatt regional station. It will be seen that at a
distance of about 60 miles, the mean value of the sky ray is equal
to the ground ray. Up to 60 miles, then, the ground ray predomi¬
nates. At further distances, the sky ray does. It happens that the
attenuation of the sky with distance is very slight; in fact, the
strength of the signal remains practically constant up to about 200
miles. Consequently, as soon as the sky ray becomes strong enough
to be used for service, the area covered is enormously increased.
The broadcast band of frequencies and the frequencies immediately
above and below it are particularly well suited for this sky ray to
be used. If it is not used, this excellent property of having an
unusually low attenuation at comparatively short distances (100 to
400 miles) is not only lost, but actually causes trouble by interfering
in the service area of other stations. It happens that the sky ray
60 miles away from the 5-kilowatt station has an average value of
-10 db., corresponding to .33 mv/m, so that a power of 5 kilowatts
is just on the verge of having a large potential service area with a
signal of -6 db.
Possible Coverage of Two Stations 2,000 Miles Apart
Exhibit III and Table II show the day and night coverage of two
equal stations 2,000 miles apart at selected power levels. The hori¬
zontal lines are the lines of interference for different modes of opera¬
tion.
TABLE II.
Interference in the case of two equal stations on the same frequency 2000 miles part.
Ground conductivity = 5 x 10-14 Frequency 1000 kc.
Degree of synchronization
Ratio desired to undesired signal in db.
Service radius in miles
Service area in square miles
Minimum signal free from interference with
± 50 cycles
± 5 cycles
Synchronism
26
20
12
55
200
700
9,000
120,000
1,500,000
0.5 kw
-20 db.
1 kw.
-17
5 kw.
- 9
-11
-19
10 kw.
- 6
- 8
-16
1674
The interference begins at a distance which is independent of the
power, provided the power of the two stations remains the same.
The area free from interference may therefore be represented by a
horizontal line of interference, cutting all diagrams, corresponding
to different powers on the same level. Such interference lines are
shown dotted. The level of the lines depends on the mode of ope¬
ration of the two stations: the top dotted line, for instance, in
Exhibit III is the interference line corresponding to the operation
of the two stations within ± 50 cycles. If the stations were
operated within ± 5 cycles, the ratio of the desired to undesired
signals at the interference line could be reduced from 20:1 to 10:1.
The line corresponding to this mode of operation is the second
dotted line on the diagram. The third dotted line corresponds
to synchronous operation.
In order to make full use of the available service area free from
interference, it is necessary to increase the power so that the signal
at the interference line is high enough to be of use. For instance, a
one kilowatt station has a signal well below -20 db. at the inter¬
ference line corresponding to operation within ± 5 cycles. Evi¬
dently much of the potential service area of this station is not used
because its power is too low. What power should be used in any
particular case will depend on the noise level which it is intended
to overcome.
Limits of Service Area
In calculating the limits of service areas due to interference, the
limiting ratio of the desired to undesired signals has been taken
as that suggested by the commission in Table 6 and Figure 1, page
20, of its Seventh Annual Report, 1933. In this report, it was sug¬
gested that the limiting ratio of desired to undesired signals should
decrease with the distance of the interfering station. An important
reason for suggesting this decrease with distance was paucity of the
experimental results available, on which an estimate of the strength
of the interfering signal could be based. With the recent work of
the Engineering Division of the commission, it seems no longer
necessary to make such an allowance for lack of accurate informa¬
tion. I have not used, therefore, the so-called allocation factor
suggested in Figure 2 of the same Annual Report. The value I
have used for the limiting ratio of the desired to the undesired
signals is the one given by the dotted curve BD in Figure 1 of the
Seventh Annual Report.
In making the calculations on the interference between stations,
I have also assumed that satisfactory reception will be obtained,
if objectionable interference occurs less than 10 per cent of the time.
The analysis made by the Engineering Division of the Commission
has proved very useful in estimating the percentage of time during
which interference is objectionable between two signals. This ratio
is different if the interference is caused by a sky ray on a ground
ray, or by a sky ray on another sky ray. In the case of two sky
rays, the ratio should be about 4 db. (equivalent to 1.6 times)
greater than in the case of the interference between a sky ray and
a ground ray. The difference is due to the fact that the strength
of the ground ray remains constant at any given location, while
that of a sky ray is continually varying. I have also assumed in
these calculations that the interfering signal was constant over the
whole service area. Actually, the signal is generally greater in
that part of the service area which is nearest to the interfering
station. When the area is very large, an appreciable and some¬
times large error may be introduced by this assumption, but it will
not affect the conclusion materially. Some diagrams showing
coverage of many hundreds of thousands of square miles, must
not be considered as accurate, they merely indicate that the cover¬
age is very large.
Possible Coverage of a Few Fairly Spaced Stations
As an example for the study of the coverage possible by several
stations operating on the same frequency when they are spaced
a fair distance apart, a channel in actual operation has been selected.
The channel chosen is near the middle of the broadcast band. It is
the regional channel on 940 kc. The stations on this channel are:
KOIN, located in Portland, Ore.; WDAY, in Fargo, N. D.; WAVE,
in Louisville, Ky. ; and WCSH, in Portland, Maine. Their relative
location is shown in Exhibit IV. On the present method of opera¬
tion, with the stations within ± 50 cycles of each other, the service
area free from interference of each is shown by the middle section
of Exhibit V, and in Table III,
TABLE III.
Interference in the case of four fairly spaced stations on the same
frequency.
Conductivity 5 x 10-14 Frequency 940 kc.
Minimum
signal
Strength of free
Separa- interfer- from Service
Interfering
tion
ing
inter¬
Radius
Area
Station
station
miles
signal
db.
ference
db.
miles
Sq. miles
KOIN
WDAY
1,230
—40
—6
33
3,600
WDAY
WAVE
810
—30
+4
19
1,200
WAVE
WDAY
810
—30
+4
19
1,200
WCSH
WAVE
880
—32
+ 2
24
1,900
Possible Coverage of a Few Closely Spaced Stations
For the purpose of the discussion of the coverage possible with
a few closely spaced stations operating on the same frequency, an
arbitrary case has been taken as an example. The selected locations
of the stations in this case are shown in Exhibit VI. There are
three stations, A, B, and D, having one kilowatt each, and a fourth
smaller station, C, with half a kilowatt. On this Exhibit, the
location of the stations of 940 kc is also given for purposes of
comparison. The minimum spacing on the 940 kc channel is
about 50 per cent greater than that between the one-kilowatt sta¬
tions in the arbitrary case chosen. This arbitrary case was picked
after considering a number of regional channels in actual operation.
While the separation is admittedly small compared with the stand¬
ards advocated by the Commission, there are in existence a number
of channels operating under somewhat similar conditions. The
possible areas free from interference around each station are shown
in the right hand section of Exhibit V, and in Table IV.
TABLE IV.
Interference in the case of four closely spaced stations on the same
frequency.
Conductivity 5 x 10-14 Frequency 1,000 kc.
Signal
Interfer¬
free from
Service
Power
ing
Separation interference
Radius
Area
Station
kw.
station
miles
db.
miles
sq. miles
A
1
B
550
10
14
600
C
450
9
B
1
C
400
10
14
600
D
650
8
C
0.5
B
400
10
12
500
D
1
B
650
8
C
480
9
15
800
The half-kilowatt station C has been located to produce about
the same degree of interference with the other stations as they
produce on each other. Station C does not, therefore, increase
appreciably the mutual interference between the stations.
Possible Coverage of Several Stations of the Same
Frequency
Exhibit V shows the relative service areas possible in the case
of two stations, of four fairly spaced stations, and of four closely
spaced stations. The calculations assume that sufficient power is
economically possible to make use of the full area free from inter¬
ference. The reduction in the service area as the separation be¬
tween the stations is decreased is very marked. From 9,000 square
miles around each of the two stations in the first case, the service
area falls to around 600 square miles around each station in the
arbitrary case selected of four closely spaced stations. The total
area which may be served without interference in the case of two
stations 2,000 miles apart, is 18,000 square miles. The area covered
by all four stations on 940 kc. is 8,000 square miles, and the total
area covered by the four closely spaced stations in the arbitrary
case is less than 2,000 square miles. It is surprising how large
is the difference between these three cases, more especially between
the 940 kc channel and the arbitrary case selected, since in these
two cases the separations between the stations are not enormously
different.
1675
Coverage of Stations on a Single Channel by Modification
of Their Mode of Operation
There are several ways in which stations on a single frequency
may cooperate to increase their service areas. One of the simplest
ways is to operate more closely in synchronism. In the Seventh
Annual Report of the Commission, page 20, the Engineering Divi¬
sion suggested that the ratio of the desired to undesired signals need
only be 10:1 when the synchronization was within ± 5 cycles,
instead of 20:1 when the synchronization was within ± SO cycles.
When the carriers of the two signals were in perfect synchronism,
the ratios could be still further reduced to 4:1. For the present
calculations, I have assumed that these ratios are satisfactory,
keeping in mind, however, that further experience may lead to
changes in these standards.
Besides improved synchronism, there is the possibility of the
stations protecting each other by using partially directive antennas.
A station like WAVE, for instance, would permit a greater service
area to WCSH, if it built a directional antenna to reduce the signal
in the direction of WCSH. The interference from WAVE at
WCSH would then occur at a greater distance from WCSH than
if no directional antenna were used.
In making a comparison of the increase in service area possible
by means of improvements in operation, I have taken a typical
station from each of the three cases considered previously. These
cases are: two stations 2,000 miles apart; four fairly spaced sta¬
tions on the 940 kc channel; and four closely spaced stations in the
arbitrary case.
The combination of improved synchronization and directional
antennas allows of many possibilities. It would involve more
careful study than I have given to the cases under consideration
to find what combination was the most effective and the most
economical. As a guide, I have calculated the improvement pos¬
sible with some of these combinations arbitrarily chosen, on the
assumption that these improvements could be installed without
raising other difficulties.
Increases in Service Area
These increases in service area possible under different conditions
of operation are shown in Exhibit VII and Table V. In the case
of the two stations 2,000 miles apart, the change from operation
within ± SO cycles to within ± S cycles brings the sky ray into
service with a corresponding enormous increase in the possible serv¬
ice area from 9,000 square miles to some 120,000 square miles.
Synchronous operation increases this area still further.
TABLE V.
Possible increase in coverage of stations on the same frequency
by modification of their mode of operation.
Conductivity 5 x 10-14 frequency 1,000 kc.
A. Two 1 kw. stations 2000 miles apart.
Types of operation
+ 50 cycles
± 5 cycles
Synchronism
Minimum
signal free
from in¬
Service
ference.
Radius
Area
db.
miles
sq. miles
-17
55
9000
-19
200
120,000
-27
Type of operation
+ 50 cycles
± 5 cycles
Synchronism
+ 5 cycles with 7 db. directional
Synchronism with 7 db. directional
Type of operation
± 50 cycles
± 5 cycles
Synchronism
stations (WCSH)
Minimum
signal free
from in¬
Service
ference.
Radius
Area
db.
miles
sq. miles
+ 2
24
1900
-4
30
2400
-12
44
6000
-11
42
5500
-19
200
120,000
stations (Station D)
Minimum
signal free
from in¬
Service
ference.
Radius
Area
db.
miles
sq. miles
9
15
800
3
20
1300
-5
31
3000
In the arbitrary case of the closely spaced stations, improving
synchronization still does not allow the sky ray to be of use to
provide service. The service area of about 800 square miles avail¬
able when the synchronization is within ± 50 cycles, is increased to
only 3,000 square miles with perfect synchronism. Major improve¬
ments by the use of directional antennas are almost impossible, for
it would be difficult to build a directional antenna at any one of
the stations to protect a second without damaging the service area
of the third or fourth. Directional antennas may produce minor
improvements that may be worth while, but no great increase in
service area can reasonably be expected for all the stations.
Four Stations
In the case of the four fairly spaced stations on 940 kc., I have
selected WCSH as typical of this channel. Operation within ± 5
cycles increases the service area of this station from 1900 square
miles to 3700 square miles, and synchronous operation increases it
still further to 7400 square miles. If a directional antenna is in¬
stalled at WAVE, so that the interfering signal is reduced by slightly
more than one-half, compared with the average signal transmitted
in other directions, and the stations are operated within ± 5 cycles,
the possible service area will be roughly equal to the service area
with synchronous operation but without directional effects. In none
of these cases, however, does the sky ray come into service. As a
source of service, it is wasted. It can become useful, however, if
synchronous operation is combined with the directional effects.
The service area would then be enormously increased.
These increases in service area depend, of course, on the stations
having sufficient power to make use of gains permitted by improved
operation. In the present state of the art, it is difficult to obtain
perfect synchronization, but there is no reason to assume that future
developments will not permit such operation to be applied eco¬
nomically.
In suggesting directional antennas, I have no intention of advo¬
cating them for all cases. Although I was the first to build and
have approved by the Commission a directional antenna to protect
one broadcast station from another, I think that there are definite
limitations in their application, and I would like to take this oppor¬
tunity to list broadly the cases where, in my opinion, they are
useful, and the cases where they may appear as an ideal solution to
a particular problem, but may lead eventually to difficulties.
Directional Antennas
The principal objection to the use of directional antennas is that
they limit future changes in allocation. For instance, turning to
Exhibit VI, if a station were located at P, halfway between WDAY
and WAVE, in order to prevent interference with either of these
two stations, a directional pattern approximating a figure eight
would have to be used, with the zeros in the directions of WDAY
and WAVE. Such a station would effectively prevent any appre¬
ciable increase in the service areas of WDAY and WAVE by im¬
proved operation, such as have been discussed above. Station P
would also tend to freeze the allocation of stations of the 940 kc.
channel to the present arrangement, for any major changes, how¬
ever desirable they might seem, would be likely to involve radical
changes in the antenna, and such changes might make the location
and even the existence of the station undesirable. This station
would also prohibit the erection of a new station in the direction
of Southwestern New Mexico, except at a great distance, because
in that direction the interfering signal from P would be very large.
Against these disadvantages would have to be balanced the advan¬
tage of the service provided around the Station P. The service
area would be very limited, however, because of the strong inter¬
ference from WDAY and WAVE, and that service, moreover,
would be weak in two directions. While a directional antenna
would appear ideal for a station at P, it would produce disadvan¬
tages which might not be balanced by the special service provided
around P.
Generally speaking, it is dangerous to permit the erection of a
directional antenna which suppresses the signal in one or more
directions fairly completely, because it tends to freeze the allocation
of stations on that particular frequency. There are some special
cases where a substantial decrease in signal in some particular direc¬
tion is desirable. For instance, in the case of WFLA in Clearwater,
Florida, the antenna substantially prevents transmission into the
rest of the United States, and pushes the signal toward the south
of Florida. This station serves Florida without causing appreciable
interference in the rest of the country. Even in this case, however,
it was found desirable to allow a small signal in the direction of
suppression in order to serve a town a few miles away from the
station in that particular direction.
1676
Where directional antennas are particularly valuable are in such
cases as have been discussed above, in which it is possible to in¬
crease the coverage of stations spaced a considerable distance apart
by giving to each other partial protection from interference.
Another valuable application of directional antennas is to pro¬
vide a sufficiently loud signal in densely populated areas where the
noise level is high, provided, of course, that the service to the rural
community is not unduly reduced.
Directional antennas may be used with good effect on channels
where stations are so close that improvements in service can hardly
be expected through technical developments such as improved syn¬
chronization or better allocation. The stations on these channels
are inherently limited to provide only local service. There does not
seem to be any harm in building additional stations fitted with
directional antennas, and locating them in such a way that the
service provided to the cities served by the other stations on the
same frequency is not materially impaired. It is often compara¬
tively simple to achieve such results because the service area of the
stations is so limited.
Generally speaking, we may conclude that a directional antenna
is desirable, if it improves service without prohibiting develop¬
ments either in allocation or in better conditions of operation.
It is undesirable in cases where its erection would reduce flexibility
of allocation and improvements. On those channels where stations
are located close together, much of this flexibility is already lost.
There may therefore be comparatively little harm in reducing it still
further by introducing directional antennas.
There have been many applications of directional antennas to
solve certain problems of individual stations. Their application by
stations on the same frequency to improve each other’s service areas
is not yet common, yet directional antennas could prove to be a
valuable weapon to increase these service areas. A limiting factor
in the use of directional antennas is the location of the station
relative to the town being served. The town should not lie in the
direction of minimum signal. In granting a license it may, there¬
fore, be worth while for the Commission to consider carefully the
location of the new station relative to the nearest town, and to the
other stations, in case it should be found at some later date desir¬
able to give them greater protection because of some new technique
or other reason.
Interference With Adjacent Channels
As explained in the introduction, it is more difficult to make any
broad generalization on the problem of the interference between
stations on adjacent channels than it is between stations on the
same channel, because, in the case of the interference of stations
on adjacent channels, the selectivity of the receiver is one of the
most important factors. There is little available information on the
selectivity of receivers in general use.
A single case will be taken as an example of the problem of
interference between adjacent channels. I have taken for this
example the case already used of the stations operating on 940 kc.
This case is comparatively simple because the interference created
with adjacent channels is unusually low, and is negligible, to all
practical purposes, on all channels more than 10 kc distant. The
fact that the case selected as an example is unusually simple does
not change the general principle involved.
Interference
The interference produced is depicted in Exhibit VIII and Table
VI. The interference caused by the stations on 930 and 9S0 kc
with each other was calculated, giving the maximum possible
service area under normal conditions of operation. This area is
shown in Exhibit VIII by the closely shaded sections. The inter¬
ference caused with these stations by the stations on 940 kc was
also calculated. This interference also limits the service area of the
station. This area is shown in the same exhibit by the lightly
shaded sections. It is seen that in no case is the interference by
the stations on 940 kc. in the service area of the station on adjacent
channels greater than the interference of these stations with each
other. Under present conditions of operation, therefore, the sta¬
tions on 940 kc. do not interfere with any stations on adjacent
channels.
TABLE VI.
Interference on adjacent channels to 940 kc.
A. Interference from station on the same frequency.
(See Exhibit VIII)
Station
all Letters
Power Kw.
Frequency
WDBJ
1
930 kc.
KROW
1
930 kc.
KMA
1
930 kc.
WBRC
1
930 kc.
WRC
0.5
950 kc.
KFWB
1
950 kc.
KMBC
1
950 kc.
Nearest station on same frequency
Separation
Call Letters
Miles
WBRC
430
KMA
1140
WBRC
660
WDBJ
430
KMBC
900
KMBC
1200
WRC
900
Service
Strength of
nal free from
interference
Radius Miles
Area
Sq. Miles
12
12
500
-4
30
2900
7
16
900
12
12
500
1
18
1100
-5
31
3000
-2
27
2300
Station
Nearest station
on 940 kc.
WDBJ
WAVE
KROW
KOIN
KMA
WDAY
WBRC
WAVE
WRC
WCSH
KFWB
KOIN
KMBC
WAVE
B. Interference from stations on 940 kc.
Separation
Strength of
signal free
miles
from interference
320
-6
540
-10
420
-7
340
-6
480
-9
830
-17
470
-8
Service
Radius
Area
miles
Sq. miles
33
3,600
40
5,000
35
4,000
33
3,600
38
4,600
55
9,500
36
4,000
Ideally, the best allocation would be one in which the stations
on adjacent channels produced exactly the same degree of inter¬
ference as the stations on the same channel. From an allocation
point of view, therefore, the lightly shaded areas in Exhibit VIII
represents a waste. It would be possible, and theoretically bene¬
ficial, to increase the power of all the stations on 940 kc uniformly
by 6 db (four times) without causing interference to adjacent
channels. At this point, the interference caused by WAVE on
940 kc with KMBC on 950 kc would be effectively equal to the
interference by the other stations on 950 kc. At the same time,
the interference by KOIN on 940 kc with KROW on 930 kc would
also be effectively equal to the interference by other stations on
930 kc. Such an increase in power would reduce the lightly shaded
areas on all the stations shown in Exhibit VIII, and thus eliminate
some of the wasted facilities of allocation. In the case of KMBC
and KROW, these wasted areas would be reduced to zero.
If it were possible to use a partial directional effect to protect
KROW from KOIN and KMBC from WAVE, to the extent of
4 db (which corresponds to reducing the signals in those particular
directions by one-third, relatively to the average signal transmitted
in the other directions) it would be possible to permit a horizontal
increase of power of all the stations on 940 kc by as much as 10 db
(which corresponds to increasing the power 10 times), without
1677
interfering with any of the stations on adjacent channels to an
extent greater than they already interfere with themselves.
Conclusion
There are many possibilities available with the development of
the art which would allow considerable increase in the service areas
of certain stations, an increase which in some cases may lead to
the use of the sky ray for service. When the sky ray can be used,
the possible service area is tremendously increased. The full use
of the area free from interference can only be made, if the power is
sufficient to produce a reasonable signal strength at the boundary
of this area.
When the separation between stations is small, the advantages
possible by improved operations are also small. This is clearly
shown in Exhibit VII. Reducing separation will therefore tend to
limit the possibilities of improvement with the development of the
art, and will indirectly tend to retard them. Moreover, when the
stations are close together, the service area becomes very small.
Only local service can be provided, and practically no rural area
can be covered. By far the greatest part of the signal goes to create
interference instead of service. The sky ray, with its astonishingly
low attenuation at broadcast frequencies, is completely wasted.
From a purely engineering point of view, without giving any
consideration to the economic problem, such local service would
be provided most satisfactorily by broadcasting at such high fre¬
quencies that no sky ray returned to the ground to create interfer¬
ence with other stations. If the only economic consideration was
the extra cost of the receivers, such a high frequency broadcast
service would not seem, off-hand, to be outside the realm of pos¬
sibility.
If, however, the broadcast band is retained as it exists at present,
when there are many stations on a single frequency, their useful¬
ness will be limited to serving densely populated areas where the
interfering noise level is high. They should, therefore, produce a
sufficient signal in such areas to overcome this noise. On the other
hand, there is no use in producing a signal which is unnecessarily
high, for the service area is not increased by allowing all the sta¬
tions a proportional increase in their power.
A happy compromise may be made for the purpose of providing
local service to rural areas of a reasonable size, with a number of
well spaced stations on the same frequency. In this case, at the
limit of their service area, where interference begins to become
objectionable, the signal should be well above, but not excessively
above, the probable or possible noise level. These stations, by
cooperating with each other and protecting each others’ service
areas (with directional antennas, better synchronization of their
frequencies, etc.) may adjust their operations so that the area
within which they do not interfere with each other is greatly
increased.
Interference Problem
On the problem of interference with adjacent channels, the ideal
conditions occur when the interference to the service area of a
station by stations on adjacent channels is effectively equal to the
interference by the nearest station on the same frequency. To the
extent that stations on adjacent channels do not create inter¬
ference with stations on the same channel, there is a theoretical
waste of allocation facilities. On the sole basis of interference,
therefore, all stations on one channel could have their power in¬
creased or decreased until the interference they cause with one or
more of the adjacent channels was effectively equal to the inter¬
ference caused by other stations. In the example considered of
the 940-Kc. channel (see Exhibit VIII), it is possible, with partial
directional effects, to increase the power horizontally ten times,
without causing more interference on adjacent channels than exists
already. We have also seen that this power could be effectively
used by these stations and their service areas considerably in¬
creased with suitable operation and cooperation among themselves.
It seems a pity that regional stations do not make more use of
the low attenuation of the sky ray at broadcast frequencies, for,
if this ray could be used, the service area of the stations would be
enormously increased and real local service provided to rural areas.
In final conclusion, I would like to urge the commission that,
in granting licenses, it give careful consideration to the location of
stations, not only relative to other stations, but relative to the
nearest town, so that better synchronization, directional effects, etc.,
may be used when wanted to the best possible advantage. Our
present knowledge and future developments (to the extent that we
can forecast them) should be allowed full opportunity and as much
latitude as possible so that our total knowledge may be useable to
provide the best service possible.
I make a special plea that future engineering developments and
the progress of broadcasting be not endangered by freezing the
space available on the basis of our present knowledge and technical
skill. There should be room, much room for evolution.
1678
The National Association of [Broadcasters
NATIONAL PRESS BUILDING ***** WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS .....
Copyright. 1935. The National Association of Broadcasters
Vol. 4 - - No. 58
OCT. 15, 1936
IN THIS ISSUE
Page
Recommends WMFF Be Given Unlimited Time . 1679
Securities Act Registrations . 1679
Increased Day Power Recommended for KSO . 1679
Political Broadcasts . 1679
Recommends Dismissal of Case . 1679
Frequency and Power Change Recommended for KUJ . 1680
Recommends Dismissal Application to Transmit Programs
to Foreign Countries . 1680
Dismissal with Prejudice Recommended . 1680
Recommendation to Deny California Station . 1680
Federal Trade Commission Action . 1680
Federal Communications Commission Action . 1681
RECOMMENDS WMFF BE GIVEN UNLIMITED
TIME
Broadcasting station WMFF, Plattsburg, N. Y., operating on a
frequency of 1310 kilocycles, 2S0 watts daytime, applied to the
Federal Communications Commission that it be allowed to operate
unlimited time with 100 watts at night.
Examiner R. H. Hyde, in Report No. 1-294, recommended that
the application be granted. He found that there is a need for
nighttime service in the area covered by the station. He states
further that the proposed nighttime operation “would not materially
change the present interference conditions on the frequency of
1310 kilocycles.”
SECURITIES ACT REGISTRATIONS
The following companies have filed registration statements with
the Securities & Exchange Commission under the Securities Act:
Wellington Foundation, Inc., Philadelphia, Pa. (2-2492, Form
C-l)
American Airlines, Inc., Chicago, Ill. (2-2493, Form A-l)
Great Northern Gold Mines, Inc., Pittsburgh, Pa. (2-2494,
Form A-l)
Cannon Shoe Company, Baltimore, Md. (2-249S, Form A-2)
New Britain Machine Company, New Britain, Conn. (2-2496,
Form A-2)
Best Drug Stores, Inc., Los Angeles, Calif. (2-2497, Form A-l)
Tampax, Inc., New York City. (2-2498, Form A-l)
L. F. Serrick, Inc., Defiance, Ohio. (2-2499, Form A-2)
Pearson Company, Inc., Indianapolis, Ind. (2-2SOO, Form A-2)
State Loan Company, Mount Rainier, Md. (2-2501, Form A-2)
Equity Fund, Inc., Seattle, Wash. (2-2502, Form A-l)
American Carrier-Call Corp., New York City. (2-2503, Form
A-l)
Hilton-Davis Chemical Co., Cincinnati, Ohio. (2-2505, Form
A-2)
Mock, Judson, Voehringer Co., Newark, N. J. (2-2506, Form
A-2)
Harris-Seybold-Potter Co., Cleveland, Ohio. (2-2507, Form
A-2)
Loomis-Sayles Second Fund, Inc., Boston, Mass. (2-2508,
Form A-l)
Menasco Manufacturing Co., Los Angeles, Calif. (2-2510, Form
A-l)
Huttig Sash & Door Co., St. Louis, Mo. (2-2511, Form A-2)
Fuller Manufacturing Co., Kalamazoo, Mich. (2-2513, Form
A-l)
Bath Iron Works Corporation, Bath, Me. (2-2514, Form A-2)
Eason Oil Company, Enid, Okla. (2-2515, Form A-2)
Sterling Aluminum Products, Inc., St. Louis, Mo. (2-2516,
Form A-2)
Union Sugar Company, San Francisco, Calif. (2-2517, Form
A-2)
Lexington Foundation, Inc., New York City. (2-2518, Form
C-l)
Enterprise Manufacturing Company, Augusta, Ga. (2-2519,
Form E-l)
Beech Aircraft Corporation, Wichita, Kans. (2-2520, Form A-l)
J. W. Carter Company, Nashville, Tenn. (2-2522, Form A-2)
Salt Dome Oil Corporation, Houston, Tex. ( 2-2523, Form A-l)
Frederick Pierce et al., Philadelphia. (2-2524, Form F-l)
INCREASED DAY POWER RECOMMENDED
FOR KSO
Broadcasting station KSO, Des Moines, Iowa, applied to the
Federal Communications Commission to increase its day power
from 1,000 to 2,500 watts. The station operates unlimited time on
1430 kilocycles.
Examiner Melvin H. Dalberg, in Report No. 1-299, recommends
that the application be granted. The Examiner states that with
the increased power the station not only would expand its service
area but would supply a stronger signal in the area now served.
He states also that granting of the application would not cause
mutual objectionable interference with respect to any existing or
proposed stations and it would be in the public interest.
POLITICAL BROADCASTS
John B. Reynolds, acting secretary of the Federal Communica¬
tions Commission, has sent identical letters to Mrs. Archibald E.
Stevenson, general counsel of the National Civic Federation of
New York City, and Mrs. Ralph M. Easley, chairman of the Com¬
mittee on National Defense through Patriotic Education, Man¬
hattan Chapter, National Society of the Daughters of the Amer¬
ican Revolution, at Rye, N. Y., in connection with the alleged
refusal of Station WCAE, Pittsburgh, to broadcast a talk of Earl
Browder. Mr. Reynolds says:
Permit me to acknowledge receipt of your letter of September 14,
1936, addressed to the Chairman regarding a newspaper report
concerning the Commission’s investigation of the alleged refusal of
Station WCAE, Pittsburgh, to broadcast the August 28th address
of Earl Browder, Communist candidate for President.
In reply your attention is invited to Section 315 of the Com¬
munications Act of 1934 (copy enclosed) providing among other
things that if any licensee shall permit any person who is a legally
qualified candidate for any public office to use a broadcasting
station, he shall afford equal opportunities to all other such candi¬
dates for that office in the use of such broadcasting station and
that the Commission shall make rules and regulations to carry this
provision into effect.
Upon receipt of a complaint against Station WCAE filed by
William Z. Foster, Chairman, National Campaign Committee, Com¬
munist Party, the Commission directed both the complainant and
the station licensee to submit statements under oath setting forth
all facts in order that the Commission might be fully informed in
the matter for the purpose of performing its duty under Section
315 of the Communications Act of 1934.
In your letter you state that other offenses are being committed,
making particular reference to Section 6, Title 18, of the United
States Criminal Code. Your courtesy in offering voluntary legal
assistance is appreciated. This Commission, however, has no juris¬
diction over the) enforcement of the provisions of that section of
the law. It is suggested, therefore, that you may wish to present
full information concerning any evidence of violations of the United
States Criminal Code to the United States District Attorney in the
appropriate district, who may prosecute delinquents for crimes and
offenses cognizable under the authority of the United States.
RECOMMENDS DISMISSAL OF CASE
The Duluth Broadcasting Company applied to the Federal Com¬
munications Commission for a construction permit to erect a new
1679
broadcasting station at Duluth, Minn., to use 1200 kilocycles, 100
watts, and unlimited time on the air.
Examiner P. W. Seward, in Report No. 1-297, recommended that
the application be dismissed with prejudice for want of prosecution.
The Examiner states that at the hearing “the applicant did not
appear nor did any person representing the applicant appear in sup¬
port of said application, whereupon the attorney representing the
Commission moved that the case be dismissed for want of prosecu¬
tion.”
FREQUENCY AND POWER CHANGE RECOM¬
MENDED FOR KUJ
Broadcasting station KUJ, Walla Walla, Wash., applied to the
Federal Communications Commission to change its frequency from
1370 to 12S0 kilocycles, and to increase its power from 100 to 250
watts. The station asks to continue its unlimited time operation.
Examiner Robert L. Irwin, in Report No. 1-300, recommends
that the application be granted. He found that the station operates
the only primary service in that area and that there is need for
such improvement as the use of the frequency applied for. The
proposed change would not cause interference, the Examiner states,
and it would be in the public interest.
RECOMMENDS DISMISSAL APPLICATION TO
TRANSMIT PROGRAMS TO
FOREIGN COUNTRIES
The Ogdensburg Advance Company, Inc., of Ogdensburg, N. Y.,
applied to the Federal Communications Commission for authority
to transmit programs to foreign countries.
Examiner George H. Hill, in Report No. 1-298, has recommended
that the application be dismissed with prejudice. The applicant
filed an application for a permit to locate, maintain, or use a
studio or apparatus for broadcasts of programs to be transmitted
or delivered to foreign radio stations. The applicant planned to
construct and maintain a studio at Ogdensburg at which programs
would be produced and transmitted by remote control to CFLC
located at Prescott, Ontario, Canada.
It appears from the opinion that the Canadian Radio Commis¬
sion filed a protest whereat the applicant withdrew its application.
The Examiner states that “in view of this request and since a
respondent appeared and participated in the hearing of this matter,
the Examiner is of the opinion that the application should be dis¬
missed with prejudice.”
DISMISSAL WITH PREJUDICE RECOMMENDED
The Magnolia Broadcasting Company applied to the Federal
Communications Commission for a construction permit for a new
broadcasting station to be erected at Jackson, Miss., to use 1420
kilocycles, 100 watts power, and unlimited time.
Examiner P. W. Seward, in Report No. 1-296, recommended
that the “application be dismissed with prejudice for want of
prosecution.” The Examiner states that the applicant appeared by
counsel and presented a motion for continuance, predicated upon
the withdrawal of one of the parties constituting the applicant
partnership. Opposition to the granting of this motion was offered
by other parties to the hearing, predicated on the fact that at least
one respondent had brought two witnesses to Washington from
Jackson for the purpose of the hearing.
RECOMMENDATION TO DENY CALIFORNIA
STATION
A. Tornek, operating under the trade name of the Metro Broad¬
casting Company, applied to the Federal Communications Com¬
mission for a construction permit to erect a new station at Los
Angeles, Calif., to use 820 kilocycles, 250 watts power, and using
limited hours with WHAS.
Examiner P. W. Seward, in Report No. 1-295, recommends that
“the application of A. Tornek, operating under the assumed name
of Metro Broadcasting Company, for a construction permit, be
dismissed with prejudice for the reasons assigned,” or that the
application for the construction permit be denied.
The examiner states that the applicant “has not shown by evi¬
dence adduced at any one or all of the three hearings on this
application that she is a citizen of the United States, as required
by section 310 of the Communications Act of 1934, or that she is
legally, technically, financially, or otherwise qualified to construct
or operate the proposed station.” The Examiner found that the
operation of the proposed station “would cause objectionable
interference to existing stations within the good service area of such
stations.”
FEDERAL TRADE COMMISSION ACTION
Complaints
The Federal Trade Commission has alleged unfair competition
in complaints against the following firms. The respondents will
be given an opportunity for hearing to show cause why cease and
desist orders should not be issued against them.
No. 2938. Pike-Hansen, Inc., 1113 North Franklin St., Chi¬
cago, engaged in the sale of men’s clothing, is respondent in a
complaint charging unfair methods of competition in violation of
Section 5 of the Federal Trade Commission Act.
The respondent corporation allegedly represents that it will make
and deliver to purchasers tailor-made garments fashioned from
material of the color, weave and quality selected from samples
exhibited by its salesmen, who number about 500 in various parts
of the country. According to the complaint, the delivered gar¬
ments, in many instances, are not tailor-made, as that term is
understood by the purchasing public, and do not fit properly,
either because the salesmen lack skill and experience in taking
measurements or because the respondent’s workmen are not skilled
in making the garments.
In some cases, the complaint alleges, the respondent corporation
delivers a garment made from a material other than that selected
by the customer, and of inferior quality. Salesmen are said to
represent that they will make personal delivery of garments so as
to. afford customers an opportunity to inspect their purchases, but,
according to the complaint, the merchandise is shipped by parcel
post, cash on delivery for the balance of the purchase price, and
no inspection is permitted.
No. 2940. Alleging unfair competition in the sale of spirituous
beverages a complaint has been issued against E. O. Jackson Dis¬
tilling Co., 8440 South Chicago Ave., Chicago.
Through use of the word “Distilling” in its corporate name,
in advertising matter and on labels, the respondent company is said
to represent that it manufactures through the process of distilla¬
tion the whiskies, gins and other liquors it sells in interstate com¬
merce, when, the complaint charges, it is not a distiller and does
not own or operate a plant where its products are distilled, but is
engaged in the business of rectifying, blending and bottling liquors.
To promote the sale of its “Cotton Club” whiskey, the com¬
pany allegedly represents that this brand is “Kentucky’s Best,”
of high quality, and was distilled at Distillery No. 17, 5th District
of Kentucky, which, between 1903 and 1935, was favorably known
by reason of the production there of high grade whiskey.
According to the complaint, the respondent company leased Dis¬
tillery No. 17 from July 1, 1935, to January 1, 1936, and there
produced at high proof by the “charred chip process” 5000 barrels
of whiskey of a quality inferior to a good grade of Kentucky
Bourbon and not of the high quality indicated by the claims made
for “Cotton Club” brand.
No. 2941. A complaint alleging collusive bidding and fixing and
maintenance of uniform prices, in violation of Section 5 of the
Federal Trade Commission Act, has been issued by that Commis¬
sion against 9 companies engaged in the manufacture and sale of
turbine-generators and condensers. The Heat Exchange Insti¬
tute, a trade association with headquarters in New York, also is
a respondent. The respondent companies are:
General Electric Company, Schenectady, N. Y., manufactur¬
ing turbine-generators; Westinghouse Electric & Manufactur¬
ing Company, East Pittsburgh, Pa.; Allis-Chahners Manu¬
facturing Company, Milwaukee; and Elliott Company, Jean¬
nette, Pa., manufacturing both turbine-generators and condensers;
Worthington Pump & Machinery Corporation, Harrison,
N. J.; Ingersoll-Rand Company; Jersey City, N. J.; Foster-
Wheeler Corporation, New York; C. H. Wheeler Manufac¬
turing Company, Philadelphia, and Ross Heater & Manufac¬
turing Company, Buffalo, dealing only in condensers.
The respondents, who allegedly entered into their price-fixing
agreement in 1933, are said to constitute a group so powerful that
they are able to control the turbine-generator and condenser busi¬
ness in the United States. The complaint sets out that the prin¬
cipal purchasers of these products are public utilities, either pub¬
licly or privately owned, and municipal, state and federal govern¬
ments.
For the purpose of eliminating competition among themselves,
the complaint charges, the respondents, under their agreement, fix
and maintain uniform prices as well as uniform performance
guarantees for their products; adhere to pricing sheets compiled
1680
by one of their number, although such pricing sheets bear no
relation to the individual costs of the respective respondents in
the manufacture of their products; submit identical bids, not only
for turbine-generators and condensers, but for the “extras” neces¬
sary for their installation, and take disciplinary action against any
of their group who fail to abide by the prices in accordance with
their agreement.
Stipulations and Orders
The Commission has issued the following cease and desist orders
and stipulations:
No. 2762. The American Mint Corporation, 114 East 13th
St., New York City, and Mack R. Keshen and Oswald Freund
have been ordered to discontinue selling candy so packed and as¬
sembled that sales to ultimate purchasers are made by means of
a lottery, gaming device or gift enterprise.
Under the order, the respondents also are prohibited from pack¬
ing in the same assortment pieces of candy of uniform shape and
size, some of which have coins concealed within them, and from
furnishing dealers with display cards bearing statements informing
purchasers of that fact.
No. 2923. M. & J. Becker, Inc., 2961 Atlantic Ave., Brooklyn,
has been ordered to discontinue representing, directly or by impli¬
cation, that certain of the hats and caps it sells and which are
manufactured from old, discarded and second-hand felts, are made
from new and unused felts.
It is the practice of the respondent corporation, according to
the findings, to sell to wholesalers and retailers baseball caps made
from old and discarded felts which have been cleaned, shaped and
refitted with new bands and trimmings, but without disclosing to
purchasers that the caps have been worn previously, renovated and
made over.
FEDERAL COMMUNICATIONS COMMISSION
ACTION
HEARING CALENDAR
Monday, October 19
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Tribune Printing Co., Jefferson City, Mo. — C. P., 1130 kc.,
100 watts, daytime.
Tuesday, October 20
HEARING BEFORE AN EXAMINER
(Broadcast)
KFPM— Voice of Greenville, Greenville, Tex. — Renewal of license,
1310 kc., IS watts, specified hours.
KFPM — Dave Ablowich, tr/as The New Furniture Co., Green¬
ville, Tex. — Voluntary assignment of license, 1310 kc., IS
watts, specified hours.
KFPM — Voice of Greenville, Greenville, Tex. — C. P., 1420 kc., 100
watts, daytime. Present assignment: 1310 kc., IS watts,
specified hours.
NEW- — WREC, Inc., Youngstown, Ohio. — C. P., 890 kc., 1 KW,
unlimited time.
Wednesday, October 21
HEARING BEFORE AN EXAMINER
(Broadcast)
WHBI — May Radio Broadcast Corp., Newark, N. J. — Modifica¬
tion of license, 1250 kc., 1 KW, S KW LS, shares with
WMEW. Present assignment: 1280 kc., 1 KW, 2J^ KW
LS, shares with WMEW.
WHAT — Independence Broadcasting Co., Inc., Philadelphia, Pa.—
C. P., 1220 kc., 1 KW, unlimited time. Present assignment:
1310 kc., 100 watts, shares with WTEL.
NEW — Orrin P. Kilbourn, Albany, N. Y. — C. P., 1240 kc., 2S0
watts, unlimited time.
WCAP — Radio Industries Broadcast Co., Asbury Park, N. J.—
Modification of license, 1280 kc., 1 KW, shares with WTNJ
and WCAM. Present assignment: 1280 kc., 500 watts,
shares with WTNJ and WCAM.
Thursday, October 22
ORAL ARGUMENT BEFORE THE BROADCAST
DIVISION
Examiner’s Report No. 1-223
NEW — Wilbur H. Havens, Chas. H. Woodward, Calomb B. Jones,
Wilfred H. Wood, d/b as Petersburg Broadcasting Co.,
Petersburg, Va. — C. P., 880 kc., 500 watts, daytime (requests
facilities of WPHR).
WPHR — WLBG, Inc., Petersburg, Va. — Renewal of license, 880
kc., 500 watts, daytime.
WPHR — WLBG, Inc., Petersburg, Va. — C. P., 880 kc., 500 watts,
daytime (requests to move to Richmond, Va.).
Examiner’s Report No. 1-229
WHB — WHB Broadcasting Co., Kansas City, Mo. — C. P., 1120 kc.,
500 watts, 1 KW LS, unlimited time. Present assignment:
860 kc., 1 KW, daytime.
Examiner’s Report No. 1-233
KFOX — Nichols & Warinner, Inc., Long Beach, Calif. — C. P.,
1250 kc., 1 KW, 5 KW LS, unlimited time. Present assign¬
ment: 1250 kc., 1 KW, unlimited time.
Examiner’s Report No. 1-234
NEW — B. A. Thompson, Santa Cruz, Calif. — C. P., 1310 kc., 100
watts, 250 watts LS, unlimited time.
NEW — Wm. B. Smullin, Sacramento, Calif. — C. P., 1310 kc., 100
watts, 250 watts LS, unlimited time.
NEW — Howard N. Mitchell, Sacramento, Calif. — C. P., 1310 ltc.,
100 watts, unlimited time.
NEW — The Press Democrat Pub. Co., Santa Rosa, Calif. — C. P.,
1310 kc., 250 watts, daytime.
Examiner’s Report No. 1-222
WMBG — Havens & Martin, Inc., Richmond, Va. — C. P., 1350 kc.,
500 watts, unlimited time.
NEW — Century Broadcasting Co., Richmond, Va. — C. P., 1370 kc.,
100 watts, daytime.
Examiner’s Report No. 1-285
NEW — The Times Dispatch Publishing Co., Inc., Richmond, Va. — -
C. P., 1500 kc., 100 watts, unlimited time.
Friday, October 23
HEARING BEFORE AN EXAMINER
(Broadcast)
NEW — Walker Jamar, Duluth, Minn. — C. P., 1200 kc., 100 watts,
unlimited time.
APPLICATIONS GRANTED
WLBZ — Maine Broadcasting Co., Inc., Bangor, Maine — Granted
C. P. to install new transmitter.
WKOK — Sunbury Broadcasting Corp., Sunbury, Pa. — Granted
C. P. to install new equipment.
WSAJ — Grove City College, Grove City, Pa. — Granted C. P. to
change equipment.
KFRO — Voice of Longview, Longview, Tex. — Granted C. P. to
make changes in equipment and increase day power from
100 to 250 watts. (1370 kc.)
KFRU — KFRU, Inc., Columbia, Mo.— Granted C. P. to install
new transmitter.
KMMJ — KMMJ, Inc., Clay Center, Neb.— Granted C. P. to install
new transmitter.
WGL — Westinghouse E and M Co., Fort Wayne, Ind. — Granted
C. P. to install new transmitter.
KOMO — Fisher’s Blend Station, Inc., Seattle, Wash. — Granted
C. P. to make changes in equipment, move present licensed
auxiliary transmitter to 28th Ave. S. W., and Fla. Sts.,
West Waterway, Seattle.
KGGM — New Mexico Broadcasting Co., Albuquerque, N. Mex.-
Granted C. P. to move transmitter locally; install new
equipment and vertical radiator; increase night power from
250 watts to 1 KW, and day power from 500 watts to
1 KW.
KLS — S. W. Warner & E. N. Warner, d/b as Warner Bros., Oak¬
land, Cal. — Granted C. P. to install new transmitter.
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KFAC — Los Angeles Broadcasting Co., Inc., Los Angeles, Cal. —
Granted C. P. to install new transmitter.
KFVD — Standard Broadcasting Co., Los Angeles, Cal. — Granted
C. P. to install new transmitter.
WNLC — Thames Broadcasting Corp., New London, Conn. —
Granted license to cover C. P.; 1500 kc., 100 watts, day¬
time.
WCAO — Monumental Radio Co., Baltimore, Md. — Granted license
to cover C. P. for auxiliary transmitter; transmitter move
locally; 600 kc., 250 watts for emergency purposes only.
W3XEX — WTAR Radio Corp., Norfolk, Va. — Granted license to
cover C. P. and modification, new high frequency broad¬
cast, experimental; frequencies 31600, 35600, 38600 and
41000 kc.; 50 watts. Also granted modification of C. P.
to change site of transmitter to Virginia Beach Boulevard,
1.7 miles from Norfolk, Va.
WMMN — A. M. Rowe, Fairmont, W. Va. — Granted license to
cover C. P. as modified authorizing changes in equipment,
increase in power 500 watts night, 1 KW day, 890 kc.,
unlimited and move transmitter.
WDBJ — Times World Corp., Roanoke, Va. — Granted license to
cover C. P. which authorized installation of new equipment,
increase in power to 1 KW night, 5 KW day, unlimited,
930 kc.
WDBJ- Times World Corp., Roanoke, Va. — Granted authority to
determine operating power by direct measurement of an¬
tenna power.
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla. — Granted
license to cover C. P. as modified for new equipment, in¬
crease in power to 100 watts night, 250 watts day, 1420 kc.,
unlimited and move transmitter.
WSIX — Jack M. Draughon, Louis R. Draughon, d/b as 638 Tire
and Vulcanizing Co., Nashville, Tenn. — Granted license to
cover C. P. as modified for removal of studio and trans¬
mitter, install new antenna.
KANS — Charles G. Theis, Wichita, Kans. — Granted license to
cover C. P. for new station; 1210 kc., 100 watts, unlimited.
WQDM — E. J. Regan & F. Arthur Bostwick, d/b as Regan &
Bostwick, St. Albans, Vt. — Granted modification of C. P.
to move transmitter and studio locally, change frequency,
install new equipment, increase power, change specified
hours, 1390 kc., 1 KW night and day, S. H. (subject to
Rules 131, 132 and 139).
KNX — Western Broadcast Co., Los Angeles, Cal. — Granted modi¬
fication of license to change name from Western Broadcast
Co. to Columbia Broadcasting System of Calif., Inc.
WJBC— Arthur Malcolm McGregor & Dorothy Charlotte Mc¬
Gregor, a partnership, Bloomington, Ill. — Granted authority
to make changes in automatic frequency control equipment.
WPAD — Paducah Broadcasting Co., Inc., Paducah, Ky. — Granted
authority to make changes in automatic frequency control.
World Broadcasting System, Inc., New York City, N. Y. — Granted
extension of authority to transmit programs from World
B/C System, Inc., to the Northern Electric Co., Ltd., of
the Dominion of Canada, in accordance with provisions of
Section 325 of the Act.
WNYC — City of New York, Dept, of Plant & Structures, New
York City, N. Y. — Granted extension of temporary auxiliary
license pending final action on license for main transmitter;
810 kc., 1 KW day and night, emergency purposes only.
WDBO — Orlando Broadcasting Co., Inc., Orlando, Fla. — Granted
modification of C. P. for authority to install new equipment.
NEW — Radio Air Service Corp., Portable-Mobile, Cleveland, Ohio
— Granted C. P. for new experimental relay broadcast sta¬
tion; frequencies 38900, 39100, 39300 and 39500 kc. on
an experimental basis; 100 watts.
NEW — The Crosley Radio Corp., Portable-Mobile, Cincinnati,
Ohio (2 Applications) — Granted C. P. for new experimental
relay broadcast station; frequencies 31100, 37600 and 40600
kc. ; 2 watts.
WGAL — WGAL, Inc., Lancaster, Pa. — Granted C. P. for authority
to move transmitter locally, make changes in frequency
control equipment and erect approved type of antenna
system.
KOVC — George B. Bairey, Valley City, No. Dak. — Granted modi¬
fication of C. P. approving transmitter and studio locations
and installation of new equipment and vertical radiator.
KABC — Alamo Broadcasting Co., Inc., San Antonio, Tex. — Granted
C. P. to install new transmitter.
KFEQ — KFEQ, Inc., St. Joseph, Mo.— Granted amended C. P.
for authority to make changes in equipment.
KORE — Frank L. Hill & C. G. Phillips, d/b as Eugene Broad¬
cast Station, Eugene, Ore. — Granted C. P. approving trans¬
mitter and studio sites, changes in equipment and vertical
radiator.
WCAX — Burlington Daily News, Inc., Burlington, Vt. — Granted
license to cover C. P. to install new transmitter.
WBNX — Standard Cahill Co., Inc., New York City, N. Y. —
Granted license to cover C. P. and modifications thereof,
authorizing new equipment, move transmitter and approval
of directional antenna, 1 KW day and night; 1350 kc.,
S-WAWZ.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
license to cover C. P. authorizing equipment changes, in¬
crease in power and change in name; 1310 kc., 100 watts
night, 250 watts day, Simul-D WLBC, share night WLBC.
WEW — The St. Louis University, St. Louis, Mo. — Granted license
to cover C. P. authorizing changes in equipment.
WFIL — WFIL Broadcasting Co., Philadelphia, Pa. — Granted mod¬
ification of C. P. approving transmitter site and extension
of commencement date from 7-12-36 to 30 days after grant
and completion date to 180 days hereafter.
WJBK — James F. Hopkins, Inc., Detroit, Mich. — Granted modi¬
fication of C. P. authorizing installation of new equipment
and extension of commencement date to 60 days after grant
and completion date to 180 days hereafter.
WROK — York Broadcasting Co., York, Pa. — Granted authority to
make changes in automatic frequency control equipment.
WDEL — WDEL, Inc., Wilmington, Del. — Granted authority to
make changes in automatic frequency control.
WAZL — Hazleton Broadcasting Service Inc., Hazelton, Pa.—
Granted authority to make changes in automatic frequency
control.
KFXD — Frank E. Hurt, Nampa, Idaho — Granted C. P. to install
new transmitter.
KGKB — East Texas Broadcasting Co., Tyler, Texas — Granted
license to cover C. P. authorizing move of transmitter, in¬
stallation of new equipment and vertical radiator; 1500
kc., 100 watts night, 100 watts day, unlimited time day,
specified hours night.
KQV — KQV Broadcasting Co., Pittsburgh, Pa. — Granted tem¬
porary authority to operate simultaneously with station
WSMK from 10 to 11 P. M., EST, Sept. 30, Oct. 7, 16, 21,
1936, in order to broadcast football games.
WHLB — Head of the Lakes Broadcasting Co., Virginia, Minn. —
Granted special temporary authority to operate without an
approved frequency monitor during program test period,
for a period of 30 days, pending repair to frequency monitor.
WBAA — Purdue University, W. Lafayette, Ind. — Granted special
temporary authority to operate from 4 to 8 P. M., CST,
Oct. 10, 1936 (provided WILL remains silent), in order
to broadcast football games.
KNET — Calvin Welch, Wm. M. Keller & Bonner Frizzell, d/b
as Palestine Broadcasting Assn., Palestine, Texas — Granted
special temporary authority to operate from 5:45 to 10:30
P. M., CST, Oct. 16 and 30, 1936, and from 5:30 to 10:30
P. M., CST, Nov. 20, 1936, in order to broadcast football
games.
KSOO — Sioux Falls Broadcast Assn., Inc., Sioux Falls, S. Dak. —
Granted special temporary authority to operate station on
Oct. 9, 1936, from 6:30 to 7:15 P. M., CST, for the purpose
of broadcasting President Roosevelt’s speech by remote con¬
trol from station KSTP; and from 9 to 9:30 P. M., Oct. 9,
for the purpose of broadcasting a political speech by remote
control from station WCCO.
WTCN — Minn. Broadcasting Corp., Minneapolis, Minn. — Granted
special temporary authority to remain on the air after 7
P. M., CST, the night of Oct. 9, 1936 (provided WLB re¬
mains silent), until the conclusion of President Roosevelt’s
address at St. Paul, Minn.
WDGY — Dr. Geo. W. Young, Minneapolis, Minn. — Granted special
temporary authority to remain on the air after 6:30 P. M.,
CST, Friday, Oct. 9, 1936, for the purpose of broadcasting
President Roosevelt’s speech only.
WMC — Memphis Commercial Appeal, Inc., Memphis, Tenn. —
Granted license to cover C. P. authorizing changes in equip¬
ment and directional antenna system; increase in day power
from 2J4 KW to 5 KW, and change transmitter site locally,
780 kc.
WJBY — Gadsden Broadcasting Co., Inc., Gadsden, Ala. — Granted
authority to make changes in automatic frequency control
equipment.
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WJAY — Cleveland Radio Broadcasting Corp., Cleveland, Ohio —
Granted C. P. to move transmitter to Pleasant Valley Road,
Village of Seven Hills, Ohio, adjacent to present site of
WHK; install vertical radiator and new equipment.
KOBH — Black Hills Broadcast Co. (Robert Lee Dean), Rapid City,
S. Dak. — Granted modification of C. P. for change in type
of equipment.
WDWS — Champaign News Gazette Inc., Champaign, Ill. — Granted
modification of C. P. for approval of transmitter and studio
sites, equipment and antenna, amended to correct trans¬
mitter site for 600 feet south of Kirby Ave., Champaign,
Ill.
KRMD — Radio Station KRMD, Inc., Shreveport, La. — Granted
C. P. for changes in equipment, install vertical radiator and
increase day power from 100 watts to 250 watts, 1310 kc.
KMO — KMO. Inc., Tacoma, Wash. — Granted C. P. to install ver¬
tical radiator, exact site to be determined with Commission’s
approval, increase power from 250 watts to 1 KW.
WTMV — Miss. Valley Broadcasting Co., Inc., E. St. Louis, Ill. —
Granted amended C. P. for installation of new equipment,
increase day power to 250 watts, 1500 kc., unlimited.
WKBN — WKBN, Broadcasting Corp., Youngstown, Ohio — Granted
C. P. to move transmitter site locally from Y. M. C. A.
Building to 3120 Sunset Boulevard, and install vertical
radiator.
WOI — Iowa State College of Agriculture & Mechanic Arts, Ames.
Ia. — Granted special authority to rebroadcast over WOI
the emergency programs of station KGHO licensed for
emergency police service in Des Moines, Ia.
KFJR — Ashley C. Dixon, KFJR, Inc., Portland, Ore. — Granted
voluntary assignment of license to KALE, Inc. (1300 kc.,
500 watts night, 500 watts day, S. H.).
WJIM — Harold F. Gross, M. B. Keeler and L. A. Versluis, d/b
as Capital City Broadcasting Co., Lansing, Mich. — Granted
voluntary assignment of license to Harold F. Gross (1210
kc., 100 watts night, 250 watts day, unlimited).
NEW — Ben S. McGlashan (Portable), Los Angeles, Cal. — Granted
C. P. for new station (low frequency relay broadcast) ;
frequencies 1622, 2058, 2150, 2790 kc., 100 watts.
APPLICATIONS DENIED
WINS — Hearst Radio, Inc., New York City. — Denied special tem¬
porary authority to operate 8:15 p. m. to 12 midnight,
EST, 9-30-36, and from 7:30 to 12 midnight, EST, 10-7-36,
to broadcast professional football games of new Professional
Football League.
WCOP — Massachusetts Broadcasting Corp., Boston, Mass. — Denied
special temporary authority to operate from local sunset to
8 p. m., EST, from 10-3-36 to November 1, 1936, inclusive,
in order to broadcast civic programs and events of national
importance connected with national election.
WINS — Hearst Radio, Inc., New York City. — Denied special tem¬
porary authority to operate from local sunset (October,
5:15 p. m.) until 12 midnight, EST, October 21 and 28,
1936, in order to broadcast professional football games, and
from local sunset, November 3, 1936 (November, 4:45 p. m.),
until 2 a. m., EST, November 4, 1936, in order to broadcast
election returns.
WPHR — WLBC, Inc., Petersburg, Va. — Denied special authority
to operate from local sunset to 7:30 p. m., EST, October 10,
17, 24, 31, and November 7, in order to broadcast football
games.
APPLICATIONS DISMISSED
The following applications, heretofore set for hearing, were dis¬
missed at the request of applicants:
NEW— Palmer Broadcasting Syndicate, Inc., Portland, Me. — Ap¬
plied for C. P., 1210 kc., 100 watts, unlimited.
WSMK — WSMK, Inc., Dayton, Ohio. — Applied for modification
of license, 1380 kc., 250 watts, unlimited.
KRKO — Lee E, Mudgett, Everett, Wash. — Applied for voluntary
assignment of license, 1370 kc., 50 watts, shares KVL.
Detroit National League Football Club, Inc., Detroit, Mich. —
Applied for authority to transmit description of certain foot¬
ball games from University of Detroit Stadium, Detroit,
Mich., to Station CKLW, Windsor, Ontario, Canada, through
the facilities of the Michigan Bell Tel. Co.
SET FOR HEARING
NEW — Lawrence K. Miller, Pittsfield, Mass. — Application for C. P.
for new station to operate on 930 kc., 250 watts daytime,
site to be determined.
NEW — Knoxville Journal Broadcasting Co., R. R. Spilman, Ira A.
Watson, Roy N. Lotspeich, R. H. Claggett, Knoxville, Tenn.
— Application for C. P. for new station to operate on 1200
kc., 100 watts night, 250 watts day, unlimited time, site to
be determined.
WILM — Delaware Broadcasting Co., Wilmington, Del. — Applica¬
tion for C. P. to install vertical antenna, move studio and
transmitter approximately 9 miles to Chester, Pa., site to be
approved. (Present assignment: 1420 kc., 100 watts, S-
WAZL.)
WMMN — A. M. Rowe, Inc., Fairmont, W. Va. — Application for
C. P. to install new equipment, increase night power from
500 watts to 1 KW and day power from 1 KW to 5 KW.
(Present assignment: 890 kc., 500 watts night, 1 KW day,
unlimited.)
WGAR — WGAR Broadcasting Co., Cleveland, Ohio. — Application
for C. P. to install new transmitter and increase power from
500 watts night, 1 KW day, unlimited time, to 5 KW.
(To be heard before the Broadcast Division.)
NEW — Rev. Edward Warren Cromey, Rector, Church Wardens &
Vestrymen of St. Michael’s P. E. Church, Brooklyn, N. Y. —
Application for C. P. for new station to operate on 1130 kc.,
1 KW daytime only, site to be approved. Desires facilities
of WOV. Amended to change antenna. To be heard No¬
vember 16, 1936.
WOV — International Broadcasting Corp., New York City. — Ap¬
plication to transfer control from John Giustina B. and
Mariannina G. Iraci, to Arde Bulova, 766 shares of com¬
mon stock. Present assignment: 1130 kc., 1 KW, daytime.
To be heard November 16, 1936.
NEW — Daily News Corp., St. Paul, Minn. — Application for C. P.
(amended 8-31-36) for new station to operate on 580 kc.,
1 KW, daytime only. Transmitter site to be determined
with Commission’s approval.
NEW — Walter H. McGenty, Rice Lake, Wis. — Application for
C. P. (amended 8-8-36) for new station to operate on 1210
kc., 250 watts, daytime only. Exact site of transmitter to
be determined with Commission’s approval.
NEW — WRBC, Inc., Cleveland, Ohio. — Application for C. P.
(amended 8-13-36) for new station to operate on 950 kc.,
1 KW, unlimited time, using directional antenna for day
and nighttime operation.
NEW — The Trenton Times, Trenton, N. J. — Application for C. P.
for main transmitter of 3 new synchronized special broad¬
cast stations; 1570 kc., 250 watts, unlimited, site to be de¬
termined subject to Commission’s approval.
NEW — The Trenton Times, Trenton, N. J. — Application for C. P.
for one booster transmitter of 3 new synchronized special
broadcast stations, to be located near Burlington, N. J.;
1570 kc., 250 watts, unlimited, transmitter site to be deter¬
mined subject to Commission approval.
NEW — The Trenton Times, Trenton, N. J. — Application for C. P.
for one booster transmitter of 3 new synchronized special
broadcast stations, to be located near Princeton, N. J.;
1570 kc., 250 watts, unlimited, transmitter site to be deter¬
mined subject to Commission approval.
WNBC — State Broadcasting Corp. (Wm. J. Sanders), New Britain,
Conn. — Application for C. P. amended to make changes in
equipment; install directional antenna for day and night
operation; increase power from 250 watts daytime to 250
watts night, 1 KW day; increase hours of operation from
daytime to unlimited.
WHAT — Independence Broadcasting Co., Inc., Philadelphia, Pa. —
Application for C. P. (amended 9-12-36) for approval of
new transmitter site; authority to make equipment changes;
install directional antenna system; change frequency from
1310 kc. to 1220 kc.; increase power from 100 watts to
1 KW ; change time of operation from sharing with WTEL
to unlimited. (Now operates on 1310 kc., 100 watts night
and day, S-WTEL.)
KOOS — Pacific Radio Corp., Marshfield, Ore. — Application for
modification of C. P. to change equipment and time of
operation from 250 watts daytime to 250 watts unlimited;
extend commencement date to 60 days after grant and com¬
pletion date to 6 months thereafter. (Original C. P. author¬
ized change in transmitter site, installation of new antenna,
change in frequency to 1390 kc.)
1683
NEW — Sharon Herald Broadcasting Co., Sharon, Pa. — Applica¬
tion for C. P. for new station to operate on 780 kc., 250
watts day only, transmitter site and antenna system to be
determined subject to Commission’s approval.
WBNS — WBNS, Inc., Columbus, Ohio.— Application for C. P. to
install new equipment, increase night power from 500 watts
to 1 KW and day power from 1 KW to 5 KW.
WTBO — Associated Broadcasting Corp., Cumberland, Md. — Ap¬
plication for modification of license to increase power and
time of operation from 250 watts daytime only to 250 watts
unlimited. (To be heard before the Broadcast Division.)
WK.ZO — WKZO, Inc., Kalamazoo, Mich. — Application for modifi¬
cation of license to change time of operation from daytime
to local sunset at Kalamazoo to daytime to local sunset at
Omaha, Nebr.
NEW — J. D. Keating, Harvey Wells, L. J. Keating, Joe M. Meyer,
L. C. Keating, d/b as Vancouver Broadcasting Co., Van¬
couver, Wash. — Application for C. P. for new station to
operate on 1500 kc., 100 watts, daytime.
WEDC — Emil Denemark, Inc., Chicago, Ill. — Application for
modification of license to make change in specified hours for
additional operating time from midnight to 6 a. m.
WHKC— Associated Radiocasting Corp., Columbus, Ohio. — Appli¬
cation for C. P. to install new transmitter; make antenna
changes; increase night power from 500 watts to 1 KW
and day power from 500 watts to 5 KW, unlimited time.
(To be heard before the Broadcast Division.)
WEEI — WEEI Broadcasting Corp., Boston, Mass. — Application
for modification of C. P. to increase power from 1 KW,
5 KW LS, to 5 KWT day and night; 590 kc. (To be heard
before the Broadcast Division.)
WAIM — Wilton E. Hall, Anderson, S. C. — Application for modifi¬
cation of C. P. to install directional antenna system for
nighttime use; change hours of operation from 1 KW, day¬
time, to 1 KW, unlimited.
NEW — Julius Brunton & Sons Co., San Jose, Calif. — Application
for C. P. for new station to operate on 970 kc., 250 watts,
daytime (contingent upon KQW’s application to move to
Sacramento).
KQW — Pacific Agricultural Foundation, Ltd., San Jose, Calif. —
Application for C. P. to change equipment, increase day
power to 5 KW, and move station to Sacramento (present
assignment: 1010 kc., 1 KW, unlimited).
NEW — Staunton Broadcasting Co., Inc., Staunton, Va. — Applica¬
tion for C. P. for new station to operate on 1500 kc., 100
watts night, 250 watts day, unlimited, site to be determined.
NEW — William Avera Wynne, Wilson, N. C. — Application for
C. P. for new station to operate on 1310 kc., 100 watts,
daytime.
NEW — World Publishing Co., Tulsa, Okla. — Application for C. P.
(amended 9-15-36) for new station to operate on 940 kc.,
1 KW night, 5 KW day, unlimited, using directional an¬
tenna system for nighttime.
RENEWAL OF LICENSES
The following stations were granted renewal of licenses for the
regular period:
KCRC, Enid, Okla.; KGA, Spokane, Wash.; KGB, San Diego;
KGER, Long Beach, Calif.; KGHF, Pueblo, Colo.; KGIR, Butte,
Mont.; KGNO, Dodge City, Kans.; KHBC, Hilo, Hawaii; KID,
Idaho Falls, Idaho; KIEM, Eureka, Calif.; KLO, Ogden, Utah;
KLS, Oakland, Calif.; KOH, Reno, Nev. ; KOMA, Oklahoma City,
Okla.; KRNT, Des Moines, Iowa; KSO, Des Moines, Iowa;
KSTP, St. Paul, Minn.; KTBS, Shreveport, La.; KTUL, Tulsa,
Okla.; WAAB, Boston, Mass.; WADC, Village of Tallmadge, Ohio;
WALA, Mobile, Ala.; WAWZ, Zarephath, N. J.; and WBCM,
Bay City, Mich.
WRDO — WRDO, Inc., Augusta, Maine. — Granted renewal of
license for the period ending January 1, 1937.
KPLM — John B. Cooley, Minot, N. Dak. — Granted renewal of
license for the period ending April 1, 1937.
WIBA — Badger Broadcasting Co., Inc., Madison, Wis. — Granted
renewal of license for the period ending April 1, 1937.
ACTION ON EXAMINER’S REPORTS
NEW — Ex. Rep. No. 1-108: Robert K. Herbst, Moorhead, Minn. —
Granted C. P. for new broadcast station to operate on
1310 kc., 100 watts day, unlimited, share night with Robert
MacNab Co. (site to be determined subject to Commission’s
approval). Examiner P. W. Seward sustained in part.
Order effective November 24, 1936.
NEW — Ex. Rep. No. 1-153: Roberts MacNab Co. (Arthur L.
Roberts, R. B. MacNab, A. J. Breitbach, Gen. Mgr.), James¬
town, N. Dak. — Granted C. P. for new broadcast station to
operate on 1310 kc., 100 watts, unlimited time day, share
night with Robert K. Herbst (site to be determined subject
to Commission’s approval). Order effective November 24,
1936. Examiner M. H. Dalberg sustained.
NEW — Ex. Rep. No. 1-213: Edwin A. Kraft, Fairbanks, Alaska. —
Denied C. P. for new broadcast station to operate on 950
kc., 250 watts, unlimited time (site to be determined subject
to Commission’s approval). Examiner Geo. H. Hill sus¬
tained.
NEW — John A. Stump, Fairbanks, Alaska. — Denied C. P. for
new broadcast station to operate on 1210 kc., 100 watts,
250 watts LS, unlimited time (site to be determined subject
to Commission’s approval). Examiner Hill reversed. Order
effective December 15, 1936.
NEW — Ex. Rep. No. 1-219: J. Laurence Martin, Tucumcari, N.
Mex. — Denied C. P. for new broadcast station to operate
on 1200 kc., 100 watts, unlimited time, site to be determined
subject to Commission approval. Examiner P. W. Seward
reversed. Order effective December 22, 1936.
WOD— Ex. Rep. No. 1-247: American Broadcasting Co., Wash¬
ington, D. C. — Granted C. P. (Commissioner Case dissent¬
ing) to make changes in equipment; move transmitter and
studio; change frequency from 1310 kc. to 1230 kc.; in¬
crease power from 100 watts to 1 KW, unlimited time.
Examiner M. H. Dalberg reversed. Order effective Decem¬
ber 1, 1936.
WJAC — Ex. Rep. No. 1-290: WJAC, Inc., Johnstown, Pa. —
Granted C. P. to make changes in equipment; move trans¬
mitter from 101-111 Main St., Johnstown, Pa., to 429 Locust
St., Johnstown, Pa.; and increase power from 100 watts to
100 watts night, 250 watts day; 1310 kc., share with WFBG.
Examiner M. H. Dalberg sustained. Order effective Novem¬
ber 17, 1936.
NEW — Ex. Rep. No. 1-297: Duluth Broadcasting Co., Duluth,
Minn. — Dismissed with prejudice application for C. P. for
new broadcast station to operate on 1200 kc., 100 watts,
unlimited time. Examiner P. W. Seward sustained.
SPECIAL AUTHORIZATIONS
WLB — University of Minnesota, Minneapolis, Minn.; WTCN —
Minnesota Broadcasting Corp., Minneapolis, Minn. — Granted
special temporary authority to conduct a joint broadcast
between 1:45 to 4:30 p. m., CST, on Saturdays, October
10, 17, 24 and 31, 1936, and November 7, 14, 21 and 28,
1936, using the 5 KW transmitter of WTCN in order to
broadcast University of Minnesota football games.
KYW — Westinghouse Electric & Mfg. Co., Philadelphia, Pa. —
Granted special temporary authority to rebroadcast a pro¬
gram from the zeppelin “Hindenburg” over radio station
KYW and also carry on two way communication with the
Hindenburg on October 9, 1936, while zeppelin is on special
chartered flight over Philadelphia and vicinity.
KGDM — E. F. Peffer, Stockton, Calif. — Granted special temporary
authority to operate from 9 p. m. until 12 midnight, PST,
November 3, 1936, in order to broadcast election returns.
WPRP — Julio M. Conesa, Ponce, Puerto Rico — Granted special
temporary authority to operate station without an approved
frequency monitor for a period beginning Oct. 7, 1936, and
ending in no event later than Nov. 5, 1936.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Granted extension
of special temporary authority to operate station without
an approved frequency monitor (waiver of Rule 145) for
period beginning Oct. 10, 1936 and ending in no event later
than Oct. 24, 1936, pending installation of repaired monitor.
KFRO — Voice of Longview, Long View, Texas — Granted special
temporary authority to operate from local sunset (5:45
p. m.) to 12 midnight, CST, Oct. 23 and 30, 1936 in order
to broadcast football games.
WKP-WQW-WQP — R. C. A. Communications, Inc., Rocky Point,
N. Y. — Granted special temporary authority for point to
point Telegraph stations in addition to the authorization
contained in present licenses covering the operation of these
stations, to communicate with the aircraft radio station
DEKKA on Dirigible “Hindenburg” to provide contact con¬
trol communication service to facilitate reception of pro¬
gram material through the Riverhead, N. Y. receiving sta-
1684
tion for delivery to the National Broadcasting Co. This
authorization for period of three days beginning Oct. 8,
1936.
WEST — Associated Broadcasters, Inc., Easton, Pa. — -Granted spe¬
cial temporary authority to operate simultaneously with
station WKBO from 8 p. m. to 8:15 p. m. EST, Oct. 8, 15,
22, 29; from 8:30 p. m. to 10 p. m., EST, Oct. 31, 1936;
from 9 p. m. to 9:15 p. m., EST, Oct. 21, 28; from 9 p. m.
to 9:30 p. m., EST, Oct. 26; from 9:30 p. m. to 9:45 p. m.,
EST, Oct. 13, 20, 27; from 10:15 p. m. to 10:30 p. m., Oct.
12, 13, 19, 20, 26, 27; from 4:45 p. m. to 5 p. m., EST,
Nov. 1; from 9 p. m. to 9:45 p. m., 10:15 p. m. to 10:30
p. m. and 11 p. m. to 12 midnight, EST, Nov. 2, 1936, in
order to broadcast Democratic state and national committee
programs.
WTRC — The Truth Publishing Co., Inc., Elkhart, Ind. — Granted
special temporary authority to operate simultaneously with
station WLBC from 7:30 p. m. to 9 p. m., CST, Oct. 8, 9, 12,
13, 14, 15 and 17, 1936, in order to broadcast evangelistic
services from Zion Mennonite Church of Elkhart.
KPDN — Pampa Daily News, Inc., Pampa, Texas — Granted special
temporary authority to operate station without an approved
frequency monitor (waiver of Rule 145) for a period be¬
ginning Oct. 5, 1936, and ending in no event later than
Oct. 19, 1936.
WKBV— Knox Radio Corp., Richmond, Ind. — Granted special
temporary authority to operate 1 p. m. to 5:30 p. m., CST,
Oct. 10, 24, and 31, 1936, in order to broadcast Earlham
College football games.
KBTM — W. J. Beard (Board’s Temple of Music), Jonesboro, Ark.
— Granted special temporary authority to operate simul¬
taneously with station KGHI between the hours of 8 p. m.
and 10 p. m. on the following Fridays: Oct. 9, 16, 23, 30;
Nov. 6, 1936, in order to broadcast local football games.
WNAD — University of Oklahoma, Norman, Okla. — Granted spe¬
cial temporary authority to operate from 2 p. m. to 4 p. m.,
CST, Oct. 12, 13, 14, 15, 19, 20, 21, 22, 26, 27, 28 and 29,
1936 (provided station KGGF remains silent) in order to
broadcast special educational programs.
WELI — City Broadcasting Corp., New Haven, Conn. — Granted
special temporary authority to operate unlimited time on
Oct. 10, 1936, in order to celebrate first anniversary of sta¬
tion WELI.
WLBC — Donald A. Burton, Muncie, Ind. — Granted special tem¬
porary authority to operate station without an approved
frequency monitor (waiver of Rule 145) for a period not to
exceed 30 days.
WNYC — City of New York, Dept, of Plant and Structures, New
York, N. Y. — Granted special temporary authority to use
auxiliary transmitter located at 29 Ft. Greene PI., Brook¬
lyn, N. Y., as main transmitter, while moving, in accord¬
ance with C. P. Bl-MP-307, for a period not to exceed
60 days.
KMTR — KMTR, Radio Corp., Los Angeles, Calif. — Granted spe¬
cial temporary authority to operate station without an ap¬
proved frequency monitor (waiver of Rule 145) for a period
not to exceed 30 days.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted special temporary authority to operate from local
sunset (5:45 p. m., CST) to 11 p. m., CST, Oct. 10 and
17, 1936, in order to broadcast football games.
WRAK — WRAK, Incorporated, Williamsport, Pa. — Granted spe¬
cial temporary authority to operate station without an
approved frequency monitor (waiver of Rule 145) for a
period beginning Oct. 15, 1936 and ending in no event later
than Oct. 28, 1936.
KWTO — Ozarks Broadcasting Co., Springfield, Mo. — Granted spe¬
cial temporary authority to operate station without an ap¬
proved frequency monitor (waiver of Rule 145) for a period
beginning Oct. 1, 1936, and ending in no event later than
Nov. 1, 1936.
WSYR-WSYU — Central New York Broadcasting Corp., Syracuse,
N. Y. — Granted special temporary authority to use auxiliary
transmitter as the main transmitter for a period not to ex¬
ceed 30 days.
WHBF — Rock Island Broadcasting Co., Rock Island, Ill. — Granted
extension of special temporary authority to maintain the
main studio of WHBF at 1630 5th Avenue, Moline, Ill., in¬
stead of 102-18th St., Rock Island, Ill., for a period be¬
ginning Oct. 4, 1936 and ending in no event later than
November 2, 1936.
KLPM — John B. Cooley, Minot, N. Dak.— Granted special tem¬
porary authority to operate from 7:30 p. m. to 9 p. m.,
MST, Oct. 10 and 30, 1936 (provided KGCU remains
silent).
WATL — J. W. Woodruff & S. A. Cisler, d/b as Atlanta Broad¬
casting Co., Atlanta, Ga. — Granted special temporary au¬
thority to operate a 100 watt portable transmitter on
1370 kc. in the vicinity of Atlanta, Ga., between the hours
of 12 midnight and 6 a. m. CST, for period not to exceed
10 days, in order to make field intensity survey tests.
WRGA — Rome Broadcasting Corp., Rome, Ga. — Granted special
temporary authority to operate station without plate volt¬
meter for period not to exceed 30 days.
KTSM — Tri-State Broadcasting Co., Inc., El Paso, Tex. — Granted
extension of special temporary authority to carry programs
of station WDAH for period" beginning Oct. 12, 1936, and
ending in no event later than November 10, 1936. Effective
as of Oct. 10, 1936.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. —
Granted special temporary authority to operate from 8
p. m. to 10 p. m., EST, Wednesday, Oct. 14, 1936, in order
to broadcast a Republican Rally, featuring Justice William
Bleakley, Republican Nominee for Governor of New York
State.
WAIR — C. G. Hill, George D. Walker, and Susan H. Walker,
Winston-Salem, N. C. — Granted special temporary authority
to operate test transmitter with power not over 50 watts
for the purpose of testing for proposed site, between the
hours of 12 midnight to 6 a. m. for the period beginning
Oct. 12, 1936, and ending in no event later than Nov. 10,
1936.
WELI — City Broadcasting Co., New Haven, Conn. — Granted
special temporary authority to operate from 6:15 p. m. to
6:30 p. m., EST, October 17 to Nov. 3, 1936, inclusive, in
order to broadcast speeches of the Republican State Central
Committee of Conn.; also from 7:45 p. m. to 8 p. m. EST,
Oct. 17, 19 to 24 inclusive, 26 to 31 inclusive, and Nov. 2 and
3, 1936, in order to broadcast speeches of the Democratic
State Central Committee of Conn.
WRC — National Broadcasting Co., Inc., Washington, D. C. —
Granted special temporary authority to rebroadcast voice
communication exchange between municipal police station
WPDW, Washington, D. C., and its associated experimental
mobile station W3XEI, on Wednesday, Oct. 14, 1936, in
order to participate in a special feature broadcast demon¬
strating to the listening public in Washington the efficiency
of radio-communication as an aid to public security.
American Broadcasting Corp. of Kentucky, Lexington, Ky. —
Granted special temporary authority to operate portable-
mobile (High Frequency Relay Broadcast) transmitter for
the period beginning Oct. 15, 1936, and ending in no event
later than Oct. 25, 1936, to broadcast the first meeting of
the Keeneland Race Association.
American Broadcasting Corp. of Kentucky, Lexington, Ky. —
Granted special temporary authority to operate portable-
mobile (High Frequency Relay Broadcast) transmitter for
the period beginning Oct. 15, 1936, and ending in no event
later than Oct. 25, 1936, to broadcast the first meeting of
the Keeneland Race Association.
KVOO — Southwestern Sales Corp., Tulsa, Okla. — Granted special
temporary authority to operate simultaneously with station
WAPI. using power of 1 KW, from 9 p. m. to 9:30 p. m.
CST, Saturday, Oct. 17, 1936, in order to broadcast National
Democratic program.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
special temporary authority to operate simultaneously with
station KVOO, using power of 1 KW, from 9 p. m. to 9:30
p. m. CST, Saturday, Oct. 17, 1936, in order to broadcast.
National Democratic Committee Program.
WSYB — Philip Weiss, t/a Philip Weiss Music Co., Rutland, Vt. —
Granted special temporary authority to operate from 9 a. m.
to 10 a. m. EST, for the period beginning Oct. 17, 1936 and
ending in no event later than Nov. 15, 1936, inclusive, in
order to broadcast Rutland County Community programs;
also operate from 9 p. m. until 12 midnight EST, from
Oct. 17, 1936 and ending in no event later than Nov. 3,
1936, inclusive, in order to broadcast Democratic and Re¬
publican rallies and election returns.
WHAS — The Courier- Journal Co. & The Louisville Times Co.,
Louisville, Ky. — Granted extension of special temporary
authority to operate a 50 watt portable test transmitter
from 12 midnight to 6 a. m. CST, for the period beginning
1685
Oct. 17, 1936 and ending in no event later than Nov. IS,
1936, in order to determine new transmitter site.
WHDF — The Upper Michigan Broadcasting Co., Calumet, Mich.—
Granted special temporary authority to operate from 7 p. m.
to 9 a. m. CST, Oct. 18, 1936, in order to broadcast in¬
auguration of World Service program.
WAAB — Bay State Broadcasting Corp., Boston, Mass. — Granted
special temporary authority to measure the antenna effi¬
ciency of WEAN antenna system located in the Biltmore
Hotel in Providence at a frequency of 720 kc., using power
between 10 and SO watts, between the hours when station
WGN in Chicago shuts down and 5:30 p. m., MST, for a
period not to exceed IS days.
KGCX — E. E. Krebsbach, Wolf Point, Mont. — Granted extension
of special temporary authority to operate station without
an approved frequency monitor (waiver of Rule 14S) for
the period beginning October 10, 1936, and ending in no
event later than October 24, 1936, pending regrinding of
crystal for 1450 ke.
WIOD-WMBF — Isle of Dreams Broadcasting Corp., Miami, Fla. —
Granted special temporary authority to use old composite
transmitter for period beginning October 30, 1936, and end¬
ing in no event later than November 3, 1936, in order that
RCA Type 1-D transmitter may be moved to its new
location.
KPAC — Port Arthur College, Port Arthur, Tex.— Granted special
temporary authority to operate from 5 : 45 p. m. to 12 mid¬
night, CST, Friday, October 30, 1936, in order to broadcast
local high school football games.
WFBG — The Gable Broadcasting Co., Altoona, Pa. — Granted spe¬
cial temporary authority to operate simultaneously with
station WJAC from 11 p. m. to 12 midnight, EST, Monday
night, November 2, 1936, in order to broadcast the Demo¬
cratic Committee Grand National Rally.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted special temporary authority to operate from 5:45
p. m. to 10 p. m., CST, October 18, 22, 27 and 31, 1936
and from 5:15 p. m. to 10 p. m., CST, November 2, 1936,
in order to broadcast one hour paid political talk.
KOOS — Pacific Radio Corp., Marshfield, Ore.— Granted special
temporary authority to operate from 5:30 p. m. to 6 p. m.,
PST, October 17, 24, 31, 1936, and from 5 p. m. to 6 p. m.,
PST, November 7, 14, 21 and 28, 1936, in order to broadcast
football games; also from 5 p. m., November 3, 1936, to
1 a. m., PST, November 4, 1936, in order to broadcast elec¬
tion returns to the Coos Bay area. ,
WTBO — Associated Broadcasting Corp., Cumberland, Md. —
Granted special temporary authority to operate from 9 p. m.
to 10 p. m., EST, Wednesday, October 14, 1936, in order
to broadcast speech of President Roosevelt and Senator
Tydings.
WRJN — Racine Broadcasting Corp., Racine, Wis. — Granted spe¬
cial temporary authority to operate station without an
approved frequency monitor (waiver of Rule 145) for a
period not to exceed 30 days.
WCPO — Continental Radio Co., Cincinnati, Ohio. — Granted special
temporary authority to operate station without an approved
frequency monitor (waiver of Rule 145) for a period be¬
ginning October 15, 1935, and ending in no event later
than October 29, 1936.
KPAC — Port Arthur College, Port Arthur, Tex. — Granted special
temporary authority to operate from 5:45 p. m. to 12 mid¬
night, CST, Thursday, October IS, 1936, in order to broad¬
cast football games.
WCBD — WCBD, Inc., Waukegan, Ill. — Granted extension of spe¬
cial temporary authority to use studio located at Zion, Ill.,
as main studio, for period beginning October 21, 1936,
and ending in no event later than November 2, 1936.
KSTP — National Battery Broadcasting Co., St. Paul, Minn. — -
Granted special temporary authority to use the transmitter
of WLB for a period beginning November 1, 1936, and
ending in no event later than November 14, 1936, in order
to permit the removal and reinstallation of the KSTP
transmitter.
WLB — University of Minnesota, Minneapolis, Minn. — Granted
special temporary authority to broadcast the programs of
WLB over transmitter of WCAL during the period begin¬
ning November 1, 1936, and ending in no event later than
November 14, 1936.
WAPI — WAPI Broadcasting Corp., Birmingham, Ala. — Granted
special temporary authority to operate simultaneously with
station KVOO, using power of 1 KW, from 8:30 p. m. to
9 p. m., CST, Wednesday, October 14, 1936, in order to
broadcast Democratic Committee program.
KVOO — Southwestern Sales Corp., Tulsa, Okla. — Granted special
temporary authority to operate simultaneously with station
WAPI, using power of 1 KW, from 8:30 p. m. to 9 p. m.,
CST, Wednesday, October 14, 1936, in order to broadcast
Democratic Committee program.
KFRU — KFRU, Inc., Columbia, Mo. — Granted special temporary
authority to operate simultaneously with station WGBF,
with reduced power of 250 watts, from 8:45 p. m. to 9:30
p. m., CST, October 15, 1936, in order to broadcast the
National Republican Rally.
WGBF — Evansville on the Air, Inc., Evansville, Ind. — Granted
special temporary authority to operate simultaneously with
station KFRU, with reduced power of 250 watts, from
8:45 p. m. to 9:30 p. m., CST, October 15, 1936, to permit
KFRU to broadcast National Republican Rally.
WTEL— Foulkrod Radio Engineering Co., Philadelphia, Pa. —
Granted special temporary authority to operate station
without an approved frequency monitor (waiver of Rule
145) for a period not to exceed two weeks.
KSOO — Sioux Falls Broadcast Association, Inc., Sioux Falls, S. Dak.
—Granted special temporary authority to operate from
5:45 p. m. to 6:30 p. m., CST, October 15, 23, 31, and
7:45 p. m. to 9 p. m., CST, October 26 and 28, in order to
broadcast political speeches; also from 8:15 p. m. to 10
p. m., CST, October 20, 1936, in order to broadcast State
Democratic Rally in Sioux Falls.
WTBO — Associated Broadcasting Corp., Cumberland, Md. —
Granted special temporary authority to operate from 8:30
p. m. to 10 p. m., EST, October 31, 1936, in order to broad¬
cast National and Pennsylvania State Democratic Rally;
from 11 p. m. to 12 midnight, EST, November 2, 1936, in
order to broadcast National Democratic Rally; and from
8 p. m. to 12 midnight, EST, November 3, 1936, and from
12 midnight, EST, November 4, 1936, to 6 a. m., EST, in
order to broadcast election returns.
WMFF — Plattsburg Broadcasting Corp., Plattsburg, N. Y. —
Granted special temporary authority to operate from 9:30
p. m. to 10 p. m., EST, Tuesday, October 13, 1936, in order
to broadcast speech by Governor Lehman.
WSVA — Shenandoah Valley Broadcasting Corp., Harrisonburg, Va.
- — Granted special temporary authority to operate from 5
a. m. to 6 a. m., EST, on 550 kc., 500 watts, Sunday, October
18, 1936, in order to broadcast a special non-commercial DX
program.
WMAS — WMAS, Inc., Springfield, Mass. — Granted special tem¬
porary authority to operate station without plate voltmeter
for period not to exceed 30 days.
KPAC — Port Arthur College, Port Arthur, Tex. — Granted special
temporary authority to operate from 5:45 p. m. until 12
midnight on October 23, 1936, in order to broadcast local
high school football game.
WKAR — Michigan State College, East Lansing, Mich. — Granted
special temporary authority to rebroadcast Naval Observa¬
tory time signals over WKAR, provided station complies
with requirements of Naval Observatory station, for period
not to exceed 30 days.
KALB — Alexandria Broadcasting Co., Inc., Alexandria, La. —
Granted special temporary authority to operate station
without an approved frequency monitor (waiver of Rule
145) for a period beginning October 1, 1936, and ending
in no event later than October 30, 1936.
KGEK — Elmer G. Beehler, Sterling, Colo. — Granted special tem¬
porary authority to operate from 8:45 p. m. to 12 midnight,
EST, November 3, 1936, in order to broadcast the local
country election returns.
KSOO — Sioux Falls Broadcast Asso., Inc., Sioux Falls, S. Dak. —
Granted special temporary authority to operate from 7:45
to 8:45 p. m., CST, October 7, in order to broadcast a
political address by Hon. Wm. Lemke.
RATIFICATIONS
The Broadcast Division ratified the following acts authorized
on the dates shown:
KGFF — KGFF Broadcasting Co., Inc., Shawnee, Okla. — Granted
authority to extend test period 30 days from September 21,
1936. (Action taken 9/19.)
W8XEO — Capitol City Broadcasting, Lansing, Mich. — Granted
authority to operate as licensed on October 7, 9, 10, 12, 14,
1686
16, 17, 18, 19, 21, 23, 24, 25, 26, 28, 30, and November 2,
1936, to broadcast street interviews polling November elec¬
tion. (Action taken 10/6.)
KIIQ — KMTR Radio Corp., Los Angeles, Calif. — Granted au¬
thority to operate as licensed October 9 to broadcast dedi¬
catory services from Griffith Park, October 11 and 12, from
Southern Pacific train, Los Angeles to Colton; also October
12 to 19 from Los Angeles County Poor Farm. (Action
taken 10/7.)
WHER — Westinghouse Electric and Manufacturing Co., Chicopee
Falls, Mass. — Granted extension of authority to operate as
licensed until October 15 in connection with test flight by
Commander Hawks. (Action taken 10/6.)
W3XEL-W3XEM — WTIE Broadcasting Co., Philadelphia, Pa. —
Granted authority to operate as licensed October 12 to
broadcast program man in the street; October 13 to broad¬
cast program fire prevention day. (Action taken 10/10.)
W8XAZ — Buffalo Broadcasting Corp., Buffalo, N. Y— Granted
authority to operate as licensed October 12 to 20, inclusive,
to broadcast Man in Street program. (Action taken 10/10.)
W4XD-W4XMB— WPTF Radio Co., Raleigh, N. C.— Granted
authority to operate as licensed October 12 to 17, inclusive,
to broadcast North Carolina State Fair. (Action taken
10/10.)
WJEJ — Hagerstown Broadcasting Co., Hagerstown, Md. — Granted
extension of special temporary authority to operate with
50 watts power from local sunset to 11 p. m., EST, on
Tuesdays, Thursdays, Saturdays and Sundays during month
of October, pending compliance with Rule 131 on modifi¬
cation of license requesting this authority. (Action taken
10/6.)
KGDY — Voice of South Dakota, Huron, S. Dak. — Granted special
temporary authority to operate from 8 to 11 p. m., EST,
October 7, 21, 24, 29 and 30, November 2 and 3, 1936, to
broadcast political programs. (Action taken 10/6.)
W9XPE — WDZ Broadcasting Co., Tuscola, Ill. — Granted special
temporary authority to operate high frequency relay broad-
, cast transreceiver on 31100, 34600, 37600, 40600 kc., 10
watts, on October 9, 17, 31, and November 19, at Tuscola
High School football field for the purpose of relaying ac¬
counts of football games to nearest wire line to be broadcast
over station WDZ. (Action taken 10/8.)
WEMC — Westinghouse Electric and Manufacturing Co., Chicopee
Falls, Mass. — Granted extension of special temporary au¬
thority to operate portable-mobile (low frequency relay
broadcast) transmitter for period October 9 to October 15,
aboard Commander Hawk’s plane NR-1313, when flying
conditions warrant a flight to test said plane, for purpose of
broadcasting accounts of test flight over stations WBZ and
WBZA; frequencies 1666, 3022, 2102, 2758 kc., 15 watts.
(Action taken 10/8.)
WJAC — WJAC, Inc., Johnstown, Pa. — Granted special temporary
authority to operate simultaneously with WFBG from 9 to
9:30 p. m., EST, October 10, and from 9:30 to 10 p. m.,
EST, October 14, 1936, in order to broadcast speech by
President Roosevelt. (Action taken 10/10.)
WEST — Associated Broadcasters, Inc., Easton, Pa. — Granted spe¬
cial temporary authority to operate simultaneously with
WKBO from 9 to 9:30 p. m., EST, October 10, and from
9:30 to 10 p. m., EST, October 14, in order to broadcast a
Democratic national network program featuring speeches by
President Roosevelt. (Action taken 10/10.)
The Broadcast Division granted request of Southwest Broadcast¬
ing Co. for authority to take depositions in support of its applica¬
tion for a C. P. to erect a new station at La Junta, Colo., Docket
4077. (Action taken 10/10.)
The Broadcast Division granted the request of W. H. Marolf
for authority to take depositions in support of his application for
a C. P. for new station at Escanaba, Mich., Docket 3898. (Action
taken 10/6.)
The Broadcast Division waived requirements of Rule 104.6(b)
and permitted the filing by the United States Broadcasting Corp.,
the Voice of Brooklyn, Inc., and Kings Broadcasting Corp. of
answers to the appearance of the New England Radio Corp. in
connection with the hearing on that company’s application for
C. P.; Docket 3480. (Action taken 10/6.)
The Broadcast Division denied the petition of Leon S. Packard,
Louis H. Stebbins and Alden C. Packard, d/b as Valley Broad¬
casting Co., Pomona, Calif., requesting that the Commission re¬
mand to hearing docket for further hearing its application for
C. P., Docket 3159. (Action taken 10/7.)
KIDO — Frank L. Hill and C. G. Phillips, d/b as Boise Broadcast
Station, Boise, Idaho. — Granted extension of test period
for 30 days from October 2, 1936, (Action taken 10/1.)
WJEP — The Stromberg Carlson Telephone NFG. Co., Rochester,
N. Y. — Granted authority to operate as licensed October 5
to 10, 1936, inclusive, for relay broadcast of WHAM special
events in connection with fire prevention campaign in
Rochester. (Action taken 9/29.)
KABF— James McClatchy Company, Sacramento, Calif. — Granted
authority to operate as licensed October 1 to 15, 1936, in¬
clusive, for relay broadcast of orchestra music from Twin-
gardens to Station KFBK nightly. (Action taken 9/29.)
KLZ — KLZ Broadcasting Co., Denver, Colo. — Granted special
temporary authority to operate Western Electric Type
D-96021 transmitter as specified in license dated February 8,
1936, at S. Pecos and Jewell Sts. (outside city limits),
Denver, Colo., as main transmitter for period not to exceed
30 days, due to severe snow storm paralyzing power com¬
pany which serves 5 KW transmitter. (Action taken 9/28.)
WEST— Associated Broadcasters, Inc., Easton, Pa. — Granted spe¬
cial temporary authority to operate simultaneously with
station WKBO from 9 p. m. to 9:30 p. m., EST, September
29; from 8:30 p. m. to 9:30 p. m., EST, October 1; and
from 9:15 p. m. to 10 p. m., EST, October 30, 1936, in
order to broadcast speeches by President Roosevelt and
Governor Earle of Pennsylvania and a Republican Party
banquet. (Action taken 9/29.)
KMA — May Seed & Nursery Co., Shenandoah, Iowa. — Granted
extension of special temporary authority to operate un¬
limited time for a period beginning 3 a. m., EST, October 1,
1936, and ending in no event later than October 30, 1936,
pending completion of construction as specified in applica¬
tion, file No. B4-MP-346, in order to comply with Rule
131. (Action taken 9/30.)
KGU — Marion A. Mulrony and Advertiser Publishing Co., Ltd.,
Honolulu, Hawaii. — Granted special temporary authority to
operate from 11 p. m. to 12:30 a. m., local standard time,
on the nights of October 2 and 3, 1936, and from 10:45
p. m. to 12:15 a. m., local standard time, on nights of
November 2 and 3, 1936, in order to broadcast election
returns and rallies. (Action taken 9/30.)
WEMC — Westinghouse Electric and Manufacturing Co., Chicopee
Falls, Mass.— Granted special temporary authority to op¬
erate portable-mobile (low frequency relay broadcast)
transmitter for period beginning October 1, 1936, and end¬
ing in no event later than October 8, 1936, aboard Com¬
mander Frank Hawks’ plane NR-1313 when flying condi¬
tions warrant a flight to test said plane for the purpose of
broadcasting accounts of this test flight over radio stations
WBZ and WBZA. (Action taken 9/30.)
WHDF— The Upper Michigan Broadcasting Co., Calumet, Mich. —
Granted special temporary authority to operate from 6:30
p. m. to 10:30 p. m., CST, October 5, 1936, in order to
broadcast address by Senator A. H. Vandenberg, and on
October 14, 1936, in order to broadcast address by James
Thompson. (Action taken 10/1.)
KAST — Abraham Shapiro, Astoria, Ore. — Granted authority for
voluntary assignment of license to the Astoria Broadcasting
Co. (Action taken 10/2.)
WJRD — James R. Doss, Jr., Tuscaloosa, Ala. — Granted modifica¬
tion of C. P. Approval of transmitter site at Greensboro
Rd. opposite Jug Factory RD., Tuscaloosa, Ala.; studio
site in basement of First National Bank Bldg., corner Greens¬
boro Rd. and University Ave., Tuscaloosa, Ala.; vertical
radiator provided tower is marked in accordance with Rule
131 (d) ; and new equipment. (Action taken 10/2.)
The Broadcast Division granted the request of the Advertiser
Publisher Company, Ltd., Honolulu, Hawaii, for an order to take
depositions in support of its application for construction permit,
File No. B-P-1040, Docket No. 3970. (Action taken 10/2.)
The Broadcast Division granted the petition filed on behalf of
the Iowa Broadcasting Company for an order to take depositions
in connection with the hearing on the application of Stanley Reid
and Charles Withnell Bogel, Jr., d/b as the Rapids Broadcasting
Company, for construction permit to erect a new broadcast station
at Cedar Rapids, Iowa, Docket No. 3392. (Action taken 10/1.)
The Broadcast Division granted the request of the Independence
Broadcasting Company (WHAT), Philadelphia, Pa., for an order
to take depositions in support of its application for construction
permit, File No. B2-P-904, Docket No. 3798. (Action taken 9/28.)
The Broadcast Division granted the request of the Voice of
1687
Corsicana Association for an order to take depositions in support
of its application for a construction permit for the establishment
of a radio station at Corsicana, Texas, File No. B3-P-921, Docket
No. 405S. (Action taken 9/25.)
The Broadcast Division granted the request of Fred J. Hart for
an order to take depositions in support of his application for con¬
struction permit for the establishment of a broadcast station at
Honolulu, Hawaii, File No. B-P-1119, Docket No. 3983. (Action
taken 9/28.)
The Broadcast Division granted the motion of Packard, Stebbins
and Packard, d/b as Valley Broadcasting Company, requesting an
extension of time within which to file exceptions to Examiner’s
Report No. 1-286, and directed that the applicants be granted
until October 7, 1936, within which to file said exceptions. (Action
taken 9/23.)
The Broadcast Division granted the request of the Interstate
Broadcasting Corporation (KLO), Ogden, Utah, that the oral argu¬
ment on its application, Docket No. 2976, now scheduled for
October 1, 1936, be continued until after November 5, 1936.
(Action taken 9/28.)
The Broadcast Division granted the motion of Harmon LeRoy
Stevens and Herman LeRoy Stevens, d/b as the Port Huron
Broadcasting Co., Port Huron, Mich., to remand their application
for C. P. to construct new station to operate on 1370 kc., 250
watts daytime, site to be determined, to the hearing docket for
further hearing. (Action taken 9/30.)
The Broadcast Division denied the motion filed by the Inde¬
pendence Broadcasting Company (WHAT), requesting that the
Commission withhold its decision on the application of Eastern
States Broadcasting Corporation, File No. Bl-P-529, Docket No.
3012, until the Commission has heard and determined the issues
raised by the application of the petitioner under File No. B2-P-
904. (Action taken 9/30.)
WAYX — E. F. Sapp and S. F. Sapp, d/b as Waycross Broad¬
casting Co., Albany, Ga. — Granted extension of equipment
test period from Oct. 3 to 7, 1936, inch, and Oct. 15 to
19, 1936, inch (Action taken 10-2.)
W2XKI — National Broadcasting Co., Inc., New York, N. Y. —
Granted extension of a test period for 30 days beginning
Sept. 17, 1936. (Action taken 9-26.)
W9XNW-W9XNX— WHBY, Inc., Green Bay, Wis. — Granted
authority to extend test period for 30 days beginning Oct.
2, 1936. (Action taken 9-26.)
WHER — Westinghouse Electric & Mftr. Co., Chicopee Falls, Mass.
— Granted authority to operate low frequency relay broad¬
cast station WHER at intermittent intervals between Oct. 1
and Oct. 8, 1936, in connection with the flight of Commander
Frank Hawks to test the new high powered speed plane
NR-1313; frequencies and power to be used as licensed.
(Action taken 9-26.)
MISCELLANEOUS
NEW — Ex. Rep. No. 1-103: Pacific Acceptance Corp., San Diego,
Cal.— Effective date in Docket 2968, posponed from Sept.
22, 1936 to Oct. 20, 1936.
CKLW — Essex Broadcasters, Inc., Detroit, Mich. (Licensee of
Station CKLW, Windsor, Canada) — Denied temporary au¬
thority to broadcast football games of the Detroit Lions,
Oct. 11, 18 and 25, and Nov. 1, 8, 15, 22, 26 and 29, and
Dec. 6, 1936.
WIP — Ex. Rep. No. 1-187 in part: Penna. Broadcasting Co., Phila¬
delphia, Pa. — The Broadcast Division, on September 22,
1936, reconsidered its action of July 2, 1936, in granting
modification of license to increase daytime power only,
from 500 watts to 1 KW, 610 kc., unlimited time, and
directed that application be granted for unlimited time.
Effective Sept. 22, 1936. The Broadcast Division directed
that an order be entered accordingly and forwarded to all
interested parties.
NEW — George P. Allison and Thomas R. Waters, Jr., d/b as
Skagit Broadcasting Association, Whitney, Wash. — Permitted
to file appearance and statement of desire to be heard in
connection with his application for new broadcast station
at Whitney, Wash., to operate on 1420 kc., 100 watts, un¬
limited. Hearing set for Nov. 19, 1936.
NEW — Ted R. Woodward — Permitted to file answer to be part of
record as respondent in hearing of application of Lancaster
& Birdwell for new station at Johnson City, Tenn., to
operate on 1200 kc., 100 watts night, 250 LS, unlimited time.
KGIW — Leonard E. Wilson, Alamosa, Colo. — Permitted to file
answer to become part of the record as a respondent at
hearing of application of Mile High Radio Corp. for new
station at Denver, Colo, to operate on 1216 kc., 100 watts
night, 250 watts day, unlimited time. Hearing scheduled
for Nov. 18, 1936.
WTAL — Florida Capitol Broadcasters, Inc., Tallahassee, Fla. —
Permitted to file answer to be made a part of the record as
respondent to the hearing of the application of the Metrop¬
olis Company, for a permit to erect a new broadcast sta¬
tion at Jacksonville, Fla., to operate on 1310 kc., 100 watts,
unlimited time.
NEW — Southwest Broadcasting Co. — Denied petition asking Com¬
mission to reconsider action in setting for hearing applica¬
tion to erect new broadcast station at La Junta, Colo, to
operate on 1370 kc., 100 watts unlimited time. Hearing
scheduled for Oct. 30, 1936.
NEW — Stanley Reid and Withnell Boegel, Jr., d/b as Rapids
Broadcasting Co., Cedar Rapids, Iowa — Denied petition
filed for partial cancellation of order to take depositions
issued to Iowa Broadcasting Co. and sustained demurrer
filed on behalf of Iowa Broadcasting Co. Granted petition
of Stanley Reid, et al., for authority to take depositions in
connection with their application for new station at Cedar
Rapids to operate on 1310 kc., 100 watts, unlimited time.
Granted petition filed for continuance of date of further
hearing now scheduled for Oct. 26, 1936.
NEW — Escanaba Daily Press Co., Escanaba, Mich. — Granted con¬
tinuance of hearing scheduled for October 23, 1936, until
the last week in November, 1936, on application of Esca¬
naba Daily Press Co. for C. P. to erect new broadcast
station at Escanaba, Mich., to operate on 1500 kc., 100
watts, daytime only. W. H. Marolf has on file application
for authority to erect a broadcast station at Escanaba to
operate under a similar assignment. Both applications are
scheduled to be heard at same time and counsel for Mr.
Marolf has agreed to the continuance asked by Escanaba
Daily Press Co.
KFPM — Dave Ablowich, t/a The New Furniture Co., Greenville,
Tex. — Denied petition of Dave Ablowich, t/a The New
Furniture Company, and of the Voice of Greenville, Inc.,
to reconsider and grant renewal of license of KFPM and as¬
signment of the license to the Voice of Greenville, Inc.,
without hearing. License of KFPM was voluntarily sur¬
rendered by licensee and Commission accepted the surrender
on April 2, 1935 and cancelled the license. On April 8,
1935, applications were filed for renewal of license and for
assignment. Application for C. P. was filed (in the name
of the assignee) requesting authority to install new equip¬
ment, change frequency from 1310 kc. to 1420 kc., in¬
crease power from 15 watts to 100 watts and change time
of operation from specified hours to daytime. Hearings
on these applications are now scheduled for October 20,
1936.
WSPD — Toledo Broadcasting Co., Toledo, Ohio — Granted peti¬
tion to intervene in proceeding upon application of L.
Martin Courtney for a C. P. to erect a new broadcast
station at Toledo, Ohio to operate on 1420 kc., 100 watts,
unlimited time, hearing on which is scheduled for Novem¬
ber 25, 1936.
NEW— John S. Braum, Waco, Tex. — Granted petition requesting
the Commission to accept his written appearance and state-'
ment of desire to be heard in his application for C. P. to
establish broadcast station at Waco, Texas to operate on
1500 kc., 100 watts daytime only. Also granted respondents
an additional 10 days within which to file their answers.
Hearing on application is scheduled for November 11, 1936.
NEW— Earle Yates, Las Cruces, N. M. — Granted 10 days within
which to file amended application for C. P. to erect broad¬
casting station at Las Cruces, N. M. Original application
was for facilities, 930 kc., 1 KW, daytime only. To amend
application so as to seek facilities, 1500 kc., 100 watts
night, 250 watts day, unlimited time.
KNOW — KUT Broadcasting Co., Austin, Tex. — Granted petition
to intervene in hearing of application of State Capitol
Broadcasting Association for C. P. to erect broadcasting
station at Austin, Texas to operate on 1120 kc., 500 watts
night, 1 KW day, specified hours.
WMEX — Northern Corporation, Boston, Mass. — Granted petition
to intervene in hearing on application of Bay State Broad¬
casting Corp. (WAAB) Boston, Mass, for modification of
License so as to operate on 1410 kc., 1 KW, unlimited time.
1688
KGFX — Red River Broadcasting Co., Inc., Moorhead, Minn. —
Granted regular renewal of license. U. S. Court of Appeals
for D. C. has issued mandate affirming Commission’s action
in authorizing removal of station from Moorhead to Du¬
luth, Minn. Station operates on 1500 kc., 100 watts, un¬
limited time.
NEW — Richard M. Casto, Johnson City, Tenn. — Granted petition
to intervene in hearnig of application of W, Hanes Lan¬
caster and J. W. Birdwell, d/b as Johnson City Broadcast¬
ing Co., Johnson City, Tenn., for C. P. to erect new broad¬
casting station at Johnson City, Tenn., to operate on 1200
kc., 100 watts night, 250 watts day, unlimited time.
The Broadcast Division granted authority to J. L. Statler, M.D.,
d/b as Baker Hospital, to take depositions on Oct. 23, 1936, in re
the application of J. L. Statler, M.D., d/b as Baker Hospital, for
authority to transfer programs to stations located in Canada and
Mexico. Docket 3497.
The Broadcast Division granted Edwin A. Kraft authority to
take depositions in re the application of Edwin A. Kraft, Juneau,
Alaska, Docket 4048, on November 2, 1936.
The Broadcast Division granted The Golden Empire Broad¬
casting Co. (KHSL), authority to take depositions on Oct. 21,
1936, in re application of Golden Empire Broadcasting Co., Chico,
Cal. for modification of license. Docket 3291.
The Broadcast Division granted request of the Ashvelle, N. C.
Daily News for authority to take depositions in re their applica¬
tion for C. P. for a new station to operate on 1370 kc., 100 watts,
unlimited time. Docket 4002, on Oct. 19, 1936.
WGPC — Americus Broadcasting Corp., Albany, Ga. — Permitted to
file answer to become part of the record as respondent at
hearing of application of H. Wimpy, to erect a new station
at Albany, Ga., to operate on 1420 kc., 100 watts night,
250 watts day, facilities of WGPC.
W. Hanes Lancaster & J. W. Birdwell, d/b as Johnson City Broad¬
casting Co., Johnson City, Tenn. — Granted permission to
take depositions in re application for new radio station at
Johnson City, Tenn.
ORAL ARGUMENTS
NEW — Ex. Rep. No. 1-279: Eastern States Broadcasting Corp.,
Bridgeton, N. J. — Granted request for Oral Argument. To
be held December 17, 1936.
NEW — Ex. Rep. No. 1-283: Gomer Thomas, Bellingham, Wash. —
Granted request for Oral Argument. To be held January 7,
1937.
NEW — Ex. Rep. No. 1-251: Voice of Marshall Assn., Marshall,
Tex. — Oral Argument scheduled for November 6, 1936, post¬
poned to January 7, 1937.
APPLICATIONS RECEIVED
First Zone
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass.— Construction permit for a new high frequency
relay station on 31100, 34600, 37600, 40600 kc., 500 watts
power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — Construction permit for a new high frequency
relay broadcast station on 31100, 34600, 37600, 40600 kc.,
500 watts power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass.— Construction permit for a new high frequency
relay broadcast station on 31100, 34600, 37600, 40600 kc.,
500 watts power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — Construction permit for a new high frequency
relay broadcast station on 31100, 34600, 37600, 40600 kc.,
50 watts power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
NEW— Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — Construction permit for a new high frequency
relay broadcast station on 31100, 34600, 37600, 40600 kc.,
SO watts power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
NEW — Hearst Radio, Inc., Washington, D. C. — Construction per-
1230 mit to erect a new broadcast station to be operated on
1310 kc., 100 watts power night and 250 watts day, un¬
limited time. Facilities of WOL, contingent upon granting
of WOL’s application to change frequency to 1230 kc.
WSAY— Brown Radio Service & Laboratory (Gordon P. Brown,
1210 owner), Rochester, N. Y. — License to cover construction
permit (Bl-P-1180) for new station on 1210 kc., 100 watts
power, daytime operation.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — Construction permit for a new high frequency
relay broadcast station on 31100, 34600, 37600, 40600 kc.,
50 watts power.
NEW — Westinghouse Electric & Manufacturing Co., Chicopee
Falls, Mass. — License to cover above.
Second Zone
WDBJ — Times-World Corporation, Roanoke, Va. — Modification
930 of license to change power from 1 KW night, 5 KW day,
to 5 KW night and day.
WBLK — The Exponent Co., Clarksburg, W. Va. — Modification of
1370 construction permit (B2-P-1127) for a new station, request¬
ing changes in transmitting equipment, approval of vertical
antenna, and transmitter site at 5th and West Virginia Ave.,
Clarksburg, W. Va.
WSMK — WSMK, Inc., Dayton, Ohio. — Authority to install auto-
1380 matic frequency control.
WBCM — James E. Davidson, Bay City, Mich. — Modification of
1410 license to change power from 500 watts night and day to
500 watts night and 1 KW daytime.
Third Zone
KARK — Arkansas Radio & Equipment Co., Inc., Little Rock, Ark.
890 — Modification of construction permit (B3-P-197) for new
equipment, increase in power, and move of transmitter,
requesting authority to make changes in power from 500
watts night and 1 KW day to 1 KW night and day.
KPRC — Houston Printing Corp., Houston, Tex. — Modification of
920 license to increase power from 1 KW night and 5 KW day
to 5 KW day and night. Amended to change name from
Houston Printing Co. to Houston Printing Corp.
NEW — St. Petersburg Chamber of Commerce, St. Petersburg, Fla.
1050 —Construction permit to erect a new broadcast station to
be operated on 1050 kc., 5 KW, limited time.
NEW- — The Metropolis Co., Jacksonville, Fla. — Construction per-
1290 mit to erect a new broadcast station to be operated on
1310 kc., 100 watts power, unlimited time. Amended to
change frequency from 1310 kc., to 1290 kc., power from
100 to 250 watts, and make changes in antenna.
KTSM— Tri-State Broadcasting Co., Inc., El Paso, Tex. — Au-
1310 thority to install automatic frequency control.
KRRV — Red River Valley Broadcasting Corp., Sherman, Tex-
1310 License to cover construction permit (B3-P-999) as modified
for new station on 1310 kc., 100 watts power, daytime
operation.
NEW — J. H. Allison, Rhea Howard and B. D. Donnell, d/b as
1380 West Texas Broadcasting Co., Wichita Falls, Tex. — Con¬
struction permit to erect a new broadcast station to be
operated on 1380 kc., 1 KW power, unlimited time, using
directional antenna at night.
NEW — H. A. Hamilton, Spartanburg, S. C. — Construction permit
1420 for a new broadcast station to be operated on 1420 kc.,
100 watts night and 250 watts day power, unlimited time.
Fourth Zone
WIND — Johnson Kennedy Radio Corporation, Gary, Ind. — Modi-
560 fication of license to change power from 1 KW night, 5 KW
day, to 5 KW day and night.
WHA — University of Wisconsin, Madison, Wis. — License to cover
9401 construction permit (B4-P-887) for equipment changes and
increase in power.
KSOO — Sioux Falls Broadcast Association, Inc., Sioux Falls, S. Dak.
1110 — Authority to make changes in automatic frequency con¬
trol apparatus.
KFJB — Marshall Electric Co., Inc., Marshalltown, Iowa. — Modifi-
1200 cation of construction permit (B4-P-1054) to make equip¬
ment changes, install vertical antenna, move transmitter,
1689
requesting further changes in equipment and extension of
commencement and completion dates from 6-3-36 and 12-3-
36, respectively, to 30 days after grant and 60 days there¬
after.
WHLB — Head of the Lakes Broadcasting Co., Virginia, Minn. —
1370 License to cover construction permit (B4-P-329) for a new
station.
NEW — Aberdeen News Co., Aberdeen, S. Dak. — Construction per-
1390 mit to erect a new station to be operated on 1390 kc.,
1 KW power, unlimited time.
WROK — Rockford Broadcasters, Inc., Rockford, Ill. — Construc-
1410 tion permit to make changes in equipment, install vertical
antenna, increase day power from 500 watts to 1 KW.
NEW — Curtis Radiocasting Corp., Indianapolis, Ind. — Construc-
1500 tion permit to erect a new station to be operated on 1500 kc.,
100 watts night, 250 watts day, share with WKBV (request
facilities of WKBV, unused or equal division of time).
Amended: Change requested time from shares with WKBV
to specified hours (time not used by WKBV).
Fifth Zone
KFPY — Symons Broadcasting Co., Spokane, Wash. — License to
890 cover construction permit (B5-P-332) as modified for new
equipment, increase in power, move of transmitter.
KFVD — Standard Broadcasting Company, Los Angeles, Calif. —
1000 Construction permit to make changes in equipment, install
directional antenna, increase power from 250 watts to 1
KW. Amended to change type of antenna from directional
to vertical.
KSL — Radio Service Corporation of Utah, Salt Lake City, Utah. —
1130 Construction permit to make changes in transmitting equip¬
ment, install vertical antenna, and increase power from 50
to 500 kilowatts.
NEW— Mile High Radio Corp., Denver, Colo. — Construction per-
1210 mit to erect a new station to be operated on 1420 kc., 100
watts power, unlimited time. Amended to change frequency
from 1420 kc. to 1210 kc., power from 100 watts to 100
watts night and 250 watts day.
KRKO — Lee E. Mudgett, Everett, Wash. — Construction permit to
1370 install new transmitter and vertical antenna, change fre¬
quency from 1370 kc. to 1420 kc., power from 50 watts to
100 watts night and 250 watts day, time from share with
KVL to unlimited, move studio and transmitter from 2814
Rucker Ave., Everett, Wash., to site to be determined,
Everett, Wash.
KUJ — KUJ, Inc., Walla Walla, Wash.— Authority to make changes
1370 in automatic frequency control apparatus.
KWYO — Big Horn Broadcasting Company, Inc., Sheridan, Wyo.—
1370 License to cover construction permit (B5-P-1114) for equip¬
ment changes, install vertical antenna, increase power, and
move transmitter.
KOY — Nielsen Radio & Sporting Goods Co., Phoenix, Ariz. — Vol-
1390 untary assignment of license from Nielsen Radio & Sporting
Goods Company to Salt River Valley Broadcasting Com¬
pany.
NEW — Harold M. Finley and Mrs. Eloise Finlay, La Grande, Ore.
1420 — Construction permit for a new station to be operated on
1500 kc., 100 watts power, daytime operation. Amended:
Change requested power from 100 watts to 100 watts night
and 250 watts day, frequency from 1500 kc. to 1420 kc.,
time from daytime to unlimited.
KVOE — Voice of the Orange Empire, Inc., Ltd., Santa Ana, Calif.
1500 — License to cover construction permit (B5-P-912) for
changes in equipment and move of transmitter.
1690
The National Association of Broadcasters
NATIONAL PRESS BUILDING ..... WASHINGTON, D. C.
JAMES W. BALDWIN, M anaging Director
NAB REPORTS .....
Copyright. 1936. The National Association of Broadcasters
Vol. 4 - - No. 59
OCT. 15, 1936
Further Testimony at FCC Allocation
Hearing
A number of witnesses appeared today before the Federal Com¬
munications Commission at the allocation hearing and at adjourn¬
ment Judge Sykes, chairman, announced that tomorrow morning
engineers for the Columbia Broadcasting System would begin their
testimony. He stated that at the conclusion of Friday’s hearing
adjournment would be taken until next Monday. There is no
definite indication as to how long the hearings will continue but
it is not expected that they will run for more than two or three
days next week.
Among witnesses heard today were: William B. Way, Vice Presi¬
dent and General Manager of KVOO, Tulsa, Okla. ; D. A. Read,
Station WTIC, Hartford, Conn.; Charles W. Horn and Dr. C. B.
Jolliffe, engineers, appearing on behalf of the National Broad¬
casting Company.
William B. Way
Mr. Way during the course of his testimony told the Commission
that his station believes that it is inadvisable for clear channels
to be forced into sharing time arrangements and requested that
stations of that type be allowed to utilize “their equipment, justify
their investments, and above all, to protect the consumer in his
right to uninterrupted reception.”
Mr. Way said:
Our principals own and operate radio station KVOO in Tulsa,
Okla., which is a cleared channel sharing time with station WAPI
of Birmingham, Ala. In our testimony before this Honorable
Commission, in keeping with the informal hearing docket No.
4063, we desire to present our contentions with respect to certain
phases of the present allocation and future allocation of radio fre¬
quencies.
We are of the opinion that the present allocation of radio fre¬
quencies, as now maintained and supervised under and by virtue
of the authority of the Federal Communications Commission, with
respect to radio broadcasting, in an effort to serve the public
interest, convenience and necessity, is inadequate to keep pace with
the developments which have been brought about by the recent
past, but which must eventually evolutionize radio broadcasting.
As brought out in the statement of Honorable John W. Kendall,
associate counsel of certain licensees on shared time cleared channel
assignments, KVOO-WAPI, WOWO-WWVA and KEX-KOB, have
been permitted to operate simultaneously during daytime hours.
KVOO, however, did not appear with the group above mentioned
because we felt that our station stands in a unique position as
compared with the other four sharing time stations operating
simultaneously during daytime hours. The importance of this
peculiar and difficult situation was in effect recognized by the
Clear Channel Group when Mr. Edwin W. Craig, chairman of the
group, stated, “Such, for example, is the case where two clear
channel stations are dividing time and are located at substantial
distances from each other. We can readily appreciate and sym¬
pathize with the economic hardship imposed on them.”
Experiments
Many years of experiment have been consumed by all phases of
the radio broadcasting industry, in an effort to determine the
reaction of the public to the utility of radio. To a great degree,
natural and man-made interferences have been conquered as a
result of surveys and technical improvements in reception and
transmission. While we have not made a comprehensive survey
of certain economic problems which might indirectly bear upon
the ultimate solution, nevertheless, our research has disclosed that
very little attention has generally been given by the industry as
a whole to the consumer or “listener-in” as an indispensable factor
in the equation which proves to us that radio broadcasting must
have clear channels in the true sense of the term. We are of the
opinion that the consumer’s place in the industry is of equal
importance with that of the advertiser. A careful study of the
periodicals devoted to radio broadcasting convinces us that the
attention given to the commercial picture far outweighs the con¬
sideration due to the consumer. The consumer’s annual investment
in new receiving equipment in order to obtain the maximum recep¬
tion, together with the consumer’s cost of operation of his receiving
set, is of major importance, since without the consumer, radio
broadcasting would have no outlet. The consumer, then, must
be considered in connection with the retention of clear channel
stations. This consideration would yield to the consumer the
greatest utility of his receiving set prior to the obsolescence period
which is bound to come with respect to his receiving equipment;
especially is this true when we consider the future developments
which are certain in radio broadcasting. When television is added,
the situation will again be different, but for the moment radio
broadcasting is in effect a vocal art and as such is undergoing
rapid development. I think that in principle, the use of radio
should increase public enlightenment, encourage responsible citizen¬
ship, and enhance interest, intelligence and tolerance in our world
of today.
Proposition No. 1
The retention of “Clear Channel Stations” as defined in
Section 72 of the Federal Communications Commission Rules
and Regulations, with certain exceptions as may be necessary
to provide the millions of consumers in America with a maxi¬
mum of service.
In this connection we recommend reallocation of a sufficient
number of stations in such a manner that east-west duplication
will be secured. This we believe is necessary in order to relieve
the allocation congestion in the center of the country.
Proposition No. 2
Power increases on Regional and Local stations, but with
less protection to their secondary coverage; by Regional sta¬
tions we mean “regional station” as defined under Rules and
Regulations of the Commission, section 73, to-wit: A station
licensed to operate simultaneously with one or more stations
assigned to the same frequency designated for such use, and
with an authorized power of not less than 250 watts nor more
than 1,000 watts at night, and not more than 2,500 watts
during daytime. By “local station” we mean, as defined in
section 74 of said rules, to-wit: A station licensed to operate
with other stations assigned to the same frequency designated
for such use, and with an authorized power of 100 watts at
night and not more than 250 watts during the daytime.
It is our opinion that, by giving less protection to secondary
coverage, the result would be considerable further duplication in
the stations of each of the classifications listed, namely, regional
and local.
1691
Proposition No. 3
The utmost of service, efficiency, utility and convenience
should be maintained on all radio stations, with the proper
preservation of clear channels in order to meet national
emergencies.
It is our belief that in the event of a national emergency, such
as war, all radio facilities, broadcasting, point to point, amateur,
police, etc., might be subjected to governmental service. This
should make it imperative that the United States take advantage
of all technical advances to have available the most efficient mass
communications system possible. This is especially important in
view of the fact that neighboring countries may not be, in fact
have not been, limited to a maximum of SO kilowatts power. We
have no assurance that nearby high-power stations will not be
built and operated in such manner as to deliver a comparatively
usable signal to a large portion of the United States, blanketing
or making useless some of our most consistently serviceable chan¬
nels. These usable signals from foreign stations would create a
grave potential propaganda hazard. We should therefore take every
reasonable advantage of technical progress, through private initia¬
tive, to build for our national physical and morale protection the
most efficient broadcasting transmission system of which our
nation is capable; a system on a par with the technical advances
we have made in all branches of science and industry.
Proposition No. 4
Immediate steps should be taken to eliminate the necessity
of stations sharing time on clear channels.
We are of the opinion that there should be a change in the present
policy of allowing clear channels to be operated as sharing time
channels. According to section 79 of the Rules and Regulations
of the Federal Communications Commission, Part III, the term
“sharing time station” means “a station, the operating hours of
which are so restricted by the station license as to require a divi¬
sion of time with one or more other stations using the same fre¬
quency in the same geographical area.”
It has been our uniform experience that the consumer is con¬
stantly complaining because of his inability to have what we choose
to call constancy of radio convenience.
To illustrate our proposition, we must necessarily be governed
by our own experience, which, in our opinion, is largely true where
“sharing time” situations exist; for example:
KVOO at Tulsa, Oklahoma, divides time with WAPI, in that
on Monday, Tuesday and Wednesday KVOO goes off the air after
9:00 P.M.; Thursday, Friday and Saturday in October, KVOO
goes off the air from 5:45 P.M. to 9:00 P.M. and on Sunday off
at 8:15 P.M. KVOO is a station with operating power of 25,000
watts, on 1140 kilocycles, whereas WAPI at Birmingham, Alabama,
has an operating power of 5000 watts, on 1140 kilocycles, which
divides night time with KVOO as heretofore pointed out.
They both are designated as operating on a nationally cleared
channel. The consumer or “tuner-in” does not take time to become
fully informed as to why this condition exists, nor as a layman
would he understand the situation. Most consumers are not able
to grasp the times of operation and silence of stations. They are
interested in tuning in on their favorite station and they expect an
uninterrupted reception. We have found, by our contact with our
listeners, and by reason of numerous surveys which have been made,
that there is a tendency for the consumer to tune his receiving set
to his favorite radio station for his evening radio broadcasting
reception.
Case of KVOO
In the case of KVOO, a specific example of what we term inter¬
rupted reception is illustrated by the broadcast of the Fleishman
Yeast Hour, which features Rudy Vallee. The consumer in the
coverage area of KVOO turns his dial to 1140 kilocycles at 6:00
P.M., to enjoy an hour of one of the oustanding programs on the
air. At exactly 6:30, he hears a station announcement, advising him
that KVOO is signing off until 9:00 P.M. At the time of this
announcement, the Fleishman hour is only one-half completed.
The listener’s clear, uninterrupted reception is immediately blocked,
and he is forced to go prospecting across the band, in an effort to
retrieve the program to which he was listening. He then endeavors
to pick up the program over some other station with less favorable
reception as a result of either man-made or natural interferences.
This illustration does not have a hypothetical origin, since we
receive complaint after complaint, wanting to know why reception
is interrupted over KVOO, but nevertheless KVOO, as well as
WAPI, is designated as a high powered clear channel station, which,
of course, is in name only.
We also direct your attention to the fact that, where a sharing
time station is forced off the air, as illustrated above, the consumer
rarely returns to the station which has signed off, for the remainder
of his radio reception for the evening; however, if he should do so,
in radio broadcasting parlance, the renewed transmission is “cold”
to the listener.
It can be seen, therefore, that where clear channel stations operate
on what is known as sharing time as defined above, that there will
naturally be created, from the evils of the system, an antagonized
and dissatisfied consumer. There are many other matters which
naturally affect the public service, necessity, and convenience by
reason of the present sharing time arrangement of allocation on
clear channels.
Economic Questions
One of the major economic questions deserving careful considera¬
tion in connection with sharing time stations on clear channels is
the operating cost to the effectual station. The original investment
and the actual operation of the station are substantially the same
when that station is located in a sparsely settled area or when a
similar station is located in a heavily populated area, and this
would hold true to a great extent where the station located in a
heavily populated area operates on full time and the other station
located in a sparsely populated area operates on a sharing time
basis.
We have found that on account of being on the air only part
of the time, our program expense is substantially as great, even
greater than a station in continuous operation, as we need just as
many announcers and just as much paid talent available, but can
only utilize a part of their services. Of course, our power bill will
be somewhat less, although we must have just the same connected
load as a transmitter operating on full time, and furthermore, being
on a clear channel we must maintain the same high standard of pro¬
gram service as any full time station on a clear channel. Our depre¬
ciation item, our engineering costs, and other costs are substantially
the same.
Speaking entirely of our own situation, records on file with the
Commission will show that since 1930 this sharing time clear
channel station has operated at a loss and has endeavored to render
high class service, and has in fact done so strictly as a communica¬
tion company and not as a subsidiary of any other enterprise.
Through all of the period we have continuously improved our pro¬
gram service and equipment so that even with all of the losses
sustained we have still been willing and financially able to improve
our service to the listeners. Considering the enormous investment
of our company we believe that KVOO, or any other sharing time
station similarly situated, should be given an opportunity to at
least recover its investment and off-set depreciation charges by
being permitted to operate as a full time station in the true sense
of the term. In this connection KVOO has a 50 kilowatt Western
Electric transmitter, and the total investment is in excess of
$300,000.
Summary
Summarizing, we direct this Honorable Commission’s attention
to the fact that our section of the country has been referred to in
the past, by certain spokesmen in radio circles, as the hinterland
of the United States, and said statement has doubtless been
prompted by ignorance of existing conditions in what we choose
to term the area with the most prolific opportunities in radio
broadcasting. The Midwest, from Ohio to Colorado, is the radio
center of the United States, Tulsa being almost in the geographical
center.
Without the uniform rules and regulations heretofore adopted by
the Federal Communications Commission, detrimental policies and
harmful practices would result; therefore, we feel that the propo¬
sitions we have herein submitted will be of assistance to this Honor¬
able Commission in determining that it is inadvisable for clear
channels to be forced into sharing time arrangements. We hope
that our suggestions will assist this Honorable Commission in its
policy of serving the public interest, convenience and necessity, and
therefore give to the affected stations an opportunity for them to
utilize their equipment, justify their investments, and above all,
to protect the consumer in his right to uninterrupted reception. .
Cross Examination of Mr. Way
Mr. Way was subjected to a short cross examination by T. A. M.
Craven, chief engineer of the Commission, during the course of
which he told of the difficulties of sharing time on a clear channel
1692
as experienced by his station. He said that undoubtedly, while he
had no special knowledge of the facts, regional stations sharing
time had similar difficulties.
He spoke especially of the difficulty of reception for listeners
when KVOO goes off the air and the fact that there is no con¬
tinuity of service. At that time, namely when KVOO is silent,
there is practically no radio reception in the rural area for from 85
to 90 miles around Tulsa. He stated that his station did make a
little money last year and made a profit in 1930 but generally has
been unprofitable.
D. A. Read
Mr. Read on behalf of WTIC gave an early history of that sta¬
tion, spoke of its operation as a part-time clear channel station and
of the difficulties which it had experienced, and then told of ex¬
perimental simultaneous operation. He took up also the benefits
of duplicate operation.
Mr. Read said:
Early History
Station WTIC, located in Hartford, Connecticut, licensed orig¬
inally in the name of Travelers Insurance Company, and more
recently in the name of the Travelers Broadcasting Service Com¬
pany, a wholly owned subsidiary of the first-named company, was
originally constructed December 13, 1924. The station began reg¬
ular broadcasting on February 10, 1925, the original plant consist¬
ing of a 500 watt transmitter and the necessary appurtenances
thereto. The station operated on several frequencies at a power
of 500 watts until at or about the time of the general reallocation
of 1928, at which time the station was granted an authorized power
of 50,000 watts on the frequency of 1060 kc., sharing time equally
with Station WBAL of Baltimore, Maryland.
During the first year of the station’s operation it did not enjoy
any chain affiliation and did not broadcast any commercial pro¬
grams. It was conducted purely on an institutional basis by our
company with a view that the good will to be derived from such
operation would enure to the benefit of our company. This method
of operation continued until the commencement of the year 1926.
The total expenses of operation from the date of the station’s
establishment until the end of the year after it acquired a clear
channel status (February 10, 1925, to January 1, 1930) were
$359,782.39.
Operation as a Part-Time Clear Channel Station
The expansion of our broadcast activities and the increase in
authorized power and change in assignment which gave Station
WTIC a part-time clear channel status was preceded by numerous
conferences between representatives of our company and members
of the Federal Radio Commission and its staff. At that time the
Commission was engaged in a general reallocation and the question
of allotting clear channel assignments is largely a matter of finding
persons or organizations who were willing to assume the financial
and other responsibility necessarily incident to such an undertak¬
ing. From our conferences with the Commission and its personnel,
we were led to believe that if our company undertook a program of
expansion and accepted a clear channel status with the financial
outlay necessarily incident to the erection of what was then known
as a “super-power” station, we would receive the exclusive use of
a clear channel frequency. It was upon this understanding that
our company decided to undertake this step.
After this decision was arrived at, and subsequent to the order¬
ing of equipment and a large part of the actual construction work,
we were advised that legislative and other developments at the
Commission had brought about a situation where WTIC could not
have exclusive use of the clear channel frequency, but would be
required to divide time with Station WBAL at Baltimore. We
mention these facts, not as a criticism of the Commission or of its
personnel, but merely as an explanation of why our company, com¬
prised we believe of ordinarily prudent and conservative business
men, undertook an expansion program of this magnitude at this
time, particularly in view of developments which I shall herein¬
after relate.
With the commencement of the year 1926, Station WTIC began
operating as an outlet on the Red Network of the National Broad¬
casting Company, and at this time began broadcasting other pro¬
grams of a commercial nature, which, we believe, not inconsistent
with our institutional policies and practices. From the outset we
believed that an institution such as ours had much to lose and little
to gain by putting on programs of an inferior class or advertising
of a nature which seemed to conflict with other policies and prac¬
tices of our organization. Moreover, we thought it necessary to
equip ourselves from a technical and a programming standpoint in
line with our general company policies and in line with what we
believe to be the best current practices of the period employed by
other high-power clear channel stations.
Under Handicap
It goes without saying that from the very outset we operated
under a very severe handicap. Under our time-sharing agreement
with WBAL, it was necessary for us to broadcast only on alternate
days, coming on the air one afternoon at 4:00 o’clock p. m., and
signing off the next afternoon at the same hour, except on Sundays,
at which time a slightly different arrangement was followed. Under
the circumstances it was practically impossible to retain our listen¬
ing audience or to build up an audience of regular listeners. Radio
listening is more or less a habit, and persons will necessarily become
accustomed to tuning to particular stations and listening to par¬
ticular programs, namely, those stations and those programs which
they regularly received at the hours of the day during which they
are accustomed to listen. Moreover, we found that our station was
not attractive to national advertisers and that the National Broad¬
casting Company sold it with great difficulty, not only because of
our inability to build and retain a listening audience for the reasons
heretofore stated, but also because broadcast advertisers frequently
desired to book programs such as “Amos and Andy” and other
popular features “straight across the board” or for a given period
on each broadcast day. Being able to broadcast only on alternate
days, our station was necessarily eliminated from such business,
and also from such other regular business as was offered for broad¬
casting on the days when we were scheduled to remain silent. It is
interesting, as well as painful, to note that the results of our opera¬
tion under this arrangement through the years 1930 to 1934, in¬
clusive, resulted in a net aggregate loss of $1,509,191.99, or a loss
in 1930 of $305,888.74; in 1931 of $306,256.97; in 1932 of $325,-
997.53; in 1933 of $361,009.71, and in 1934 of $294,041.04.
Experimental Simultaneous Operation
Being faced year by year with these tremendous operating losses
and with the fact that even if these losses could or should be dis¬
regarded, the station was not really performing adequate public
service due to the interruptions in its operating schedule, we made
consistent and repeated efforts to secure some relief from the handi¬
caps under which our operating schedule placed us. Our first step
along this line consisted of extensive research in the possibilities of
synchronous operation, conducted not only by the regular em¬
ployees of our technical staff, but also with the assistance and
guidance of Professor W. J. Williams of Rensselaer Polytechnic
Institute. With the cooperation of the National Broadcasting Com¬
pany, and its technical staff under the direction of Charles W.
Horne, we finally made application for and received authority to
undertake such operation with Station WEAF, a clear channel sta¬
tion located in New York, New York, licensed in the name of
NBC, and which also carried the Red Network program of that
company. After considerable expenditure of time, effort and money,
we were doomed to disappointment in this venture, because we
found that the complaints from listeners in the area between New
York and Hartford were such that the Commission felt compelled
to cancel this authorization. This authorization was granted on
the 1st day of October, 1931, and cancelled on the 14th day of
June, 1932.
Possibility of Duplication
As our situation was in no sense improving, we then began a
study of the possibility of duplicate operation with some station
located at such a distance from Hartford as would permit both
stations to render an acceptable program service. In this matter
our choice of stations was necessarily limited, since stations of
comparable power which were enjoying full time clear channel
assignments were not desirous of duplicate operation, and WBAL,
the station with which we were sharing time, was so located as to
make such a type of operation unattractive either to it or to us.
It so happened that stations KTHS, at Hot Springs, Arkansas,
and KRLD, at Dallas, Texas, were confronted with a problem
somewhat similar to that which confronted WTIC and WBAL.
In other words, the Hot Springs station and the Dallas station,
although both classed as clear channel stations, were each enjoying
only part-time operation, being forced to share time upon a com¬
mon frequency, namely, the frequency 1040 kc. In this state of
affairs, and after extensive negotiations between representatives of
these stations, a plan was evolved whereby Station WTIC and
1693
KTHS were to switch frequencies, thus permitting the simul¬
taneous full-time operation of KRLD and WTIC on the frequency
1040 kc. and duplicate day and divided night-time operation be¬
tween KTHS and WBAL. This plan was presented to the Com¬
mission in the form of appropriate applications. After extensive
study and hearings before the Commission en banc, the Commission
on May 8, 1934, granted experimental authority for such operation,
which authorizations have been successively renewed down to date.
Benefits of Duplicate Operation
As heretofore stated, the Commission authorization for simul¬
taneous operation became effective May 8, 1934, and by such
operation during the balance of that year we were able to reduce
our losses rather substantially. The loss for the year 1933 amounted
to $361,009.71, whereas, in the year 1934, it amounted to $294,-
041.04, or a difference of $66,968.67. In the year 1935 we were
able still further to reduce our losses, a loss for that period amount¬
ing to $203,897.44. For the year 1936, we show, up to October 1,
an operating profit of $17,577.93, the first profit which we have
derived from the operation of our station throughout the approxi¬
mate twelve years since its inception. We anticipate that our profit
for the entire year, taking into account our existing contracts and
anticipated business, will amount to approximately $35,000.00.
Benefits to the Listening Public
Inasmuch as we had once been required to discontinue our ex¬
perimental synchronous operation because of the dissatisfaction of
the listeners we were somewhat apprehensive of the listeners’ re¬
action to our experimental duplicate operation. Although we had
conducted certain extra hour tests which convinced us that the
simultaneous operation of KRLD and WTIC under this plan would
be acceptable to a degree, we were not sure that these conditions
would be obtained throughout the hours before midnight or
throughout an entire year’s operation. We were, therefore, very
much pleased to find that operation during regular broadcast
hours throughout the summer months of 1934 resulted in no
objections from our listeners and were extremely gratified to find
that such operation during our first winter resulted in no objection.
As heretofore stated, we have continued to operate on this basis
since May 8, 1934, and to my personal knowledge only two com¬
plaints of interference have been received at WTIC. One com¬
plaint came from a listener located at a little town in the Province
of Saskatchewan, Canada, and the other complaint from a listener
located at Detroit, Michigan.
Some indication of the increase in the popularity of the station
since our full-time operation can be gathered from the fact that
in the year 1933 before our simultaneous operation the National
Broadcasting Company received 4,676 letters from listeners con¬
cerning programs broadcast over Station WTIC; in the year 1934,
during the latter part of which we enjoyed simultaneous operation,
this letter response increased to 9,605 ; for the year 1935, during
all of which time we enjoyed full-time operation, this letter re¬
sponse has increased to 32,112; and for the portion of this year
for which we have records, namely, January through August, this
letter response has increased to the figure of 56,114. It must be
remembered that these are letters sent either directly or indirectly
to the National Broadcasting Company and concerning network
programs. They do not include letters sent to the station concern¬
ing non-network programs.
I do know from my own personal observations and from
reports made to me by my engineering staff, that we are now
serving, and have throughout the duration of this experiment
served an area which would approximate the primary service area
of a clear channel station operating on a frequency such as ours
without duplicate operation. I also know that we furnish some
degree of secondary service throughout a relatively wide area.
Mr. McNary, who will follow me on the stand, will give you the
details concerning the nature and extent of the present service,
the technical steps which have been taken and are now being
taken to make this type of operation possible, and the technical
conclusions to be drawn from our experience.
Conclusions
For my own part, I desire to conclude my remarks by saying
that the beneficial results of this operation have, to my personal
knowledge, been two-fold. It has permitted WTIC to give a
well-rounded uninterrupted program service to a rather large and
heavily populated area which heretofore had been served in only
a very unsatisfactory manner; and, secondly, it has permitted our
company to reduce our already tremendous operating losses to the
vanishing point, and now, after twelve years of uninterrupted
operation, we realize for the first time a slight benefit.
Statement on Behalf of KRLD
It is hardly necessary for me to state that WTIC and KRLD
have been closely associated in connection with the experiment
whereby they are operating simultaneously on 1040 kilocycles. I
have been authorized by Station KRLD to make the following
statement:
Simultaneous operation with WTIC has proved most satisfactory.
KRLD is regularly licensed (and has been since April 30, 1929) to
operate simultaneously with Station KTHS during the day, and
to share time with that station at night. Although the relation¬
ship between KRLD and KTHS has always been very harmonious,
the time-sharing arrangement inevitably resulted on many occa¬
sions in preventing KRLD from carrying programs of national
importance which were features of the Columbia Broadcasting
System or, oftentimes, of carrying important programs in their
entirety. It also seriously handicapped the purely local activities
of the station. Furthermore, it was found that many advertisers
objected to the use of a station which was not on the air con¬
tinuously during its broadcast day and, therefore, did not have
the advantage of a continued and sustained audience.
Since the inauguration of simultaneous operation with WTIC
on an experimental basis, KRLD has enjoyed an increase in the
number of its listeners and a resulting increase in revenue, all due
to the regular use of its assigned frequency. During the entire
period of experimentation KRLD has received no complaint of any
interference from its listeners, and has received much satisfactory
comment from a radius of approximately 100 miles. This would
indicate that the listeners who depend upon KRLD for their radio
service have no objection to the presence of WTIC on the same
channel, and probably know nothing whatsoever of the simul¬
taneous operation. It would therefore appear that such operation
is an advantage both from the standpoint of the station and of the
listeners, and that its continuation on a permanent basis should be
encouraged both from an engineering and a commercial standpoint,
and in the furtherance of an economic use of a desirable frequency.
Cross Examination of Read
Mr. Read was subjected to a short cross examination during the
course of which he said that his station gives secondary service in
Vermont, New Hampshire and Maine. In connection with the
losses which his station has sustained over a period of years Mr.
Read explained that there had been included in those losses a
write-off for experimentation.
Charles W. Horn
Mr. Horn, on behalf of the National Broadcasting Company,
advocated (1) an additional classification calling for 50 millivolts
for metropolitan areas as a minimum signal necessary for good
service, (2) that the power measurements of a station be made
by the so-called direct method of antenna measurement and (3)
that field strength measurements be made of all stations.
Mr. Horn said:
One of the most difficult problems facing the broadcasting indus¬
try and the Federal Communications Commission is that of deter¬
mining accurately the service areas of individual stations. Because
of the varying conditions which exist, such as fading, changes in
Heaviside Layer, different ground conductivities, adjacent channel
interference, and made-made static, no one has yet been able to
devise a yardstick which will permit us to answer this question
with any degree of mathematical certainty.
I propose to discuss today the efforts which the National Broad¬
casting Company has made toward finding an answer. With the
variables that exist there may never be a fixed and final formula
applicable to all stations everywhere and I want to make it clear
that we do not go so far as to recommend our method as a stan¬
dard to be adopted by the Commission. However, we do believe
that the efforts we are making along these lines will be of interest
both to the Commission and to other broadcasters.
First, I want to discuss some of the varying influences which
effect radio wave propagation. This discussion will also constitute
National Broadcasting Company’s comments on items listed in the
Notice of Hearing.
Propagation Characteristics of the Various Frequencies
in the Range 550-1600 KC.
The Engineering division of the Federal Communications Com¬
mission has available in existing literature a considerable quantity
1694
of material concerning wave propagation. The curves and data
prepared for the coming meeting of the C. C. I. R. next year is of
this type. The data obtained from the recent Clear Channel Survey
is also of value. The only additional material I might offer is a
paper by Mr. William A. Fitch of the National Broadcasting Com¬
pany explaining a simplified method of using the Sommerfeld
formula. This article is complete with curves and is herewith
offered.
The curves and technical information referred to above are the
result of many measurements made over a considerable period of
years. The industry now has available suitable instruments as well
as competent and experienced engineering services to carry on such
measurements with the result that we have removed a great deal
of guess work and are depending more upon measured data. The
Engineering Division of the Commission has likewise been alert
and taken advantage of additional information whenever it became
available and is to be commended for its share in developing higher
standards and thus helping to improve radio conditions.
Prevailing Attenuation
I am presenting herewith a map prepared by our engineers on
which are shown the ground conductivities in areas in which we
have made measurements of stations. This map shows the con¬
ductivity calculated from surveys of sixty stations in different
cities. Lines are drawn in several directions from each location
and the figure on each line indicates average conductivity in that
particular direction and out to the distances to which measurements
were carried. In some cases where there was a decided difference in
conductivity the attenuation factor is shown for different portions
of the line. It is hoped that the information on this map will be
helpful to the Commission engineers and that it may be added to
data which they already possess. Accumulation of data of this
type will make possible the preparation of maps so that we shall
know in the future what the radio conditions are in all localities and
with considerable accuracy.
Proper Ratio of Desired to Undesired Signal
The proper ratio of desired to undesired signal is something which
is dependent to a great extent upon the general receiver character¬
istics. As Mr. Van Dyke has analyzed this subject and presented
some tables, it is not necessary that it be repeated here. In the
large experience that we have had, and including the experience
of an innumerable number of listeners as expressed in their mail,
I can substantiate the results obtained by Mr. Van Dyke in his
measurements and studies of receiver characteristics.
Interference due to natural static varies with the seasons and is
more prevalent in the southren part of the United States, especially
in the summer. A paper on this subject by Mr. R. K. Potter
appeared in the Proceedings of the Institute of Radio Engineers
foi September 1932. The effect of interference from natural static
is now much less than it was during the earlier days of broadcasting
because of the use of higher transmitter powers, and a continued
improvement may be expected by still further increasing the ratio
of signal to static by the use of higher powers. Those of us who
are old timers in this industry will remember the difficulties we
encountered due to natural static because of the extremely low
powers then employed by the transmitting stations. Here again,
we are dealing with engineering factors which are well known and
which are expressed in our signal-to-noise ratios so definitely a part
of radio engineering.
Static
In the more built-up sections and particularly the larger cities we
experience a considerable amount of so-called man-made static
which is due to electrical devices. Most man-made static is due to
either defective electrical equipment or such apparatus as the older
style X-Ray machines which are inherently noise-producing and
which must be installed with proper shielding. New devices such
as diathermy machines are emitting radio frequency waves that have
been found to travel great distances. Apparatus of that ype should
be filtered or shielded and we must look to the manufacturers of
these devices for help and cooperation. It is pleasing to note that
railways in many localities have made efforts to reduce interference
caused by their apparatus. Trackless trolleys, using the two-wire
overhead system and equipped with pneumatic tires, present a
problem that needs serious attention. A recent report by manu¬
facturers indicates that something like two thousand such trolleys
will be put in service in the United States during 1936. There are
quite a number of such trolleys in use in London and the combined
efforts of the transportation people and the broadcasting interests
in England have resulted in a reduction, but not complete elimina¬
tion, of the interference.
Interference due to electrical apparatus has engaged the attention
of such organizations as the National Electrical Manufacturing
Association and others responsible for electric design standards.
Both in Europe and America there has been cooperation between
manufacturing companies and radio engineering committees in an
effort to reduce interference from this source. Credit is due the
power and electrical companies for their efforts and it is safe to say
that interference by man-made static is much less in the United
States than in other countries which are comparable to us in elec¬
trification.
Satisfactory Service
In radio reception the governing factor is always the ratio of the
strength of the desired signal as against the intensity of the inter¬
fering signal or static. The required ratios for satisfactory service
are given in Mr. Van Djke’s presentation. For some years engin¬
eers have been using the standard published by the Engineering
Division of the Federal Communications Commission which shows
that for good reception receivers in cities require 10 millivolts, in
residential sections 2 millivolts and rural localities .5 millivolts per
meter of signal intensity. These figures are based on the fact that
electrical noises are greater in cities than in residential and rural
parts of the country. These have proven quite satisfactory except
in the case of metropolitan areas where a great deal of electrical
disturbance and other factors are present. Our experience indicates
that we must add another classification to this table to take care
of conditions in metropolitan areas.
Because antennas in metropolitan districts pick up a greater
amount of electrical noise, it is necessary that the desired signal
strength be greater in order to maintain the proper signal-to-noise
ratio. However, in these areas, an additional obstacle is encoun¬
tered because of the shielding effect of steel structures which causes
a reduction in the amount of radio signal energy which arrives
at the average antenna. While there may be 10 millivolts of signal
intensity in the atmosphere above such a city the antenna may
receive but a fraction of this energy because of such shielding.
Therefore, the average antenna in a metropolitan district not only
suffers from increased electrical noise but generally receives less
than its share of radio energy with consequent poor results. The
only solution possible is a higher signal strength over such territories
and our observations and measurements indicate that in metropoli¬
tan areas the signal intensity must not be less than SO millivolts in
order to render acceptable service. Even with this signal strength
there will be spots that will not obtain adequate service due to
exceptionally deep shadows cast by steel structures, but these may
be classed as extreme cases.
Heaviside Layer and Sun Spot Cycle
The Heaviside Layer is usually considered as being a conducting,
and therefore a reflecting, layer in the upper atmosphere approxi¬
mately 100 kilometers or so above the surface of the earth. There
are a number of layers having varying effects on different fre¬
quencies. Considerable investigating work has been done by such
organizations as the United States Bureau of Standards, the
Carnegie Institution and others and reports of this work have
been published.
Long distance transmission is obtainable because of the so-called
sky wave which is reflected back from the Heaviside Layer. That
wave which leaves the antenna and travels along the surface of
the earth is known as the ground wave and is eventually absorbed
and falls to such a low value as to be useless for service. Between
the ground wave area and the secondary area we have the so-
called fading band which is a point where the sky wave returns
to earth and has sufficient strength to seriously interfere with the
ground wave. We generally term the area within the fading band
as the primary service area although where unusually strong
interference exists from other stations, either on the same channel
or on neighboring channels, the primary area is in this case much
more restricted. In other words, the primary service area of a
broadcasting station is that territory in which it places a sufficiently
strong signal and free from interference in order to render good
service. We refer to the territory beyond the fading band as a
secondary area in which some service is rendered but of a much
less reliable type. In this territory slow fading takes place and
there are variations in the strength and steadiness of the signal.
Also on shared channels this area experiences a great deal of inter¬
ference due 'to the low ratio between the desired signal and one
or more interfering signals.
Seasonal Variations
Seasonal variations have a marked effect upon the sky wave,
which furnishes this secondary service, but has little effect upon
1695
the ground wave. During certain periods of sun spot cycles certain
reactions are noted. The sky wave may come back to earth with
greater intensity nearer the station and cause the fading band to
move inward. This was noted at two particular stations during
the past few years. Also the service rendered the secondary area
has been found better during periods when the sun spots are less
prominent. The secondary area receives less service in summer
due to the longer daylight periods as compared with the winter
as these Heaviside reflections take place after dark. The secondary
area is also influenced in the summertime by a higher static level
especially in the southern half of the United States.
From the above it will be noted that the best service rendered
the public is, of course, in the primary service areas which are less
affected by atmospheric and cosmic changes. The Federal Radio
Commission prepared a map, together with some statistics, under
date of December 14th, 1933, on which was shown “Calculated
Night Primary Coverage of All Broadcast Stations Based Upon
Interference, Propagation and Frequency Characteristics.” A
glance at this map will show that the greater portion of the area
of the United States is in the secondary service area and not in
the primary area of broadcasting stations. The statistics which
came with the map indicate that of a total of 119,636,708 United
States population, the number of people that resided within the
primary coverage of the broadcasting stations was 76,662,000 or
64.2 per cent. There were approximately 43,000,000 people living
within the secondary coverage area or 35.8 per cent of the total
population. Receivers in this secondary area, which by the way
happens to be 70.6 per cent of the total area of the country, are
solely dependent upon the sky wave or secondary area signals of
stations which have sufficient power and are free from interference.
Little Change
While this map is dated December 1933, we will find that there
has been relatively little change in the number of stations since
that time and while some of these stations may have increased
their power they have not materially increased their primary service
area because of the fading limitations. It is safe to estimate that
the percentage of population in the secondary area is still as great
as it was at the time the map was prepared. (I offer this map for
your consideration.)
Long distance transmission or service to the secondary area is
possible only on channels which are free from interference. The
system we have adopted, that of using high power on clear channels
and lower power on shared channels, is universally recognized and
is in use in Europe as well as other parts of the world.
Synchronization
In order that there may be no misunderstanding I would like
to give my definition of this term. I consider two or more stations
to be operating in synchronism when the carrier waves are not only
of the same frequency but their phase relationship is maintained
to within a few degrees. Such precise frequency control plus the
necessity of transmitting the same program are absolute require¬
ments if two stations are to operate in synchronism with their
ground wave service areas adjoining or near to each other but not
overlapping. To maintain this precise frequency control requires
some common frequency standard or source — I have found that a
connecting wire line supplying the stations in question with a
standard frequency is best, plus equipment at each station to
prevent line changes from causing variations in the phase of the
radio wave. This equipment is in the nature of a flywheel which
prevents any rapid line fluctuations from affecting the output
frequency.
Using such specifications a reasonably good signal may be ex¬
pected in areas where the signal strength of the desired station does
not drop to less than five or possibly four times the intensity of
the station with which it is synchronized, providing the identical
program is broadcast simultaneously. In areas where the signals
are nearly of the same intensity, say less than 4 to 1 in ratio,
difficulties are encountered due to the carrier frequency being
partially, and frequently even greatly, suppressed which results in
distortion.
Signal Ratio
There is a belief in some quarters that stations can be synchro¬
nized and different programs broadcast. This does not hold true
until the separation between the station is great enough to provide
a signal ratio of 20 to 1, desired to undesired. This is because
the factor which then causes the greatest interference is not the
carrier wave conflict but the modulated portion of the wave, or
cross talk. Even with all conditions under control in the case of
synchronized operation, care must be taken to see that the tele¬
phone line connecting the stations is not of such a length or
characteristic to introduce lag in the audio signal, which can cause
serious loss of quality. Synchronizing a whole chain of stations
is at present impractical, both technically and economically. One
reason is that the networks do not furnish programs regularly
from only one fixed location but switch to different cities for
various programs and sometimes even insert selections originating
at a point distant from where the main program takes place.
Another reason is that while I know of some time delay circuits
I do not know of any which covers the whole music range. Even
if they could be built it would be impractical to readjust and
change such devices even between programs.
We have the benefit of the experimental work being done on the
several installations of this type which has given us a clearer
understanding of the problem together with some quantitative
results. In other words, we know what can or cannot be done
at the present state of the development.
I would like to state that synchronization of radio stations is
still in an experimental stage. I have kept myself informed of
what is going on in Europe by personal contact, and find that
they have the same views I have expressed.
Standards and Methods of Measurement
In the earlier days of broadcasting it was somewhat difficult to
measure the power radiated from a transmitter. The best we could
do was to estimate the efficiency of the apparatus and arrive at
some approximate values. This led to a number of methods of
determining the power radiated. With the information which we
now have available, the only logical engineering method is a direct
measurement of the antenna resistance and the amount of current
flowing in that antenna. With complicated antenna design, in order
to obtain directional effects, it is possible to make the measurements
in the main transmission line feeding the antenna array. It is urged
that the direct method of measuring power be adopted as the stand¬
ard. With the measuring instruments available today accuracy
within ten percent is easily obtained.
Field intensity measuring sets are now readily available as well
as engineering organizations equipped to do this work. Field in¬
tensity measurements should be made at one mile from the an¬
tenna plus a sufficient number of measurements on radials out to
the limit of the good service area. From these data, curves can be
drawn to show the efficiency of the radiator, ground system, con¬
ductivity of soil and the signal intensity in the area surrounding
the station. With the equipment available today, an accuracy
within ten percent is possible.
Determination of Service
The satisfaction a listener can obtain from his receiving set is
dependent upon a number of factors, the principal ones being:
(a) The field strength of the desired signal.
(b) The strength of interfering signals from undesired stations.
(c) The noise level in his particular locality.
(d) Fading and distortion due to fading.
Early in 1933 the engineering department of the National Broad¬
casting Company undertook the work of making field strength
measurements of over one hundred stations throughout the United
States as well as a couple in Canada. This was the largest under¬
taking of its kind ever attempted and while the cost was very large
it was considered necessary as we wanted to know how well we
were serving the country. On this one survey alone we made 21,316
measurements which entailed 232,218 miles of traveling by the
measuring units. Eighteen crews of engineers were engaged in thi3
work. In addition to our own Company engineers we engaged the
services of recognized consulting engineers and their methods and
measurements were compared with those made by our own men. In
all cases the latest types of measuring equipment was used.
Accurate Measurements
With more accurate measurements of power radiated and re¬
sultant field contour maps, we begin to have some evidence of
coverage. However, as field strength measurements are necessarily
made in the daytime and do not show the night phenomena, such
as fading and interference from distant stations on the same or
adjacent channels or the noise levels existing in a territory, and
since it is not possible to determine the effect of these except over
a very long period of time and at an exorbitant cost, the National
Broadcasting Company turned to its audience for a more immediate
1696
answer. The method we adopted has been to analyze more than
15,000,000 pieces of mail received by our stations from their listen¬
ers. Part of the information we thus obtained has already been
made available to the industry through the publication known as
“NBC Network Areas”, copies of which I will be glad to submit
for the record.
Every letter received from listeners is carefully checked as to
point of origin and the station to which it is addressed. The point
of origin is noted in order to determine the county from which it
came. We use counties as the smallest sub-division of territory
because that system coincides with U. S. census information which
includes the number of homes having radio receivers. Our method
depends upon percent of mail received from counties as compared
with the number of homes having receiving sets in those counties.
Please note it is not based upon population but upon the number
of homes having receiving sets and for that reason gives more ac¬
curate information. In this survey work we are not so much con¬
cerned with the contents of these letters as we are concerned with
their points of origin. Because of the tremendous volume of mail,
in the first seven months of 1936 we have already received 4,237,000
such letters, any small discrepancies are averaged up. Also as you
will note, this in no way can be confused with so-called popularity
contests as we obtain our information from postmark and address
and as we have been continuing this survey over the last several
years it is also not subject to territorial or local errors because
stations retain the letters referring to their own local programs and
only forward those concerning network programs. The informa¬
tion thus obtained is tabulated and the number of letters from
each county, per unit of time and per thousand radio homes gives
us an index figure for that county. Taking those counties as par
which are within the good service area of the station under survey,
as determined by field strength measurements, and noting their
mail response per 1000 radio homes, we have a basis of comparison
with which to judge the response from all counties.
Survey Individually
Each station is surveyed individually and in each case its own
par rating is determined. It is possible that people in different
sections of the country may have different habits when it comes to
writing letters. Also it would be unfair to use an index figure per
1000 radio homes of one station, or even an average figure, to rate
another station.
This survey we are conducting is a continuous process. We have
a staff which varies between 30 and 35 people to take care of this
work which is handled in New York, Chicago and San Francisco.
These measurements took many months and after all the infor¬
mation had been assembled we compared the signal field strength
contour maps with our letter surveys. There was general agreement
between the two results and in those cases where there were any
marked differences we found we could determine the reasons for the
deviations. In some cases it was traceable to interference from
some other station on the same channel, or from an adjacent
channel and sometimes even to man-made static.
As we have been conducting this method of surveying the service
areas of the stations on the National Broadcasting Company net¬
work continuously for over three years and as we are constantly
checking results, we feel we have demonstrated the reliability of
the system. Its great advantage over other systems is that it shows
the response of millions of listeners living in every State and County
of the United States and over a long period of time. It truly is
the expression of the American public although they do not know
that they are participating in a survey, which, in our opinion, is
also desirable.
Summary
Gentlemen, in summarizing I wish to repeat the three recom¬
mendations I have made — they are:
1. An additional classification calling for 50 millivolts for metro¬
politan areas as a minimum signal necessary for good service.
2. That the power measurements of a station be made by the
so-called direct method of antenna measurement.
3. That field strength measurements be made of all stations.
Horn Cross Examination
Signal intensity of 50 millivolts in cities was advocated by Mr.
Horn under cross examination. He said that in his opinion this
is needed because of steel buildings and noises over such territory.
He indicated that of course 50 millivolts would not be needed
over every place. He stated that his company had made surveys
indicating that New York City showed decided shadows.
Mr. Horn testified that there are certain variables in modern
antennas. NBC, red network, he said, covers the entire country
but this does not necessarily mean that it gives good service. At
least, he said, the listeners can understand the station to which
they are listening.
Dr. C. B. Jolliffe
Dr. Jolliffe said that the standards of allocation must of neces¬
sity be kept abreast of modern engineering practice. Interference
from unwanted radio stations, said Dr. Jolliffe, is a problem of
allocation and “your Commission has a primary responsibility for
the solution of this problem.”
Dr. Jolliffe said:
Allocation of Frequencies to Broadcast Stations
The basis of an engineering determination of a proper allocation
of frequencies and classification of broadcast stations can be re¬
duced to three factors:
(1) Standard of service,
(2) Characteristics of receiving sets,
(3) Relation between field intensity and distance.
Theoretically, given these three factors any problem of broadcast
allocation can be worked out. Unfortunately none of the three
factors is capable of exact definition and the proper ones to use
in a given case are either matters of technical judgment or pro¬
tracted studies in particular locations. We have presented in this
hearing data obtained from studies made over a period of several
years upon which engineers can base technical judgment.
The re-allocation of broadcast facilities made in 1928 was
developed without definite standards or quantitative measurements.
Primarily it was the combined experience of a group of engineers
who had been closely identified with the early development of
radio broadcasting. Since that time quantitative studies have been
made by various engineers and engineering groups which confirm
this early experience. In the Fifth Annual Report of the Federal
Radio Commission, published in 1931, there appeared for the first
time definitions of standards of service for various classifications
of stations and their application to allocation problems. It was
then stated, “Since many of the standards are also based on the
present-day average receiving sets, average standards of listeners,
present design of antennas, and so forth, they will, of course, be
changed as the art progresses.” Revisions and extensions of these
standards appeared in the Sixth and Seventh Annual Reports of
the Federal Radio Commission and the First Annual Report of the
Federal Communications Commission.
Survey
The clear channel survey conducted by your Commission and
this hearing are logical continuations of the study of these stand¬
ards in order to obtain the most accurate and most modern data
available at this time. As stated in the hearing on June IS before
the full Commission, the research and engineering staffs of RCA
and its affiliated companies are available to your Commission for
the study of technical problems which will assist your staff in
solving the allocation problems.
The standards of allocation must of necessity be kept abreast of
modern engineering practice. They must, however, be sufficiently
stable and changes made gradually so that the public, which has
many millions of dollars invested in receiving sets and the largest
stake in broadcasting, may adjust itself to the new standards.
The receiving set industry is built around the set of standards
which is reflected in the allocation to broadcast stations. Since
changes in allocation will have their repercussions in the factories
of the receiving set manufacturers, the service organizations of
these manufacturers and the homes of persons using present day
receiving sets, it is of the utmost importance that changes in
allocation or re-allocation of frequencies to broadcast stations pro¬
ceed on the basis of evolution and experimentation rather than
by radical and sensational changes.
The basic standard from which to study all allocation prob¬
lems is the technical standard of the program which is delivered
by the loud speaker of the radio set installed in the listener’s home.
You have been told that there will be at the end of thi. vear
approximately 30,000,000 receiving sets in use by the public oA the
United States. I submit that the technical excellence of the pro¬
grams which come out of* the loud speakers of these sets is the
engineering measure of public interest, convenience and necessity.
1697
Program Marred
The program delivered by a receiving set can be marred by re¬
ceiving set noises, man-made electrical noises, and interference from
radio stations. The receiving set manufacturers take every pre¬
caution to reduce receiving set noise well below an objectionable
value. The Commission, receiving set manufacturers and electrical
manufacturers can cooperate to reduce the interference caused by
electrical machinery, flashing signs, diathermy machines and other
sources of man-made electrical interference. The existence of this
interference can also be recognized and proper allocation of power
to transmitting stations can submerge it by producing sufficient
signal strength at the receiving set so that the interference is below
an objectionable value.
Interference from unwanted radio stations is a problem of allo¬
cation. Your Commission has the primary responsibility for the
solution of this problem. There have been numerous observations,
measurements and studies made to determine the maximum amount
of interference which can be tolerated in the output of the receiv¬
ing set, all of which agree very closely with the present standards
of your Commission.
The good service area of a station has been defined by your
Commission as “that area in which reception free of interference
is obtained at least 90 per cent of the time.” This is reasonable
and the first definition of standard of service. To make this
quantitative a second definition is necessary and must relate to
the OUTPUT of the receiver. Our data have shown that a signal
at the OUTPUT of a receiver can be defined as “free of inter¬
ference” when the power ratio of the signal to interference is
greater than 30 db for crosstalk or 37 db for 10 kc heterodyne.
These two definitions define the MINIMUM standard of service.
Allocation Problems
To obtain the relationship of this standard of service to alloca¬
tion problems it is necessary to reflect the standard back through
the receiving set to the receiving antenna and determine the
maximum field intensity produced by interfering stations operat¬
ing on the same and adjacent frequencies which can be tolerated
without exceeding the maximum of interference at the output of
the receiving set. To do this a typical receiving set is necessary.
Data have been presented to you which represent the composite
performance of modern broadcast receiving sets from which a
typical receiving set can be evolved. The proper typical receiving
set to use is one of engineering judgment and we have suggested
what our engineers believe is the proper interpretation representa¬
tive of receiving sets in use today. This gives a reasonable basis
for this phase of allocation.
The third factor, relation between field intensity and distance,
has been one concerning which your Engineering Department has
done much work. The intensity of the field produced by a radio
station at any point distant from the station can be determined
from the propagation curves which engineers have developed.
The propagation of radio waves along the ground has been a
subject of much study, both by theory and measurement. If the
attenuation factor is known in a particular area it is not difficult
to calculate the field of intensity which will be produced in the
vicinity of a station. Data available are not conflicting when
properly interpreted and a full and complete answer as to the
ground wave propagation of radio waves in the broadcast spectrum
is available in the radio literature and in the studies which have
been made by engineers of the Commission. Further studies will
undoubtedly change these curves in some minor particulars, but
for the purpose of allocation the data now available are sufficiently
accurate.
Field Intensity Records
The analysis of the field intensity records in the clear channel
survey, which have been published in your report, correlated with
the work of others such as the International Broadcasting Union
and the Bureau of Standards, gives an excellent basis for deter¬
mining the proper propagation curve to use to determine the field
intensity produced by a station beyond the limit of the ground
wave. The field intensity at a distance from a radio transmitter
varies from minute to minute, hour to hour, day to day, season to
season and position in the sunspot cycle. It is not proper to. use
the maximum value to which a signal might rise, and the prevailing
practice of using a “quasi maximum” above which the signal does
not rise more than a given percentage of the time is reasonable and
consistent with the definition of good service area of a station.
The standard which has been used for the “quasi maximum” by
the Commission as that signal above which the value does not
rise more than 10 per cent of the time appears to be satisfactory
and consistent with the definition of standard of service. Whether
this value should be 10 per cent, or S per cent as is used
in international documents, is immaterial since at the present time
under the conditions of application the tolerance is greater than
the difference between the S per cent “quasi maximum” and the
10 per cent “quasi maximum” curves. The experience and opinions
of engineers all over the world certainly indicate that the value of
10 per cent interference time is the MAXIMUM that should be
considered as satisfactory.
Sunspot Cycle
The position in the season or sunspot cycle which can be con¬
sidered as proper to use is, again, a matter of engineering judgment.
The same tolerance, namely, a standard transmission curve above
which the signal does not rise throughout the entire transmission
cycle more than 10 per cent of the time, would appear reasonable.
To determine this curve accurately would require that measure¬
ments be made through a period of eleven or more years. The time
of the clear channel survey was not at the peak of good transmission
with respect to the sunspot cycle or with respect to the maximum
for the seasons but somewhat after the peak had been reached.
The curves which were developed as a result of this series of
recordings could be used as the standard of transmission for a
period of years until it is possible to accumulate a greater amount
of transmission data.
There are available, therefore, data which permit setting up
definitions of the three factors which form the fundamental basis
for the determination of allocation. From these data numerical
values or curves can be set up as a part of your Regulations which
will determine, under a given set of conditions, whether or not the
listeners who are entitled to obtain reception “free of interference”
from a given station will receive that to which they are entitled.
In order to apply these standards of allocation it is necessary
to set up definitions of classes of stations based on the limit to
which each station is entitled to give service “free of interference.”
Two Classifications
There are only two general classifications of broadcast stations:
(1) stations operating on frequencies on which a single station is
permitted to operate at night (clear channels), and (2) stations
operating on frequencies on which more than one station is per¬
mitted to operate at night (duplicated channels). Other classifi¬
cations are sub-classifications of those two.
Consider first the classification of frequencies on which more
than one station is permitted to operate at night. This general
classification contains what has been called in the past “regional,”
“high power regional,” “local” and, for lack of a better name,
“duplicated clear channel” stations. It is well known that the
range of interference of a station extends far beyond the range
at which it is capable of giving satisfactory service. When two
stations are operating on the same frequency there is surrounding
each station an area in which the receiving stations receive signals
from the nearer station at a sufficient field intensity so that the
output of the loud speaker reproduces the program on that signal
“free of interference” from the distant station based on the defini¬
tion of the standards of service given above. The extent of this
area depends on the relative power and geographical separation
of the stations on the same and adjacent channels. Under a given
set of conditions the standards of service will define this area.
Engineering Judgment
It is a matter of engineering judgment and allocation policy to
determine how far from the station receiving sets are entitled to
receive signals “free of interference” on the basis of the standards of
service. In the standards at present used by the Commission aver¬
ages are used over widely variable conditions.
In the final analysis the standard of protection should be set up
for each frequency based on interference caused by stations opera¬
ting on the same and adjacent frequencies, natural and man-made
interference in the localities where the frequency is used, propaga¬
tion characteristics of the frequency and distribution of population
in the areas served. This composite picture is the one which de¬
termines the area which is to be given reception “free of inter¬
ference” for any station. Conditions vary throughout the spectrum
and the present allocation of frequencies to different types of sta¬
tions is so widely different that it appears to be essential to apply
the standards of service to each frequency and set up its protection
separately and definitely in each case. General names and general
specifications are no longer sufficient and are, in fact, misleading.
1698
There is no difference between the fundamentals for determining
the service of a 100 watt station operating on the same channel
with other 100 watt stations and the service of a 5 kw. station
operating on the same channel with other stations of the same or
different power. The principles of calculation remain the same,
and the standards of allocation apply.
Turning now to the consideration of frequencies on which only
one station is permitted to operate at night, this subject was dis¬
cussed very ably in “The Clear Channel in American Broadcasting”,
a report of the Institute of Radio Engineers which was submitted
to the Federal Radio Commission. The results of the clear channel
survey conducted by your Commission, the data which have been
prepared by the Commission and submitted in hearings and data
presented by engineers show the value of clear channel stations to
the listeners of the United States.
Primary Service Area
Without clear channels some 40,000,000 people of the United
States who live outside the primary service area of broadcast sta¬
tions would be without any type of radio reception. The inaugura¬
tion of service to these people in 1928 when the Federal Radio
Commission adopted the principle of clear channels was in response
to a very insistent demand for service by non-urban listeners. For
more than two years prior to the re-allocation in 1928 there was
no clear channel service as we know it today. The experience,
observations and measurements which have been made since that
time show that this type of station is the only type of station
capable of giving a reasonably satisfactory service to rural com¬
munities. Your clear channel survey is an additional piece of evi¬
dence to bear out this statement. No technical development has
been made since 1928 to reduce the necessity for clear channels
to serve rural listeners and there are no such developments in the
laboratory.
The allocation problem with respect to the primary area “free of
interference” of clear channel stations is the same as with respect to
stations operating on duplicated channels. The PRIMARY SERV¬
ICE area which it is designed to protect “free of interference” can
be calculated on the same principles as the primary service of a
so-called “regional station.” The only difference in the calculation
is that one source of interference has disappeared, namely, inter¬
ference on the same channel. Adjacent channel interference pre¬
sents the same problem as far as the definition of primary service
is concerned.
Secondary Service
In addition to protecting the primary service area the principle
of assigning a single station to a frequency and permitting it to
operate at a higher power, is to give SECONDARY SERVICE to
those people who have no primary service or whose primary service
is severely limited. This service is not ideal but it is the only type
of service which it is possible to give to a scattered population.
Fortunately, the electrical noise level in rural districts and small
communities is quite low and signals of low field intensity can be
used for service. These low field intensities are susceptible to all
types of interference, the signals vary in intensity and the intensity
of signals on adjoining channels likewise change. Consequently a
listener may have freedom of interference for a short time and then
experience inter-channel interference for a period of time due to
changes in relative values of signals which are received at that
point. The modern receiving set with automatic volume control
acts both to help and to complicate the problem. It keeps the
wanted signal at a constant level but may, in doing so, accentuate
side channel interference.
Selectivity of Sets
The possibility of changing the selectivity of receiving sets by
means of variable selectivity controls makes it possible to receive
service through much inter-channel interference. Such high selec¬
tivity may reduce the quality of the reproduced signal, but it does
produce an interference-free signal. Signals in the secondary area
of clear channel stations are usually not free of interference as de¬
fined by the standard of service. They do provide a service, how¬
ever, which provides a large amount of enjoyment for those people
who are not close to entertainment centers. Higher power on such
stations will increase the average level of the received signal and
reduce the number of times that the signal becomes entirely unusable
and increase the amount of time it is “free of interference” not only
from other stations but also from man-made and natural inter¬
ference (static). In those cases where clear channel stations are
serving large centers of population increased power on the stations
will improve the service in the primaary service area, and in all
cases will extend and improve the secondary service signal to out¬
lying rural communities. Consequently it is logical and desirable
to permit the use of adequate power by all stations holding clear
channel assignments. What the upper limit of this power is we
do not know; certainly not 50 kw. and probably not 500 kw.
Developments will demonstrate what is engineeringly practicable
and feasible. Duplicate assignments should not be made on these
channels even though they may now appear technically possible.
Certainly such assignments will impede progress and limit future
use of all developments to provide better service to the rural popu¬
lation. It is a sure method of stopping progress.
Technical Problem
The number of clear channels which should be provided is a
combined technical and policy problem. From the technical stand¬
point it must be recognized that there are daily and seasonal
differences in the long distance transmission of radio waves. Sta¬
tions which are satisfactory one day may not be useful at all at
other times and consequently a number of stations must be avail¬
able to provide continuity of service. To maintain continuity of a
given program day in and day out, season by season, it is highly
desirable that the listener have available the same program on
several widely distributed stations. If a listener could provide
himself with an elaborate antenna arrangement and widely sepa¬
rated receiving systems to provide diversity reception such as is
done in commercial receiving stations, then a single transmitting
station of sufficient power would be adequate to provide a given
program. This is not possible. It is possible, however, through
the multiple transmission of the same program from several sta¬
tions to give each listener a multiplicity of possibilities of reception,
thus reversing the process and giving diversity of transmission
rather than diversity of reception, and thus assuring a greater
percentage of time for the reception of a particular program.
The number of clear channels now actually clear and used as
clear channels is the minimum number which can give adequate
service to rural communities scattered over the vast area of the
United States.
With respect to the suitability of various bands of frequencies
for the various services, it is possible to submit data to show that
practically any frequency in the broadcast band is most suitable
for a particular classification of station. The difference between
the propagation characteristics of the ground waves of stations
on different frequencies in the broadcast band is well known and
the technical radio literature is freely used by the engineers of
your Commission. This hearing has brought forward further data
which I do not believe are in conflict with any data which were
previously available. All the stations in the country cannot use
the low frequencies and consequently certain stations will, under
certain classifications, have a larger service area than other stations
in the same classification. These differences are well known and
if every case is studied carefully the best solution for the area
can be determined.
Maximum Power
The question of the maxium power to be permitted to be used
by stations on duplicated channels is one which can usually be
determined by the amount of electrical interference from non¬
radio sources which are encountered in the outer edge of the area
which is entitled to be “free of interference.” If, for example, the
outer limit of this area is 1 mv/m and it includes urban com¬
munities where noise level can be expected to be high, the output
of the receiver may not be “free of interference” due to non-radio
interference. If the power of the station is raised from 1 kw. to
5 kw. the signal strength at the outer area would be raised from
1 mv/m to 2.2 mv/m. This might be sufficient to submerge the
level of non-radio interference to less than an objectionable value
or at least approach more nearly to this condition. In other cases
the limit of the area “free of interference” may be, for example, 5
mv/m. Increasing the power of such station five times would
increase this signal strength from 5 mv to 11 mv/m. It is probable
that 5 mv/m is sufficient to override local electrical interference
at all points within the protected area and consequently the in¬
crease to 11 mv would not result in any better service, but would
simply increase the strength of the interference in the area outside
the good service area and make it more objectionable. Since each
frequency must be considered with reference not only to stations
operating on that frequency but also on adjacent frequencies, the
power to be permitted must be determined by all the conditions.
These are known in any case and so the problem can be solved
in each case if referred back to the one criterion' output of the
receiving set.
1699
Overcome Interference
The power necessary to overcome interference in the protected
service area of the station must be permitted or it is useless to
protect this area. The power on adjacent channels must be bal¬
anced in such a way as to provide the maximum of service. Arbi¬
trary limitation may be restrictive, intelligent analysis based on
maximum service to listeners is necessary and in the public interest.
The number of stations on a duplicated channel must be based
on the type of service which the station is intended to render to
the public. Regional and local stations play an important part
in American broadcasting. Their service areas and established
audiences have been built up on the basis of service and should
not be destroyed or reduced. If a station is permitted on a re¬
gional or local channel with less geographical separation from the
existing stations than is at present maintained it will reduce the
service of the existing stations. In such cases it can usually be
shown that public interest will be better served by the improvement
in the service of existing stations rather than the establishment of
a new station.
New Re-allocation
It might be possible to have a complete new re-allocation such
as was done in 1928 and change stations from one frequency to an¬
other and classifications of stations from one group of frequencies
to another. But you will still have, when this is done, a status
which is similar to the present except that the picture will be
changed with respect to individual stations. Some will gain; others
will lose, but the net gain to the listeners of the United States as a
whole would be zero. Such a disturbing upset of the listening
habits of the United States might be in the private interest of some
stations but would not be in the public interest of the listeners.
The present allocation over a period of years has given a large
measure of satisfaction. It is not perfect, but it does provide service
of some kind to all the people of the United States.
Directional antennas have been applied in many installations and
under various conditions. The use of directional antennas has a
place in the allocation structure. They are not, however, the solu¬
tion to all allocation problems. A directional antenna can be built
with practically any type of characteristic and to meet practically
any condition of protection to other stations on the same channel.
It provides no protection for its own service area. How far direc¬
tional antennas can enter into the allocation problem is a question
of policy and economics. From an engineering standpoint it is not
a wise policy to permit the installation of a station using a direc¬
tional antenna to protect other stations on the same channel and at
the same time receive interference from these other stations inside
the area which it is primarily designed to serve. For example, if
a station is to serve a particular city and the interference received
from other stations on the same or adjacent channels is so severe
that a section of the city which is densely populated receives severe
interference, it will result inevitably in severe criticism of a regu¬
latory body which permits such installations and it is not good
engineering practice.
Standards of Service
Here again the standards of service can be applied. Calculations
on the basis of logical engineering assumptions which give the dis¬
tribution of service can be made and information can be obtained
to show the distribution of population. There are some distribu¬
tions which would permit very severe directivity with satisfac¬
tory service. There are others which will not. Whether or not
a station will be permitted to operate or to be installed with the
use of a directional antenna must be answered in each individual
case. There can be no generalization on this subject. In every
case of use of a directional antenna the conditions of use and area
of protection of service should be specified by the Commission at
the time of authorization.
The same situation exists with respect to synchronization of
broadcast stations. It is possible to operate two or more stations
exactly on the same frequency. The problem of application is both
an engineering and economic one. It is not a “cure-all” solution.
Each application must be studied and the best solution arrived at
in the public interest. Technical data to apply are known and each
case must be given individual attention.
Adherence to sound engineering principles must result in distri¬
bution of broadcast facilities to geographical areas. Proper deci¬
sions in individual cases can provide fair and equitable distribution
to communities within a geographical area. A mathematical system
for evaluating facilities is not necessary to comply with Section
307 (b) of the Act and experience has shown that the application
of such a system results in an inefficient use of the broadcast spec¬
trum. Radio waves do not respect artificial boundaries and a wise
and intelligent allocation of the frequencies available for broadcast¬
ing will make use of the known factors to give the best service
possible to all the population of the United States.
Ultra High Frequencies
There have been some suggestions that the development of high
and ultra-high frequency broadcasting would reduce the congestion
in the standard broadcast bands. The broadcast frequencies be¬
tween 6000 kc. and 20,000 kc. give long distance service but cannot
replace the service of clear channels. They are subject to inter¬
national interference and wide variations in propagation charac¬
teristics. If all the frequencies between 6000 and 20,000 kc. avail¬
able to broadcasting were used in the United States there still
would not be enough frequency space to provide a full and complete
competitive service to rural communities.
With respect to frequencies for broadcasting above 30,000 kc.
there was much discussion at the time of the hearing in June.
These frequencies are capable of giving a better and more satis¬
factory service to a local area than are the standard broadcast fre¬
quencies. Signals from stations operating on these frequencies are
steady, substantially free of interference and capable of giving
high fidelity service. If your Commission will authorize the com¬
mercial use by broadcasters of an adequate band of frequencies
above 30,000 kc. you will take a step toward the eventual reduction
in the congestion in the standard broadcast band. Receiving sets
for these frequencies will come into use when frequency allocations
are stabilized and local service will be greatly improved.
In conclusion, all topics under Item I can be answered by the
application of existing data which are available and the answers
to the questions may be summarized as follows:
Summary
(1) Specify by regulation standard of service “free of inter¬
ference” on basis of OUTPUT of receiving set.
(2) Specify by regulation a “typical receiving set,” including
all factors which influence the output of this receiver.
(3) Specify propagation curves to be used in allocation problems
to relate field intensities to output of transmitting stations.
(4) Classify by regulation each frequency on which duplicated
operation is permitted on the basis of a protected primary service
area in which a station is entitled to reception “free of inter¬
ference” permitting use of sufficient power to provide field in¬
tensity sufficient to overcome man-made interference to the limit
of this area.
(5) Provide clear channels without limit of power in order to
give the best possible secondary service to persons outside primary
service area of stations specifying standards of protection for
primary service area.
(6) Set up mileage-frequency separation tables which relate all
factors of standards of service, receiving sets and propagation for
each classification of stations and for all frequencies capable of
producing interference.
(7) Specify basis on which standards can be replaced by field
observations of existing conditions.
(8) Make application of devices such as directional antennas,
synchronization, etc., only if such application results in improved
service in areas without adequate service and where it is possible
to give complete service to the population of the area, specifying
standards of service and all conditions at time of such grant.
Data have been submitted which can be used to set up and
measure all those factors. If these data are not sufficient to meet
your need and you believe that more data are required, the problem
is so important to the American public that the data necessary
must be obtained before you make decisions that will change the
fundamentals of allocation. Technical facts are known now or
can be measured; they should be applied accurately and at all
times.
Jolliffe Cross Examined
Under cross-examination by Mr. Craven, Dr. Jolliffe said that it
is absolutely essential to have flexibility of the Commission’s regu¬
lations. He agreed he said with the announced policy of the Com¬
mission in this regard. Dr. Jolliffe discussed the international situa¬
tion and explained that he had attended all of the international
radio conferences with the exception of one. He admitted that
there are international interference complications in North America
including Central America but he expressed the opinion that they
1700
are not very serious. At the Madrid Conference he stated that the
engineers did not expect any serious interference from S00 kilowatt
stations.
South American Situation
In connection with the South American situation he called atten¬
tion to the fact that the population there is very sparse. He said
that in South America they could obtain good radio service from
their own stations without any interference from a limited number
of 500 kilowatt stations in the United States. The situation there
he said has not become acute. Detailed data relative to interference
in South America from the United States is being collected by the
UIR and will be available at the meeting next year of the C. C. I. R.
at Bucharest.
Answering a specific question Dr. Jolliffe said that in his opinion
500 kilowatts stations can not serve the whole country. He called
attention to the fact that high power stations might deliver a better
signal 1,000 miles away from their location than they would 250
miles away because of fading. In his opinion he stated that a
high powered New York station could not give a good service to
the West Coast under present development of radio. If a station
were placed on the same frequency on the West Coast and the
dominant station on the East Coast had its power increased the
West Coast station would have its service very materially reduced,
he stated. In limiting the power of stations Dr. Jolliffe said that
it would tend to impede progress in radio. Questioned about the
duplication of 790 kilocycles by WGY with 50 kilowatts and KGO
with iy2 kilowatts. Dr. Joliffe said that each station renders a good
service in their primary area.
1701
The National Association of Broadcasters
NATIONAL PRESS BUILDING * * » » . WASHINGTON, D. C.
JAMES W. BALDWIN, Managing Director
NAB REPORTS * * * *
Copyright. 1936. The National Association of Broadeasten
Vol. 4 - - No. 60
OCT. 16, 1936
CBS and Hearst Radio Testify Before FCC
at Allocation Hearing
Representatives of the Columbia Broadcasting System and
Hearst Radio, Inc., appeared today at the allocation hearing be¬
fore the Federal Communications Commission and completed
their testimony.
Hearings were adjourned today until next Monday when they
will again be resumed. While members of the Commission would
not express a definite opinion it is generally understood that the
hearings will be completed either Tuesday or Wednesday of next
week.
Harry C. Butcher, vice president and Washington representa¬
tive, Dr. Frank N. Stanton, E. K. Cohan and William B. Lodge,
all of Columbia Broadcasting System, testified, and E. J. Gough,
vice president, and J. L. McCarthy, Director of Marketing of
Hearst Radio, Inc., also presented their case to the Commission
today.
E. J. Gough
Mr. Gough during the course of his testimony recommended
that the collection of up-to-date information as to the number
and distribution of radio families in the United States and perti¬
nent data related to it be again undertaken by the government
in view of the fact that present governmental information is
obsolete.
He told the Commission that the principles which he would
discuss are fundamental “to the successful social and economic
functioning of American broadcasting.”
Mr. Gough said:
In coming to this hearing, Hearst Radio does not appear in the
favor of any particular class of station or service.
The ten stations comprising Hearst Radio embrace all classes
of transmitters as at present defined. They are widely scattered
throughout the country and are located in sections which vary
greatly as to social and economic characteristics as well as with
regard to technical broadcast service required.
Though Hearst Radio is one of the varied Hearst interests, it
is operated independently and strictly as a broadcasting business.
Present Information
The purpose of Hearst Radio in appearing before this Commis¬
sion is to present certain information, principally in the economic
field, which we believe will be of assistance in the determination
of fundamental policy regarding the allocation of broadcasting
facilities in the public interest.
We present this information in response to the Commission’s
express desire, when it stated in its original notice of hearing
that it wished “to obtain the most complete information available
with respect to this broad subject of allocation, not only in its
engineering but also in its corollary social and economic phases,
to the end that such regulations and standards as it may retain
or adopt will make possible such use of the band 550-1600 kc. as
will provide maximum service (both transmission and reception)
in the public interest.”
Our testimony will concern itself principally with the economic
factor as it relates to American broadcasting and broadcast regula¬
tion. We have done this for one reason.
The more we have studied the problems involved in this hearing
and the proposals advanced for their solution, the more we have
become convinced of the fundamental and even dominant part
which must be played by economic considerations in the develop¬
ment of sound constructive policy for the future growth of broad¬
casting in the public interest.
ALLOCATION HEARINGS BEFORE THE
FEDERAL COMMUNICATIONS COMMISSION
WERE ADJOURNED TODAY UNTIL NEXT
MONDAY SO THAT THE NEXT DAILY BUL¬
LETIN WILL BE DATED OCTOBER 19.
Sound Technical Development
We are firmly convinced that sound technical development in
the public interest can result only if adequate scientific study is
given to the economics involved.
The economic testimony which we will present undoubtedly
will have a bearing upon a number of phases of this hearing as
these were outlined in the original notice of the Commission.
Among these are included the possible desirability of establishing
new classes or of subdividing, modifying or abolishing any existing
class of station; the question of the proper definition of each
class of station with respect to its purpose and character of serv¬
ice; the weight which should be given to such factors as area,
population and economic support in the allocation of facilities;
and the desirability of establishing a system for evaluating facili¬
ties so that a fair, efficient and equitable distribution of radio
service may ensue.
We shall not attempt to advance any detailed and specific
recommendations on particular points such as the aforementioned.
Fundamental Principles
Rather we shall confine our discussion to a consideration of the
fundamental principles and information in fields such as the afore¬
mentioned which constitute the raw materials out of which de¬
tailed regulations or policies necessarily must be constructed. We
have confined ourselves to this purpose partly because we wished
to avoid every possibility of bias in our discussion and partly
because we believed further detailed study of fundamental data
might be required before specific regulations could be formulated.
If our testimony has any specific purpose it is this: To indicate
as clearly as possible the fundamental relationship which exists
between broadcasting economics and the public interest so that
adequate and scientific consideration of the economic factor may be
incorporated in any future regulation which may be developed;
and to emphasize the need of sufficient elasticity in specific regula¬
tions, when, as and if promulgated, to allow a reasonable and
scientific combination of the economic and technical factors in
broadcasting to the end of greater listener service.
Features
In presenting our testimony we shall deal with the following
features:
We shall show, first, the close and varied relationship which
exists between the economic aspects of American broadcasting and
its operation in the public interest.
We shall show, secondly, that consideration of the economic
factor as a fundamental one is in the public interest.
We also will show that the economic factor as it affects broad-
1703
casting is measurable, so that it can be included in regulatory
theory and practice.
Following this, we will indicate that the consideration of the
economic factor as a fundamental one in broadcasting regulation
is not incompatible with sound engineering.
Finally, we will indicate that its inclusion in regulatory theory
and practice will not result in radical changes in the present
broadcasting structure but will furnish a basis for the constructive
evolutionary development of broadcasting facilities in accordance
with the public interest.
Before discussing our first point, I should like to make one final
comment regarding the manner in which Hearst Radio will present
its case.
Relationship
It is my intention as a business man long associated with radio
to outline the relationship which exists between broadcasting
economics and operation in the public interest and to deduce, pos¬
sibly, some fundamental principles in this field.
However, I am not an economic expert. Though I may forecast
in theory what he will deal with in practical detail, I have asked
Mr. J. L. McCarthy, Director of Marketing of Hearst Magazines,
Inc., to discuss the marketing aspects of our presentation. I
mention this so that you may address your questions as to mar¬
keting details to him.
We had originally planned to have our consulting engineer,
Mr. J. C. McNary, discuss the technical phases, but, having heard
the engineering testimony presented in the last few days, we came
to the conclusion that anything he might say would be repetition.
We will therefore confine our presentation to economic matters
and if this proves helpful in the solution of any of your problems
it will be because you will be enabled to coordinate the economic
factors to the technical factors which have already been thoroughly
discussed.
In emphasizing the economic aspects of broadcasting service and
allocation we are by no means unmindful of its basic reason for
existence. Radio broadcasting exists fundamentally for the pur¬
pose of serving listeners. All other purposes are secondary to this.
Listeners
It may seem elementary to ask what constitutes listeners, but
it is nevertheless important to do so. Listeners are persons possess¬
ing sets or having reasonably regular access to sets for purposes
of use. For practical purposes one can consider the number of
families possessing one or more radio sets scattered throughout the
various portions of the country as the measure of the number and
location of radio’s listeners.
Here we are faced with a social problem which has its roots in
economics. I have here a chart prepared for me by my economic
expert. This chart shows the percentage of U. S. population
located within the borders of each state. Population data have
been taken from the 1930 Census. The chart also shows the per¬
centage of total radio families of the country found in each state.
This percentage is based upon the estimated number of radio
families located within each state on January 1, 1936. The esti¬
mates were made by the technical subcommittee of the Joint
Committee on Radio Research, which is sponsored jointly by the
American Association of Advertising Agencies, Association of Na¬
tional Advertisers and the National Association of Broadcasters.
It is the latest and most accurate information available on the
subject. It is undoubtedly a conservative estimate since it repre¬
sents the joint work of technical experts representing the buyers
of time, the agency and the medium.
Distribution of Population
You will note from the chart that important differences occur
in the distribution of population and radio set ownership through¬
out the several states.
The reason for the difference is obvious. Radio ownership is
dependent upon purchasing power, and purchasing power varies
greatly in different sections of the country. The distribution of
radio ownership will continue to be conditioned by the existence
of purchasing power. This is all the more so since the possession
of radio receiving sets by approximately three-quarters of the
families of the country already has brought set ownership suffi¬
ciently far down the income scale to tend to make the distribution
of sets in various portions of the country a relatively static matter.
When we introduce our expert marketing testimony, we shall deal
with this matter in greater detail.
This being the case, we can establish our first principle based
upon economics and social needs alike: radio regulation should
be conceived in terms of radio families and not total population if
fair, efficient and equitable distribution of radio service is to be
made among the several states.
Degree of Growth
This regulation naturally should include some allowance for
such degree of relative growth as may occur in the less saturated
areas. However, this allowance should be based upon a scientific
forecast of possible future development, and not upon either guess¬
work or optimism. Ample market data and tested estimating
technique exist to make such a scientific forecast possible.
May we conclude our discussion of this specific point with one
comment.
The county estimates of the Joint Committee on Radio Research
are an excellent pioneering venture of greatest value socially and
economically to broadcasting. However, these estimates do not
provide all of the information which the Commission should have
if it is to shape its regulation intelligently in terms of radio
families. Neither is it everythng which the advertiser or broad¬
caster desire.
Information as to urban and rural receiving set ownership in
various parts of the country; data for at least all towns of 10,000
or more in population ; the relative degree of ownership of sets
in different parts of the country by various income and racial
groups; data regarding age of sets in different sections and among
various groups — these are some of the facts which the Commission
should have at its disposal for detailed and painstaking analysis.
Collection of information of this type involves a task of con¬
siderable magnitude. Its social and economic importance makes
it a logical function of government, just as is the conduct of the
U. S. Census, which in 1930 included a radio set census.
Radio Families Increase
Unfortunately an estimated increase in the number of radio
families in this country of more than 90 per cent has made this
information completely obsolete.
We respectfully recommend that the collection of up-to-date
information as to the number and distribution of radio families
in the United States, and pertinent data related thereto, be again
undertaken by the Government.
This, then, is the first and most elementary point at which
economics impinge upon broadcasting in the public interest. How¬
ever, it is but one point.
Let us therefore proceed with the more important aspects of
the relationship which exists between broadcasting economics and
public service.
It should be axiomatic that a broadcasting station is able to
operate in the public interest only to the degree to which it can
secure revenues adequate to render the standard of service required
for this purpose. Without adequate revenues, continued operation
in the public interest is impossible.
Revenues for the operation of a broadcasting station can be
secured from two sources, depending upon which of the two basic
forms of broadcasting organization most prevalent in the world
today happen to be employed.
Government Ownership
If government ownership is resorted to, either directly or by
means of a public corporation such as the British Broadcasting
Corporation, then revenues for operation must be secured by
taxation.
If private ownership and competitive operation under govern¬
ment regulation, such as prevalent in the United States, is em¬
ployed, then revenues for operation must come from the sale of
the station’s facilities to advertisers.
These two methods, advertising and taxation, are the only
practical methods of financing a broadcasting station or national
system.
Analysis of Commission station lists and similar data reveals
that in this country, out of 628 licensees, only 11 stations, com¬
prising 1.7% of the total number and representing less than one-
half of one per cent of the nation’s total facilities, calculated on a
quota unit basis, are financially supported by other than the
sale of time to advertisers or indirectly by taxation as in the case
of educational or municipal stations. The method of private
ownership and competitive operation of broadcasting stations is
firmly established in this country. This system received official
1704
recognition and sanction when, after extensive hearings touching
upon every conceivable aspect of the organization, operation and
service of radio broadcasting, the Congress of the United States
passed the Radio Act of 1927. The basic theory and detailed pro¬
visions of this act were unequivocally based upon a privately
owned and competitively operated broadcasting system. The so-
called American system again was confirmed in the Communica¬
tions Act of 1934, the provisions of which continued to be predi¬
cated upon such a system.
System Justified Itself
This system has amply justified itself in the fifteen years of its
operation and in the ten scant years of its recognized legal exist¬
ence. During that period it has come to serve approximately
23,000,000 families representing more than 70,000.000 people.
These families are scattered throughout every one of the 3,073
counties in the United States. Approximately 3,000,000 of these
families consider radio sufficiently important to have more than
one set in their homes while about 3,000,000 of them have sets in
their automobiles.
According to the statement made by Mr. James W. Baldwin,
Managing Director of the National Association of Broadcasters, at
the June 15th hearings of this Commission, the ownership of radio
receiving sets is more widespread than is that of any other com¬
monly accepted standard of living factor in American life. The
23,000,000 radio families are to be compared with 11,000,000 resi¬
dence telephones, 21,000,000 wired homes and an estimated 17,650,-
000 families possessing one or more passenger automobiles.
Such a degree of radio set ownership can occur only where
appreciative and satisfied listeners exist.
The competitive aspects of the American system have produced
one of the most advanced broadcasting services in the world, both
technically and from the program viewpoint. American program
service has been particularly democratic, since it is based upon
popular approval. Private ownership and competitive operation
in this country also has fostered and maintained a degree of free¬
dom of speech and civic discussion unparalleled in any other
country.
Private Ownership
The continued existence of a broadcasting structure based upon
private ownership and competitive operation in the United States
has been made possible only by the financial support derived from
advertisers. Service of American broadcasting in the public inter¬
est is therefore fundamentally dependent upon its economic success
as an advertising medium. Eliminate advertising revenues and
you eliminate the American system of broadcasting, just as you
would eliminate the American press.
Let us be quite clear on one point regarding advertising sup¬
port of American broadcasting. In spite of obvious shortcomings
in individual instances, advertising support has been in the public
interest.
Advertising, over and above its fundamental value as a source
of revenue, has made constructive social contributions to the serv¬
ice of American broadcasting.
It has fostered technical development in that stations have
exerted every effort to adequately cover their market areas so as
to be able better to reach listeners and therefore to attract adver¬
tising accounts.
Advertising has fostered the development of general program
service. The many and varied programs sponsored by national
advertisers, ranging from the world’s best symphonic music to
its funniest comedians, have added greatly to the wealth of enter¬
tainment and cultural material available to American listeners.
In a similar manner have the local programs of the more im¬
portant individual station advertisers been of service to listeners.
Advertising Sponsorship
Possibility of advertising sponsorship and of attracting accounts
has impelled stations of build programs which would win loyal
audiences in their community.
Advertising also has tended to pioneer in the use of new pro¬
gram forms and thus enhance the variety of entertainment avail¬
able to listeners. This has been definitely established by Dr. Her¬
man S. Hettinger of the University of Pennsylvania in his authori¬
tative study of broadcasting economics entitled “A Decade of
Radio Advertising.” (Table XXXIII, pages 228-229.)
Finally, radio, in common with all advertising, has been a con¬
structive force in its own right, where properly applied. Adver¬
tising is a constructive force. It educates the public to new utili¬
ties, thus aiding in raising the standard of living. It stimulates
demand, and therefore aids in speeding up the movement of trade.
Consequently it assists in keeping the wheels of industry in motion
and in maintaining employment.
One thing is particularly important to remember when con¬
sidering the relationship of advertising revenues to the operation
of broadcasting in the public interest.
Increased Advertising
The helpful effect of advertising support is cumulative. In¬
creased advertising volume means added revenues. Added revenues
make possible improved technical and program service to the end
of attracting more and loyal listeners. Such improved technical
and program service make the station even more attractive to
advertisers with consequent further stimulation in advertising
volume. Thus an ever widening circle of service is set up.
It is assumed, of course, the station owners will turn back suffi¬
cient portions of their increased revenues into listener service.
This seems to be a reasonable assumption, at least from the ex¬
perience of Hearst Radio. No sooner did we take over station
KTSA than we proceeded to install a new transmitter so that we
might better serve the surrounding territory. We also are taking
steps to improve the general program service to the maximum
degree possible in keeping with local needs and desires.
Of particular importance to this hearing is the converse of the
preceding observation. If added advertising revenue exerts a
cumulatively helpful influence on station listener service, then the
loss of advertising revenue likewise constitutes a cumulative drag
upon station service.
Broadcasting is a peculiar industry in that it is the only one of
which I know where costs increase as volume of business decreases.
Every hour not filled with a sponsored program must be supplied
with sustaining program service.
Thus the loss of an advertising program reduces revenues and
at the same time increases operating costs, if program standards
are to be maintained.
Difficult to Supplant
Moreover, if the advertising program is a particularly popular
one, it may be difficult to supplant it with another of like quality.
Loss of any large number of such programs may reduce program
quality over the station to the point where the listening audience
begins to turn to other stations. Reduced listener audience tends
further to reduce advertiser interest in the station, so that financial
failure becomes almost inevitable.
We can now deduce a second principle from these observations
as to the fundamental relationship of advertising to the public
interest: Since the operation of the American system of broadcast¬
ing in the public interest is dependent upon the revenues which it
secures as an advertising medium, any system of regulation, if it
wishes to foster operation in the public interest to the maximum
degree, must recognize, as one fundamental factor, the potentiality
of securing sufficient advertising revenue by the station to make
such service possible.
The question now arises as to how this principle may be recog¬
nized in a practical manner. Answer of this question requires a
more thorough analysis of the nature of the advertiser’s interest
in a specific radio station. What is this interest ?
Potential Purchasers
The advertiser is concerned with the potential purchasers of his
product. Radio listeners are potential buyers, especially for mass
consumption goods. The broadcasting station provides the adver¬
tiser with a potential contact with the listeners situated in this
service area. This contact consists basically of the station’s ability
to deliver a signal in that area of a strength, quality and con¬
sistency sufficient to make possible regular listening. Herein lies
the fundamental value of a station as an advertising medium.
Here we come to another highly important economic factor.
An advertiser’s interest in a station does not rest upon its indis¬
criminate coverage of listeners. Coverage in a distant continent or
some other far-removed spot is interesting but of dubious economic
value.
This does not nullify the value of coverage over wide distances
on clear channel stations where sky wave reception from such
transmitters may constitute the principal means of night-time
listening.
But such coverage is of importance only where the advertiser
has sufficiently widespread markets and where his distribution
1705
takes in a sufficiently large proportion of possible ret
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